Financial Performance - Nutanix reported a 19% year-over-year growth in Annual Recurring Revenue (ARR), reaching $2.06 billion in Q2 FY'25 compared to $1.74 billion in Q2 FY'24[3]. - Revenue for Q2 FY'25 was $654.7 million, reflecting a 16% increase from $565.2 million in Q2 FY'24[3]. - GAAP Operating Income increased to $65.4 million in Q2 FY'25, up from $37.0 million in Q2 FY'24, marking a significant improvement[3]. - Non-GAAP Operating Margin improved to 24.6% in Q2 FY'25, compared to 21.9% in Q2 FY'24, indicating enhanced operational efficiency[3]. - Free Cash Flow for the first half of fiscal 2025 was $187.1 million, an increase of $24.5 million from $162.6 million in the same period last year[3]. - Total revenue for the three months ended January 31, 2025, was $654,721, representing a 15.7% increase from $565,233 in the same period of 2024[20]. - Net income for the six months ended January 31, 2025, was $86,353, compared to $16,942 for the same period in 2024, indicating a significant increase of 409.5%[20]. - Gross profit for the three months ended January 31, 2025, was $569,433, compared to $483,677 for the same period in 2024, showing a growth of 17.7%[20]. - Net income for the three months ended January 31, 2025, was $56,427, compared to $93,428 in the same period in 2026, showing a significant increase[36]. - Net income for the six months ended January 31, 2025, was $86,353, with diluted net income per share of $0.30[39]. Guidance and Outlook - The company expects Q3 FY'25 revenue to be between $620 million and $630 million, with a Non-GAAP Operating Margin of 17% to 18%[5]. - Fiscal 2025 revenue outlook is projected to be between $2.495 billion and $2.515 billion, with Free Cash Flow expected to be between $650 million and $700 million[6]. - The company provided guidance indicating continued growth in revenue and profitability for the upcoming quarters, driven by new product launches and market expansion strategies[20]. - Future guidance indicates a positive outlook for revenue growth and operational performance, supported by ongoing market expansion efforts[44]. Cash Flow and Liquidity - Nutanix issued $862.5 million in convertible senior notes due 2029 to strengthen its balance sheet and financial flexibility[5]. - A new revolving credit facility of $500 million was established to enhance liquidity[5]. - Cash and cash equivalents at the end of the period increased from $681,356 to $1,072,475, a rise of 57.3%[24]. - The company experienced a significant increase in free cash flow, reflecting improved operational efficiency and cash management strategies[45]. - Free cash flow for the six months ended January 31, 2024, was $295,097 thousand, which rose to $338,983 thousand for the same period in 2025[45]. Assets and Liabilities - Total current assets increased from $1,481,294 as of July 31, 2024, to $2,335,394 as of January 31, 2025, reflecting a growth of 57.6%[18]. - Total liabilities rose from $2,872,066 as of July 31, 2024, to $3,796,664 as of January 31, 2025, an increase of 32.2%[18]. - The company reported a total stockholders' deficit of $(807,674) as of January 31, 2025, compared to $(728,148) as of July 31, 2024[18]. Revenue Breakdown - Subscription revenue for the three months ended January 31, 2024, was $531,983, increasing to $624,418 for the same period in 2025, representing a growth of approximately 17%[29]. - Total revenue for the six months ended January 31, 2024, was $1,076,287, which increased to $1,245,677 in 2025, reflecting a year-over-year growth of about 16%[29]. - Annual Recurring Revenue (ARR) reached $1,737,364 for the three months ended January 31, 2024, and increased to $2,059,506 for the same period in 2025, indicating a growth of approximately 18.5%[34]. - Subscription billings for the three months ended January 31, 2024, were $572,759, rising to $733,737 in 2025, marking an increase of approximately 28%[29]. - Professional services revenue for the three months ended January 31, 2024, was $25,008, which increased to $28,030 in 2025, reflecting a growth of about 8%[29]. Operating Expenses - Operating expenses for the six months ended January 31, 2025, totaled $985,031, up from $881,433 in the same period of 2024, an increase of 11.8%[20]. - Total operating expenses for the same period were $985,031, resulting in an operating income of $92,688 and an operating margin of 7.4%[39]. - The company reported a significant reduction in research and development expenses, down by $90,327 for the six months ended January 31, 2025[39]. Market Trends - The seventh annual Enterprise Cloud Index survey indicates that GenAI is shifting organizational priorities, particularly around security and privacy concerns[5]. - The company is focused on enhancing its market position through strategic investments in new technologies and product development[44].

