(Reuters) – Australia‘s Nuix Ltd said on Tuesday its two top bosses would leave the company, in a blow to the software maker whose shares have tumbled about 68% since its listing late last year following earnings downgrades.
Macquarie Group-backed Nuix’s governance and the quality of its financial accounts have also faced criticism by the media and proxy advisory firms that have questioned its revenue recognition policies for multi-year contracts.
The company on Tuesday said Chief Executive Officer Rod Vawdrey, who has led the company for five years, would retire, while its contract with Chief Financial Officer Stephan Doyle was terminated by mutual agreement.
Chad Barton, an ex-CFO of casino operator Star Entertainment Group, would take on Doyle’s role on an interim basis, while Vawdrey would stay on until full-year results are announced in August, the company said.
Nuix’s capital raising and listing was the nation’s second-largest in 2020, and since its peak of A$11.855 in January this year, shares have tumbled nearly 78%.
The software firm in May trimmed its annual pro-forma revenue outlook range to A$173 mln ($133.30 mln) to A$182 million, from the already downgraded A$180 million to A$185 million range it had forecast just a month prior.
Shares traded about 2% higher on Tuesday, against a 1% gain on the broader ASX200 index.
(Reporting by Tejaswi Marthi in Bengaluru; Editing by Shailesh Kuber)