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 ...

Nutanix (NTNX) came out with quarterly earnings of $0.56 per share, beating the Zacks Consensus Estimate of $0.47 per share. This compares to earnings of $0.46 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 19.15%. A quarter ago, it was expected that this enterprise cloud platform services provider would post earnings of $0.31 per share when it actually produced earnings of $0.42, delivering a surprise of 35.48%.Over the last ...

Q2 FY2025 Earnings February 26, 2025 Safe Harbor Non-GAAP Financial Measures and Other Key Performance Measures | Delivered Outperformance Across All Q2'25 Guided Metrics | Revenue of $654.7 million was up 16% year-over-year and Non-GAAP Operating Margin of 24.6% increased 270 bps year-over-year. | | --- | --- | | Raised FY'25 Guidance | Raised all FY25 guided metrics, including Revenue, Non-GAAP Operating | | | Margin and Free Cash Flow. | | Strong New Logo Performance | New logo additions of 710 represent ...

Financial Performance - Nutanix reported a 19% year-over-year growth in Annual Recurring Revenue (ARR), reaching $2.06 billion in Q2 FY'25 compared to $1.74 billion in Q2 FY'24[3]. - Revenue for Q2 FY'25 was $654.7 million, reflecting a 16% increase from $565.2 million in Q2 FY'24[3]. - GAAP Operating Income increased to $65.4 million in Q2 FY'25, up from $37.0 million in Q2 FY'24, marking a significant improvement[3]. - Non-GAAP Operating Margin improved to 24.6% in Q2 FY'25, compared to 21.9% in Q2 FY'24, indicating enhanced operational efficiency[3]. - Free Cash Flow for the first half of fiscal 2025 was $187.1 million, an increase of $24.5 million from $162.6 million in the same period last year[3]. - Total revenue for the three months ended January 31, 2025, was $654,721, representing a 15.7% increase from $565,233 in the same period of 2024[20]. - Net income for the six months ended January 31, 2025, was $86,353, compared to $16,942 for the same period in 2024, indicating a significant increase of 409.5%[20]. - Gross profit for the three months ended January 31, 2025, was $569,433, compared to $483,677 for the same period in 2024, showing a growth of 17.7%[20]. - Net income for the three months ended January 31, 2025, was $56,427, compared to $93,428 in the same period in 2026, showing a significant increase[36]. - Net income for the six months ended January 31, 2025, was $86,353, with diluted net income per share of $0.30[39]. Guidance and Outlook - The company expects Q3 FY'25 revenue to be between $620 million and $630 million, with a Non-GAAP Operating Margin of 17% to 18%[5]. - Fiscal 2025 revenue outlook is projected to be between $2.495 billion and $2.515 billion, with Free Cash Flow expected to be between $650 million and $700 million[6]. - The company provided guidance indicating continued growth in revenue and profitability for the upcoming quarters, driven by new product launches and market expansion strategies[20]. - Future guidance indicates a positive outlook for revenue growth and operational performance, supported by ongoing market expansion efforts[44]. Cash Flow and Liquidity - Nutanix issued $862.5 million in convertible senior notes due 2029 to strengthen its balance sheet and financial flexibility[5]. - A new revolving credit facility of $500 million was established to enhance liquidity[5]. - Cash and cash equivalents at the end of the period increased from $681,356 to $1,072,475, a rise of 57.3%[24]. - The company experienced a significant increase in free cash flow, reflecting improved operational efficiency and cash management strategies[45]. - Free cash flow for the six months ended January 31, 2024, was $295,097 thousand, which rose to $338,983 thousand for the same period in 2025[45]. Assets and Liabilities - Total current assets increased from $1,481,294 as of July 31, 2024, to $2,335,394 as of January 31, 2025, reflecting a growth of 57.6%[18]. - Total liabilities rose from $2,872,066 as of July 31, 2024, to $3,796,664 as of January 31, 2025, an increase of 32.2%[18]. - The company reported a total stockholders' deficit of $(807,674) as of January 31, 2025, compared to $(728,148) as of July 31, 2024[18]. Revenue Breakdown - Subscription revenue for the three months ended January 31, 2024, was $531,983, increasing to $624,418 for the same period in 2025, representing a growth of approximately 17%[29]. - Total revenue for the six months ended January 31, 2024, was $1,076,287, which increased to $1,245,677 in 2025, reflecting a year-over-year growth of about 16%[29]. - Annual Recurring Revenue (ARR) reached $1,737,364 for the three months ended January 31, 2024, and increased to $2,059,506 for the same period in 2025, indicating a growth of approximately 18.5%[34]. - Subscription billings for the three months ended January 31, 2024, were $572,759, rising to $733,737 in 2025, marking an increase of approximately 28%[29]. - Professional services revenue for the three months ended January 31, 2024, was $25,008, which increased to $28,030 in 2025, reflecting a growth of about 8%[29]. Operating Expenses - Operating expenses for the six months ended January 31, 2025, totaled $985,031, up from $881,433 in the same period of 2024, an increase of 11.8%[20]. - Total operating expenses for the same period were $985,031, resulting in an operating income of $92,688 and an operating margin of 7.4%[39]. - The company reported a significant reduction in research and development expenses, down by $90,327 for the six months ended January 31, 2025[39]. Market Trends - The seventh annual Enterprise Cloud Index survey indicates that GenAI is shifting organizational priorities, particularly around security and privacy concerns[5]. - The company is focused on enhancing its market position through strategic investments in new technologies and product development[44].