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 ...

Nutanix, Inc. (NASDAQ:NTNX) Q1 2025 Earnings Conference Call November 26, 2024 4:30 PM ET Company Participants Rich Valera - VP, IR Rajiv Ramaswami - President and CEO Rukmini Sivaraman - CFO Conference Call Participants Pinjalim Bora - JPMorgan Meta Marshall - Morgan Stanley Jim Fish - Piper Sandler Jason Ader - William Blair Ruplu Bhattacharya - Bank of America Mike Cikos - Needham Ben Bollin - Cleveland Research Company Victor Chiu - Raymond James Matt Hedberg - RBC Capital Markets George Wang - Barclays ...

[Nutanix First Quarter Fiscal 2025 Financial Results](index=1&type=section&id=Nutanix%20Reports%20First%20Quarter%20Fiscal%202025%20Financial%20Results) [Financial Highlights](index=1&type=section&id=First%20Quarter%20Fiscal%202025%20Financial%20Summary) Nutanix reported strong first-quarter fiscal 2025 results, outperforming all guided metrics with 18% ARR growth to $1.97 billion and $151.9 million in free cash flow - The company delivered outperformance across all guided metrics for the first quarter, demonstrating a good balance of top and bottom-line performance[3](index=3&type=chunk) Q1 Fiscal 2025 Key Financial Metrics (YoY) | Metric | Q1 FY'25 | Q1 FY'24 | Y/Y Change | | :--- | :--- | :--- | :--- | | Annual Recurring Revenue (ARR) | $1.97 billion | $1.66 billion | 18% | | Revenue | $591.0 million | $511.1 million | 16% | | GAAP Gross Margin | 86.0% | 84.0% | 200 bps | | Non-GAAP Gross Margin | 87.5% | 85.9% | 160 bps | | GAAP Operating Income (Loss) | $27.3 million | $(5.7) million | $33.0 million | | Non-GAAP Operating Income | $118.2 million | $79.5 million | $38.7 million | | GAAP Operating Margin | 4.6% | (1.1)% | 570 bps | | Non-GAAP Operating Margin | 20.0% | 15.6% | 440 bps | | Free Cash Flow | $151.9 million | $132.5 million | $19.4 million | [Recent Company Highlights](index=1&type=section&id=Recent%20Company%20Highlights) Nutanix strengthened its market position through strategic partnerships, product innovation, and industry recognition for its hybrid cloud vision - Expanded strategic collaboration with Amazon Web Services (AWS) to offer customers access to AWS services and promotional credits for migrations to NC2 on AWS[5](index=5&type=chunk) - Recognized as a Leader in the 2024 Gartner® Magic Quadrant™ for Distributed Hybrid Infrastructure, attributed to its vision for integrating edge, private, and public clouds[5](index=5&type=chunk)[6](index=6&type=chunk) - Extended its AI infrastructure platform with a new cloud-native offering, Nutanix Enterprise AI (NAI), deployable on any Kubernetes platform including AWS EKS, Azure AKS, and Google GKE[6](index=6&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) Nutanix projects positive financial performance for Q2 and full fiscal year 2025, with expected revenue growth and strong free cash flow Second Quarter Fiscal 2025 Outlook | Metric | Outlook | | :--- | :--- | | Revenue | $635 - $645 million | | Non-GAAP Operating Margin | 20% to 21% | | Weighted Average Shares Outstanding (Diluted) | Approx. 289 million | Fiscal 2025 Outlook | Metric | Outlook | | :--- | :--- | | Revenue | $2.435 - $2.465 billion | | Non-GAAP Operating Margin | 16% to 17% | | Free Cash Flow | $560 - $610 million | [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements detail Nutanix's financial position, showing asset growth, liability structure, and a shift to net income [Condensed Consolidated Balance Sheets](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of October 31, 2024, Nutanix reported total assets of $2.18 billion and total liabilities of $2.87 billion, resulting in a stockholders' deficit of $685.3 million Balance Sheet Summary (in millions) | Account | Oct 31, 2024 | July 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | **$1,523.5** | **$1,481.3** | | Cash and cash equivalents | $716.6 | $655.3 | | **Total Assets** | **$2,181.4** | **$2,143.9** | | **Total Current