Nutanix (NTNX) came out with quarterly earnings of $0.27 per share, beating the Zacks Consensus Estimate of $0.20 per share. This compares to earnings of $0.24 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 35%. A quarter ago, it was expected that this enterprise cloud platform services provider would post earnings of $0.17 per share when it actually produced earnings of $0.28, delivering a surprise of 64.71%.Over the last fo ...

Q4 FY2024 Earnings August 28, 2024 Safe Harbor Non-GAAP Financial Measures and Other Key Performance Measures To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, this presentation includes the following non-GAAP financial and other key performance measures: non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, free cash flow, Annual Contract Value Billings (or ACV Billings), Annual Recurring Revenu ...

[Financial Performance](index=1&type=section&id=Nutanix%20Reports%20Fourth%20Quarter%20and%20Fiscal%202024%20Financial%20Results) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted strong FY2024 performance with solid growth, improved profitability, and strategic partnership advancements, achieving positive GAAP operating income - In fiscal 2024, Nutanix made notable progress on partnerships, signing new or enhanced agreements with Cisco, NVIDIA, and Dell[2](index=2&type=chunk) - The company demonstrated a good balance of performance with **22% year-over-year ARR growth**, strong free cash flow, and its first full year of positive GAAP operating income[2](index=2&type=chunk) [Fourth Quarter Fiscal 2024 Financial Highlights](index=1&type=section&id=Fourth%20Quarter%20Fiscal%202024%20Financial%20Summary) Nutanix reported strong Q4 results, exceeding guidance with double-digit revenue and ARR growth, and significant free cash flow Q4 FY2024 Financial Highlights (vs. Q4 FY2023) | Metric | Q4 FY'24 | Q4 FY'23 | Y/Y Change | | :--- | :--- | :--- | :--- | | Annual Recurring Revenue (ARR) | $1.91 billion | $1.56 billion | 22% | | Revenue | $548.0 million | $494.2 million | 11% | | ACV Billings | $338.0 million | $278.7 million | 21% | | GAAP Gross Margin | 85.2% | 83.7% | +150 bps | | Non-GAAP Operating Income | $70.5 million | $63.6 million | +$6.9 million | | Free Cash Flow | $224.3 million | $45.5 million | +$178.8 million | [Fiscal Year 2024 Financial Highlights](index=2&type=section&id=Fiscal%202024%20Financial%20Summary) Nutanix achieved significant FY2024 growth with 15% revenue increase to $2.15 billion and its first full year of positive GAAP operating income Full Year FY2024 Financial Highlights (vs. FY2023) | Metric | FY'24 | FY'23 | Y/Y Change | | :--- | :--- | :--- | :--- | | Annual Recurring Revenue (ARR) | $1.91 billion | $1.56 billion | 22% | | Revenue | $2.15 billion | $1.86 billion | 15% | | ACV Billings | $1.16 billion | $956.8 million | 21% | | GAAP Operating Income (Loss) | $7.6 million | $(207.2) million | +$214.8 million | | Non-GAAP Operating Income | $347.1 million | $161.0 million | +$186.1 million | | Free Cash Flow | $597.7 million | $207.0 million | +$390.7 million | [Business Outlook](index=2&type=section&id=Business%20Outlook) [First Quarter Fiscal 2025 Outlook](index=2&type=section&id=First%20Quarter%20Fiscal%202025%20Outlook) Nutanix projects Q1 FY2025 revenue between $565 million and $575 million, with a non-GAAP operating margin of 14.5% to 15.5% Q1 FY2025 Guidance | Metric | Outlook | | :--- | :--- | | Revenue | $565 - $575 million | | Non-GAAP Operating Margin | 14.5% to 15.5% | | Weighted Average Shares Outstanding | Approx. 287 million | [Fiscal Year 2025 Outlook](index=3&type=section&id=Fiscal%202025%20Outlook) Nutanix projects FY2025 revenue between $2.435 billion and $2.465 billion, with strong profitability and cash generation expected FY 2025 Guidance | Metric | Outlook | | :--- | :--- | | Revenue | $2.435 - $2.465 billion | | Non-GAAP Operating Margin | 15.5% to 17.0% | | Free Cash Flow | $540 - $600 million | [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=8&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of July 31, 2024, Nutanix's balance sheet shows total assets of $2.14 billion, total liabilities of $2.87 billion, and a stockholders' deficit of $728.1 million Balance Sheet Summary (in thousands) | Account | July 31, 2024 | July 31, 2023 | | :--- | :--- | :--- | | Total current assets | $1,481,294 | $1,861,734 | | **Total