Why the Nuix (ASX:NXL) share price crashed 20% lower in June

It was another disappointing month for the Nuix share price…

| More on:
share price plummeting down

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Nuix Ltd (ASX: NXL) share price was one of the worst performers on the S&P/ASX 200 Index (ASX: XJO) for a second month in a row in June.

The investigative analytics and intelligence software provider's shares followed up a 33% decline in May with a disappointing 20% decline in June.

This means the Nuix share price is now down 73% since the start of the year.

Why did the Nuix share price crash lower in June?

Investors were heading to the exits in their droves last month following yet another series of disappointing developments.

The first actually happened on 31 May but continued to hang over the company in the early stages of June. That development was yet another downgrade to its guidance.

Nuix revealed that it is now expecting pro forma revenue of $173 million to $182 million in FY 2021. This compares to its 21 April guidance of $180 million to $185 million. Similarly, it is now forecasting annualised contract value (ACV) in the range of $165 million to $172 million. This is down from its previous guidance of $168 million to $177 million.

Management blamed this on the timing of the closure of some upsell opportunities and new potential customers. In addition, it notes that there remains uncertainty in relation to both the structure and timing of deals with a small number of large customers.

What else weighed on its shares?

Also weighing on the Nuix share price was the exit of several executives and news of police raids on its offices. Those police raids later led to a criminal investigation into insider trading allegations by its departed chief financial officer Stephen Doyle.

The court papers show that Doyle and his brother are accused of trading Nuix shares with knowledge of inside information over January and February this year. This was before the Nuix share price crashed lower following its shock guidance downgrade.

Nuix chair, Jeffrey Bleich, said: "We are genuinely disturbed by the allegations concerning Mr Doyle and will fully assist ASIC in getting to the bottom of that matter."

Should you invest $1,000 in Costco Wholesale right now?

Before you buy Costco Wholesale shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Costco Wholesale wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy finish to the week for ASX shares this Friday.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A mature age woman with a groovy short haircut and glasses, sits at her computer, pen in hand thinking about information she is seeing on the screen.
Share Market News

ASX shares in April: 8 key takeaways according to Macquarie

Here are eight key takeaways from April, according to a new note from the broker.

Read more »

Woman looking at a phone with stock market bars in the background.
Share Market News

Market outlook: Should I 'sell in May and go away'?

May is the time to sell... If you believe in fairytales.

Read more »

Five young people sit in a row having fun and interacting with their mobile phones.
Share Gainers

5 ASX All Ords stocks rocketing higher this week

Investors sent these five ASX All Ords stocks soaring this week. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Block, Corporate Travel Management, Judo, and Zip shares are sinking today

These shares are missing out on the good times on Friday. But why?

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why Boss Energy, Capstone, Dimerix, and Platinum shares are storming higher today

These shares are having a good finish to the week. Let's find out why.

Read more »

A shocked man holding some documents in the living room.
Broker Notes

Macquarie's take on Judo Capital shares after suddenly falling 19% yesterday?

Judo Bank was the ASX's top-performing banking stock in 2024.

Read more »