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Nutanix Reports Second Quarter Fiscal 2025 Financial Results
NTNXNutanix(NTNX) GlobeNewswire·2025-02-26 21:01

Core Insights - Nutanix, Inc. reported a 19% year-over-year growth in Annual Recurring Revenue (ARR), reaching 2.06billion,anddemonstratedstrongfreecashflowgenerationinitssecondquarteroffiscal2025[1][2][3]−ThecompanyattributesitsperformancetothestrengthoftheNutanixCloudPlatformandincreasingdemandfrombusinessesseekingreliablelong−termpartnerships[2][3]−Nutanixhasimproveditsfinancialflexibilitybyissuingconvertiblenotesandestablishinganewrevolvingcreditfacility[2][5]FinancialPerformance−Q2FY′25ARRwas2.06 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 1.74billioninQ2FY′24,markinga191.74 billion in Q2 FY'24, marking a 19% increase [3] - Total revenue for Q2 FY'25 was 654.7 million, a 16% increase from 565.2millioninQ2FY′24[3]−GAAPoperatingincomeincreasedto565.2 million in Q2 FY'24 [3] - GAAP operating income increased to 65.4 million from 37.0millionyear−over−year,whilenon−GAAPoperatingincomeroseto37.0 million year-over-year, while non-GAAP operating income rose to 161.3 million from 123.9million[3]−Freecashflowforthequarterwas123.9 million [3] - Free cash flow for the quarter was 187.1 million, compared to 162.6millioninthesamequarterlastyear[3]OperationalHighlights−Theaveragecontractdurationincreasedto3.0yearsfrom2.8yearsyear−over−year[3]−GAAPgrossmarginimprovedto87.0162.6 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 620millionand620 million and 630 million, with a non-GAAP operating margin of 17% to 18% [5][6] - The fiscal 2025 outlook anticipates total revenue between 2.495billionand2.495 billion and 2.515 billion, with free cash flow projected at 650millionto650 million to 700 million [6]