Nuix, an investigations software company that helps businesses uncover the truth from data and operate efficiently, has reported a decline in its net dollar retention figure. The metric, which measures the percentage of recurring revenue retained from existing software subscriptions, fell to 101 per cent. This is a decrease from 109.6 per cent recorded in the prior year.
The company attributed the drop to a few large customers reducing the size of their commitments. These contract downgrades offset upsell activity in other areas of the business. Nuix had a particularly high upsell base in the corresponding period last year, making this year’s comparison less favourable.
Interim chief executive John Ruthven acknowledged the result was below expectations. “Net dollar retention of 101 per cent is not where we want it to be,” he stated. He explained that the metric was impacted by isolated large contract adjustments that offset solid upsell activity elsewhere in the customer base. Nuix will focus on growing their contracts in the next year.
