Latest news with #Nutanix
Yahoo
29-05-2025
- Business
- Yahoo
Nutanix Inc (NTNX) Q3 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Revenue: $639 million, 22% year-over-year growth. Annual Recurring Revenue (ARR): $2.14 billion, 18% year-over-year growth. Net Dollar-Based Retention Rate (NRR): 110%, flat quarter-over-quarter. Average Contract Duration: 3.1 years, slightly higher than expectations. Non-GAAP Gross Margin: 88.2%. Non-GAAP Operating Margin: 21.5%, higher than guided range of 17% to 18%. Non-GAAP Net Income: $125 million, EPS of $0.42 per share. GAAP Net Income: $63 million, EPS of $0.22 per share. Free Cash Flow: $203 million, 32% free cash flow margin. Cash, Cash Equivalents, and Short-term Investments: $1.882 billion. Share Repurchase: $38 million worth of common stock repurchased. Warning! GuruFocus has detected 5 Warning Sign with NTNX. Release Date: May 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Nutanix Inc (NASDAQ:NTNX) reported third-quarter results that exceeded their guidance, with revenue reaching $639 million, representing a 22% year-over-year growth. The company achieved an 18% year-over-year growth in Annual Recurring Revenue (ARR), reaching $2.14 billion. Nutanix Inc (NASDAQ:NTNX) saw strong new logo growth across all customer segments, including significant wins with large organizations. The company announced several strategic partnerships and product enhancements, including a new partnership with Pure Storage and expanded support for Google Cloud. Nutanix Inc (NASDAQ:NTNX) reported a strong free cash flow of $203 million, representing a free cash flow margin of 32%. The macroeconomic environment remains dynamic, with some variability in the U.S. federal business due to longer deal cycles. The company noted that the competitive landscape, particularly with VMware, remains challenging, with some customers hesitant to switch. Nutanix Inc (NASDAQ:NTNX) acknowledged that their Kubernetes platform is still in early stages, with contributions to revenue expected to grow over time. The company anticipates increased investments in sales, marketing, and R&D, which may impact operating margins in the short term. There is a potential risk of variability in large deal closures, which could affect quarterly revenue recognition. Q: Can you discuss the macroeconomic environment and its impact on Nutanix's business, particularly regarding deal cycles and the federal sector? A: Rajiv Ramaswami, President and CEO, explained that the macroeconomic environment remains dynamic, with recent changes affecting the federal business, leading to longer deal cycles and variability. However, Nutanix remains optimistic about opportunities in the federal sector due to its platform's focus on modernization and cost reduction. Q: How is Nutanix's Kubernetes platform progressing, and what is its contribution to the business? A: Rajiv Ramaswami noted that while it's still early days for the Kubernetes platform, initial progress and product-market fit are promising. The contribution to revenue is currently small but growing, with continued development expected over the next few years. Q: What is the outlook for Nutanix's operating margin, and are there any timing factors affecting it? A: Rukmini Sivaraman, CFO, stated that the operating margin guide has increased due to timing of hiring and higher revenue. While some hiring was delayed, investments in sales, marketing, and R&D are expected to ramp up in Q4. The pace of margin improvement seen this year may not be sustainable, but Nutanix aims to drive leverage through productivity improvements and prudent investments. Q: Can you explain the difference in growth rates between ARR and revenue? A: Rukmini Sivaraman explained that revenue is a flow metric affected by contract duration and large deals with phased deployment, while ARR is a stock metric representing the annualized view of the installed base. Variability in revenue can occur due to upfront license recognition and large deal timing. Q: How is Nutanix performing in terms of competitive wins against VMware, and what is the pricing environment like? A: Rajiv Ramaswami highlighted strong new logo growth, with many customers starting with Nutanix's hypervisor. The pricing environment remains stable, with Nutanix offering a flexible, a la carte approach compared to VMware's full stack. Nutanix continues to gain traction with customers seeking alternatives to VMware. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
Nutanix (NTNX) Reports Q3 Earnings: What Key Metrics Have to Say
Nutanix (NTNX) reported $638.98 million in revenue for the quarter ended April 2025, representing a year-over-year increase of 21.8%. EPS of $0.42 for the same period compares to $0.28 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $626.12 million, representing a surprise of +2.06%. The company delivered an EPS surprise of +10.53%, with the consensus EPS estimate being $0.38. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Nutanix performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Total Billings: $647.05 million compared to the $676.02 million average estimate based on four analysts. Annual Recurring Revenue (ARR): $2.14 billion compared to the $2.17 billion average estimate based on four analysts. Disaggregation of billings - Professional services billings: $18.48 million versus the three-analyst average estimate of $32.78 million. Disaggregation of billings - Subscription billings: $627.25 million compared to the $616.58 million average estimate based on two analysts. Disaggregation of billings - Other non-subscription product billings: $1.32 million versus the two-analyst average estimate of $1.68 million. Revenue- Support, entitlements and other services: $293.50 million versus the eight-analyst average estimate of $312.03 million. The reported number represents a year-over-year change of +9.1%. Revenue- Product: $345.48 million versus $310.26 million estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +35.2% change. Disaggregation of Revenue- Professional services revenue: $28 million versus the seven-analyst average estimate of $28.12 million. The reported number represents a year-over-year change of +6.7%. Disaggregation of Revenue- Subscription revenue: $609.66 million versus $594.37 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +25.3% change. Disaggregation of Revenue- Non-portable software revenue: $0.50 million versus $2.59 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -95.5% change. View all Key Company Metrics for Nutanix here>>>Shares of Nutanix have returned +15.3% over the past month versus the Zacks S&P 500 composite's +7.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nutanix (NTNX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
