Just re-read the 21 April "Nuix revises FY21 forecasts - market release" - as well as the Macquarie Conference Presentation. We need to be clear that COVID has been a very difficult period for a lot of organisations globally (stating the obvious) and I can understand the accelerated change to consumption licenses as a variable cost exposure to Nuix customers rather than a fixed costing model. This is very important to note, and understandable of any organisation in slow and uncertain times where 'EBITDA and Quarterly Last Estimate' protection / stabilisation is paramount. 2020 and 2021 FY EBITDA stabilisation in a large way has been orchestrated by optimising bottom-line expenses rather than hoping for top-line growth. Easy to understand the acceleration to consumption licenses in this climate and also understandable that this was unexpected.
As quoted in this updated and known to most here - "The fundamental revenue drivers for Nuix are strong and underpinned by a growing order book and pipeline. It reflects the underlying strength of the Nuix software offering, a sticky, loyal customer base, strong growth in new business and an increase in order size"
This Nuix sentiment speed-bump is an opportunity. I picked up another parcel today.
NXL Price at posting:
$3.70 Sentiment: Buy Disclosure: Held
(20min delay)