Slide 1: 1H23 Financial Results
1H23 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 20 FEBRUARY 2023
Slide 2: Agenda
AGENDA OPENING REMARKS FINANCIAL RESULTS STRATEGIC HIGHLIGHTS CONCLUDING REMARKS 2
Slide 3: 1. Opening Remarks
1. OPENING REMARKS JONATHAN RUBINSZTEIN CHIEF EXECUTIVE OFFICER 3
Slide 4: New Nuix
NEW NUIX 4
Slide 5: 1H23 Key Messages
1H23 KEY MESSAGES 1. Momentum in ACV and NDR with low Churn 2. Revenue, EBITDA and NPAT higher 3. Significant progress on strategic initiatives including Customer and People projects 4. Nuix Unified Platform launch approaching 5. New Data Privacy Solution launch 5
Slide 6: 1H23 Key Financial Metrics
1H23 KEY FINANCIAL METRICS Annualised Contract Value (ACV)1 Statutory Revenue EBITDA $170.2m $87.6m $20.9m Up 3.4% on 1H22 Up 4.3% on 1H22 Up 51.6% on 1H22 Up 5.0% on FY22 Result Customer Churn1 Net Dollar Retention1 Net Cash 4.8% 103.1% $37.1m Up from 4.1% in 1H22 Up from 98.8% in 1H22 Down from $4
Slide 7: 2. Financial Results
2. FINANCIAL RESULTS CHAD BARTON CHIEF OPERATING OFFICER AND CHIEF FINANCIAL OFFICER 7
Slide 8: Financial Highlights
FINANCIAL HIGHLIGHTS 1. ACV and NDR higher with low churn 2. Subscription ACV stronger 3. Growth in Consumption ACV, driven by law firm clients 4. Statutory Revenue up, despite moderation of multi-year deals 5. Commitment to R&D spend, but general cost containment 6. Underlying EBITDA, Statutory EBI
Slide 9: Annualised Contract Value (ACV)
ANNUALISED CONTRACT VALUE (ACV) ACV ($m) 1H23 ACV 170.2 $170.2m as at 31/12/22 164.5 +3.4% 161.8 11.9 16.6 20.9 +7.0% > Total ACV up 3.4% on pcp, up 1.7% in constant currency1 > ACV up 5.0% from FY22 result > Subscription ACV2 up 7.0% on pcp, representing 93.0% of Total ACV 147.9 158.2 140.9 > Subsc
Slide 10: ACV by Licence Type
ACV BY LICENCE TYPE ACV by Licence Type1 170.2 161.8 164.5 5% 8% 6% 2% > Growth in both module and consumption-based ACV 4% 5% 14% 14% 14% > Consumption continues to grow as a proportion of overall ACV 18% 16% > Increased focus on consumption pricing 13% > Further shift away from perpetual licences
Slide 11: Growth in Consumption ACV
GROWTH IN CONSUMPTION ACV Consumption ACV, including SaaS1 ($m) 1H23 Consumption ACV 30.3 27.1 +11.6% $30.3m as at 31/12/22 > Consumption ACV up 11.6% on pcp, up 9.2% in constant 21.8 14.0 12.9 currency2 10.2 > Consumption ACV is a subset of Subscription ACV +14.2% > Continued strong demand for Disc
Slide 12: Regional Performance
REGIONAL PERFORMANCE North America and EMEA up, Asia Pacific down North Asia EMEA America Pacific $89.2m $46.3m 27% $34.7m ACV 52% ACV of ACV 21% of ACV of ACV ACV North America EMEA Asia Pacific > North America ACV up 4.6% on pcp, up 0.1% > EMEA ACV up 5.0% on pcp, up 8.4% in > APAC ACV down 1.3% o
Slide 13: Statutory Revenue
STATUTORY REVENUE Statutory Revenue ($m) 1H23 REVENUE +4.3% $87.6m > Revenue up 4.3% on pcp, up 2.8% in constant currency1 > Subscription revenue2 93% of total revenue > Business from new customers $7.5m, down 18.3% on pcp, with 85.3 84.0 87.6 greater focus on existing customer base during the perio
Slide 14: Research & Development
RESEARCH & DEVELOPMENT 40.0 35.0 Total R&D Spend ($m) +3.0% 29.7 30.0 28.8 > Total R&D spend up 3.0% on pcp driven by continued investment in sustainable revenue generation 25.0 7.1 8.5 22.4 > Important progress on key R&D projects including: 20.0 5.5 > FedRAMP Ready status achieved 15.0 > NLP integ
Slide 15: Income Statement
1H23 1H23 Change $ millions 1H22 Change Statutory CC2 CC Software Revenue 85.1 79.5 7.1% 83.8 5.5% Other Revenue Total Revenue 2.6 87.6 4.6 84.0 -44.0% 4.3% 86.3 2.5 -44.5% 2.8% INCOME STATEMENT Cost of Goods Sold -11.7 -8.7 34.8% -11.6 33.5% Underlying EBITDA up 8.5%1 on pcp, up 11.3% in constant c
Slide 16: Statutory vs Underlying EBITDA
STATUTORY VS UNDERLYING EBITDA Underlying EBITDA +8.5% on pcp1, +11.3% in constant currency Note: 1. Refer Note re Underlying EBITDA on previous slide 16
Slide 17: Free Cash Flow
FREE CASH FLOW Nuix aims to be Underlying underlying free cash Free Cash Flow -$0.5m vs NUIX AIMS TO BE flow neutral -$5.7m in 1H22 UNDERLYING FREE CASH FLOW NEUTRAL IN THE NEAR TERM Chad Barton Chief Operating Officer and Chief Financial Officer 17
Slide 18: Customer Base
CUSTOMER BASE Highly diversified, loyal customer base ACV by Customer Customer • Strong growth in Industry Group Concentration Tenure Government ACV during the half 13% 27% 26% • No customer represents 36% 34% 13% 42% more than 3% of ACV 21% • 42% of customer ACV has a 25% 30% 32% tenure of over 10
