Taking place May 7-9, 2025, in Washington, D.C., the event will feature executive keynotes, company news, customer and partner insights, hands-on labs, and sessions that explore the hybrid multicloud landscapeSAN JOSE, Calif., April 03, 2025 (GLOBE NEWSWIRE) -- Nutanix (NASDAQ: NTNX), a leader in hybrid multicloud computing, today announced the programming for its .NEXT 2025 event, set to take place in Washington, D.C., from May 7-9, 2025. As artificial intelligence and cloud native applications continue to ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about Nutanix (NTNX) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Nutanix currently has an average brokerage ...

It has been about a month since the last earnings report for Nutanix (NTNX) . Shares have lost about 6% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Nutanix due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since Then?It turns out, f ...

Group 1 - The article highlights the transformation of Nutanix (NASDAQ: NTNX) from a cash-burning company to a cash-producing entity, indicating significant operational improvements [2] - The SHU Growth Portfolio service focuses on small companies with high growth potential, providing buy alerts and market updates to its members [3] - The approach taken by the service includes a buy and hold strategy with tranche purchases, aiming to identify multi-bagger potential while managing risks through a diversified portfolio [3] Group 2 - The service offers real-time buy and sell signals, emphasizing the importance of companies with defensible competitive advantages and scalable business models [1] - The community aspect of the service includes an active chat room for discussions on trading opportunities [1]

