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Nutanix Reports First Quarter Fiscal 2025 Financial Results

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Nutanix (NTNX) reported strong Q1 FY2025 financial results, with 18% year-over-year ARR growth to $1.97 billion. Revenue increased 16% to $591.0 million, while GAAP operating income reached $27.3 million, compared to a loss in the previous year. The company demonstrated improved profitability with non-GAAP operating margin expanding to 20.0% and generated strong free cash flow of $151.9 million. Nutanix expanded its partnership with AWS and received recognition as a Leader in Gartner's Magic Quadrant for both Distributed Hybrid Infrastructure and File and Object Storage Platforms.

Nutanix (NTNX) ha riportato risultati finanziari solidi per il primo trimestre dell'anno fiscale 2025, con una crescita dell'ARR del 18% anno su anno a 1,97 miliardi di dollari. I ricavi sono aumentati del 16% a 591,0 milioni di dollari, mentre l'utile operativo GAAP ha raggiunto i 27,3 milioni di dollari, rispetto a una perdita nell'anno precedente. L'azienda ha dimostrato una maggiore redditività con un margine operativo non-GAAP che si è espanso al 20,0% e ha generato un robusto flusso di cassa libero di 151,9 milioni di dollari. Nutanix ha ampliato la sua collaborazione con AWS ed è stata riconosciuta come Leader nel Magic Quadrant di Gartner per le piattaforme di infrastruttura ibrida distribuita e per lo storage di file e oggetti.

Nutanix (NTNX) reportó resultados financieros sólidos para el primer trimestre del año fiscal 2025, con un crecimiento del ARR del 18% interanual hasta alcanzar 1,97 mil millones de dólares. Los ingresos aumentaron un 16% a 591,0 millones de dólares, mientras que el ingreso operativo GAAP alcanzó los 27,3 millones de dólares, en comparación con una pérdida el año anterior. La compañía demostró una mejora en la rentabilidad, con un margen operativo no GAAP que se amplió al 20,0% y generó un fuerte flujo de caja libre de 151,9 millones de dólares. Nutanix amplió su asociación con AWS y recibió reconocimiento como líder en el Magic Quadrant de Gartner tanto para Infraestructura Híbrida Distribuida como para Plataformas de Almacenamiento de Archivos y Objetos.

Nutanix (NTNX)는 2025 회계연도 1분기 동안 강력한 재무 결과를 보고했으며, 전년 대비 ARR 성장률이 18%에 달하여 19억 7천만 달러에 이릅니다. 수익은 16% 증가한 5억 9천1백만 달러를 기록했으며, GAAP 운영 소득은 2730만 달러에 도달해 전년 대비 손실에서 회복되었습니다. 이 회사는 비GAAP 운영 마진이 20.0%로 확대되며 개선된 수익성을 보여주었고, 1억 5190만 달러의 강력한 자유 현금 흐름을 생성했습니다. Nutanix는 AWS와의 파트너십을 확대하고, 가트너의 매직 쿼드런트에서 분산 하이브리드 인프라 및 파일 및 객체 스토리지 플랫폼의 리더로 인정받았습니다.

Nutanix (NTNX) a annoncé d'excellents résultats financiers pour le premier trimestre de l'exercice 2025, avec une croissance de l'ARR de 18% par rapport à l'année précédente, atteignant 1,97 milliard de dollars. Les revenus ont augmenté de 16% pour atteindre 591,0 millions de dollars, tandis que le bénéfice d'exploitation GAAP a atteint 27,3 millions de dollars, contre une perte l'année précédente. L'entreprise a démontré une rentabilité améliorée avec une marge opérationnelle non-GAAP s'élevant à 20,0% et a généré un solide flux de trésorerie libre de 151,9 millions de dollars. Nutanix a élargi son partenariat avec AWS et a été reconnue comme Leader dans le Magic Quadrant de Gartner pour les infrastructures hybrides distribuées ainsi que pour les plates-formes de stockage de fichiers et d'objets.

Nutanix (NTNX) berichtete von starken finanziellen Ergebnissen im ersten Quartal des Geschäftsjahres 2025, mit einem Jahr-zu-Jahr-Wachstum des ARR von 18% auf 1,97 Milliarden US-Dollar. Der Umsatz stieg um 16% auf 591,0 Millionen US-Dollar, während das GAAP-Betriebsergebnis 27,3 Millionen US-Dollar erreichte, verglichen mit einem Verlust im Vorjahr. Das Unternehmen zeigte eine verbesserte Rentabilität mit einer Nicht-GAAP-Betriebsgewinnmarge von 20,0% und erzielte einen starken Free Cashflow von 151,9 Millionen US-Dollar. Nutanix erweiterte seine Partnerschaft mit AWS und wurde als Leader im Magic Quadrant von Gartner sowohl für verteilte hybride Infrastruktur als auch für Datei- und Objektspeicher-Plattformen anerkannt.