Liabilities** | **$1,220.6** | **$1,244.3** | | Deferred revenue—current | $968.6 | $954.5 | | **Total Liabilities** | **$2,866.6** | **$2,872.1** | | **Total stockholders' deficit** | **$(685.3)** | **$(728.1)** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For Q1 FY2025, Nutanix reported total revenue of $591.0 million and achieved a net income of $29.9 million, a significant improvement from a net loss in the prior year Statement of Operations Summary (in millions) | Account | Q1 FY'25 | Q1 FY'24 | | :--- | :--- | :--- | | Total revenue | $591.0 | $511.1 | | Gross profit | $508.3 | $429.1 | | Total operating expenses | $481.0 | $434.8 | | (Loss) income from operations | $27.3 | $(5.7) | | Net (loss) income | $29.9 | $(15.9) | | Net (loss) income per share, diluted | $0.10 | $(0.07) | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) In Q1 FY2025, Nutanix generated $161.8 million in net cash from operating activities, ending the quarter with $716.6 million in cash and cash equivalents Cash Flow Summary (in millions) | Activity | Q1 FY'25 | Q1 FY'24 | | :--- | :--- | :--- | | Net cash provided by operating activities | $161.8 | $145.5 | | Net cash used in investing activities | $(28.2) | $(42.2) | | Net cash used in financing activities | $(72.2) | $(4.4) | | **Net increase in cash** | **$61.3** | **$98.9** | | **Cash and cash equivalents—end of period** | **$716.6** | **$612.5** | [Key Performance Metrics and Non-GAAP Reconciliations](index=7&type=section&id=Key%20Performance%20Metrics%20and%20Non-GAAP%20Reconciliations) This section details key financial metrics, including subscription revenue, ARR, and reconciliations of GAAP to non-GAAP profit and free cash flow measures [Revenue and Billings](index=8&type=section&id=Disaggregation%20of%20Revenue%20and%20Billings) Subscription revenue accounted for approximately 95% of total revenue at $560.7 million, with total billings reaching $591.4 million for Q1 FY2025 Disaggregation of Revenue (in millions) | Revenue Type | Q1 FY'25 | Q1 FY'24 | | :--- | :--- | :--- | | Subscription revenue | $560.7 | $479.5 | | Professional services revenue | $27.3 | $22.8 | | Other non-subscription product revenue | $3.0 | $8.7 | | **Total revenue** | **$591.0** | **$511.1** | [Annual Recurring Revenue (ARR)](index=9&type=section&id=Annual%20Recurring%20Revenue) As of October 31, 2024, Nutanix's Annual Recurring Revenue (ARR) reached $1.97 billion, reflecting the annualized value of active subscription contracts - Annual Recurring Revenue (ARR) was **$1.97 billion** for the three months ended October 31, 2024[37](index=37&type=chunk) [Reconciliation of GAAP to Non-GAAP Profit Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Profit%20Measures) Nutanix's non-GAAP results show stronger profitability, with non-GAAP operating income of $118.2 million and net income of $121.8 million for Q1 FY2025 GAAP vs. Non-GAAP Profit Measures (Q1 FY'25, in millions) | Metric | GAAP | Non-GAAP | | :--- | :--- | :--- | | Gross Profit | $508.3 | $517.1 | | Gross Margin | 86.0% | 87.5% | | Income from Operations | $27.3 | $118.2 | | Operating Margin | 4.6% | 20.0% | | Net Income | $29.9 | $121.8 | | Net Income per Share, diluted | $0.10 | $0.42 | [Reconciliation of Free Cash Flow](index=11&type=section&id=Reconciliation%20of%20GAAP%20Net%20Cash%20Provided%20by%20Operating%20Activities%20to%20Non-GAAP%20Free%20Cash%20Flow) For Q1 FY2025, Nutanix generated $151.9 million in free cash flow, calculated from $161.8 million in operating cash flow less capital expenditures Free Cash Flow Reconciliation (in millions) | Metric | Q1 FY'25 | Q1 FY'24 | | :--- | :--- | :--- | | Net cash provided by operating activities | $161.8 | $145.5 | | Purchases of property and equipment | $(9.8) | $(13.0) | | **Free cash flow** | **$151.9** | **$132.5** |

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended July 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-37883 NUTANIX, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization ...

