Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Nutanix (NTNX) - Nutanix currently holds a Momentum Style Score of B, indicating a favorable momentum characteristic [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] Performance Metrics - Over the past week, NTNX shares increased by 5.25%, outperforming the Zacks Computers - IT Services industry, which rose by 4.74% [6] - In the last month, NTNX shares rose by 11.36%, significantly higher than the industry's 2.29% performance [6] - Over the past quarter, NTNX shares have increased by 16.96%, and over the last year, they have gained 78.6%, compared to the S&P 500's increases of 7.52% and 33.61%, respectively [7] Trading Volume - NTNX's average 20-day trading volume is 2,876,805 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, two earnings estimates for NTNX have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $1.41 to $1.44 [10] - For the next fiscal year, one estimate has moved upwards with no downward revisions, indicating positive earnings outlook [10] Conclusion - Given the strong performance metrics and positive earnings outlook, NTNX is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a compelling investment option [11]

Core Viewpoint - Nutanix (NTNX) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - For the fiscal year ending July 2025, Nutanix is expected to earn $1.44 per share, reflecting a 9.9% increase from the previous year, with a 2% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Nutanix to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for price appreciation in the near term [11].

Group 1 - Powell Industries, Inc. (POWL) is a custom equipment manufacturer with a Zacks Rank 1 and a 13% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Powell Industries' shares have gained 64.9% over the last three months, significantly outperforming the S&P 500's advance of 7.6% [1] - The company has a Momentum Score of A, indicating strong momentum characteristics [1] Group 2 - Nutanix, Inc. (NTNX) provides an enterprise cloud platform and also holds a Zacks Rank 1, with a 3.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Nutanix's shares have increased by 38.4% over the last three months, again outperforming the S&P 500's advance of 7.6% [2] - The company possesses a Momentum Score of A, reflecting strong momentum characteristics [2]

Core Insights - Nutanix (NTNX) reported first-quarter fiscal 2025 non-GAAP earnings of 42 cents per share, exceeding the Zacks Consensus Estimate by 35.48% and marking a 44.8% increase year over year [1] - The company's revenues grew 16% year over year to $591 million, surpassing the Zacks Consensus Estimate by 3.3% and the guided range of $565-$575 million [2] Financial Performance - Product revenues, accounting for 51.09% of total revenues, increased 22.27% year over year to $301.9 million, while support, entitlements, and other services revenues rose 9.43% to $289.03 million [4] - Subscription revenues, making up 94.88% of total revenues, climbed 16.94% to $560.6 million, and professional services revenues improved 19.49% to $27.2 million [5] - Billings increased by 5.39% year over year to $591.39 million, and annual recurring revenues rose 18.16% to $1.96 billion [5] Customer Growth and Partnerships - During the fiscal first quarter, Nutanix added 630 new customers, bringing the total client count to 27,160 [6] - The company expanded its strategic partnership with AWS to offer AWS services to clients migrating to NC2 on AWS [6] Operating Metrics - Non-GAAP gross margin expanded by 160 basis points year over year to 87.5% [7] - Non-GAAP operating expenses increased 11% year over year to $398.9 million, with non-GAAP operating income at $118.2 million, up $38.7 million compared to the previous year [8] Balance Sheet and Cash Flow - As of October 31, 2024, cash and cash equivalents plus short-term investments totaled $1.07 billion, an increase from $994.3 million at the end of the previous fiscal first quarter [9] - Cash generated through operating activities was $161.7 million, and free cash flow reached $151.9 million during the first quarter [9] Outlook - For the second quarter of fiscal 2025, revenues are projected to be between $635 million and $645 million, with a non-GAAP operating margin expected in the range of 20-21% [10] - For fiscal 2025, revenues are estimated to be between $2.435 billion and $2.465 billion, with free cash flow anticipated in the range of $560 million to $610 million [10][11]

For the quarter ended October 2024, Nutanix (NTNX) reported revenue of $590.96 million, up 15.6% over the same period last year. EPS came in at $0.42, compared to $0.29 in the year-ago quarter.The reported revenue represents a surprise of +3.37% over the Zacks Consensus Estimate of $571.72 million. With the consensus EPS estimate being $0.31, the EPS surprise was +35.48%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine the ...

Nutanix, Inc. (NASDAQ:NTNX) Q1 2025 Earnings Conference Call November 26, 2024 4:30 PM ET Company Participants Rich Valera - VP, IR Rajiv Ramaswami - President and CEO Rukmini Sivaraman - CFO Conference Call Participants Pinjalim Bora - JPMorgan Meta Marshall - Morgan Stanley Jim Fish - Piper Sandler Jason Ader - William Blair Ruplu Bhattacharya - Bank of America Mike Cikos - Needham Ben Bollin - Cleveland Research Company Victor Chiu - Raymond James Matt Hedberg - RBC Capital Markets George Wang - Barclays ...