Positive
  • Revenue growth of 16% YoY to $591.0 million
  • ARR increased 18% YoY to $1.97 billion
  • GAAP operating income improved to $27.3 million from $(5.7) million loss
  • Non-GAAP operating margin expanded 440 bps to 20.0%
  • Free cash flow increased to $151.9 million
  • GAAP gross margin improved 200 bps to 86.0%
Negative
  • Operating expenses increased 11% YoY to $481.0 million
  • Average contract duration decreased to 3.1 years from previous periods

Insights

Nutanix delivered exceptional Q1 FY2025 results with significant growth across key metrics. ARR grew 18% YoY to $1.97 billion, while revenue increased 16% to $591 million. The company demonstrated strong profitability improvements with non-GAAP operating margin expanding 440 bps to 20% and free cash flow reaching $151.9 million.

The expanded AWS partnership and leadership positions in Gartner Magic Quadrants strengthen Nutanix's competitive position in the hybrid cloud market. The Q2 guidance of $635-645 million in revenue and 20-21% operating margin indicates continued momentum. The full-year outlook projects revenue of $2.435-2.465 billion with strong free cash flow of $560-610 million, suggesting sustainable profitable growth.

The strategic expansion with AWS marks a significant competitive advantage, enabling seamless hybrid cloud deployments with promotional credits to accelerate customer adoption. The company's leadership recognition in both Distributed Hybrid Infrastructure and File & Object Storage platforms validates their technology vision and execution capabilities.

The launch of Nutanix Enterprise AI (NAI) positions the company well in the growing AI infrastructure market, with cross-platform compatibility across major cloud providers. This multi-cloud strategy, combined with strong execution in core operations, creates a compelling platform for sustained growth in enterprise IT modernization.

Delivers Outperformance Across All First Quarter Guided Metrics

Reports 18% YoY ARR Growth and Strong Free Cash Flow

SAN JOSE, Calif., Nov. 26, 2024 (GLOBE NEWSWIRE) -- Nutanix, Inc. (NASDAQ: NTNX), a leader in hybrid multicloud computing, today announced financial results for its first quarter ended October 31, 2024.

“During our first quarter we delivered outperformance across our guided metrics,” said Rajiv Ramaswami, President and CEO of Nutanix. “We also continued to bring innovations to the market supporting our vision of becoming the leading platform for running apps and managing data, anywhere, while strengthening our partner ecosystem.”

“Our first quarter results demonstrated a good balance of top and bottom line performance with 18% year-over-year ARR growth and strong free cash flow generation,” said Rukmini Sivaraman, CFO of Nutanix. “We remain focused on delivering sustainable, profitable growth.”

First Quarter Fiscal 2025 Financial Summary

 Q1 FY’25Q1 FY’24Y/Y Change
Annual Recurring Revenue (ARR)1$1.97 billion$1.66 billion18%
Average Contract Duration23.1 years2.9 years0.2 year
Revenue$591.0 million$511.1 million16%
GAAP Gross Margin86.0%84.0%200 bps
Non-GAAP Gross Margin87.5%85.9%160 bps
GAAP Operating Expenses$481.0 million$434.8 million11%
Non-GAAP Operating Expenses$398.9 million$359.8 million11%
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 Margin4.6%(1.1)%570 bps
Non-GAAP Operating Margin20.0%15.6%440 bps
Net Cash Provided by Operating Activities$161.8 million$145.5 million$16.3 million
Free Cash Flow$151.9 million$132.5 million$19.4 million

Reconciliations between GAAP and non-GAAP financial measures and key performance measures, to the extent available, are provided in the tables of this press release.

Recent Company Highlights

  • Nutanix Expands Partnership with AWS: Nutanix announced an expanded strategic collaboration with Amazon Web Services, Inc. (AWS) that will offer access to AWS services for customers looking to migrate to NC2 on AWS. As part of the collaboration, customers will gain access to promotional credits from AWS to support customer migrations and proof-of-concept trials, as well as Nutanix licensing promotions.
  • Nutanix is Named a Leader in 2024 Gartner® Magic Quadrant™ for Distributed Hybrid Infrastructure: Nutanix announced its recognition as a Leader in the 2024 Gartner® Magic Quadrant™ for Distributed Hybrid Infrastructure. Nutanix believes this recognition is due to the company’s vision and investments in the integration of edge, private and public clouds, as well as having a platform that supports both cloud native and traditional applications.
  • Nutanix is Positioned Furthest in Vision Among All Vendors in 2024 Gartner® Magic Quadrant™ for File and Object Storage Platforms: Nutanix announced it is positioned furthest in Vision among all vendors in the 2024 Gartner® Magic Quadrant™ for File and Object Storage Platforms. Nutanix believes this recognition is due to the company’s strong vision for an enterprise storage platform that unifies unstructured data across edge, public and private clouds.
  • Nutanix Extends AI Platform to Public Cloud: Nutanix announced that it extended the company's AI infrastructure platform with a new cloud native offering, Nutanix Enterprise AI (NAI), that can be deployed on any Kubernetes platform, at the edge, in core data centers and on public cloud services like AWS EKS, Azure AKS, and Google GKE.