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The company achieved substantial revenue and net income growth, strengthening its balance sheet and operating cash flow Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | July 31, 2024 | January 31, 2025 | | :--- | :--- | :--- | | **Total current assets** | $1,481,294 | $2,335,394 | | **Total assets** | $2,143,918 | $2,988,990 | | **Total current liabilities** | $1,244,341 | $1,317,554 | | **Total liabilities** | $2,872,066 | $3,796,664 | | **Total stockholders' deficit** | ($728,148) | ($807,674) | Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended Jan 31, 2024 | Three Months Ended Jan 31, 2025 | Six Months Ended Jan 31, 2024 | Six Months Ended Jan 31, 2025 | | :--- | :--- | :--- | :--- | :--- | | **Total revenue** | $565,233 | $654,721 | $1,076,287 | $1,245,677 | | **Gross profit** | $483,677 | $569,433 | $912,772 | $1,077,719 | | **Income from operations** | $37,045 | $65,438 | $31,339 | $92,688 | | **Net income** | $32,795 | $56,427 | $16,942 | $86,353 | | **Diluted EPS** | $0.12 | $0.19 | $0.09 | $0.30 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended Jan 31, 2024 | Six Months Ended Jan 31, 2025 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $331,881 | $383,421 | | **Net cash used in investing activities** | ($67,319) | ($375,455) | | **Net cash (used in) provided by financing activities** | ($98,977) | $408,847 | | **Net increase in cash, cash equivalents and restricted cash** | $165,585 | $416,813 | [Note 2: Revenue, Deferred Revenue and Deferred Commissions](index=15&type=section&id=Note%202%3A%20Revenue%2C%20Deferred%20Revenue%20and%20Deferred%20Commissions) Subscription revenue and total deferred revenue significantly increased, indicating a strong future revenue pipeline Disaggregation of Revenue (in thousands) | Revenue Type | Six Months Ended Jan 31, 2024 | Six Months Ended Jan 31, 2025 | | :--- | :--- | :--- | | Subscription | $1,011,461 | $1,185,114 | | Professional services | $47,843 | $55,315 | | Other non-subscription product | $16,983 | $5,248 | | **Total revenue** | **$1,076,287** | **$1,245,677** | - Total deferred revenue increased from **$1.87 billion** as of July 31, 2024, to **$2.02 billion** as of January 31, 2025[54](index=54&type=chunk) - As of January 31, 2025, contracted but not yet recognized revenue was approximately **$2.34 billion**, with **52%** expected to be recognized in the next 12 months[56](index=56&type=chunk) [Note 5: Convertible Senior Notes](index=21&type=section&id=Note%205%3A%20Convertible%20Senior%20Notes) The company issued **$862.5 million** in 2029 convertible notes, using proceeds for debt and share repurchases - In December 2024, Nutanix issued **$862.5 million** in aggregate principal amount of **0.50%** convertible senior notes due 2029[85](index=85&type=chunk) - Approximately **$95.5 million** of the proceeds were used to repurchase **$75.0 million** of outstanding 2027 Notes, incurring an inducement expense of **$11.3 million**[76](index=76&type=chunk)[86](index=86&type=chunk) - Approximately **$200.0 million** of net proceeds from the 2029 Notes offering were used to repurchase **3.1 million** shares of Class A common stock[86](index=86&type=chunk)[106](index=106&type=chunk) [Note 9: Equity Incentive Plans](index=28&type=section&id=Note%209%3A%20Equity%20Incentive%20Plans) Stock-based compensation expense increased, with a significant amount of unrecognized expense remaining for future periods Stock-Based Compensation Expense (in thousands) | Period | Six Months Ended Jan 31, 2024 | Six Months Ended Jan 31, 2025 | | :--- | :--- | :--- | | **Total stock-based compensation expense** | $169,967 | $182,177 | - As of January 31, 2025, unrecognized stock-based compensation expense was approximately **$711.9 million**, to be recognized over a weighted average of **2.3 years**[124](index=124&type=chunk) [Note 13: Subsequent Event](index=32&type=section&id=Note%2013%3A%20Subsequent%20Event) Subsequent to quarter-end, the company secured a new **$500.0 million** senior secured revolving credit facility - On February 12, 2025, Nutanix entered into a credit agreement for a **$500.0 million** senior secured revolving credit facility, maturing in February 2030[131](index=131&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management highlights **16%** revenue growth driven by product adoption and renewals, with strong ARR and free cash flow Key Financial and Performance Metrics (in thousands, except percentages) | Metric | Six Months Ended Jan 31, 2024 | Six Months Ended Jan 31, 2025 | | :--- | :--- | :--- | | Total revenue | $1,076,287 | $1,245,677 | | Annual recurring revenue ("ARR") | $1,737,364 | $2,059,506 | | Non-GAAP operating income | $203,364 | $279,510 | | Non-GAAP operating margin | 18.9% | 22.4% | | Free cash flow | $295,097 | $338,983 | - The company's end customer base grew to over **27,000** as of January 31, 2025[139](index=139&type=chunk) - For the six months ended January 31, 2025, the total average contract duration was approximately **3.0 years**, a slight increase from **2.9 years** in the prior year period[201](index=201&type=chunk) [Results of Operations](index=44&type=section&id=Results%20of%20Operations) Total revenue increased **16%** to **$1.25 billion**, with improved gross margin and nearly tripled operating income despite rising expenses Revenue Comparison (in thousands) | Revenue Type | Six Months Ended Jan 31, 2024 | Six Months Ended Jan 31, 2025 | Change % | | :--- | :--- | :--- | :--- | | Product | $546,582 | $656,106 | 20% | | Support, entitlements and other services | $529,705 | $589,571 | 11% | | **Total revenue** | **$1,076,287** | **$1,245,677** | **16%** | Operating Expense Comparison (in thousands) | Expense Category | Six Months Ended Jan 31, 2024 | Six Months Ended Jan 31, 2025 | Change % | | :--- | :--- | :--- | :--- | | Sales and marketing | $472,025 | $514,783 | 9% | | Research and development | $312,376 | $356,744 | 14% | | General and administrative | $97,032 | $113,504 | 17% | | **Total operating expenses** | **$881,433** | **$985,031** | **12%** | [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position of **$1.74 billion**, bolstered by financing activities and a remaining **$198.9 million** share repurchase authorization - Principal sources of liquidity as of January 31, 2025, include **$1.07 billion** in cash and cash equivalents and **$670.7 million** in short-term investments[217](index=217&type=chunk) - Net cash from financing activities was **$408.8 million** for the six months ended Jan 31, 2025, driven by 2029 Notes issuance, partially offset by share and 2027 Notes repurchases[231](index=231&type=chunk) - As of January 31, 2025, approximately **$198.9 million** remained available for future share repurchases under the August 2023 authorization[105](index=105&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency fluctuations and interest rate changes, impacting operating loss and convertible note fair value - A hypothetical **10%** decrease in the U.S. dollar against other currencies would increase operating loss by approximately **$36.2 million** for the six months ended January 31, 2025[242](index=242&type=chunk) - The company's convertible notes have fixed annual interest rates, but their fair value is affected by changes in interest rates and the company's stock price[245](index=245&type=chunk) [Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The principal executive officer and principal financial officer concluded that disclosure controls and procedures are effective at a reasonable assurance level as of the end of the period[246](index=246&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[248](index=248&type=chunk) PART II. OTHER INFORMATION [Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) New risks include increased indebtedness from notes and credit facilities, impacting debt servicing, cash for conversions, and operational flexibility due to covenants - A new risk factor was added concerning the ability to service and repay debt, including the **$500.0 million** of 2027 Notes, **$862.5 million** of 2029 Notes, and any borrowings under the new Credit Agreement[251](index=251&type=chunk) - The company may not have sufficient cash to settle conversions of the Notes, repay them at maturity, or repurchase them upon a fundamental change, which could lead to a default[254](index=254&type=chunk) - The new revolving credit facility contains financial and other covenants that may restrict actions, and failure to comply could result in acceleration of debt obligations[258](index=258&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=57&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased approximately **3.1 million** shares for **$200.0 million** via privately negotiated transactions, funded by 2029 Notes proceeds Issuer Purchases of Equity Securities (Three Months Ended Jan 31, 2025) | Period | Total Number of Shares Purchased (in thousands) | Average Price Paid Per Share | | :--- | :--- | :--- | | November 2024 | 0 | $— | | December 2024 | 3,087 | $64.78 | | January 2025 | 0 | $— | - The December 2024 repurchase of approximately **3.1 million** shares for approximately **$200.0 million** was executed outside the existing share repurchase program and funded by 2029 Notes offering proceeds[262](index=262&type=chunk)

