In the latest trading session, Nutanix (NTNX) closed at $63.05, marking a +0.7% move from the previous day. This move outpaced the S&P 500's daily gain of 0.12%. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq lost 0.23%.Prior to today's trading, shares of the enterprise cloud platform services provider had lost 5.55% over the past month. This has lagged the Computer and Technology sector's loss of 3.73% and the S&P 500's loss of 3.45% in that time.Analysts and investors alike will be keepi ...

The most recent trading session ended with Nutanix (NTNX) standing at $62.41, reflecting a +0.39% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.16% for the day. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, lost 0.06%.The enterprise cloud platform services provider's stock has dropped by 3.12% in the past month, falling short of the Computer and Technology sector's loss of 0.17% and the S&P 500's loss of 2.8%.Market partic ...

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 ...

SAN JOSE, Calif., Dec. 11, 2024 (GLOBE NEWSWIRE) -- Nutanix, Inc. (“Nutanix”) (Nasdaq: NTNX) , a leader in hybrid multicloud computing, today announced the pricing of $750 million aggregate principal amount of 0.50% convertible senior notes due 2029 (the “notes”) in a private placement (the “offering”) to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). Nutanix has granted the initial purchasers of the ...

Financial Performance - Total revenue for the three months ended October 31, 2023, was $511,054,000, compared to $590,956,000 for the same period in 2024, representing a year-over-year increase of approximately 15.5%[18]. - Net loss for the three months ended October 31, 2023, was $(15,853,000), while net income for the same period in 2024 was $29,926,000, indicating a significant turnaround[19]. - Total revenue for the three months ended October 31, 2024, was $590.96 million, up from $511.05 million in the same period of 2023, representing a growth of approximately 15.6%[39]. - Subscription revenue increased to $560.70 million for the three months ended October 31, 2024, compared to $479.48 million in the same period of 2023, reflecting a growth of about 17%[39]. - Professional services revenue rose to $27.29 million in Q4 2024, up from $22.84 million in Q4 2023, marking an increase of approximately 19.5%[39]. - Total revenue for the fiscal year 2023 was $511,054,000, with a projected increase to $590,956,000 for 2024, representing a growth of approximately 15.5%[140]. - Non-GAAP gross profit increased from $439,250,000 in 2023 to $517,085,000 in 2024, reflecting a growth of about 17.8%[140]. - Free cash flow (non-GAAP) rose from $132,453,000 in 2023 to $151,920,000 in 2024, marking an increase of approximately 14.7%[140]. Assets and Liabilities - Total current assets increased from $1,481,294 thousand as of July 31, 2024, to $1,523,459 thousand as of October 31, 2024, reflecting a growth of approximately 2.8%[16]. - Total liabilities decreased slightly from $2,872,066 thousand to $2,866,647 thousand, a reduction of approximately 0.2%[16]. - The accumulated deficit improved from $(4,847,199) thousand to $(4,831,804) thousand, showing a reduction of approximately 0.3%[16]. - Total cash, cash equivalents, and short-term investments amounted to $1,075,450 thousand as of October 31, 2024[51]. - The company had cash, cash equivalents, and restricted cash of $614,659,000 at the end of the period for October 31, 2023, compared to $716,994,000 at the end of October 31, 2024, indicating a year-over-year increase of about 16.7%[24]. - Total accrued compensation and benefits as of October 31, 2024, is $164,670,000, down from $195,602,000 as of July 31, 2024, representing a decrease of approximately 15.8%[63]. - Total accrued expenses and other current liabilities as of October 31, 2024, is $18,968,000, down from $24,967,000 as of July 31, 2024, indicating a decrease of approximately 24.0%[64]. Revenue Recognition and Business Model - The company recognizes subscription revenue ratably over the contractual service period, with significant contributions from both software entitlement and support subscriptions and upfront software licenses[124]. - Nutanix's subscription term-based licenses typically range from one to five years, with cloud-based SaaS subscriptions extending up to five years[38]. - The company operates a subscription-based business model, with revenue from subscription term-based licenses recognized upfront, while revenue from support subscriptions is recognized ratably[145]. - As of October 31, 2024, contracted not recognized revenue was approximately $2.1 billion, with an expectation to recognize about 52% over the next 12 months[49]. Operating Expenses and Cash Flow - Operating expenses for the three months ended October 31, 2023, totaled $434,801,000, compared to $481,036,000 in 2024, reflecting a decrease of about 9.5%[18]. - Cash provided by operating activities for the three months ended October 31, 2023, was $145,473,000, increasing to $161,751,000 in 2024, an increase of approximately 11.1%[24]. - The company expects operating expenses to continue to increase in absolute dollars as part of its long-term growth strategy[160]. - Total operating lease cost for the three months ended October 31, 2024, was $9.0 million, compared to $9.6 million for the same period in 2023[79]. Shareholder Actions - The company authorized a share repurchase program of up to $350 million, with $198.9 million remaining available for future repurchases as of October 31, 2024[87]. - During the three months ended October 31, 2024, Nutanix repurchased 0.3 million shares at a weighted average price of $58.81 per share, totaling $20 million[87]. - As of October 31, 2024, Nutanix had 267.8 million shares of Class A common stock issued and outstanding[85]. Research and Development - Expectations include continued investment in research and development, particularly in generative artificial intelligence and hybrid cloud environments[7]. - Research and development expenses rose to $173,959 thousand for the three months ended October 31, 2024, from $151,975 thousand in the prior year[172]. - The company aims to enhance its research and development efforts to improve integration with ecosystem partners and expand its technology offerings, particularly in generative AI[143]. Market and Customer Insights - The company had over 27,000 end customers as of October 31, 2024, including approximately 1,060 Global 2000 enterprises[117]. - Total end customers increased to 24,930 as of October 31, 2023, with a forecasted growth to 27,160 by the end of 2024[120]. - As of October 31, 2024, approximately 76% of end customers who have been with the company for 18 months or longer made repeat purchases, with total lifetime orders averaging 8.9 times greater than their initial order[149]. Risks and Challenges - The company anticipates challenges in recruiting and retaining sufficient sales personnel to support growth initiatives[7]. - The reliance on channel and OEM partners for hardware platforms exposes the company to potential supply chain delays, impacting service delivery[147]. - A hypothetical 10% decrease in the U.S. dollar against other currencies would increase operating loss by approximately $15.9 million and $17.5 million for the three months ended October 31, 2023 and 2024, respectively[203].