Financial Data and Key Metrics Changes - In Q4 2024, Nutanix reported revenue of $548 million, an increase of 11% year-over-year, and full-year revenue of $2.15 billion, up 15% year-over-year [8][21] - Annual recurring revenue (ARR) at the end of Q4 was $1.91 billion, reflecting a 22% year-over-year growth [9][21] - Free cash flow for Q4 was $224 million, with a free cash flow margin of 41%, and for the full year, free cash flow was $598 million, almost three times higher than the previous year, resulting in a margin of 28% [19][24] Business Line Data and Key Metrics Changes - The renewals business continued to perform strongly, contributing to the overall revenue growth [9][23] - The land and expand strategy underperformed relative to internal expectations due to elongated sales cycles, but the pipeline for larger deals showed good growth [9][22] Market Data and Key Metrics Changes - Nutanix saw significant engagement from smaller and mid-sized companies seeking alternatives to existing infrastructure solutions, particularly in the wake of industry changes [31][50] - The company reported a net dollar-based retention rate (NRR) of 114% at the end of FY 2024, indicating strong customer retention and expansion [22] Company Strategy and Development Direction - Nutanix is focusing on infrastructure modernization and hybrid multi-cloud operating models, with significant partnerships established with Cisco, Dell, and NVIDIA [10][11] - The company aims to innovate continuously, with new product releases such as GPT in-a-box and enhancements to its cloud platform to support modern applications [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term market opportunity, particularly in light of recent industry disruptions, and highlighted the importance of partnerships in driving growth [16][29] - The company anticipates continued elongation of sales cycles but remains optimistic about the growing pipeline for larger deals [27][28] Other Important Information - Nutanix plans to discontinue reporting ACV billings starting in FY 2025, focusing instead on revenue, non-GAAP operating margin, and free cash flow [26][27] - The company ended Q4 with cash and short-term investments of $994 million, down from $1.651 billion at the end of Q3, primarily due to the conversion of 2026 notes [20] Q&A Session Summary Question: Update on Broadcom churn - Management noted that the opportunity to gain share remains largely unchanged, with no significant changes in win or loss rates [31] Question: Path forward regarding hardware refresh constraints - Management explained that for customers already using HCI, migration paths are easier, and partnerships with Dell will facilitate easier deployments without hardware refreshes [34][35] Question: Trends in AI and private cloud workloads - Management observed a trend of repatriation of workloads to private clouds, emphasizing the cost-effectiveness of running steady-state workloads on-premises [39][40] Question: Contribution from partnerships and renewals - Management expects contributions from Cisco and Dell partnerships to grow in FY 2025, alongside continued strong performance in renewals [42][44] Question: Demand environment and pricing strategies - Management indicated that the demand environment has remained stable, with elongated sales cycles, and discussed strategies to balance share gain with margin protection [57][59] Question: Revenue recognition from large deals - Management confirmed that revenue from an eight-figure deal will be recognized over multiple years starting in FY 2025, with some professional services revenue recognized in Q4 [68] Question: Alignment of go-to-market strategy with market opportunities - Management clarified that they are targeting resources where the maximum dollar opportunity lies, focusing on both larger enterprises and their historical sweet spot in the mid-market [70][71]

