Slide 1: FY23 Financial Results
FY23 J O N AT H A N R U B I N S Z T E I N CHIEF EXECUTIVE OFFICER CHAD BARTON C H I E F O P E R AT I N G O F F I C E R A N D CHIEF FINANCIAL OFFICER FINANCIAL RESULTS 17 AUGUST 2023
Slide 2: Agenda
AGENDA OPENING REMARKS FINANCIAL RESULTS STRATEGIC UPDATE OUTLOOK 2
Slide 3: 1. Opening Remarks
1. OPENING REMARKS JONATHAN RUBINSZTEIN CHIEF EXECUTIVE OFFICER 3
Slide 4: Nuix in Numbers
NUIX IN NUMBERS 20+ 1000+ File types that can be 11 KEY L O C AT I O N S Sydney Canberra Singapore YEARS processed by the Nuix Engine OF Tokyo EXPERIENCE We operate globally with our experts on ~1000 Washington DC the ground across North America, & Philadelphia Nuix is a leading provider of CUSTOMER
Slide 5: Finds the Truth in Data
OUR UNPARALLELED WE HELP OUR Protect Personal Detect ENGINE CUSTOMERS… Data Insider Threats FINDS THE TRUTH IN Achieve Uncover Manage Complex DATA Compliance Fraud Legal Cases We help customers collect, process and review massive amounts of structured and unstructured data, making it searchable and
Slide 6: FY23 Key Messages
FY23 KEY MESSAGES 1. Strong growth in ACV, Statutory Revenue and EBITDA 2. Significant lift in NDR with Churn stable 3. Underlying Cash Flow positive 4. Horizon 1 initiatives at or near completion 5. Nuix Neo launched with first solution Data Privacy to Early Adopters in July 23 6. Strategic targets
Slide 7: FY23 Key Financial Metrics
FY23 KEY FINANCIAL METRICS Annualised Contract Value (ACV)1 Statutory Revenue EBITDA $185.5m $182.5m $34.9m Up 14.5% on FY22 Up 19.8% on FY22 Up 189.2% on FY22 Customer Churn1 Net Dollar Retention1 Net Cash 5.3% 109.2% $29.6m Down from 5.4% in FY22 Up from 96.8% in FY22 Down from $37.1m in 1H23 Note
Slide 8: 2. Financial Results
2. FINANCIAL RESULTS CHAD BARTON CHIEF OPERATING OFFICER AND CHIEF FINANCIAL OFFICER 8
Slide 9: Annualised Contract Value (ACV)
ANNUALISED CONTRACT VALUE (ACV) Solid growth driven by NDR uplift FY23 ACV ACV ($m) +14.5% 185.5 $185.5m, up 14.5% as at 30/06/23 165.9 162.0 15.7 > Total ACV up 14.5% on pcp, up 10.8% in constant currency1 19.1 13.6 +14.4% > Subscription ACV2 , an indicator of recurring ACV, up 14.4% on pcp, repres
Slide 10: Growth in Consumption ACV
GROWTH IN CONSUMPTION ACV Very strong growth in Discover SaaS FY23 Consumption ACV Consumption ACV, including SaaS1 ($m) 33.5 $33.5m, up 17.7% as at 30/06/23 +17.7% > Consumption ACV up 17.7% on pcp, up 14.9% in constant currency2 28.4 13.4 > Consumption ACV is a subset of Subscription ACV 20.2 13.6
Slide 11: Regional Performance
REGIONAL PERFORMANCE Double digit growth in all regions North Asia $96.0m America $50.1m EMEA $39.4m Pacific ACV up 15.0% ACV up 12.2% ACV up 16.4% North America EMEA Asia Pacific > North America ACV up 15.0% on pcp, up > EMEA ACV up 12.2% on pcp, up 11.2% in > APAC ACV up 16.4% on pcp, up 14.2% in
Slide 12: Statutory Revenue
STATUTORY REVENUE Significant rise despite moderation of multi-year deals FY23 REVENUE Statutory Revenue ($m) 200.0 $182.5m, up 19.8% > Revenue up 19.8% on pcp, up 15.8% in constant currency1 +19.8% 150.0 > Moderation of multi-year deals, to 30% of Statutory Revenue, from 40% in pcp 100.0 176.1 182.
