For the quarter ended July 2024, Nutanix (NTNX) reported revenue of $547.95 million, up 10.9% over the same period last year. EPS came in at $0.27, compared to $0.24 in the year-ago quarter.The reported revenue represents a surprise of +2.02% over the Zacks Consensus Estimate of $537.12 million. With the consensus EPS estimate being $0.20, the EPS surprise was +35.00%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expec ...

Financial Data and Key Metrics Changes - In Q4 2024, Nutanix reported revenue of $548 million, an increase of 11% year-over-year, and full-year revenue of $2.15 billion, up 15% year-over-year [8][21] - Annual recurring revenue (ARR) at the end of Q4 was $1.91 billion, reflecting a 22% year-over-year growth [9][21] - Free cash flow for Q4 was $224 million, with a free cash flow margin of 41%, and for the full year, free cash flow was $598 million, almost three times higher than the previous year, resulting in a margin of 28% [19][24] Business Line Data and Key Metrics Changes - The renewals business continued to perform strongly, contributing to the overall revenue growth [9][23] - The land and expand strategy underperformed relative to internal expectations due to elongated sales cycles, but the pipeline for larger deals showed good growth [9][22] Market Data and Key Metrics Changes - Nutanix saw significant engagement from smaller and mid-sized companies seeking alternatives to existing infrastructure solutions, particularly in the wake of industry changes [31][50] - The company reported a net dollar-based retention rate (NRR) of 114% at the end of FY 2024, indicating strong customer retention and expansion [22] Company Strategy and Development Direction - Nutanix is focusing on infrastructure modernization and hybrid multi-cloud operating models, with significant partnerships established with Cisco, Dell, and NVIDIA [10][11] - The company aims to innovate continuously, with new product releases such as GPT in-a-box and enhancements to its cloud platform to support modern applications [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term market opportunity, particularly in light of recent industry disruptions, and highlighted the importance of partnerships in driving growth [16][29] - The company anticipates continued elongation of sales cycles but remains optimistic about the growing pipeline for larger deals [27][28] Other Important Information - Nutanix plans to discontinue reporting ACV billings starting in FY 2025, focusing instead on revenue, non-GAAP operating margin, and free cash flow [26][27] - The company ended Q4 with cash and short-term investments of $994 million, down from $1.651 billion at the end of Q3, primarily due to the conversion of 2026 notes [20] Q&A Session Summary Question: Update on Broadcom churn - Management noted that the opportunity to gain share remains largely unchanged, with no significant changes in win or loss rates [31] Question: Path forward regarding hardware refresh constraints - Management explained that for customers already using HCI, migration paths are easier, and partnerships with Dell will facilitate easier deployments without hardware refreshes [34][35] Question: Trends in AI and private cloud workloads - Management observed a trend of repatriation of workloads to private clouds, emphasizing the cost-effectiveness of running steady-state workloads on-premises [39][40] Question: Contribution from partnerships and renewals - Management expects contributions from Cisco and Dell partnerships to grow in FY 2025, alongside continued strong performance in renewals [42][44] Question: Demand environment and pricing strategies - Management indicated that the demand environment has remained stable, with elongated sales cycles, and discussed strategies to balance share gain with margin protection [57][59] Question: Revenue recognition from large deals - Management confirmed that revenue from an eight-figure deal will be recognized over multiple years starting in FY 2025, with some professional services revenue recognized in Q4 [68] Question: Alignment of go-to-market strategy with market opportunities - Management clarified that they are targeting resources where the maximum dollar opportunity lies, focusing on both larger enterprises and their historical sweet spot in the mid-market [70][71]

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].