Tech company has good news despite being investigated by the securities watchdog, with a share price lift after it announced a key acquisition.
The initial cost will be about $US2 million ($A3 million) in cash and $US2 million in newly issued NXL shares.
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Up to a further $US3 million in NXL shares will be issued if Rampiva achieves ACV (average contract value) growth and cost management milestones in the three years post acquisition.
Rampiva is a long-term NXL technology partner founded in 2016.
NXL said it would embed the Rampiva team and its tech into its global business.
The company said the Rampiva technology capabilities would become available to both existing and new customers.
“This will create a broad range of cross-sell and growth opportunities across Nuix and Rampiva customers, strengthening Nuix on-premise revenue, accelerating near-term solution campaigns and creating opportunities to better monetise legal technology data flows,” NXL said in an announcement.
Last week NXL said it had been informed that the Australian Securities and Investments Commission (ASIC) was conducting an investigation into the acquisition of NXL shares by CEO Jonathan Rubinsztein in early September 2022 and the company’s response to an ASX inquiry, relating to those circumstances, released on September 14, 2022.
“The CEO’s acquisition of Nuix shares took place with prior approval and during an approved trading window,” NXL said.
“Nuix will fully co-operate with ASIC’s investigation.”
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APPEN (ASX:APX)
The artificial intelligence (AI) training data services has announced the opening of its retail entitlement offer, part of a fully underwritten ~$60 million capital raise to support the business in its effort to return to profitability.
APX’s entitlement offer is expected to close at 5pm (AEST) on June 6 this year.
The equity raise is comprised of a ~$38 million 1 for 6 pro rata accelerated non-renounceable entitlement offer and a ~$21 million institutional placement.
Earlier this month APX said there had been little reprieve in FY23 from the challenging external operating and macroeconomic conditions noted in its FY22 result.
For the four months ending April 30, the company reported revenue of $95.7 million, down 21.4 per cent on the same period last year.
Gross profit was down 24.7 per cent to $35.8 million and APX reported an underlying EBITDA loss of $12.4 million.
In an announcement last week, APX said equity from the capital raise would be used to support the company’s strategic refresh and return to profitability.
“Proceeds will be used to fund one-off costs associated with Appen’s previously announced cost reduction program, provide balance sheet flexibility and general working capital to support Appen’s return to profitability, and transaction costs,” the company said.
Financial results
TECHNOLOGYONE (ASX:TNE)
The share price of enterprise software-as-a-service (SaaS) provider Technology One rose 3.33 per cent on Tuesday after announcing its 14th year of record first half profit, with profit after tax of $41.3 million, up 24 per cent on pcp.
Interim dividend was 4.62cps, up 10 per cent on pcp.
TNE’s SaaS annual recurring revenue (ARR) rose 40 per cent, as the company increased the number of large-scale enterprise SaaS customers by 27 per cent to 903.
TechnologyOne has forecasted strong growth for the full year FY23, and sees significant opportunities in the coming years.
“We have a clear and consistent strategy, and our team are executing very well, delivering significant value for our customers,” CEO Edward Chung said.
“We saw an acceleration of customers move to our global SaaS ERP solution, with more than 189 large enterprise customers committing to make the shift in the last 12 months, the highest number to date for any comparable period.”
“These are strong half year results for TechnologyOne and validate the strength of our SaaS strategy, which continues our strong growth trajectory in both Australia and the UK.”
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CATAPULT GROUP (ASX:CAT)
Sport analytics player CAT’s share price soared around 7 per cent on Tuesday after it announced its financial results for the year ended March 31, 2023 (FY23).
They included returning the company to EBITDA positive.
In H2, EBITDA was $US2.2 million, a $US15.4 million improvement from H1.
H2 gross margin rebounded to 81 per cent from 71 per cent, while cost to operate dropped $US11.9 million in H2 from H1.
Operating cashflow was up 40 per cent YoY to $US3.7 million, while SaaS revenue grew 21.8 per cent YoY constant currency (CC), contributing to a total revenue of $US84.4 million.
CAT also achieved record H2 sales with FY23 annualised contract value (ACV) up 20.2 per cent YoY to $US76.8 million (CC).
ACV churn was at record low rates of 3.8 per cent with Performance & Health Vertical (P&H) ACV growing 28 per cent YoY (CC).
“Catapult achieved great results during the second half of FY23,” CEO Will Lopes said,
“We returned the business to EBITDA positive, an improvement of more than $US15 million.”
Lopes said he was confident that margins would continue to improve, and the company would return to generating positive free cash flow in FY24.
He also said progress had been made in CAT’s video platform for the coming sales season in the US and Europe.
“We added several features that will positively impact our customers’ workflows, saving them time while giving them new insights,” he said.
“The early sales success in the EMEA and APAC regions, where we don’t have a well-established subscription base for video solutions, is very encouraging for FY24.”
This content first appeared on stockhead.com.au
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