Slide 1: 1H22 Financial Results Investor Presentation
MARKET RELEASE 21 February 2022 1H22 Financial Results Investor Presentation Please see attached the 1H22 Financial Results Investor Presentation. This announcement is authorised by the Board of Nuix. Investor Contact Media Contact Brett Dimon Helen McCombie Head of Investor Relations Citadel-MAGNUS
Slide 2: 1H22 Financial Results
1H22 FINANCIAL RESULTS JONATHAN RUBINSZTEIN, CHIEF EXECUTIVE OFFICER CHAD BARTON, CHIEF FINANCIAL OFFICER 21 FEBRUARY 2022 Nuix Limited
Slide 3: Agenda
2 Nuix Limited 1H22 Financial Results AGENDA 1. OUTLOOK & HIGHLIGHTS 2. FINANCIAL RESULTS 3. CONCLUDING REMARKS
Slide 4: Outlook & Highlights
3 Nuix Limited 1H22 Financial Results 1 OUTLOOK & HIGHLIGHTS JONATHAN RUBINSZTEIN, CHIEF EXECUTIVE OFFICER
Slide 5: About Nuix
4 Nuix Limited 1H22 Financial Results ABOUT NUIX Nuix transforms large amounts of unstructured data into actionable intelligence at scale and speed The Patented Nuix Investigative Our People Engine An End-to-End Analytics A Fully Integrated We hire the best and build Solution Platform their expertis
Slide 6: Early Observations
5 Nuix Limited 1H22 Financial Results EARLY OBSERVATIONS Three months in.. » Nuix has great technology and a talented team » This has allowed us to solve a broad range of customer problems » The market potential continues to grow and expand into new industry sectors and Jonathan Rubinsztein uses for
Slide 7: Driving Growth
6 Nuix Limited 1H22 Financial Results DRIVING GROWTH Focus on customer centricity » Drive a focus on our great people and technology on solving customers’ highest value/risk problems SIMPLICITY » Hone every aspect of our business on the evolving needs of our customers CUSTOMERS AND OUR PEOPLE PRIORI
Slide 8: What Will It Take?
7 Nuix Limited 1H22 Financial Results WHAT WILL IT TAKE? HORIZON 3 Solve for the future THREE HORIZONS Longer-range OF CHANGE HORIZON 2 investment and Differentiate for large prioritisation of innovation pipeline for enterprise new ways to use our HORIZON 1 Medium term growth technologies from antic
Slide 9: What Will It Look Like?
8 Nuix Limited 1H22 Financial Results WHAT WILL IT LOOK LIKE? 1 Simplified annualised performance metrics to highlight growth IMPLEMENTING 2 Targeting where we will win across industries and geographies STRATEGIC REVIEW OUTCOMES 3 Sales enablement and account management 4 Investment in alliances and
Slide 10: Strategic Goals
9 Nuix Limited 1H22 Financial Results STRATEGIC GOALS Customer-centric organisation REACHING Return to strong top-line growth STRATEGIC GOALS TO DRIVE GROWTH Simple structure and processes, with clear accountabilities Great place to work Build trust with our investors
Slide 11: 1H22 Key Financial Metrics
10 Nuix Limited 1H22 Financial Results 1H22 KEY FINANCIAL METRICS Statutory Revenue Annualised Contract Value (ACV)1 EBITDA3 $84.0m $164.5m $13.8m Down 1.5% on 1H21 Up 1.7% on 1H21 Down 56.4% on 1H21 (pro-forma) Down 1.6% on constant currency basis2 Up 2.4% on constant currency basis Down 57.1% on c