Core Insights - Nutanix, Inc. reported a 19% year-over-year growth in Annual Recurring Revenue (ARR), reaching $2.06 billion, and demonstrated strong free cash flow generation in its second quarter of fiscal 2025 [1][2][3] - The company attributes its performance to the strength of the Nutanix Cloud Platform and increasing demand from businesses seeking reliable long-term partnerships [2][3] - Nutanix has improved its financial flexibility by issuing convertible notes and establishing a new revolving credit facility [2][5] Financial Performance - Q2 FY'25 ARR was $2.06 billion, up from $1.74 billion in Q2 FY'24, marking a 19% increase [3] - Total revenue for Q2 FY'25 was $654.7 million, a 16% increase from $565.2 million in Q2 FY'24 [3] - GAAP operating income increased to $65.4 million from $37.0 million year-over-year, while non-GAAP operating income rose to $161.3 million from $123.9 million [3] - Free cash flow for the quarter was $187.1 million, compared to $162.6 million in the same quarter last year [3] Operational Highlights - The average contract duration increased to 3.0 years from 2.8 years year-over-year [3] - GAAP gross margin improved to 87.0% from 85.6%, and non-GAAP gross margin increased to 88.3% from 87.3% [3] - The company has established a new revolving credit facility of $500 million to enhance liquidity [5] Future Outlook - For Q3 FY'25, Nutanix expects revenue between $620 million and $630 million, with a non-GAAP operating margin of 17% to 18% [5][6] - The fiscal 2025 outlook anticipates total revenue between $2.495 billion and $2.515 billion, with free cash flow projected at $650 million to $700 million [6]

Core Viewpoint - Wall Street analysts' recommendations significantly influence investor decisions, but their reliability is questionable, particularly for Nutanix (NTNX) [1][4]. Brokerage Recommendations - Nutanix has an average brokerage recommendation (ABR) of 1.54, indicating a consensus between Strong Buy and Buy, based on 14 brokerage firms [2]. - Among the 14 recommendations, 8 are Strong Buy (57.1%) and 4 are Buy (28.6%) [2]. Analyst Bias and Limitations - Brokerage analysts often exhibit a positive bias due to their firms' vested interests, leading to a disproportionate number of favorable ratings compared to negative ones [5][9]. - Studies suggest that brokerage recommendations have limited success in guiding investors toward stocks with high price appreciation potential [4][9]. 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, showing a strong correlation with near-term stock price movements [7][10]. - The Zacks Rank is updated more frequently than the ABR, making it a more timely indicator for predicting future stock prices [11]. Current Earnings Estimates for Nutanix - The Zacks Consensus Estimate for Nutanix's current year earnings has increased by 1.1% to $1.49, reflecting analysts' growing optimism [12]. - The recent change in consensus estimates has contributed to a Zacks Rank of 2 (Buy) for Nutanix, suggesting a positive outlook for the stock [13].