Nutanix (NTNX) Tops Q3 Earnings and Revenue Estimates
Nutanix (NTNX) came out with quarterly earnings of $0.42 per share, beating the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 10.53%. A quarter ago, it was expected that this enterprise cloud platform services provider would post earnings of $0.47 per share when it actually produced earnings of $0.56, delivering a surprise of 19.15%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Nutanix , which belongs to the Zacks Computers - IT Services industry, posted revenues of $638.98 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 2.06%. This compares to year-ago revenues of $524.58 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Nutanix shares have added about 29.1% since the beginning of the year versus the S&P 500's gain of 0.7%. While Nutanix has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Nutanix: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.26 on $638.41 million in revenues for the coming quarter and $1.62 on $2.51 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Accenture (ACN), is yet to report results for the quarter ended May 2025. The results are expected to be released on June 20. This consulting company is expected to post quarterly earnings of $3.27 per share in its upcoming report, which represents a year-over-year change of +4.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Accenture's revenues are expected to be $17.18 billion, up 4.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nutanix (NTNX) : Free Stock Analysis Report Accenture PLC (ACN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Washington Post
28-05-2025
- Business
- Washington Post
Nutanix: Fiscal Q3 Earnings Snapshot
SAN JOSE, Calif. — SAN JOSE, Calif. — Nutanix Inc. (NTNX) on Wednesday reported fiscal third-quarter profit of $63.4 million. The San Jose, California-based company said it had profit of 22 cents per share. Earnings, adjusted for one-time gains and costs, were 42 cents per share. The results exceeded Wall Street expectations. The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of 38 cents per share. The enterprise cloud platform services provider posted revenue of $639 million in the period, which also topped Street forecasts. Twelve analysts surveyed by Zacks expected $626.1 million. For the current quarter ending in July, Nutanix said it expects revenue in the range of $635 million to $645 million. The company expects full-year revenue in the range of $2.52 billion to $2.53 billion. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on NTNX at
Forbes
27-05-2025
- Business
- Forbes
How Will Nutanix Stock React To Its Upcoming Earnings?
Nutanix (NASDAQ:NTNX), a company that offers cloud computing software designed for data centers and hybrid multi-cloud environments, is set to report its earnings on Wednesday, May 28, 2025. This occasion typically results in notable stock volatility, as shown by historical data. Throughout the past five years, Nutanix stock has recorded a positive one-day return in 60% of instances following earnings announcements. The median positive one-day return was 9.9%, with a maximum increase of 29.2%, underscoring the stock's sensitivity to earnings news. For traders focused on events, historical trends can provide an advantage, although much relies on how the actual outcomes stack up against consensus expectations. There are two main strategies to consider: Analysts anticipate Nutanix to announce earnings of $0.38 per share on revenues of $627 million for the forthcoming announcement. This is in contrast to earnings of $0.28 per share on revenues of $525 million in the same quarter last year. On a fundamental level, Nutanix currently has a market capitalization of $21 billion. In the past twelve months, the company generated $2.3 billion in revenue and achieved operational profitability with $69 million in operating profits, even with a net loss of $55 million. That said, if you are looking for upside with less volatility than individual stocks, the Trefis High Quality portfoliooffers an alternative — having outperformed the S&P 500 and delivered returns above 91% since its inception. Separately, see – What Sparked UNH Stock Crash? See earnings reaction history of all stocks Some insights regarding one-day (1D) post-earnings returns: Further data on observed 5-Day (5D), and 21-Day (21D) returns after earnings are summarized along with the statistics in the table below. NTNX 1D, 5D, and 21D Post Earnings Return Trefis A comparatively lower-risk approach (although not effective if the correlation is weak) is to comprehend the correlation between short-term and medium-term returns after earnings, identify a pair with the highest correlation, and carry out the fitting trade. For instance, if 1D and 5D show the strongest correlation, a trader can position themselves 'long' for the next 5 days if the 1D post-earnings return is positive. Below is some correlation data based on 5-year and 3-year (more recent) history. It is important to note that the correlation 1D_5D pertains to the relationship between 1D post-earnings returns and the ensuing 5D returns. At times, peer performance can impact post-earnings stock reactions. In fact, the pricing may begin even before the earnings are revealed. Here are some historical insights regarding the past post-earnings performance of Nutanix stock in comparison to the performance of peers that reported their earnings just prior to Nutanix. For a fair comparison, peer stock returns also reflect post-earnings one-day (1D) returns. NTNX Correlation With Peer Earnings Trefis Discover more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (which includes all three, the S&P 500, S&P mid-cap, and Russell 2000), delivering substantial returns for investors. Additionally, if you're looking for upside with a smoother experience than an individual stock like Nutanix, consider the High Quality portfolio, which has surpassed the S&P, registering >91% returns since its launch.
