Nutanix shares shoot 12% higher on revenue beat and strong guidance

Published 26/02/2025, 23:18
Nutanix shares shoot 12% higher on revenue beat and strong guidance

SAN JOSE, Calif. - Nutanix, Inc. (NASDAQ:NTNX), a leader in hybrid multicloud computing, reported second-quarter earnings that narrowly missed estimates but exceeded revenue expectations, sending its stock soaring 12.8% in after-hours trading.

The company posted adjusted earnings per share of $0.46, falling short of the $0.47 analyst consensus. However, revenue for the quarter came in at $654.7 million, surpassing the $641.5 million estimate and marking a significant increase from the same period last year.

Nutanix’s Annual Recurring Revenue (ARR) grew 19% YoY, demonstrating strong momentum in its subscription-based business model. The company also provided an optimistic outlook for the third quarter, projecting revenue between $620 million and $630 million, well above the $595.1 million analyst consensus.

"Our results are benefiting from the strength of the Nutanix Cloud Platform, demand from businesses looking for a trusted long-term partner committed to innovation and customer care, and go-to-market leverage from our partnerships and programs," said Rajiv Ramaswami, President and CEO of Nutanix.

CFO Rukmini Sivaraman highlighted the company’s focus on sustainable, profitable growth, noting strong year-to-date free cash flow generation. Nutanix also recently strengthened its balance sheet by issuing convertible notes and establishing a new revolving credit facility.

The company expects a non-GAAP operating margin of 17% to 18% for the upcoming quarter, indicating continued profitability improvements.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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