Core Viewpoint - Nutanix (NTNX) is expected to report quarterly earnings of $0.47 per share, a 2.2% increase year-over-year, with revenues projected at $641.76 million, reflecting a 13.5% year-over-year growth [1]. Financial Projections - Analysts estimate 'Revenue- Support, entitlements and other services' at $304.98 million, indicating a 14.8% increase from the previous year [4]. - 'Revenue- Product' is projected to be $337.19 million, showing a 12.5% year-over-year change [4]. - 'Disaggregation of Revenue- Professional services revenue' is expected to reach $29.09 million, a 16.3% increase year-over-year [4]. - 'Disaggregation of Revenue- Subscription revenue' is forecasted at $607.97 million, reflecting a 14.3% year-over-year growth [5]. - 'Annual Contract Value Billings (ACV Billings)' is predicted to be $389.28 million, up from $329.48 million year-over-year [5]. Billing and Customer Metrics - Total Billings are expected to reach $691.98 million, compared to $616.48 million in the same quarter last year [6]. - 'Annual Recurring Revenue (ARR)' is projected at $2.04 billion, up from $1.74 billion year-over-year [6]. - Total end customers are forecasted to be 27,645, an increase from 25,370 in the previous year [6]. - 'Disaggregation of billings - Professional services billings' is estimated at $29.60 million, down from $35.48 million year-over-year [7]. - 'Disaggregation of billings - Subscription billings' is expected to reach $658.94 million, compared to $572.76 million last year [7]. Market Performance - Nutanix shares have returned +10.7% over the past month, outperforming the Zacks S&P 500 composite's +2.2% change [8]. - The company holds a Zacks Rank 3 (Hold), indicating expectations to mirror overall market performance in the near future [8].

Company Performance - Nutanix (NTNX) closed at $72.07, with a slight decrease of -0.18% from the previous trading session, underperforming the S&P 500's gain of 0.24% [1] - Over the last month, Nutanix shares increased by 10.33%, outperforming the Computer and Technology sector's gain of 1.76% and the S&P 500's gain of 2.37% [1] Upcoming Earnings - Nutanix is set to release its earnings on February 26, 2025, with projected EPS of $0.47, reflecting a 2.17% increase year-over-year [2] - The consensus estimate for revenue is $641.76 million, indicating a 13.54% increase compared to the same quarter of the previous year [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $1.49 per share and revenue at $2.46 billion, representing increases of +13.74% and +14.5% respectively from the prior year [3] - Recent adjustments to analyst estimates for Nutanix may indicate positive business outlooks, as these revisions often reflect short-term business dynamics [3] Valuation Metrics - Nutanix has a Forward P/E ratio of 48.61, which is a premium compared to the industry's average Forward P/E of 29.05 [6] - The PEG ratio for Nutanix is currently 2.45, while the average PEG ratio for Computers - IT Services stocks is 2.61 [6] Industry Context - The Computers - IT Services industry is part of the Computer and Technology sector, currently holding a Zacks Industry Rank of 59, placing it in the top 24% of over 250 industries [7] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Performance - Nutanix (NTNX) closed at $70.28, reflecting a -1.83% change from the previous session, underperforming the S&P 500 which lost 0.27% [1] - Over the past month, Nutanix shares have increased by 13.55%, while the Computer and Technology sector gained 1.69% and the S&P 500 gained 4.27% [1] Upcoming Earnings - Nutanix is set to release its earnings report on February 26, 2025, with an expected EPS of $0.47, representing a 2.17% increase year-over-year [2] - The consensus estimate for quarterly revenue is $641.76 million, which is a 13.54% increase from the same period last year [2] Full-Year Estimates - The Zacks Consensus Estimates for Nutanix's full-year earnings are $1.49 per share and revenue of $2.46 billion, indicating year-over-year increases of +13.74% and +14.5%, respectively [3] Analyst Estimates and Market Sentiment - Recent changes to analyst estimates for Nutanix are important as they reflect the evolving business outlook, with positive revisions indicating optimism [3] - The Zacks Rank system, which assesses estimate changes, currently ranks Nutanix at 3 (Hold) [5] Valuation Metrics - Nutanix has a Forward P/E ratio of 48.2, which is higher than the industry average of 29.8, suggesting it is trading at a premium [6] - The company also has a PEG ratio of 2.43, compared to the industry average of 2.65, indicating a relatively favorable growth expectation [7] Industry Context - The Computers - IT Services industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 59, placing it in the top 24% of over 250 industries [8]

Group 1 - Nutanix, Inc. will report its financial results for the second quarter of fiscal year 2025 on February 26, 2025, after U.S. markets close [1] - A conference call and earnings webcast will be held on the same day at 4:30 p.m. EST / 1:30 p.m. PST to discuss the financial results [2] - An archived replay of the webcast will be available shortly after the call on the Nutanix Investor Relations website [3] Group 2 - Nutanix is a global leader in cloud software, providing a single platform for running applications and managing data [4] - The company aims to reduce complexity and simplify operations for organizations, allowing them to focus on business outcomes [4] - Nutanix is recognized for its role as a pioneer in hyperconverged infrastructure, trusted by companies worldwide for hybrid multicloud environments [4]