Nuix Ltd (NXL.AU) shares plummeted 10.33% in Monday's trading session following the company's announcement of reduced expectations for its full-year annualized contract value (ACV) growth. The Australian technology firm now anticipates ACV growth to be at the lower end of its previously provided range of 11% to 16% in constant currency terms.
The downward revision in guidance comes amid increasing uncertainty and volatility in the geopolitical and global economic landscape. Nuix reported that these factors, while creating potential opportunities, are significantly impacting the predictability of deal closure timeframes. This development has raised concerns among investors about the company's near-term growth prospects.
Despite the challenges, Nuix remains optimistic about its overall performance. The company continues to execute the rollout of its Nuix Neo product and expects revenue growth to outpace operating cost growth, excluding net non-operational legal costs. Additionally, Nuix anticipates positive underlying cash flow for the full year, which may provide some reassurance to shareholders amidst the current market reaction.
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