Nutanix Reports Second Quarter Fiscal 2025 Financial Results

Core Insights - Nutanix, Inc. reported a 19% year-over-year growth in Annual Recurring Revenue (ARR), reaching $2.06 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 $1.74 billion in Q2 FY'24, marking a 19% increase [3] - Total revenue for Q2 FY'25 was $654.7 million, a 16% increase from $565.2 million in Q2 FY'24 [3] - GAAP operating income increased to $65.4 million from $37.0 million year-over-year, while non-GAAP operating income rose to $161.3 million from $123.9 million [3] - Free cash flow for the quarter was $187.1 million, compared to $162.6 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 $620 million and $630 million, with a non-GAAP operating margin of 17% to 18% [5][6] - The fiscal 2025 outlook anticipates total revenue between $2.495 billion and $2.515 billion, with free cash flow projected at $650 million to $700 million [6]