ASX Earnings Wrap: Embattled Nuix expects first half to top last year's... but with this caveat

It’s the half yearly season again as the ASX market announcements page becomes increasingly flooded with earnings lodgements.

To save you the trouble of trudging through it all, we’ve wrapped up the highlights from some of the reports that caught our eye.

Nuix (ASX:NXL)

Highlights for H1FY23:

Annualised Contract Value (ACV) to be in the range of $168 – $171m vs pcp of $164.5m
Statutory Revenue to be in the range of $85 – $88m vs pcp of $84m
Statutory EBITDA to be in the range of $19 – $21m vs pcp of $13.8m

Nuix says its Statutory Revenue has risen on the pcp, driven by a stronger trading performance in December and currency tailwind.

Non-operational legal costs were significantly lower during the half compared to the prior period.

As such, Statutory EBITDA is expected to be materially higher in the first half than the pcp.

Net Profit After Tax (NPAT) is also expected to be materially higher than the pcp as a result.

Non-operational legal fees however may be higher in the second half compared to the first half, potentially impacting both EBITDA and NPAT in 2H23, Nuix says.

The company says that it has no further updates in relation to the previously disclosed legal proceedings in relation to a former CEO, Eddie Sheehy.

However, if a judgment is received prior to the publication of the full 1H results, adjustments may be required to the 1H results.

Nuix says it will advise the market if a judgment is handed down, along with any potential financial impacts.

Smartpay (ASX:SMP)

Highlights for H1FY23:

Total consolidated revenue rose 60% to NZ$21.15 million
Total transactions processed rose 76% to more than 38.3 million transactions
Total transaction value rose 74% to more than NZ$1.286 billion

Smartpay’s continued investment in marketing and sales has resulted in further acceleration in customer acquisition in the third quarter of FY23, with over 1,950 new transacting terminals added through to the end of December.

Australian Acquiring Transactional Revenue increased 85% year on year, but was impacted by the NZD appreciation to the AUD across the quarter.

Looking ahead, Smartpay sees acceleration in customer acquisition continuing as well as ongoing measured approach to investment in growth.

Nanosonics (ASX:NAN)

Highlights for H1FY23:

Total revenue is approximately $81.6m, representing an increase of 35% compared to pcp.
Profit before tax is approximately $11.4m, compared with $3.3m in the pcp

In addition to favourable impact of foreign exchange, the increase in revenue is largely driven by favourable pricing of both capital and consumables in North America.

This was a result of the recent transition to a more direct sales model, together with growth in sales of consumables and trophon upgrade units.

Gross margin for the half year is expected to be approximately 79%, compared with 77% in the pcp driven by improved pricing and consumables growth.

Based on the expected H1 FY23 results outlined above, Nanosonics says the outlook for FY232 has been adjusted, including:

Total revenue growth of 36% to 41% (previously 20% to 25%).

Full details of H1 FY23 results together with a detailed analysis of the company’s performance will be released on 23 February.

Dropsuite (ASX:DSE)

Highlights for Q4 FY22:

Annual Recurring Revenue (ARR1) of $25.41m, up 10% on pcp
Operating cashflow of $0.45m, the third consecutive positive quarter of cashflow growth
DSE ended the quarter with $22.3m cash and remains well funded

During the quarter, Dropsuite launched QuickBooks Online and saw strong industry tailwinds in the global data protection space.

“We also continued to grow profitably, delivering a third consecutive quarter of positive cashflow,” said CEO Charif El Ansari.

“Operationally, throughout the year we maintained our relentless focus on reducing Cloud costs while sustaining our operating leverage, helping to drive up our operating margins.”

Looking ahead, Dropsuite says it is well positioned to deliver strong annual recurring revenue growth driven by its significant existing partner base and a growing pipeline of new partners and products.