Nutanix(NTNX) - 2025 Q3 - Quarterly Report

Financial Performance - 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 the previous year[19] - Net income for the three months ended April 30, 2025, was $63,363,000, compared to a net loss of$ 15,616,000 in the same period last year, indicating a significant turnaround[21] - The company reported a gross profit of $555,992,000 for the three months ended April 30, 2025, which is a 25% increase from$ 444,958,000 in the prior year[19] - Total revenue for the nine months ended April 30, 2025, was $1,884,660,000, up from$ 1,600,864,000 in the same period of 2024, representing a growth of approximately 17.7%[43] - Net income for the nine months ended April 30, 2025, was $149,716,000, compared to$ 1,326,000 for the same period in 2024, indicating a significant increase[26] - Gross profit for the three months ended April 30, 2025, was $555,992,000, with a gross margin of 87.0%[141] - Non-GAAP gross profit for the nine months ended April 30, 2025, was$ 1,658.98 million, up from $1,386.25 million for the same period in 2024, reflecting a growth of 19.6%[163] Revenue Breakdown - Product revenue increased to$ 345,479,000 for the three months ended April 30, 2025, up from $255,465,000, marking a 35.3% growth year-over-year[19] - Subscription revenue for the nine months ended April 30, 2025, reached$ 1,794,777,000, compared to $1,498,081,000 in 2024, reflecting an increase of about 19.8%[43] - Subscription revenue for the three months ended April 30, 2025, was$ 609,663,000, accounting for the majority of total revenue[142] - Subscription revenue for the three months ended April 30, 2025, reached approximately $330.0 million, up from$ 231.8 million for the same period in 2024, representing a growth of 42.3%[148] - Support, entitlements, and other services revenue increased by approximately $24.4 million, or 9%, for the three months ended April 30, 2025, compared to the same period in 2024, due to a 10% growth in the end customer base[201] Expenses and Costs - Operating expenses for the three months ended April 30, 2025, totaled$ 507,347,000, up from $456,546,000, reflecting an 11.1% increase year-over-year[19] - The company reported stock-based compensation expenses of$ 83.998 million for the nine months ended April 30, 2024, compared to $85.969 million for the same period in the previous year, showing a slight decrease of 2.3%[23] - Sales and marketing expenses rose to$ 775,185 thousand for the nine months ended April 30, 2025, reflecting an increase of $57,259 thousand or 8% compared to the prior year[209] - The percentage of total revenue attributed to sales and marketing expenses was 44.8% for the nine months ended April 30, 2025, compared to 41.1% in the prior year[209] Cash Flow and Liquidity - Cash and cash equivalents decreased to$ 655,270,000 as of July 31, 2024, from $872,599,000 as of April 30, 2025, indicating a reduction in liquidity[17] - Net cash provided by operating activities for the nine months ended April 30, 2025, was$ 601,927,000, compared to $428,234,000 for the same period in 2024, showing a growth of approximately 40.5%[26] - Cash, cash equivalents, and restricted cash at the end of the period on April 30, 2025, totaled$ 872,626,000, up from $600,158,000 at the end of the previous period, marking an increase of about 45.2%[26] Shareholder Information - Nutanix issued 3,274 thousand shares through employee equity incentive plans, contributing$ 547 thousand to paid-in capital during the nine months ended April 30, 2024[23] - The company repurchased approximately 0.6 million and 0.9 million shares of Class A common stock during the three and nine months ended April 30, 2025, for an aggregate purchase price of approximately $37.5 million and$ 57.5 million, respectively[107] - As of April 30, 2025, approximately $161.4 million remained available for future share repurchases under the Board's authorization[107] Strategic Initiatives - The company plans to continue investing in research and development to enhance its solutions and expand its product offerings, particularly in generative artificial intelligence and multicloud environments[11] - Nutanix aims to improve operational efficiencies and reduce sales and marketing expenses as a percentage of revenue while focusing on major accounts and pipeline growth[11] - The company continues to focus on operational efficiencies and profitable growth through investments in solutions and sales and marketing[139] - The company plans to invest in sales and marketing to support growth, expecting an increase in sales and marketing expenses in the near term[167] Customer Metrics - Total end customers increased to 28,490 as of April 30, 2025, up from 25,860 in the previous year[141] - Approximately 77% of end customers who have been with the company for 18 months or longer have made a repeat purchase, with total lifetime orders averaging 9.4 times greater than the initial order[175] - The net dollar-based retention rate (NRR) as of April 30, 2025, was 110%, down from 117% a year earlier[176] Accounting and Compliance - The company has adopted new accounting standards related to convertible debt instruments, which may impact future financial reporting[38] - The company operates a subscription-based business model, allowing customers flexibility in choosing license levels and durations based on their needs[32]