For the quarter ended October 2024, Nutanix (NTNX) reported revenue of $590.96 million, up 15.6% over the same period last year. EPS came in at $0.42, compared to $0.29 in the year-ago quarter.The reported revenue represents a surprise of +3.37% over the Zacks Consensus Estimate of $571.72 million. With the consensus EPS estimate being $0.31, the EPS surprise was +35.48%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine the ...

Nutanix (NTNX) came out with quarterly earnings of $0.42 per share, beating the Zacks Consensus Estimate of $0.31 per share. This compares to earnings of $0.29 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 35.48%. A quarter ago, it was expected that this enterprise cloud platform services provider would post earnings of $0.20 per share when it actually produced earnings of $0.27, delivering a surprise of 35%. Over the last f ...

[Nutanix First Quarter Fiscal 2025 Financial Results](index=1&type=section&id=Nutanix%20Reports%20First%20Quarter%20Fiscal%202025%20Financial%20Results) [Financial Highlights](index=1&type=section&id=First%20Quarter%20Fiscal%202025%20Financial%20Summary) Nutanix reported strong first-quarter fiscal 2025 results, outperforming all guided metrics with 18% ARR growth to $1.97 billion and $151.9 million in free cash flow - The company delivered outperformance across all guided metrics for the first quarter, demonstrating a good balance of top and bottom-line performance[3](index=3&type=chunk) Q1 Fiscal 2025 Key Financial Metrics (YoY) | Metric | Q1 FY'25 | Q1 FY'24 | Y/Y Change | | :--- | :--- | :--- | :--- | | Annual Recurring Revenue (ARR) | $1.97 billion | $1.66 billion | 18% | | Revenue | $591.0 million | $511.1 million | 16% | | GAAP Gross Margin | 86.0% | 84.0% | 200 bps | | Non-GAAP Gross Margin | 87.5% | 85.9% | 160 bps | | GAAP Operating Income (Loss) | $27.3 million | $(5.7) million | $33.0 million | | Non-GAAP Operating Income | $118.2 million | $79.5 million | $38.7 million | | GAAP Operating Margin | 4.6% | (1.1)% | 570 bps | | Non-GAAP Operating Margin | 20.0% | 15.6% | 440 bps | | Free Cash Flow | $151.9 million | $132.5 million | $19.4 million | [Recent Company Highlights](index=1&type=section&id=Recent%20Company%20Highlights) Nutanix strengthened its market position through strategic partnerships, product innovation, and industry recognition for its hybrid cloud vision - Expanded strategic collaboration with Amazon Web Services (AWS) to offer customers access to AWS services and promotional credits for migrations to NC2 on AWS[5](index=5&type=chunk) - Recognized as a Leader in the 2024 Gartner® Magic Quadrant™ for Distributed Hybrid Infrastructure, attributed to its vision for integrating edge, private, and public clouds[5](index=5&type=chunk)[6](index=6&type=chunk) - Extended its AI infrastructure platform with a new cloud-native offering, Nutanix Enterprise AI (NAI), deployable on any Kubernetes platform including AWS EKS, Azure AKS, and Google GKE[6](index=6&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) Nutanix projects positive financial performance for Q2 and full fiscal year 2025, with expected revenue growth and strong free cash flow Second Quarter Fiscal 2025 Outlook | Metric | Outlook | | :--- | :--- | | Revenue | $635 - $645 million | | Non-GAAP Operating Margin | 20% to 21% | | Weighted Average Shares Outstanding (Diluted) | Approx. 289 million | Fiscal 2025 Outlook | Metric | Outlook | | :--- | :--- | | Revenue | $2.435 - $2.465 billion | | Non-GAAP Operating Margin | 16% to 17% | | Free Cash Flow | $560 - $610 million | [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements detail Nutanix's financial position, showing asset growth, liability structure, and a shift to net income [Condensed Consolidated Balance Sheets](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of October 31, 2024, Nutanix reported total assets of $2.18 billion and total liabilities of $2.87 billion, resulting in a stockholders' deficit of $685.3 million Balance Sheet Summary (in millions) | Account | Oct 31, 2024 | July 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | **$1,523.5** | **$1,481.3** | | Cash and cash equivalents | $716.6 | $655.3 | | **Total Assets** | **$2,181.4** | **$2,143.9** | | **Total Current Liabilities** | **$1,220.6** | **$1,244.3** | | Deferred