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 ...

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 ...