Stocks moving in an uptrend normally go on a set track, reach a peak and often stabilise or decline soon after. However, some stocks consolidate and move to higher trajectory. Such stocks have good potential and try to scale higher peaks and become multibaggers in the long term.
Nuix Limited (ASX: NXL)
Nuix Limited in its annual results for FY24 ended 30 June 2024 reported that Annualised Contract Value (ACV), which reflects the annualised "run rate" of its contract value at a specific point in time, reached $211.5 million as of 30 June 2024, representing a 14.0% increase compared to the previous corresponding period (PCP).
Revenue for the period increased by 20.9% compared to the PCP, amounting to $220.6 million. In constant currency terms, revenue grew by 18.0%, significantly exceeding the target of a 10% rise in constant currency. The proportion of revenue derived from multi-year contracts saw a slight increase, rising to 31% from 30% in the previous year, bolstered by the renewal of key multi-year agreements during the year.
Underlying EBITDA, which excludes net non-operational legal expenses, rose by 38.7% compared to the PCP, reaching $64.4 million, a result of robust revenue growth coupled with effective cost management. Statutory EBITDA, which incorporates the effects of net non-operational legal costs, demonstrated a substantial increase for the full year, climbing by 60.2% to $55.9 million.
Net Profit After Tax improved to $5.0 million, a recovery from a loss of $5.6 million in the previous year. Nuix reported a positive underlying cash flow from operations, defined as cash flow before net non-operational legal payments and costs associated with the Topos and Rampiva acquisitions, amounting to $24.7 million for the full year, compared to $9.1 million in the preceding year. The funding for software development costs continues to be sourced from operating free cash flow.
After the full year, Nuix held cash reserves of $38.0 million, reflecting a 29% increase from the prior year and a 59% increase from the first half of the year.
The company is experiencing considerable operational growth, particularly highlighted by the recent successful launch of Nuix Neo, which achieved an annual contract value (ACV) two to three times greater than non-Neo sales, offering a promising sales outlook. Additionally, the company is committed to progressing commercial negotiations for its third Nuix Neo application, Legal Processing, which has also been recently introduced.
The recent attainment of profitability and positive cash flow growth represents a critical financial achievement for the organization. Furthermore, the company’s focus on operational expansion and sales growth is anticipated to build on these favourable financial results in the upcoming year, thereby standing to increase shareholder value.
Telix Pharmaceuticals Limited (ASX: TLX)
Telix Pharmaceuticals Limited, on 23 September 2024, announced an agreement to acquire RLS (USA) Inc. from its parent company RLS Group Ltd to expand its North American manufacturing and distribution platform.
On August 28, 2024, Telix Pharmaceuticals Limited had submitted a New Drug Application to the FDA for Pixclara® (TLX101-CDx), a new imaging agent for brain cancer. This agent helps identify gliomas, a type of brain tumor, especially in cases where MRI results are unclear. Pixclara® has received special designations from the FDA to speed up its review due to the significant need for better diagnostic tools in treating brain cancer. If approved, it could improve diagnosis and treatment decisions for patients, with commercial availability expected in 2025.
Telix Pharmaceuticals delivered strong results in H1 2024, with significant progress across its therapeutic and diagnostic pipelines
The company achieved 65% year-over-year revenue growth, driven primarily by the U.S. sales of Illuccix®. Their robust revenue base of $364M was supported by growing demand, increased dose volume, and market expansion initiatives.
Significant milestones were achieved in therapeutic programs, particularly in prostate cancer. Positive data from the ProstACT SELECT study for TLX591 and the CUPID trial for TLX592 reinforced the potential of their beta and alpha programs. Further expansion into kidney and brain cancer therapies progressed with new trials underway, while the approval process for TLX250-CDx and TLX007-CDx showed promising developments. The company is also expanding global submissions for Illuccix® in key markets such as Brazil, the EU, and the UK, with regulatory decisions expected later in 2024.
Financially, Telix strengthened its balance sheet with a $650M convertible bond issuance, allowing the company to advance clinical development and pursue strategic opportunities. The improved profitability was reflected in a 66% gross margin and a 66% increase in adjusted EBITDA to $57.5M. Their cash position was solid at $118.8M as of June 30, 2024, with further improvement expected from H2 2024 bond proceeds.
Telix is poised to build momentum with late-stage trials and an expanded product portfolio focused on advancing alpha theranostics. Telix is also enhancing its North American presence through vertical integration of its supply chain and pursuing value-accretive M&A opportunities.
With four core business units—therapeutics, precision medicine, Lightpoint medtech, and Telix Manufacturing Solutions—the company is optimizing its radiopharmaceutical ecosystem to capitalize on near-term opportunities. This includes the anticipated U.S. market launch of the PSMA imaging product TLX007-CDx (PDUFA in March 2025), kidney cancer imaging with TLX250-CDx (BLA resubmission in Q4 2024), and brain cancer imaging with TLX101-CDx (NDA submission in Q3 2024), targeting a $4.5 billion U.S. market.
Source: Company’s Report
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