assets** | **$2,143,918** | **$2,526,915** | | Total current liabilities | $1,244,341 | $1,136,108 | | **Total liabilities** | **$2,872,066** | **$3,234,334** | | **Total stockholders' deficit** | **$(728,148)** | **$(707,419)** | [Consolidated Statements of Operations](index=9&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For FY2024, Nutanix reported a 15% revenue increase to $2.15 billion, achieving GAAP operating income of $7.6 million, a significant turnaround from the prior year Statement of Operations Summary (Fiscal Year Ended, in thousands) | Account | FY 2024 | FY 2023 | | :--- | :--- | :--- | | **Total revenue** | **$2,148,816** | **$1,862,895** | | Gross profit | $1,824,704 | $1,530,708 | | **Income (Loss) from operations** | **$7,563** | **$(207,150)** | | **Net loss** | **$(124,775)** | **$(254,560)** | | Net loss per share, basic and diluted | $(0.51) | $(1.09) | [Consolidated Statements of Cash Flows](index=11&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Nutanix demonstrated strong FY2024 cash generation, with net cash from operating activities surging to $672.9 million and a net cash inflow from investing activities Statement of Cash Flows Summary (Fiscal Year Ended, in thousands) | Activity | FY 2024 | FY 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$672,931** | **$272,403** | | Net cash (used in) provided by investing activities | $529,589 | $(49,785) | | Net cash used in financing activities | $(1,062,629) | $(112,709) | | **Net increase in cash** | **$139,891** | **$109,909** | [Supplemental Financial Information and Reconciliations](index=13&type=section&id=Supplemental%20Financial%20Information%20and%20Reconciliations) [Key Performance Metrics & Definitions](index=3&type=section&id=Key%20Performance%20Metrics%20%26%20Definitions) The report defines key non-GAAP and performance metrics such as ACV Billings, ARR, and Average Contract Duration, used to evaluate the subscription-based business model - **Annual Contract Value (ACV) Billings:** The sum of the total annualized value of all contracts billed during a given period; Nutanix will discontinue reporting this metric beginning with Q1 fiscal 2025[11](index=11&type=chunk)[12](index=12&type=chunk) - **Annual Recurring Revenue (ARR):** The sum of ACV for all subscription contracts in effect as of the end of a specific period, excluding life-of-device contracts[13](index=13&type=chunk) - **Average Contract Duration:** The dollar-weighted term across all subscription and life-of-device contracts executed in the period[14](index=14&type=chunk) [Disaggregation of Revenue and Billings](index=14&type=section&id=Disaggregation%20of%20Revenue%20and%20Billings) Nutanix's revenue is predominantly subscription-driven, with FY2024 subscription revenue at $2.02 billion, representing approximately 94% of total revenue Disaggregation of Revenue (Fiscal Year Ended, in thousands) | Revenue Source | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Subscription revenue | $2,016,776 | $1,730,848 | | Professional services revenue | $100,852 | $91,841 | | Other non-subscription product revenue | $31,188 | $40,206 | | **Total revenue** | **$2,148,816** | **$1,862,895** | [Reconciliation of GAAP to Non-GAAP Measures](index=16&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Nutanix provides reconciliations for non-GAAP measures, adjusting for non-cash expenses, with FY2024 non-GAAP operating income at $347.1 million and free cash flow at $597.7 million FY2024 GAAP to Non-GAAP Operating Income Reconciliation (in thousands) | Description | Amount | | :--- | :--- | | **GAAP income from operations** | **$7,563** | | Stock-based compensation expense | $333,833 | | Amortization of intangible assets | $3,709 | | Other adjustments | $1,998 | | **Non-GAAP income from operations** | **$347,107** | FY2024 Free Cash Flow Reconciliation (in thousands) | Description | Amount | | :--- | :--- | | **Net cash provided by operating activities (GAAP)** | **$672,931** | | Purchases of property and equipment | $(75,252) | | **Free cash flow (Non-GAAP)** | **$597,679** |

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Nutanix (NTNX) , which belongs to the Zacks Computers - IT Services industry, could be a great candidate to consider.This enterprise cloud platform services provider has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 61.66%.For the most recent qua ...

