• Nuix drops sharply after legal costs bite
  • Xpon adds $2.1m in annual recurring revenue for Q2
  • Ikegps nabs $0.9m deal with US electric utility customer


Nuix (ASX:NXL)

Investigative analytics and intelligence software company Nuix dropped 17% today, with preliminary estimates flagging materially higher costs in the half year ending 31 December compared to the previous corresponding period.

“Non-operational legal costs remain significant and were higher in the last two months of the half,” the company said.

“In addition, the company continues to reinvest in sustainable revenue generation, including building sales and distribution capability and increasing levels of investment in the product development pipeline.”

Pro forma EBITDA is expected to be materially below the prior corresponding period at $13-15m compared to $31.6m in FY20, and statutory EBITDA, which incorporated IPO costs in the prior corresponding period, is expected to be higher at $13-15m compared to -$4.4m in FY20.

“Annualised Contract Value (ACV), while relatively flat, continues to see a marked shift away from module-style licences to consumption licences,” Nuix said.


Xpon Technologies Group (ASX:XPN)

Newly listed marketing tech player XPON was up 4.8% in early morning trade today, after adding $2.1m in annual recurring revenue (ARR) in Q2 to finish with $13.1m at 31 December 2021.

That’s up 148% year on year (YoY) and up 19% compared to Q1 FY22.

XPON’s recurring revenue is earned by selling proprietary software licenses for its Wondaris customer data platform – which centralises customer and marketing data, leveraging Artificial Intelligence for automated advertising activation – and its Holoscribe extended reality platform (XR) for quick and easy publishing XR and 360-degree content.

The company said gross profit increased 207% YoY and that it maintained 131% revenue retention throughout the quarter.

“The added capital will support our growth strategy and continued product innovations as we work toward delivering on our vision to offer the full Marketing and Customer Experience (CX) stack capability to our customers,” founder, MD and group CEO Matt Forman said.



Ikegps (ASX:IKE)

The utility platform was unchanged today, signing a $0.9m deal with a tier-1 North American electric utility customer to speed the assessment and engineering of distribution pole assets for network hardening purposes.

At this initial level of users and platform usage, the expected ongoing software subscription revenue from this customer will be approximately $200k per annum.

“We have performed well over the past few months and have got off to a very fast sales start in 2022,” CEO Glenn Milnes said.

“With continuing market tailwinds we look forward to strong ongoing growth.”



Limeade (ASX:LME)

Down 7.44% today was employee engagement software company Limeade.

The company maintained FY21 financial guidance of $50-53m in revenue, an EBITDA loss of $5-8 million, and net loss after tax of $7 to $10 million.

FY21 committed annual recurring revenue (CARR) was $56.8m – up 3% on FY20 – and the company generated six new Limeade Well-Being enterprise contracts signed during the quarter, generating $3.6 million in additional CARR.

Cash receipts were also up 55% at $22m, which the company said reflected the TINYpulse acquisition, which is an employee listening software which establishes a two-way dialogue between managers and employees

The company secured 59 new TINYpulse mid-market and SME customer signings, generating $0.5 million in additional CARR.

LME CEO Henry Albrecht said the company is “well positioned to continue its momentum as we commence the 2022 financial year.”