Slide 12: Technology Highlights
11 Nuix Limited 1H22 Financial Results TECHNOLOGY HIGHLIGHTS Further Investment in SaaS Platform » Engineering team ran successful proof of concept unifying the end-to-end Nuix platform leveraging the cloud and parallel processing Automation » General availability of Automation, allowing customers t
Slide 13: Business Highlights
12 Nuix Limited 1H22 Financial Results BUSINESS HIGHLIGHTS North America » Two significant deals closed with large corporates » Renewed multi-year deals with three key advisories, including meaningful Discover footprint and closer partnership » Strong performance from US Government with future growt
Slide 14: Regional Update
DRAFT 13 Nuix Limited 1H22 Financial Results Not for distribution REGIONAL UPDATE North EMEA Asia Pacific America 21% 17% 61% of of of Statutory Statutory Statutory Revenue Revenue Revenue North America EMEA Asia Pacific • North America stronger, up 13% to $51.3m, • EMEA weaker, down 32% to $18.0m,
Slide 15: Financial Results
14 Nuix Limited 1H22 Financial Results 2 FINANCIAL RESULTS CHAD BARTON, CHIEF FINANCIAL OFFICER
Slide 16: Annualised Contract Value (ACV)
15 Nuix Limited 1H22 Financial Results 1H22 ACV $164.5m as at 31/12/21 ANNUALISED CONTRACT VALUE (ACV) » Total ACV up 1.7% on pcp, up 2.4% in ACV ($m) constant currency 161.8 164.5 165.8 » Subscription ACV1, up 4.9% on pcp, 156.6 16.6 17.0 representing 89.9% of Total ACV 20.9 130.9 30.0 » Consumptio
Slide 17: Growth in Consumption ACV
16 Nuix Limited 1H22 Financial Results GROWTH IN CONSUMPTION ACV 1H22 Consumption ACV $27.1m as at 31/12/21 Consumption ACV, including SaaS ($m) » Consumption ACV1 up 24.6% on pcp 27.1 27.2 » Consumption ACV is a subset of Subscription ACV 21.8 » Continued customer demand for shift 12.9 13.1 to cons
Slide 18: Total Revenue
17 Nuix Limited 1H22 Financial Results 1H22 Revenue $84.0m TOTAL REVENUE » Revenue down 1.5% on pcp, down 1.6% in constant currency1 Total Revenue ($m) » Subscription revenue2 91% of total revenue » New business $9.2m, down 30% on pcp » Strong lift in multi-year deals, to 43.8%3 88.8 85.3 84.0 83.9
Slide 19: Revenue by Licence Type
18 Nuix Limited 1H22 Financial Results REVENUE BY LICENCE TYPE Total Revenue by Licence Type SHIFT TO CONSUMPTION 88.8 85.3 84.0 83.9 » Mix shift towards consumption-based 5% 77.3 2% 5% 5% licences continues 10% 6% 4% 4% 6% 13% » Driven by several key customer shifts in 7% 12% 14% 14% the half 8% 9%
Slide 20: Research & Development
19 Nuix Limited 1H22 Financial Results RESEARCH & DEVELOPMENT 40.0 Total R&D ($m) and R&D as a proportion of total revenue (%) 40% INCREASE IN R&D COMMITMENT 34% 35% » R&D Headcount up 21 % on pcp 35.0 35% 30% » Important progress on critical R&D 28.8 29.0 projects, including further development 30.
