ASX:NXL
Nuix Ltd
Investment Summary
The fund managers believe that Nuix Ltd is a leading provider of specialized software for data investigation and analysis, with a strong position in the AI market. Despite recent share price fluctuations, they view the company as having significant growth potential due to its capital-light growth model and recurring revenues. They note the impact of contraction delays on FY25 revenue forecasts, yet emphasize that Nuix maintains blue-chip clients and benefits from strong sector tailwinds amid increasing data usage. In their opinion, the transition under CEO Jonathan Rubinsztein has positioned the company for recovery and growth. With the share price currently trading at a discount to global peers, fund managers have increased their position, seeing compelling value as the company nears the commercialization of its AI-enhanced products and anticipate more upside potential in the long term.
Commentary From The Managers
Blackwattle Investment Partners
31 Jan 2025
$4.49
- Nuix is an Australian technology company specializing in software for investigating and analyzing large data sets.
- It was the fund's top performer in 2024, despite a recent share price decline of -29.0% in January.
- The decline followed lower than expected FY25 revenue growth due to an extended sales cycle.
- Nuix is launching an AI-enhanced version of its software at a significant price premium.
- Conversion delays in software sales are common, requiring time to showcase new feature value.
- With the share price retracing significantly, Blackwattle Investment Partners has increased its position, noting compelling value as commercialization nears.
- Nuix's capital-light growth and recurring revenue model reinforce its status as a strong AI exposure on the ASX.
Blackwattle Investment Partners
30 Nov 2024
$6.28
- Nuix is a provider of specialised software for investigating and analysing large data pools.
- The stock has been the top contributor to the fund's performance in 2024.
- A 17% decline in share price occurred in November due to forecast revenue growth shifts.
- The revenue forecast for FY25 is now expected to be skewed to the second half of the year.
- In early December, Nuix renewed a key sales contract with ASIC, impacting second-half revenue.
- This renewal reinforces Nuix's leadership in its field and its strong client base.
- The company benefits from strong sector tailwinds due to increasing global data usage.
- Blackwattle Investment Partners considers NXL as optimal exposure to the AI thematic on the ASX.
- Nuix is noted for capital-light growth and recurring revenues.
Blackwattle Investment Partners
31 Oct 2024
$7.74
- Blackwattle Investment Partners continues to hold their position in Nuix Ltd due to its strong market presence.
- Nuix specializes in software for investigating and analyzing large data pools.
- The share price rose 18% in October after a 38% increase in September.
- The company's market capitalization has increased to over A$2.4bn, attracting more investor attention.
- Under CEO Jonathan Rubinsztein, Nuix has undergone a significant transformation.
- Nuix is recognized as a leader in its field and boasts strong blue-chip clients.
- The company benefits from strong sector tailwinds amid rising global data usage.
- NXL is viewed as the best exposure to the AI thematic on the ASX, offering capital-light growth and recurring revenues.
- Despite the recent share price increases, significant potential upside remains as it still trades at a discount to global peers.
Blackwattle Investment Partners
30 Sept 2024
$6.56
- Blackwattle Investment Partners provides an update on their investment thesis regarding Nuix Ltd.
- Nuix specializes in software for investigating and analyzing large data sets.
- Recent performance saw a 38% rise in share price in September, following a similar increase in August.
- The company announced better-than-expected earnings guidance for FY25.
- As Nuix grows to a market cap of over A$2bn, investor awareness is increasing.
- Nuix has undergone a significant transformation under CEO Jonathan Rubinsztein.
- It is recognized as a clear leader in its field with notable blue-chip clients.
- There are strong sector tailwinds due to rising global data usage.
- NXL is viewed as a top play in the AI thematic on the ASX with capital-light growth and recurring revenues.
- Despite recent gains, there is significant potential upside since it trades at a discount to global peers.
Blackwattle Investment Partners
31 Aug 2024
$4.88
- Blackwattle Investment Partners continues to hold its position in Nuix Ltd.
- Nuix is a provider of specialised software for investigating and analysing large data pools.
- The share price rose 38% in August due to better-than-expected earnings guidance for FY25.
- The investment thesis is based on expectations of improving quality as the company emerges from an organisational rebuild.
- Incoming CEO Jonathan Rubinsztein has established a new senior leadership team and culture.
- Nuix maintains a clear leadership position in its field with enviable blue-chip clients.
- Strong sector tailwinds are supported by the world's increasing data usage.
- Despite the recent share price increase, plenty more upside is anticipated as the stock trades at a significant discount to global peers.
Blackwattle Investment Partners
31 May 2024
$3.10
- Blackwattle Investment Partners continues to hold a position in Nuix Ltd.
- Nuix provides specialized software for investigating and analyzing large data pools.
- Share price increased by 57% in May following better-than-expected earnings guidance for FY24.
- The investment thesis is based on the expectation of improving quality as Nuix emerges from a reputational rebuild.
- Post-IPO governance issues led to a significant fall in share price; however, leadership changes are changing the narrative.
- Incoming CEO Jonathan Rubinsztein has rebuilt the senior leadership team and established stronger governance.
- Nuix remains a leader in its field with a strong client base.
- The company benefits from strong sector tailwinds due to increasing global data usage.
- Despite recent gains, there is still upside potential as the stock trades at a discount to global peers.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.