Come result season and ASX investors start reviewing the performance of stocks in their portfolio. The market gives a quick response to even the Best ASX Stocks with a rise or fall in share price. However, some fundamental stocks are hard to decipher just by the percentage gains. These are the Best Stocks to Invest in, which are building on favourable financial results to a high growth potential.
Nuix Limited (ASX: NXL)
Nuix Limited, considered as one for Long Term Holding, specializes in investigative analytics and intelligence software, empowering organizations to extract insights from vast amounts of unstructured data.
Nuix in its annual results for FY24 ended 30 June 2024 on 19 August 2024 reported the Annualised Contract Value (ACV) of Nuix, which reflects the annualised "run rate" of its contract value at a specific point in time, reaching $211.5 million, representing a 14.0% increase compared to the previous corresponding period (PCP). When adjusted for constant currency, ACV experienced a growth of 12.0% relative to the prior year, surpassing Nuix's strategic goal for FY24, which aimed for an approximate 10% increase in constant currency.
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, witnessing diversified sources of growth between new and existing customers, and new and existing product offerings, is committed to progressing commercial negotiations for its third Nuix Neo application, Legal Processing, which has been recently introduced. NXL is already 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.
Source: Company’s Report
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.