Shares of Nuix Ltd (NXL.AU) plummeted 10.33% in Monday's trading session following the company's announcement that it expects its annualized contract value (ACV) growth to be at the lower end of its previously provided guidance range. The Australian technology firm, which specializes in investigative analytics and intelligence software, cited increasing geopolitical and economic uncertainties as key factors impacting its business outlook.

In a filing to the Australian Securities Exchange (ASX), Nuix revealed that it now anticipates ACV growth for the full year to be at the lower end of the 11% to 16% range in constant currency terms. The company attributed this revised outlook to the recent surge in global economic volatility and geopolitical tensions, which have affected the predictability of deal closure timeframes. This unexpected guidance cut has clearly rattled investors, leading to the sharp sell-off in Nuix shares.

Despite the disappointing news, Nuix attempted to reassure investors by highlighting some positive aspects of its business. The company stated that it continues to make progress with the rollout of its Nuix Neo product and expects revenue growth to outpace operating cost growth, excluding net non-operational legal costs. Additionally, Nuix anticipates generating positive underlying cash flow for the full year. However, these assurances were not enough to prevent the significant drop in the company's stock price, as the market focused on the lowered growth expectations in the near term.