Nutanix(NTNX)2025-05-28 20:01Financial Performance - Nutanix reported an 18% year-over-year growth in Annual Recurring Revenue (ARR), reaching $2.14 billion compared to $1.82 billion in the previous year[3]. - Total revenue for Q3 FY'25 was $639.0 million, representing a 22% increase from $524.6 million in Q3 FY'24[3]. - GAAP operating income improved to $48.6 million from a loss of $11.6 million year-over-year, marking a $60.2 million increase[3]. - Non-GAAP operating income rose to $137.1 million, up $63.8 million from $73.3 million in the same quarter last year[3]. - Free cash flow for the third quarter was $203.4 million, significantly higher than $78.3 million in Q3 FY'24, an increase of $125.1 million[3]. - Total revenue for the three months ended April 30, 2025, was $638,983,000, representing a 21.7% increase from $524,577,000 in the same period of 2024[21]. - Total revenue for the nine months ended April 30, 2025, reached $1,884,660,000, up 17.7% from $1,600,864,000 in the prior year[21]. - Gross profit for the three months ended April 30, 2025, was $555,992,000, compared to $444,958,000 for the same period in 2024, indicating a 24.9% increase[21]. - Total billings for the three months ended April 30, 2025, were $647,045,000, compared to $557,285,000 in the same period of 2024, reflecting a 16.1% increase[28]. - Total revenue for the nine months ended April 30, 2024, was $1.60 billion, compared to $1.88 billion for the same period in 2025, indicating a year-over-year increase of about 17.7%[30]. - Gross profit for the nine months ended April 30, 2025, was $1,633,711,000, with a gross margin of 86.7%[40]. - Net income for the nine months ended April 30, 2025, was $149,716,000, with diluted net income per share of $0.52[40]. Revenue Breakdown - Subscription revenue for the three months ended April 30, 2024, was $486.62 million, an increase from $609.66 million for the same period in 2025, representing a growth of approximately 25.2%[30]. - Subscription billings for the three months ended April 30, 2024, were $515.92 million, increasing to $627.25 million for the same period in 2025, representing a growth of approximately 21.6%[30]. - Professional services revenue for the three months ended April 30, 2024, was $26.24 million, compared to $28.00 million for the same period in 2025, showing a slight increase of approximately 6.7%[30]. - Other non-subscription product revenue for the three months ended April 30, 2024, was $11.72 million, significantly decreasing to $1.32 million for the same period in 2025, indicating a decline of approximately 88.7%[30]. Cash Flow and Expenses - Cash provided by operating activities for the nine months ended April 30, 2025, was $601,927,000, compared to $428,234,000 in the same period of 2024[25]. - Total operating expenses for the nine months ended April 30, 2025, were $1,492,378,000, resulting in an operating margin of 7.5%[40]. - Research and development expenses totaled $471,596, with a reduction of $117,664 compared to previous periods[46]. - Sales and marketing expenses were $717,926, reflecting a decrease of $61,110[46]. Future Projections - The company expects fourth quarter revenue to be between $635 million and $645 million, with a non-GAAP operating margin projected between 15.5% and 16.5%[5]. - For the full fiscal year 2025, Nutanix anticipates revenue between $2.52 billion and $2.53 billion, with a non-GAAP operating margin of approximately 20.5%[6]. - The company plans to use a long-term projected non-GAAP tax rate of 20% starting in fiscal 2025[48]. Stockholder Information - Total current liabilities decreased to $1,244,341,000 from $1,281,555,000 year-over-year[20]. - Total assets as of April 30, 2025, were $3,096,630,000, down from $2,143,918,000 in the previous year[20]. - Stockholders' deficit improved slightly to $(711,434,000) from $(728,148,000) year-over-year[20]. - The company reported a total stock-based compensation expense of $266,419,000 for the nine months ended April 30, 2025[25]. - The company included 56,094 potentially dilutive shares related to convertible senior notes and employee equity incentive plans[46]. Operational Highlights - Nutanix announced the general availability of Nutanix Cloud Infrastructure (NCI) for external storage, enhancing its cloud platform capabilities[4]. - A partnership with Pure Storage was established to deliver integrated solutions for mission-critical workloads, particularly in AI applications[4]. - The average contract duration increased to 3.1 years from 3.0 years, indicating a slight extension in customer commitments[3].