Slide 21: Income Statement
20 Nuix Limited 1H22 Financial Results INCOME STATEMENT 1H21 1H22 Change $ millions 1H22 Change2 Pro-forma1 CC3 CC3 Software Revenue 79.5 83.5 -4.8% 79.4 -4.9% Key points: Other Revenue 4.6 1.9 144.2% 4.5 143.5% 84.0 85.3 -1.5% 83.9 -1.6% » 1H22 revenue down 1.5% on 1H21, down 1.6% in constant Total
Slide 22: EBITDA Waterfall
21 Nuix Limited 1H22 Financial Results EBITDA WATERFALL
Slide 23: Cash Flow
22 Nuix Limited 1H22 Financial Results CASH FLOW Key points: » Software development mostly funded from cash flow » Investment in Research & Development reflected in software development costs » Topos acquisition and legal cost payments separate to normal operating cash flow
Slide 24: Balance Sheet
23 Nuix Limited 1H22 Financial Results BALANCE SHEET $ millions, as at 31 Dec 21 30 Jun 21 ASSETS Key points: Cash and cash equivalents 52.5 70.9 » Net cash $52.5m Trade and other receivables 35.5 19.5 » Trade and other receivables impacted by timing of Unbilled receivables 49.5 53.8 renewals; 1H22
Slide 25: Concluding Remarks
24 Nuix Limited 1H22 Financial Results 3 CONCLUDING REMARKS JONATHAN RUBINSZTEIN, CHIEF EXECUTIVE OFFICER
Slide 26: Strategic Goals
25 Nuix Limited 1H22 Financial Results STRATEGIC GOALS Customer-centric organisation REACHING Return to strong top-line growth STRATEGIC GOALS TO DRIVE GROWTH Simple structure and processes, with clear accountabilities Great place to work Build trust with our investors
Slide 27: Q&A
26 Nuix Limited 1H22 Financial Results Q&A
Slide 28: Appendix
27 Nuix Limited 1H22 Financial Results APPENDIX
Slide 29: People
28 Nuix Limited 1H22 Financial Results PEOPLE Employees by Employees by Total Employees Reinvestment into people Region Function » Continued reinvestment in 504 headcount 478 73 424 » 13% increase in headcount 16% 75 on pcp 29% 66 40% » Lift in employee retention 211 and recruitment costs; 210 58% 1
Slide 30: Industry & Regional Diversification
29 Nuix Limited 1H22 Financial Results INDUSTRY & REGIONAL DIVERSIFICATION Global organisation with Revenue by Industry Group Revenue by Region ($m) broad client base 88.8 85.3 » Australian-headquartered, 84.0 83.9 global organisation 13% 15% 16% 17% 18% » Industry mix remains well 35% diversified 1
Slide 31: Customers
30 Nuix Limited 1H22 Financial Results CUSTOMERS Upfront multi-year deals (% of Total Revenue) Diversified customer base Customer Customer Concentration Tenure 43.8% » Lift in multi-year deals, to 36.3% 43.8% of revenue 25.4% » Average new order value 15.6% $186k 24% 33% 37% 42% FY19 FY20 FY21 1H22
Slide 32: Licence Type Implications on Revenue Recognition
31 Nuix Limited 1H22 Financial Results LICENCE TYPE IMPLICATIONS ON REVENUE RECOGNITION 1 year licence 3 year MYD licence Delivery model Licence type Impact in month 1 Impact in month 1 Subscription licence1 3.6 • $1.2m on-premise module licence – 1 year or 1.2 1.2 1.2 • $3.6m on-premise module lice
Slide 33: Revenue Mix
32 Nuix Limited 1H22 Financial Results REVENUE MIX Other Revenue Software Revenue Revenue • Subscription Revenue includes Module, (5% 1H22 Type (95% 1H22 Total Revenue) Total Consumption and Support and Revenue) Subscription Maintenance (S&M) (91% 1H22 Total Revenue) Perpetual Software Licence Suppo
Slide 34: Glossary
33 Nuix Limited 1H22 Financial Results GLOSSARY 1) Annualised Contract Value (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
Slide 35: Constant Currency and Pro-Forma Adjustments
34 Nuix Limited 1H22 Financial Results CONSTANT CURRENCY AND PRO-FORMA ADJUSTMENTS Constant Currency has been calculated using the below methodology: 1. Constant currency rates are calculated by dividing the total 1H21 consolidated AUD revenue associated with a currency by the total 1H21 transaction
Slide 36: Disclaimer
35 Nuix Limited 1H22 Financial Results 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 (21 February 2022). It is provided in summary and does not purport to be complete. This infor