Shares of Nuix Ltd (ASX:NXL) plummeted 20.04% during Wednesday's trading session after the software company announced the withdrawal of its financial targets for fiscal year 2025. The significant drop reflects investor concerns about the company's future performance and growth prospects.

In a filing with the Australian Securities Exchange on Tuesday, Nuix stated that it has abandoned its annualized contract value target for fiscal 2025. The company had previously set a target range of 11% to 16% growth in constant currency. Additionally, Nuix withdrew its strategic targets related to revenue growth and underlying cash flow, citing recent volatility and difficulties in predicting transaction closure times.

This unexpected move by Nuix has clearly shaken investor confidence. The withdrawal of financial targets suggests that the company is facing challenges in its business environment and may struggle to meet previously set growth expectations. While Nuix mentioned having a "strong" pipeline, the uncertainty surrounding deal closures has led to this cautious approach, which has been met with a sharp negative reaction from the market.