Slide 13: Research & Development
RESEARCH & DEVELOPMENT Spend flat in absolute terms, lower as a proportion of revenue 100.0 Total R&D Spend ($m) 45% 90.0 38% 40% > Total R&D investment relatively flat on pcp driven by continued 80.0 33% 35% investment in sustainable revenue generation, particularly in Nuix Neo 70.0 and related sol
Slide 14: Income Statement
FY23 FY23 Change $ millions FY22 Change3 Statutory CC2 CC3 Software Revenue 176.7 146.4 20.7% 170.5 16.4% Other Revenue Total Revenue 5.8 182.5 5.9 152.3 -1.6% 19.8% 5.8 176.3 -1.6% 15.8% INCOME STATEMENT Cost of Goods Sold -23.0 -18.4 -24.5% -22.6 -22.6% Underlying EBITDA up 59.0%1 on pcp, up 51.3%
Slide 15: Statutory vs Underlying EBITDA
STATUTORY VS UNDERLYING EBITDA Revenue growth driving operating leverage Underlying EBITDA Margin 25.5% vs 19.2% in pcp 15
Slide 16: Free Cash Flow
FREE CASH FLOW Underlying Free Cash Flow positive Nuix aims to be Underlying • Positive cash flow from underlying free cash Free Cash Flow +$9.1m vs operations flow neutral -$2.5m in FY22 • Software development costs funded from free cash flow • Topos costs include US$6.25m/ A$9.0m milestone payment
Slide 17: Strategic Acquisitions
STRATEGIC ACQUISITIONS Build, buy or partner strategy to accelerate customer productivity through automation and AI > Announced 23 May 2023, completed 1 July 2023 > Announced and completed September 2021 > Rampiva is a workflow automation and job scheduling provider and > Natural Language Processing
Slide 18: Customer Base
CUSTOMER BASE Long Tenured, Diversified Customer Base ACV by Customer Customer • ~85% of ACV generated outside Industry Group Concentration Tenure Australia 15% 17% • No customer represents more 27% 33% than 4% of ACV 36% 39% 13% • 39% of ACV derived from customers with a tenure over 20% 25% 44% 31%
Slide 19: 3. Strategic Update
3. STRATEGIC UPDATE JONATHAN RUBINSZTEIN CHIEF EXECUTIVE OFFICER 19
Slide 20: Multi-Horizon Strategy Update
MULTI-HORIZON STRATEGY UPDATE FY23 developments across all horizons HORIZON 3 Solve for the future Longer-range investment and prioritisation HORIZON 2 of innovation pipeline for new ways to use Differentiate for large enterprise our technologies Medium term growth from anticipating the HORIZON 1 ne
Slide 21: Horizon 1
HORIZON 1 Key initiatives and enablers at or near completion Commenced In Progress COMPLETED New price book Sales enablement optimisation Improved renewal process Upgrade service & support offerings Organisational restructure Performance & reward alignment Build out marketing function Indicates chan
Slide 22: Horizon 1 Key Initiatives
HORIZON 1 KEY INITIATIVES New Price Book - COMPLETED > New value proposition addressing pricing vs value > Provides foundation and structure for ongoing pricing mechanisms > Price changes enacted as contracts renew Sales Enablement Optimisation – NEAR COMPLETION > Sales processes operating model and
Slide 23: Horizon 1 Enablers
HORIZON 1 ENABLERS Leadership, Culture and Value Propositions > Organisational restructure complete > Performance and reward alignment close to completion – final incorporation of growth metrics remaining and embedding new corporate values to drive performance > Marketing function build-out complete
Slide 24: Nuix Neo Launched July 23
™ LAUNCHED JULY 23 Nuix Neo™ is an AI-enriched FASTER EASIER SMARTER single platform that helps DO MORE, SAVE TIME REDUCE FRICTION AI ENRICHED SOLUTIONS customers identify, process On-demand scalability and End-to-end, web-based, Leverages Nuix AI to risk- and understand complex significant efficien
Slide 25: Nuix Neo: Commercial Offering
™ NUIX NEO: COMMERCIAL OFFERING ▪ Market-leading Nuix processing at the heart of an integrated, solutions-focused platform Nuix Neo™ resets ▪ Accessed through browser-based, collaborative interface commercial relationships by accelerating customers’ ▪ Includes end-to-end automation, investigative an
Slide 26: Proprietary Approach to AI
