Macquarie’s Bastard Child, page-57

Congrats @Moonshine66, you were quoted in the AFR this morning! ha

How low can ‘Macquarie’s bastard child’ Nuix go?
The tech company’s new boss has a lot on his plate. But what will it take to fix the mess and restore its battered credibility?

Towards the end of the article:

Kick in the guts
At its AGM trading update in November, it revealed that revenue from new customers was tracking around 40 per cent lower than the same time last year and statutory revenue was up 10 per cent.In its January 2022 market update, it said it had seen a continuation of the trend of revenue growth from existing customers, but revenue from new customers was lower than the previous corresponding period. It said pro forma EBITDA was expected to be between $13 million to $15 million from a previous corresponding $36.1 million.For a stock that listed a year ago, never mind one pitched as a growth stock, it’s a kick in the guts to investors.It’s why some investors are hyper critical of the role of Macquarie, which before the float owned 76 per cent of Nuix, and made a motza out of the float.All up Macquarie cashed in more than $500 million in the float and still owns 30 per cent of the company.

Legal bills mounting
It prompted one investor to describe Nuix as Macquarie’s bastard child.But even Macquarie must be shell-shocked given it will be facing its own write-down if it marks its remaining Nuix shareholding to market. At current share levels that would be in the hundreds of millions of dollars.With multiple class actions in the wings, investigations by the regulators and the spectre of a claim of up to $183 million by former CEO Eddie Sheehy in shares, the legal bills are mounting.Nuix isn’t for the faint-hearted.