One ASX All Ords share is putting the rest of the S&P/ASX All Ordinaries Index (ASX: XAO) to shame today.
Shares in investigative analytics software provider Nuix Ltd (ASX: NXL) are moving like a bat out of hell following the release of the company's FY23 preliminary results update. As we head into the afternoon, the share price is currently trading at $1.15, up 40.2% from yesterday.
Let's take a closer look at what is getting investors excited.
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Promising signs for growth
Earlier this morning, Nuix shares were up as much as 51.2%, marking the biggest jump in share price in more than five months. While the enthusiasm has calmed as the day has gone on, the unaudited financials for FY2023 are no less delighting shareholders.
Following a succession of disappointing results since its listing in 2020, the software provider is giving its first glimpse of a change in trajectory.
In its update, the ASX All Ords constituent revealed it expects substantial increases across several metrics for the full year, including:
- Annualised contract value (ACV) between $184 million and $186 million — up 14% to 15%
- Statutory revenue between $181 million and $183 million — up 19% to 20%
- Underlying EBITDA between $44 million to $47 million — up 51% to 61%
- Statutory EBITDA between $32 million to $35 million — up 164% to 189%
It should be noted that the underlying figure excludes non-operational legal costs and costs related to its acquisition of Topos.
According to the release, the strong performance was aided by several key contracts being executed in June. Additionally, currency fluctuations assisted Nuix's ACV and statutory revenue by 3% to 4%.
Shareholders might also be looking favourably at the reduction in legal costs year-on-year. While these costs grew from the first half to the second half — as previously expected — the amount fell from $14 million to $8 million in FY22 versus FY23.
What's ahead for this ASX All Ords share?
It's been a wild ride for Nuix shareholders in 2023. In the first month and a half of the year, the company's shares skyrocketed 138%, followed by a bumpy decline (charted below) — until today.
Today's rally takes the Nuix share price to a year-to-date gain of 75%. However, the figures presented today are preliminary. The final full-year numbers will be shared with investors on 18 August.
Those that have stuck with this ASX All Ords share should then get a glimpse at where management's expectations lay for FY24.