™ PROPRIETARY APPROACH TO AI EXPLAINABILITY How did you get the answer to the question? Nuix AI delivers sifted, relevant and prioritised results that support more effective and efficient decision making by customers Nuix Neo™ proprietary Transparency on training data sets used to build AI models AI
Slide 27: FY24 Product Roadmap
™ 1. DATA PRIVACY Provides customers with forensic depth and defensibility to analyse sensitive data and protect businesses and customers FY24 2. INVESTIGATIONS PRODUCT Apply an array of collaborative AI ROADMAP techniques to quickly make connections between digital evidence and human behaviour in a
Slide 28: Data Privacy - Launched July 23
™ DATA PRIVACY - LAUNCHED JULY 23 Provides users with forensic depth and defensibility to analyse sensitive data and protect businesses and customers Data Privacy Use Cases: Map Data Locate sensitive personal data in a vast number of unstructured and structured formats • Cyber Breach Notification Id
Slide 29: Customer Migration Path
™ CUSTOMER MIGRATION PATH ▪ Nuix will partner with a small number of Early Adopters in FY24 as solutions are released ▪ Dedicated expert services for Early Adopters to achieve accelerated customer Solutions released to Early ROI Adopters in FY24, with ▪ Managed commercial pathways for existing custo
Slide 30: Nuix Neo Roadmap
NUIX NEO ROADMAP Solution releases starting 1H24 for Early Adopters FY24 FY25 EARLY ADOPTER RELEASES Rollout begins with selected early adopters for each release 1. DATA PRIVACY Adoption accelerates into FY25 and beyond 2. INVESTIGATIONS ™ 3. LEGAL PROCESSING 4. FURTHER SOLUTION RELEASES NUIX NEO Pa
Slide 31: 4. Outlook
4. OUTLOOK JONATHAN RUBINSZTEIN CHIEF EXECUTIVE OFFICER 31
Slide 32: Outlook
OUTLOOK STRATEGIC TARGETS FY24: • 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 • Underlying Cash
Slide 33: Q&A
Q&A Snux
Slide 34: Appendix
APPENDIX Snux
Slide 35: Balance Sheet
$ millions, as at 30 Jun 23 30 Jun 22 ASSETS Cash and cash equivalents Trade and other receivables 29.6 41.4 46.8 28.3 BALANCE SHEET Unbilled receivables 39.0 34.3 Other current assets 9.5 10.0 Property, plant and equipment 2.9 3.0 Intangibles 244.6 237.1 > Cash Balance $29.6m Deferred tax assets &
Slide 36: ACV by Licence Type
ACV BY LICENCE TYPE Growth across all licence types ACV by Licence Type 185.5 165.9 6% > Absolute growth in both Module and Consumption-based ACV 162.0 3% 6% 6% 14% 5% 2% > Maintenance ACV increased on both new and legacy perpetual 14% 14% 18% licences 12% 18% > Lift in Perpetual licence ACV driven
Slide 37: Statutory Revenue Components
STATUTORY REVENUE COMPONENTS Subscription Licence Type Regional Revenue Revenue Revenue 182.5 182.5 182.5 > Statutory revenue includes the majority of multi-year 3% 6% 3% deal revenue up front; ACV smooths multi-year deal 14% 23% contracts across relevant years 17% 27% > Subscription revenue: 94% 94
Slide 38: Licence Type Implications on Revenue Recognition
LICENCE TYPE IMPLICATIONS ON REVENUE RECOGNITION 1 year licence example 3 year MYD licence example Delivery model Licence type Impact in month 1 Impact in month 1 3.6 Subscription licence1 • $1.2m on-premise module licence – 1 year or 1.2 1.2 1.2 • $3.6m on-premise module licence – 3 years consumpti
Slide 39: Revenue Mix and Licence Types
REVENUE MIX AND LICENCE TYPES Other Revenue Revenue Software Revenue Type (3% FY23 (97% FY23 Total Revenue) Total Revenue) > Subscription Revenue includes Module, Consumption Subscription (94% FY23 Total Revenue) Perpetual Software (3% FY23 Hardware / Licence Module Consumption Support & maintenance
Slide 40: Glossary
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 software contracts on an annualised ba
Slide 41: Constant Currency
CONSTANT CURRENCY Constant Currency has been calculated using the below methodology: 1. Constant currency rates are calculated by dividing the total FY22 consolidated AUD revenue associated with a currency by the total FY22 transaction currency revenue of the same currency, providing a weighted aver
Slide 42: 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 (17 August 2023). It is provided in summary and does not purport to be complete. This information has been prepared by Nuix Limited