Nuix 1H24 results and nuix neo update

Nuix (ASX: $NXL) has announced its 1H24 results, reporting a 17.3% growth in Annualised Contract Value (ACV) to $199.6 million, along with updates on the progress of the early stages of the rollout of Nuix Neo. The company's Statutory Revenue increased by 12.3% to $98.4 million, and the Underlying EBITDA rose by 12.8% to $28.4 million. However, the Statutory EBITDA decreased by 17.6% to $17.2 million. Nuix also recorded positive underlying cash flow from operations of $6.6 million for the half year, ending with $24.0 million cash on hand and no debt.

Executive commentary on 1H24 results and nuix neo update

During the half, the Nuix team has not only delivered on further momentum in top line growth, but also made significant progress on our core strategic growth initiative, Nuix Neo. We have continued to drive growth in ACV and Statutory Revenue, while remaining focused on costs, contributing to further growth in Underlying EBITDA. Commercial relationships with our customers remain strong, as evidenced by further momentum in our NDR and generally low churn. The launch of Nuix Neo Data Privacy and Investigations solutions to early adopters in the half reflects an enormous effort right across the organisation. We are pleased to have delivered on these initiatives in line with the timetable we previously outlined. Combined with the Legal Processing solution, to be launched in the second half of this financial year, these solutions provide a step change in our offering to the Nuix customer base and will be a key driver underpinning further growth.

Summary of Nuix 1H24 results and outlook

Nuix (ASX: $NXL) reported a 17.3% growth in ACV to $199.6 million and a 12.3% increase in Statutory Revenue to $98.4 million for the 1H24. The company also achieved positive underlying cash flow from operations of $6.6 million and ended the half with $24.0 million cash on hand and no debt. The launch of Nuix Neo Data Privacy and Investigations solutions to early adopters, along with the progress on the Legal Processing solution, demonstrates the company's commitment to strategic growth initiatives. Nuix reconfirmed its strategic targets for the full year, including targeting ~10% ACV and Statutory Revenue growth in constant currency, successful rollout of Nuix Neo and associated Solutions to Early Adopters, broadened sales focus to further drive new business, revenue growth to exceed operating cost growth, and underlying cash flow positive for the full year. The company's new revolving debt facility agreement provides Nuix with greater flexibility and options to drive growth as part of the Company's build, buy or partner approach.