| --- | --- | --- | |-------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | Q1 FY2025 | | | | Earnings | | | | November 26, 2024 | | | | | | | | | | | Safe Harbor 2 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 exp ...

Group 1 - The S&P 500 crossing the ~6,000 threshold raises minor concerns despite stock markets being at all-time highs, indicating a shaky economy [1] - Many consumer-facing companies have reported periods of instability, suggesting potential vulnerabilities in the market [1] Group 2 - Gary Alexander has extensive experience in covering technology companies and has been a contributor on Seeking Alpha since 2017, providing insights into industry trends [1]

Core Viewpoint - Nutanix, Inc. is a leader in hybrid multicloud computing and will present at the Barclays 22nd Annual Global Technology Conference on December 12, 2024 [1] Company Overview - Nutanix offers a single platform for running applications and managing data, enabling organizations to reduce complexity and simplify operations [1] - The company is recognized for its pioneering role in hyperconverged infrastructure and is trusted by companies globally to power hybrid multicloud environments [1]

Core Insights - Nutanix, Inc. reported an 18% growth in annual recurring revenue (ARR) and a 16% increase in overall revenue [1] - Analysts have a positive outlook, with Needham's Mike Cikos reiterating a Buy rating and raising the price target to $90 from $80, while Northland Capital Markets' Nehal Chokshi raised the price forecast to $77 from $74 [1][2] - The company added 630 customers in the quarter, marking a 66% year-over-year increase, indicating a re-acceleration in customer acquisition [3] Financial Performance - Fiscal 2025 revenue estimates were raised from $1.36 billion to $1.42 billion by Needham [1] - Despite strong revenue results, there was a slowdown in ARR growth to 18% year-over-year, down from 22% in the previous quarter [3] - The incremental ARR of $58 million showed a 43% year-over-year decline, primarily due to underperformance in the federal vertical linked to delayed government spending [4] Market Position and Strategy - Nutanix's early success with new go-to-market partnerships and share gains from M&A disruption contributed to strong results [1] - The company is focusing on small and medium-sized businesses (SMBs) to drive growth [3] - Operating margin expansion provides flexibility for continued investment in sales, marketing, and R&D [2]

Core Insights - Nutanix, Inc. reported better-than-expected first-quarter financial results, with earnings of 42 cents per share, surpassing the analyst consensus estimate of 31 cents per share [2] - The company achieved quarterly sales of $590.96 million, exceeding the analyst consensus estimate of $571.78 million [2] - Nutanix's CEO highlighted the company's outperformance across guided metrics and ongoing innovations aimed at becoming a leading platform for app management and data [2] Financial Guidance - For FY25, Nutanix projects revenue between $2.435 billion and $2.465 billion, with a non-GAAP operating margin of 16% to 17% and free cash flow of $560 million to $610 million [2] Stock Performance - Following the earnings announcement, Nutanix shares fell by 7.4%, trading at $66.99 [2] - Analysts adjusted their price targets for Nutanix, with notable changes including: - Needham raised the price target from $80 to $90 while maintaining a Buy rating [2] - Northland Capital Markets increased the target from $74 to $77, reiterating a Market Perform rating [2] - Barclays raised the target from $75 to $87, maintaining an Overweight rating [2] - Morgan Stanley increased the target from $72 to $78, also maintaining an Overweight rating [2] - Piper Sandler raised the target from $77 to $83 while keeping an Overweight rating [2] - Wells Fargo increased the target from $60 to $75, maintaining an Equal-Weight rating [2]