Financial Performance - FY24 revenue reached $2.15 billion, a 15% year-over-year increase[6] - FY24 free cash flow (FCF) was $598 million, almost 3x higher than FY23[6] - The company achieved its first annual GAAP operating profit of $8 million in FY24[9] - Q4'24 ACV Billings were $338 million, representing a 21% year-over-year increase[16] - Annual Recurring Revenue (ARR) reached $1.91 billion, up 22% year-over-year[16] Guidance and Future Outlook - Q1'25 revenue is projected to be between $565 million and $575 million[24] - Q1'25 non-GAAP operating margin is expected to be between 14.5% and 15.5%[24] - FY'25 revenue is guided to be between $2.435 billion and $2.465 billion[25] - FY'25 free cash flow is projected to be between $540 million and $600 million[25] Other Key Metrics - The company added 670 new logos in Q4'24, the highest in 3 years[8] - Non-GAAP gross margin in Q4'24 was 86.9%, a 110 bps increase year-over-year[16]

[Financial Performance](index=1&type=section&id=Nutanix%20Reports%20Fourth%20Quarter%20and%20Fiscal%202024%20Financial%20Results) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted strong FY2024 performance with solid growth, improved profitability, and strategic partnership advancements, achieving positive GAAP operating income - In fiscal 2024, Nutanix made notable progress on partnerships, signing new or enhanced agreements with Cisco, NVIDIA, and Dell[2](index=2&type=chunk) - The company demonstrated a good balance of performance with **22% year-over-year ARR growth**, strong free cash flow, and its first full year of positive GAAP operating income[2](index=2&type=chunk) [Fourth Quarter Fiscal 2024 Financial Highlights](index=1&type=section&id=Fourth%20Quarter%20Fiscal%202024%20Financial%20Summary) Nutanix reported strong Q4 results, exceeding guidance with double-digit revenue and ARR growth, and significant free cash flow Q4 FY2024 Financial Highlights (vs. Q4 FY2023) | Metric | Q4 FY'24 | Q4 FY'23 | Y/Y Change | | :--- | :--- | :--- | :--- | | Annual Recurring Revenue (ARR) | $1.91 billion | $1.56 billion | 22% | | Revenue | $548.0 million | $494.2 million | 11% | | ACV Billings | $338.0 million | $278.7 million | 21% | | GAAP Gross Margin | 85.2% | 83.7% | +150 bps | | Non-GAAP Operating Income | $70.5 million | $63.6 million | +$6.9 million | | Free Cash Flow | $224.3 million | $45.5 million | +$178.8 million | [Fiscal Year 2024 Financial Highlights](index=2&type=section&id=Fiscal%202024%20Financial%20Summary) Nutanix achieved significant FY2024 growth with 15% revenue increase to $2.15 billion and its first full year of positive GAAP operating income Full Year FY2024 Financial Highlights (vs. FY2023) | Metric | FY'24 | FY'23 | Y/Y Change | | :--- | :--- | :--- | :--- | | Annual Recurring Revenue (ARR) | $1.91 billion | $1.56 billion | 22% | | Revenue | $2.15 billion | $1.86 billion | 15% | | ACV Billings | $1.16 billion | $956.8 million | 21% | | GAAP Operating Income (Loss) | $7.6 million | $(207.2) million | +$214.8 million | | Non-GAAP Operating Income | $347.1 million | $161.0 million | +$186.1 million | | Free Cash Flow | $597.7 million | $207.0 million | +$390.7 million | [Business Outlook](index=2&type=section&id=Business%20Outlook) [First Quarter Fiscal 2025 Outlook](index=2&type=section&id=First%20Quarter%20Fiscal%202025%20Outlook) Nutanix projects Q1 FY2025 revenue between $565 million and $575 million, with a non-GAAP operating margin of 14.5% to 15.5% Q1 FY2025 Guidance | Metric | Outlook | | :--- | :--- | | Revenue | $565 - $575 million | | Non-GAAP Operating Margin | 14.5% to 15.5% | | Weighted Average Shares Outstanding | Approx. 287 million | [Fiscal Year 2025 Outlook](index=3&type=section&id=Fiscal%202025%20Outlook) Nutanix projects FY2025 revenue between $2.435 billion and $2.465 billion, with strong profitability and cash generation expected FY 2025 Guidance | Metric | Outlook | | :--- | :--- | | Revenue | $2.435 - $2.465 billion | | Non-GAAP Operating Margin | 15.5% to 17.0% | | Free Cash Flow | $540 - $600 million | [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=8&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of July 31, 2024, Nutanix's balance sheet shows total assets of $2.14 billion, total liabilities of $2.87 billion, and a stockholders' deficit of $728.1 million Balance Sheet Summary (in thousands) | Account | July 31, 2024 | July 31, 2023 | | :--- | :--- | :--- | | Total current assets | $1,481,294 | $1,861,734 | | **Total