Nutanix Reports Strong Q4 and Fiscal Year 2024 Results

Nutanix (NASDAQ:NTNX), a leader in hybrid multi-cloud computing, has reported strong financial results for the fourth quarter and fiscal year 2024. The company surpassed its guided metrics, with Q4 revenue climbing to $548 million, marking an 11% increase year-over-year (YoY), and an impressive 15% YoY revenue growth for the full year, reaching $2.15 billion.

Nutanix also reported a significant rise in annual contract value (ACV) billings and a robust free cash flow. The company provided optimistic guidance for fiscal year 2025, projecting revenue growth and continued investment in research and development (R&D), sales, and marketing.

Key Takeaways

• Q4 revenue increased by 11% YoY to $548 million, with full year 2024 revenue up 15% YoY to $2.15 billion.
• Annual recurring revenue (ARR) grew by 22% YoY to $1.91 billion, with ACV billings up 21% YoY.
• Free cash flow for the fiscal year was $598 million, a threefold increase from the previous year.
• Nutanix secured significant deals, including a multimillion-dollar agreement with a Fortune 100 financial services firm.
• Revenue projections for fiscal year 2025 are between $2.435 billion and $2.465 billion, with non-GAAP operating margins of 15.5% to 17%.

Company Outlook

• Expected revenue of $2.435 billion to $2.465 billion for fiscal year 2025.
• Non-GAAP operating margin projected around 15.5% to 17% for the upcoming fiscal year.
• Anticipated free cash flow of $540 million to $600 million.
• Focus on durable top-line growth and expanding free cash flow and operating margins.

Bearish Highlights

• Cash balance decreased in Q4 due to the conversion of 2026 notes by Bain Capital.
• Lengthened sales cycles as customers evaluate total cost of ownership (TCO) before purchasing decisions.

Bullish Highlights

• Highest number of new logos in three years.
• Meaningful opportunities with larger deal segments.
• Strategic partnerships with Cisco, Dell, and NVIDIA progressing well, with Dell XC Plus offering now available.

Misses

• No specific misses reported in the earnings call summary.

Q&A Highlights

• CEO Rajiv Ramaswami emphasized pursuing larger sales opportunities and the impact of Broadcom’s acquisitions on customer decisions.
• Discussion on tracking large deals that sometimes take up to two years to close.
• Nonrecurring partner payments contributed to free cash flow, with an expected $30 million benefit in fiscal year 2025.

Nutanix showcased robust performance in fiscal 2024, positioning itself for future growth. The focus on customer acquisition, strategic partnerships, and product innovation suggests a positive outlook for Nutanix in the coming fiscal year.

Full Transcript – Nutanix Inc (NTNX) Q4 2024:

Operator: Thank you for standing by and welcome to Nutanix Fourth Quarter 2024 Earnings Conference Call… [transcript continues with Q&A]…