Nutanix (NTNX) is set to release fiscal fourth-quarter 2024 results on Aug 28.For the fourth quarter of fiscal 2024, Nutanix expects revenues in the range of $530 million to $540 million. The Zacks Consensus Estimate for the same is currently pegged at $537.12 million, suggesting 8.7% growth from the year-ago period.The Zacks Consensus Estimate for earnings has remained unchanged at 19 cents per share over the past 30 days, indicating a decline of 20.8% from the year-ago period.Image Source: Zacks Investmen ...

Wall Street analysts forecast that Nutanix (NTNX) will report quarterly earnings of $0.19 per share in its upcoming release, pointing to a year-over-year decline of 20.8%. It is anticipated that revenues will amount to $537.12 million, exhibiting an increase of 8.7% compared to the year-ago quarter.The consensus EPS estimate for the quarter has been revised 33.3% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial es ...

Nutanix (NTNX) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Shares of this enterprise cloud platform services provider have returned +6.6% over the past month versus the Zacks S&P 500 composite's +0.3% change. The Zacks Computers - IT Services industry, to which Nutanix belongs, has gained 1.8% over this period. Now the key question is: Where could the stock be headed in the ...

Core Viewpoint - The average brokerage recommendation (ABR) for Nutanix (NTNX) is 1.64, indicating a consensus leaning towards a "Strong Buy" to "Buy" rating based on 14 brokerage firms' recommendations [1][2]. Brokerage Recommendation Trends for NTNX - The ABR consists of eight "Strong Buy" and three "Buy" recommendations, accounting for 57.1% and 21.4% of total recommendations respectively [1]. - Despite the positive ABR, studies suggest that brokerage recommendations have limited success in guiding investors towards stocks with the highest price increase potential [2]. Analyst Bias and Reliability - Analysts from brokerage firms often exhibit a strong positive bias due to vested interests, leading to a higher ratio of "Strong Buy" to "Strong Sell" recommendations [2][3]. - This misalignment of interests may provide little insight into the actual future price movements of stocks [3]. Zacks Rank vs. ABR - The Zacks Rank is a proprietary tool that classifies stocks based on earnings estimate revisions, providing a more reliable indicator of near-term price performance compared to ABR [3][5]. - Unlike ABR, which is based solely on brokerage recommendations, the Zacks Rank is updated frequently to reflect changes in earnings estimates, making it a timely indicator [4][6]. Current Earnings Estimates for Nutanix - The Zacks Consensus Estimate for Nutanix remains unchanged at $1.22 for the current year, suggesting stable analyst views on the company's earnings prospects [7]. - The unchanged consensus estimate has resulted in a Zacks Rank of 3 (Hold) for Nutanix, indicating a cautious approach despite the positive ABR [7].

Group 1: Company Performance - Nutanix (NTNX) stock closed at $53.03, reflecting a +1.95% increase, outperforming the S&P 500's 0.2% loss [1] - Over the past month, Nutanix's stock has risen by 5.39%, while the Computer and Technology sector gained 0.96% and the S&P 500 gained 1.93% [1] - The upcoming earnings report on August 28, 2024, is expected to show an EPS of $0.19, a 20.83% decline year-over-year, with revenue anticipated at $537.12 million, an 8.68% increase from the same quarter last year [1] Group 2: Analyst Estimates and Ratings - Recent changes to analyst estimates for Nutanix indicate positive sentiment, with the Zacks Rank system currently rating Nutanix as 1 (Strong Buy) [2] - The Zacks Rank has a strong historical performance, with 1 stocks delivering an average annual return of +25% since 1988 [2] - Over the past month, the Zacks Consensus EPS estimate for Nutanix has remained unchanged [2] Group 3: Valuation Metrics - Nutanix has a Forward P/E ratio of 38.61, which is higher than the industry average of 28.4, indicating a premium valuation [3] - The company has a PEG ratio of 0.95, significantly lower than the industry average PEG ratio of 3.01, suggesting favorable growth prospects relative to its valuation [3] - The Computers - IT Services industry, which includes Nutanix, holds a Zacks Industry Rank of 41, placing it in the top 17% of over 250 industries [3]

The most recent trading session ended with Nutanix (NTNX) standing at $47.46, reflecting a +1.02% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.77% loss on the day. Elsewhere, the Dow saw a downswing of 0.6%, while the tech-heavy Nasdaq depreciated by 1.05%.The the stock of enterprise cloud platform services provider has fallen by 20.92% in the past month, lagging the Computer and Technology sector's loss of 12.91% and the S&P 500's loss of 5.85%.Market participants wi ...