assets** | **$2,143,918** | **$2,526,915** | | Total current liabilities | $1,244,341 | $1,136,108 | | **Total liabilities** | **$2,872,066** | **$3,234,334** | | **Total stockholders' deficit** | **$(728,148)** | **$(707,419)** | [Consolidated Statements of Operations](index=9&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For FY2024, Nutanix reported a 15% revenue increase to $2.15 billion, achieving GAAP operating income of $7.6 million, a significant turnaround from the prior year Statement of Operations Summary (Fiscal Year Ended, in thousands) | Account | FY 2024 | FY 2023 | | :--- | :--- | :--- | | **Total revenue** | **$2,148,816** | **$1,862,895** | | Gross profit | $1,824,704 | $1,530,708 | | **Income (Loss) from operations** | **$7,563** | **$(207,150)** | | **Net loss** | **$(124,775)** | **$(254,560)** | | Net loss per share, basic and diluted | $(0.51) | $(1.09) | [Consolidated Statements of Cash Flows](index=11&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Nutanix demonstrated strong FY2024 cash generation, with net cash from operating activities surging to $672.9 million and a net cash inflow from investing activities Statement of Cash Flows Summary (Fiscal Year Ended, in thousands) | Activity | FY 2024 | FY 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$672,931** | **$272,403** | | Net cash (used in) provided by investing activities | $529,589 | $(49,785) | | Net cash used in financing activities | $(1,062,629) | $(112,709) | | **Net increase in cash** | **$139,891** | **$109,909** | [Supplemental Financial Information and Reconciliations](index=13&type=section&id=Supplemental%20Financial%20Information%20and%20Reconciliations) [Key Performance Metrics & Definitions](index=3&type=section&id=Key%20Performance%20Metrics%20%26%20Definitions) The report defines key non-GAAP and performance metrics such as ACV Billings, ARR, and Average Contract Duration, used to evaluate the subscription-based business model - **Annual Contract Value (ACV) Billings:** The sum of the total annualized value of all contracts billed during a given period; Nutanix will discontinue reporting this metric beginning with Q1 fiscal 2025[11](index=11&type=chunk)[12](index=12&type=chunk) - **Annual Recurring Revenue (ARR):** The sum of ACV for all subscription contracts in effect as of the end of a specific period, excluding life-of-device contracts[13](index=13&type=chunk) - **Average Contract Duration:** The dollar-weighted term across all subscription and life-of-device contracts executed in the period[14](index=14&type=chunk) [Disaggregation of Revenue and Billings](index=14&type=section&id=Disaggregation%20of%20Revenue%20and%20Billings) Nutanix's revenue is predominantly subscription-driven, with FY2024 subscription revenue at $2.02 billion, representing approximately 94% of total revenue Disaggregation of Revenue (Fiscal Year Ended, in thousands) | Revenue Source | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Subscription revenue | $2,016,776 | $1,730,848 | | Professional services revenue | $100,852 | $91,841 | | Other non-subscription product revenue | $31,188 | $40,206 | | **Total revenue** | **$2,148,816** | **$1,862,895** | [Reconciliation of GAAP to Non-GAAP Measures](index=16&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Nutanix provides reconciliations for non-GAAP measures, adjusting for non-cash expenses, with FY2024 non-GAAP operating income at $347.1 million and free cash flow at $597.7 million FY2024 GAAP to Non-GAAP Operating Income Reconciliation (in thousands) | Description | Amount | | :--- | :--- | | **GAAP income from operations** | **$7,563** | | Stock-based compensation expense | $333,833 | | Amortization of intangible assets | $3,709 | | Other adjustments | $1,998 | | **Non-GAAP income from operations** | **$347,107** | FY2024 Free Cash Flow Reconciliation (in thousands) | Description | Amount | | :--- | :--- | | **Net cash provided by operating activities (GAAP)** | **$672,931** | | Purchases of property and equipment | $(75,252) | | **Free cash flow (Non-GAAP)** | **$597,679** |

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-37883 NUTANIX, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organi ...