revenue—current | $968.6 | $954.5 | | **Total Liabilities** | **$2,866.6** | **$2,872.1** | | **Total stockholders' deficit** | **$(685.3)** | **$(728.1)** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For Q1 FY2025, Nutanix reported total revenue of $591.0 million and achieved a net income of $29.9 million, a significant improvement from a net loss in the prior year Statement of Operations Summary (in millions) | Account | Q1 FY'25 | Q1 FY'24 | | :--- | :--- | :--- | | Total revenue | $591.0 | $511.1 | | Gross profit | $508.3 | $429.1 | | Total operating expenses | $481.0 | $434.8 | | (Loss) income from operations | $27.3 | $(5.7) | | Net (loss) income | $29.9 | $(15.9) | | Net (loss) income per share, diluted | $0.10 | $(0.07) | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) In Q1 FY2025, Nutanix generated $161.8 million in net cash from operating activities, ending the quarter with $716.6 million in cash and cash equivalents Cash Flow Summary (in millions) | Activity | Q1 FY'25 | Q1 FY'24 | | :--- | :--- | :--- | | Net cash provided by operating activities | $161.8 | $145.5 | | Net cash used in investing activities | $(28.2) | $(42.2) | | Net cash used in financing activities | $(72.2) | $(4.4) | | **Net increase in cash** | **$61.3** | **$98.9** | | **Cash and cash equivalents—end of period** | **$716.6** | **$612.5** | [Key Performance Metrics and Non-GAAP Reconciliations](index=7&type=section&id=Key%20Performance%20Metrics%20and%20Non-GAAP%20Reconciliations) This section details key financial metrics, including subscription revenue, ARR, and reconciliations of GAAP to non-GAAP profit and free cash flow measures [Revenue and Billings](index=8&type=section&id=Disaggregation%20of%20Revenue%20and%20Billings) Subscription revenue accounted for approximately 95% of total revenue at $560.7 million, with total billings reaching $591.4 million for Q1 FY2025 Disaggregation of Revenue (in millions) | Revenue Type | Q1 FY'25 | Q1 FY'24 | | :--- | :--- | :--- | | Subscription revenue | $560.7 | $479.5 | | Professional services revenue | $27.3 | $22.8 | | Other non-subscription product revenue | $3.0 | $8.7 | | **Total revenue** | **$591.0** | **$511.1** | [Annual Recurring Revenue (ARR)](index=9&type=section&id=Annual%20Recurring%20Revenue) As of October 31, 2024, Nutanix's Annual Recurring Revenue (ARR) reached $1.97 billion, reflecting the annualized value of active subscription contracts - Annual Recurring Revenue (ARR) was **$1.97 billion** for the three months ended October 31, 2024[37](index=37&type=chunk) [Reconciliation of GAAP to Non-GAAP Profit Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Profit%20Measures) Nutanix's non-GAAP results show stronger profitability, with non-GAAP operating income of $118.2 million and net income of $121.8 million for Q1 FY2025 GAAP vs. Non-GAAP Profit Measures (Q1 FY'25, in millions) | Metric | GAAP | Non-GAAP | | :--- | :--- | :--- | | Gross Profit | $508.3 | $517.1 | | Gross Margin | 86.0% | 87.5% | | Income from Operations | $27.3 | $118.2 | | Operating Margin | 4.6% | 20.0% | | Net Income | $29.9 | $121.8 | | Net Income per Share, diluted | $0.10 | $0.42 | [Reconciliation of Free Cash Flow](index=11&type=section&id=Reconciliation%20of%20GAAP%20Net%20Cash%20Provided%20by%20Operating%20Activities%20to%20Non-GAAP%20Free%20Cash%20Flow) For Q1 FY2025, Nutanix generated $151.9 million in free cash flow, calculated from $161.8 million in operating cash flow less capital expenditures Free Cash Flow Reconciliation (in millions) | Metric | Q1 FY'25 | Q1 FY'24 | | :--- | :--- | :--- | | Net cash provided by operating activities | $161.8 | $145.5 | | Purchases of property and equipment | $(9.8) | $(13.0) | | **Free cash flow** | **$151.9** | **$132.5** |

Delivers Outperformance Across All First Quarter Guided Metrics Reports 18% YoY ARR Growth and Strong Free Cash Flow SAN JOSE, Calif., Nov. 26, 2024 (GLOBE NEWSWIRE) -- Nutanix, Inc. (NASDAQ: NTNX), a leader in hybrid multicloud computing, today announced financial results for its first quarter ended October 31, 2024. “During our first quarter we delivered outperformance across our guided metrics,” said Rajiv Ramaswami, President and CEO of Nutanix. “We also continued to bring innovations to the market supp ...