[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 ...

Have you been paying attention to shares of Nutanix (NTNX) ? Shares have been on the move with the stock up 13.5% over the past month. The stock hit a new 52-week high of $75.8 in the previous session. Nutanix has gained 52.7% since the start of the year compared to the 28.5% move for the Zacks Computer and Technology sector and the 16.8% return for the Zacks Computers - IT Services industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed ou ...

Nutanix (NASDAQ: NTNX ) provides a broad range of software and solutions to enable their customers to simply run and manage their private, hybrid and public cloud. I believe Nutanix Cloud Infrastructure will gain significant market share from VMware, owned by Broadcom (More than 15 years of professional investment experience in global equities across all sectors. My investment style is fundamental, bottom-up, long-term, and quality growth-oriented. I am seeking companies specializing in niche markets, with ...

In its upcoming report, Nutanix (NTNX) is predicted by Wall Street analysts to post quarterly earnings of $0.31 per share, reflecting an increase of 6.9% compared to the same period last year. Revenues are forecasted to be $571.72 million, representing a year-over-year increase of 11.9%.The consensus EPS estimate for the quarter has undergone a downward revision of 2.4% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Nutanix (NTNX) reports results for the quarter ended October 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on November 26. On ...

Core Viewpoint - Brokerage recommendations, particularly for Nutanix (NTNX), suggest a positive outlook, but their reliability is questioned due to potential biases from brokerage firms [2][4][8]. Brokerage Recommendations - Nutanix has an average brokerage recommendation (ABR) of 1.69, indicating a range between Strong Buy and Buy, based on 13 brokerage firms [2]. - Of the 13 recommendations, 7 are Strong Buy and 3 are Buy, accounting for 53.9% and 23.1% of all recommendations respectively [2]. Limitations of Brokerage Recommendations - Solely relying on brokerage recommendations may not be advisable, as studies indicate they often fail to guide investors effectively towards stocks with high price appreciation potential [3]. - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, often issuing five Strong Buy recommendations for every Strong Sell [4][8]. Zacks Rank as an Alternative - Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [6][9]. - The Zacks Rank for Nutanix is currently 2 (Buy), reflecting a 0.2% increase in the consensus earnings estimate to $1.41 over the past month, indicating growing optimism among analysts [11][12]. Comparison of ABR and Zacks Rank - ABR and Zacks Rank are distinct measures; ABR is based solely on brokerage recommendations, while Zacks Rank utilizes earnings estimate revisions and is updated more frequently [7][10].

In the latest market close, Nutanix (NTNX) reached $71.11, with a -0.84% movement compared to the previous day. The stock's performance was behind the S&P 500's daily loss of 0.61%. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 0.64%.The the stock of enterprise cloud platform services provider has risen by 12.24% in the past month, leading the Computer and Technology sector's gain of 3.03% and the S&P 500's gain of 3.07%.Market participants will be closely following the financial r ...

Oppenheimer analyst Param Singh initiated coverage on Nutanix Inc NTNX with an Outperform rating and a price target of $80.Singh’s optimistic outlook hinges on several critical factors, including the rising demand for HyperConverged Infrastructure (HCI), market share opportunities from weakening VMware, and strong adoption of unstructured data solutions, particularly for AI-driven workloads.Singh accentuated that Nutanix benefits from the shift in enterprise data centers toward HCI solutions, which integrat ...

Core Insights - Nutanix has launched Nutanix Enterprise AI (NAI), a cloud-native offering that can be deployed on any Kubernetes platform, enhancing its AI infrastructure capabilities for hybrid multicloud environments [1][3] - The NAI platform aims to simplify the deployment and scaling of large language models (LLMs) and generative AI applications, providing organizations with a secure and efficient way to manage their AI workloads [1][6] - Nutanix Enterprise AI features a transparent pricing model based on infrastructure resources, which is designed to maximize ROI for customers investing in generative AI [4] Group 1: Product Features and Capabilities - Nutanix Enterprise AI supports a consistent multicloud operating model, allowing organizations to deploy AI applications securely across on-premises and public cloud environments [3][8] - The platform integrates with NVIDIA NIM for optimized performance, enabling rapid deployment of inference endpoints for LLMs [1][7] - It offers a user-friendly interface that simplifies the deployment and testing of LLM inference endpoints, addressing the challenges organizations face in building AI-ready platforms [9][10] Group 2: Market Position and Strategic Importance - Generative AI is characterized as a hybrid workload, necessitating a flexible infrastructure that can handle training, fine-tuning, and inference across various environments [2][8] - Nutanix Enterprise AI is part of the broader Nutanix GPT-in-a-Box 2.0 initiative, which includes additional services and infrastructure to support enterprise AI needs [5][11] - The collaboration with Hugging Face enhances the platform's capabilities, allowing seamless deployment of popular open models [12] Group 3: Use Cases and Benefits - Key use cases for Nutanix Enterprise AI include enhancing customer experience, accelerating content creation, improving security through AI models, and leveraging fine-tuned models for analytics [10] - The platform addresses AI skill shortages by enabling IT administrators to manage AI applications effectively, thus accelerating development processes [8][9] - Nutanix Enterprise AI also mitigates data privacy and security concerns by allowing organizations to control their compute resources and providing robust security features [9]