Slide 19: 3. Strategic Highlights
3. STRATEGIC HIGHLIGHTS JONATHAN RUBINSZTEIN CHIEF EXECUTIVE OFFICER 19
Slide 20: Multi-Horizon Strategy
MULTI-HORIZON STRATEGY HORIZON 3 THREE Solve for the HORIZONS OF future CHANGE HORIZON 2 Longer-range investment UNDERPIN OUR Differentiate for and prioritisation of large enterprise innovation pipeline for new STRATEGIC HORIZON 1 Medium term growth from ways to use our technologies REFRESH anticipa
Slide 21: Horizon 1 Key Initiatives
HORIZON 1 KEY INITIATIVES New Price Book > New value proposition addressing pricing vs value > Finalising price book simplification for US Government sector > Price changes enacted as contracts renew Sales Enablement Optimisation > Sales processes operating model ready for roll-out > Improved sales
Slide 22: Horizon 1 Enablers
HORIZON 1 ENABLERS Leadership, Culture and Value Propositions > Jason Wilson appointed as Chief Product Officer > Warren Brugger appointed EVP of APAC and Global Alliances > Building strength and capabilities across engineering, corporate services and product development > Culture refresh program in
Slide 23: Key Initiatives and Enablers Progress
HORIZON 1 Progress on key initiatives and enablers BUILD ON OUR STRENGTHS: Commenced In Progress Completed New price book Key Initiatives • COMPETITIVENESS Sales enablement optimisation Improved renewal process • COMMERCIAL Upgrade service & support offerings PERFORMANCE Organisational restructure •
Slide 24: Investing for Growth
INVESTING FOR GROWTH Leveraging Horizon 1 go to market excellence as a foundation for Horizon 2 and 3 growth FY22 FY23 benefit timing (revenue, operational efficiency) FY24 – benefit timing (revenue, operational efficiency) New price book Horizon 1: FedRAMP High Ready Status FedRAMP High Authorised
Slide 25: Horizon 2: Building the Future
HORIZON 2: BUILDING THE FUTURE First Release 1H24 Stepping Up First release of Nuix’s new Step change in data Unified Platform available processing excellence and from 1H24 customer-aligned commercials Optimised Workflows NUIX New Use Cases Gets users from request to results faster, smarter and UNIF
Slide 26: Horizon 3: Data Privacy Solution
HORIZON 3: Map Data Locate sensitive personal data in a vast number DATA PRIVACY of unstructured and structured formats SOLUTION Identify Risks Pinpoint the types of personal data with unique privacy and other regulatory requirements Nuix’s Data Privacy Solution provides customers with Meet Retrieva
Slide 27: Nuix XLR8/23
NUIX XLR8/23 AMBASSADOR’ OF UKRAINE TO AUSTRALIA a7 Snux
Slide 28: 4. Concluding Remarks
4. CONCLUDING REMARKS JONATHAN RUBINSZTEIN CHIEF EXECUTIVE OFFICER 28
Slide 29: Q&A
Q&A Snux
Slide 30: Appendix
APPENDIX Snux
Slide 31: Balance Sheet
$ millions, as at 31 Dec 22 30 Jun 21 ASSETS Cash and cash equivalents Trade and other receivables 37.1 32.4 46.8 28.3 BALANCE SHEET Unbilled receivables 39.9 34.3 > Cash Balance $37.1m Other current assets 8.3 10.0 Property, plant and equipment 3.0 3.0 > Intangibles includes impact of Topos acquisi
Slide 32: Statutory Revenue Components
STATUTORY REVENUE COMPONENTS Subscription Licence Type Regional Revenue Revenue Revenue 87.6 87.6 87.6 > Statutory revenue includes the majority of multi-year 3% 7% 4% deal revenue up front; ACV smooths multi-year deal 16% 14% contracts across relevant years 20% 31% > Subscription revenue: 93% 93% >
Slide 33: 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 34: Revenue Mix and Licence Types
REVENUE MIX AND LICENCE TYPES Other Revenue Revenue Software Revenue Type (3% FY22 (97% FY22 Total Revenue) Total Revenue) > Subscription Revenue includes Module, Consumption Subscription (93% FY22 Total Revenue) Perpetual Software (4% FY22 Hardware / Licence Module Consumption Support & maintenance
Slide 35: 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 36: Constant Currency
CONSTANT CURRENCY Constant Currency has been calculated using the below methodology: 1. Constant currency rates are calculated by dividing the total 1H22 consolidated AUD revenue associated with a currency by the total 1H22 transaction currency revenue of the same currency, providing a weighted aver
Slide 37: 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 (20 February 2023). It is provided in summary and does not purport to be complete. This information has been prepared by Nuix Limite