Technical Analysis - Nutanix (NTNX) has reached a significant support level and is considered a good pick for investors from a technical perspective [1] - NTNX recently broke through the 20-day moving average, indicating a short-term bullish trend [1] - The 20-day simple moving average is a popular tool among traders, smoothing out short-term price trends and providing more trend reversal signals than longer-term moving averages [1][2] Earnings Estimates - The bullish case for NTNX is strengthened by positive earnings estimate revisions, with no estimates decreasing in the past two months and two estimates increasing [3] - The consensus estimate for NTNX has also increased, suggesting potential for further gains [3] Performance Metrics - NTNX has rallied 12.5% over the past four weeks, indicating strong recent performance [4] - The company currently holds a Zacks Rank of 2 (Buy), suggesting it could be on the verge of another upward move [4]

Shares of Nutanix (NTNX) have been strong performers lately, with the stock up 12.5% over the past month. The stock hit a new 52-week high of $79.9 in the previous session. Nutanix has gained 25.1% since the start of the year compared to the -4.3% move for the Zacks Computer and Technology sector and the -2.6% 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 our earnings consensus estimat ...

Nutanix (NTNX) reported second-quarter fiscal 2025 non-GAAP earnings of 56 cents per share, which surpassed the Zacks Consensus Estimate by 19.15% and increased 21.7% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Nutanix’s revenues climbed 16% year over year to $654.7 million, beating the Zacks Consensus Estimate by 1.88% and the guided range of $635-$645 million.The top line was driven by new customers landing on the company’s platform through various incentive progr ...

Financial Data and Key Metrics Changes - Nutanix reported record quarterly revenue of $655 million, exceeding the guided range of $635 million to $645 million, representing a year-over-year growth rate of 16% [21] - Annual Recurring Revenue (ARR) grew 19% year-over-year to $2.06 billion, surpassing the $2 billion mark [10][21] - Non-GAAP gross margin in Q2 was 88.3%, and non-GAAP operating margin was 24.6%, higher than the guided range of 20% to 21% [24] - Free cash flow in Q2 was $187 million, representing a free cash flow margin of 29% [25] Business Line Data and Key Metrics Changes - New logo growth exceeded 50% year-over-year across all customer segments, including the Global 2000 [10][21] - Net dollar-based retention rate (NRR) at the end of Q2 was 110%, flat quarter-over-quarter [22] Market Data and Key Metrics Changes - The U.S. federal business improved and returned to solid year-over-year growth, although it remains 10% or less of annual revenue [39][42] - The company noted a good pipeline of opportunities in the federal sector, but uncertainty remains due to the new administration [41][73] Company Strategy and Development Direction - Nutanix aims to become the leading platform for running applications and managing data anywhere, focusing on capturing multiyear growth opportunities [18] - The company is investing in sales and marketing and research and development to address its large market opportunity [31][102] - The Nutanix Cloud Platform is positioned to support enterprises in deploying and running GenAI applications efficiently [12][96] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strength in landing new logo customers and steady performance in existing customer expansion [29][71] - The updated guidance for fiscal year 2025 includes revenue of $2.495 billion to $2.515 billion, representing a year-over-year growth rate of approximately 17% at the midpoint [28] - Management acknowledged the challenges of elongated sales cycles and variability in deal structures but noted improvements in closing larger deals [23][137] Other Important Information - Nutanix issued $862.5 million in convertible notes due 2029 and closed a $500 million revolving credit facility, enhancing financial flexibility [25][26] - The company highlighted significant wins with various Global 2000 companies, showcasing its ability to modernize IT footprints [14][16] Q&A Session Summary Question: Insights on customer momentum and federal vertical - Management noted that new logo growth is driven by a matured pipeline and recent go-to-market initiatives, with the federal business showing improved performance [36][39] Question: Confidence in pipeline for Global 2000 customers - Management indicated that many Global 2000 opportunities are second vendor opportunities, with a mix of hyperconverged and three-tier solutions being adopted [48][50] Question: Variability in large deal timing and incentives - Management acknowledged variability in large transactions and emphasized the importance of articulating the value proposition to customers [78][81] Question: Update on GPT-in-a-Box and enterprise adoption - Management reported increasing interest in GenAI applications and noted that customers are moving from experimentation to real-life production deployments [92][96] Question: Investment in sales and marketing and R&D - Management confirmed that investments in sales and marketing and R&D will ramp in the second half of the fiscal year, targeting core platform strengthening and modern applications [101][104]

For the quarter ended January 2025, Nutanix (NTNX) reported revenue of $654.72 million, up 15.8% over the same period last year. EPS came in at $0.56, compared to $0.46 in the year-ago quarter.The reported revenue represents a surprise of +1.88% over the Zacks Consensus Estimate of $642.62 million. With the consensus EPS estimate being $0.47, the EPS surprise was +19.15%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ex ...