Slide 1: 1H FY21 Financial Results
1H FY21 Financial Results Presenters: Rod Vawdrey, CEO Stephen Doyle, CFO ASX: NXL | nuix.com
Slide 2: Disclaimer
Disclaimer The material contained in this document is a presentation of general information about Nuix Limited’s activities current as at the date of this presentation (26 February 2021). It is provided in summary and does not purport to be complete. This information has been prepared by Nuix Limite
Slide 3: Agenda
Agenda 1H FY21 HIGHLIGHTS FINANCIAL RESULTS STRATEGY & OUTLOOK NUIX | 1H FY21 RESULTS 3
Slide 4: About Nuix
About Nuix With Nuix you can transform massive amounts of messy data into actionable intelligence at scale and speed Understand the context and Search it, filter it, visualise it, analyse connections across billions of items it, and find the truth it holds in your data The Patented Investigative Our
Slide 5: 1H FY21 Operating Highlights
1H FY21 Operating Highlights 1H FY21 results see Nuix on track to meet FY21 Prospectus forecast IPO LISTING ORDERS PRODUCT PEOPLE CLIMATE Successful listing on Strong customer Latest releases Attracting key new Data growth and 4 December 2020 engagement deliver integrations, hires with market regula
Slide 6: 1H FY21 Financial Highlights
1H FY21 Financial Highlights 1H FY21 revenue in line with seasonal expectations despite considerable FX headwinds, COVID and the US election; profit margins improved due to strong operating model Statutory Revenue1 Annualised Contract Value (ACV) Pro forma EBITDA3 $85.3m $162m $31.6m 3% yoy 44% of F
Slide 7: Financial Results
Financial Results NUIX | 1H FY21 RESULTS
Slide 8: 1H FY21 Revenue Bridge
1H FY21 Revenue Bridge 1H FY21 revenue recognition includes the effects of new business, increased SaaS migration, FX headwinds and deal timing • Key observations: • Strong new business of $13.1m in 1H FY21 • FX headwind of $2.4m relative to budgeted rate (0.69) 1H FY21 revenue as a % of FY21F reven
Slide 9: Annualised Contract Value (ACV)
Annualised Contract Value (ACV) Nuix has a demonstrated track record to attract new customers, retain existing customers and grow the contract value generated by its customer base over time, highlighted by low churn and NDR in excess of 100% ACV ($m) 180 168 157 162 US Gov. 1H FY21 ACV $162m as at 3
Slide 10: Pro forma Income Statement
Pro forma Income Statement $ millions 1H FY20 1H FY21 Change1 Software Revenue 84.8 83.5 -1.5% • 1H FY21 revenue down 4% yoy (refer to slide 8) Other Revenue 4.0 1.9 -53.8% • Gross margin maintained during the period Total Revenue 88.8 85.3 -4.0% Cost of Goods Sold (9.4) (9.2) -2.6% • EBITDA margin
Slide 11: Balance Sheet
Balance Sheet $ millions, as at 30 Jun 20 31 Dec 20 ASSETS • Strong balance sheet with net cash of $102.6m Cash and cash equivalents 38.5 128.2 • Additional debt facilities of $24m available Trade and other receivable 60.2 60.6 Other current assets 1.9 7.9 • Intangibles primarily comprise: Property,
Slide 12: Pro forma Cash Flow
Pro forma Cash Flow Statutory Pro forma adjustments Pro forma $ millions 1H FY21 P&L Cash flow 1H FY21 • Strong cash generation EBITDA (4.4) 35.9 - 31.6 • Low capex, highly efficient operations Add back non-cash items 3.4 (3.0) - 0.4 EBITDA excluding non-cash items (1.0) 32.9 - 32.0 • Non-cash items
Slide 13: Strategy and Outlook
Strategy and Outlook NUIX | 1H FY21 RESULTS
Slide 14: Growth Opportunities
Growth Opportunities The driving force behind Nuix’s growth to date has been the ability of the Nuix Engine to effectively process large quantities of data, and the development of specific software applications for an increasing number of use cases. Future growth depends on expanding into new market
Slide 15: Outlook
Outlook Total revenue of $193.5 million Re-affirm FY21 forecast as per the Annualised contract value (ACV) of $200 million IPO Prospectus Pro forma EBITDA of $63.6 million Nuix is building on its platform for long-term growth, leveraging its powerful data processing engine to help customers with an
Slide 16: Q&A
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Slide 17: Appendix
Appendix NUIX | 1H FY21 RESULTS
Slide 18: Nuix at a glance
Nuix at a glance • Leading provider of investigative analytics and intelligence software • Software licensed to over 1,000 customers located in 78 countries • Global footprint with 424 full time employees across North America, EMEA and Asia Pacific • Listed on the ASX on 4 December 2020 (ASX:NXL) •
Slide 19: What we do
What we do Nuix produces software to extract knowledge from unstructured data Digital forensic investigation Employee and insider Data governance Financial crime investigations eDiscovery and regulatory Litigation support Data protection and privacy compliance NUIX | 1H FY21 RESULTS 19
Slide 20: Nuix Software Platform
Nuix Software Platform Nuix produces software to extract knowledge from unstructured data. Its applications include digital forensic investigation, financial crime, litigation support, employee and insider investigations, data protection and privacy, data governance, eDiscovery and regulatory compli
Slide 21: Industry Overview
Industry Overview Nuix is a leading player in the US$4 billion eDiscovery and Digital forensics software markets and an emerging player in the US$23 billion GRC and Endpoint security software markets. Together these markets make up the investigative analytics and intelligence software market. EXISTI
Slide 22: Research & Development
Research & Development TOTAL R&D ($M) AND R&D AS A % OF TOTAL REVENUE (%) • Investment in innovation and product development 55 34% Historically R&D spend has been: 35 50.8 50 • 47.5 8.2 30 28% 45 • ~30% of total revenue 9.8 29% 25 26% 40 • ~80% capitalised 35 20 31.8 • Focused on developing the Nui
Slide 23: Expense Analysis
Expense Analysis1 Economies of scale leading to improved margins as ~80% of operating cost base being employee related expenses Cost of Goods Sold (“COGS”) + Sales and Distribution (“S&D”) + Research and Development (“R&D”) + General and Administrative (“G&A”) • Predominately relates to payments to
Slide 24: NPAT Statutory to Pro forma Reconciliation
NPAT Statutory to Pro forma Reconciliation1 • Reconciliation of statutory NPAT to pro forma $ millions 1H FY20 1H FY21 NPAT presented consistent with the adjustments made in the IPO Prospectus Statutory NPAT 14.5 (16.6) Incremental public company cost (3.6) (3.0) Corporate actions - 2.6 Offer costs
Slide 25: Diversified Business Model
Diversified Business Model Well diversified by both industry and region FY20 Total Revenue by Industry (%) Total Revenue by Region ($m) 194 176 14% 16% 140 15% 23% 16% 114 28% 35% 11% 17% 28% 31% 63% 20% 56% 19% 56% 52% FY18 FY19 FY20 FY21F Advisories Corporate Government Law Firms New Strategic Mar
Slide 26: Glossary
Glossary 1) ACV is an adjusted, non-IFRS measure and does not represent Total Revenue in accordance with AAS or Nuix’s accounting policies or cash receipts from customers. ACV is used by Nuix to assess the total contract value of its software contracts on an annualised basis (removing fluctuations f