Second Quarter Fiscal 2025 Outlook

   
Revenue$635 - $645 million 
Non-GAAP Operating Margin20% to 21% 
Weighted Average Shares Outstanding (Diluted)3Approximately 289 million 
   

Fiscal 2025 Outlook

   
Revenue$2.435 - $2.465 billion 
Non-GAAP Operating Margin16% to 17% 
Free Cash Flow$560 - $610 million 
   

Supplementary materials to this press release, including our first quarter fiscal 2025 earnings presentation, can be found at https://ir.nutanix.com/financial/quarterly-results.

Webcast and Conference Call Information

Nutanix executives will discuss the Company’s first quarter fiscal 2025 financial results on a conference call today at 4:30 p.m. Eastern Time/1:30 p.m. Pacific Time. Interested parties may access the conference call by registering at this link to receive dial in details and a unique PIN number. The conference call will also be webcast live on the Nutanix Investor Relations website at ir.nutanix.com. An archived replay of the webcast will be available on the Nutanix Investor Relations website at ir.nutanix.com shortly after the call.

Footnotes

1Annual Recurring Revenue, or ARR, for any given period, is defined as the sum of ACV for all subscription contracts in effect as of the end of a specific period. For the purposes of this calculation, we assume that the contract term begins on the date a contract is booked, unless the terms of such contract prevent us from fulfilling our obligations until a later period, and irrespective of the periods in which we would recognize revenue for such contract. Excludes all life-of-device contracts. ACV is defined as the total annualized value of a contract. The total annualized value for a contract is calculated by dividing the total value of the contract by the number of years in the term of such contract. Excludes amounts related to professional services and hardware.

2Average Contract Duration represents the dollar-weighted term, calculated on a billings basis, across all subscription contracts, as well as our limited number of life-of-device contracts, using an assumed term of five years for life-of-device licenses, executed in the period.

3Weighted average share count used in computing diluted non-GAAP net income per share.

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 press release includes the following non-GAAP financial and other key performance measures: non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, free cash flow, Annual Recurring Revenue (or ARR), and Average Contract Duration. In computing non-GAAP financial measures, we exclude certain items such as stock-based compensation and the related income tax impact, costs associated with our acquisitions (such as amortization of acquired intangible assets, income tax-related impact, and other acquisition-related costs), restructuring charges, litigation settlement accruals and legal fees related to certain litigation matters, the amortization and conversion of the debt discount and issuance costs related to convertible senior notes, interest expense related to convertible senior notes, and other non-recurring transactions and the related tax impact. Non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, and non-GAAP operating margin are financial measures which we believe provide useful information to investors because they provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures such as stock-based compensation expense that may not be indicative of our ongoing core business operating results. Free cash flow is a performance measure that we believe provides useful information to our management and investors about the amount of cash generated by the business after capital expenditures, and we define free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment. ARR is a performance measure that we believe provides useful information to our management and investors as it allows us to better track the topline growth of our subscription business because it takes into account variability in term lengths. We use these non-GAAP financial and key performance measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. However, these non-GAAP financial and key performance measures have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, and free cash flow are not substitutes for gross margin, operating expenses, operating income (loss), operating margin, or net cash provided by (used in) operating activities, respectively. There is no GAAP measure that is comparable to ARR or Average Contract Duration, so we have not reconciled the ARR or Average Contract Duration data included in this press release to any GAAP measure. In addition, other companies, including companies in our industry, may calculate non-GAAP financial measures and key performance measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures and key performance measures as tools for comparison. We urge you to review the reconciliation of our non-GAAP financial measures and key performance measures to the most directly comparable GAAP financial measures included below in the tables captioned “Reconciliation of GAAP to Non-GAAP Profit Measures” and “Reconciliation of GAAP Net Cash Provided By Operating Activities to Non-GAAP Free Cash Flow,” and not to rely on any single financial measure to evaluate our business. This press release also includes the following forward-looking non-GAAP financial measures as part of our second quarter fiscal 2025 outlook and/or our fiscal 2025 outlook: non-GAAP operating margin and free cash flow. We are unable to reconcile these forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures without unreasonable efforts, as we are currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact the GAAP financial measures for these periods but would not impact the non-GAAP financial measures.

Forward-Looking Statements

This press release contains express and implied forward-looking statements, including, but not limited to, statements regarding: our business momentum and prospects; our innovations supporting our vision of becoming the leading platform for running applications and managing data, anywhere; strengthening our partner ecosystem; our focus on delivering sustainable, profitable growth; our second quarter fiscal 2025 outlook; and our fiscal 2025 outlook.

These forward-looking statements are not historical facts and instead are based on our current expectations, estimates, opinions, and beliefs. Consequently, you should not rely on these forward-looking statements. The accuracy of these forward-looking statements depends upon future events and involves risks, uncertainties, and other factors, including factors that may be beyond our control, that may cause these statements to be inaccurate and cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by such statements, including, among others: the inherent uncertainty or assumptions and estimates underlying our projections and guidance, which are necessarily speculative in nature; any failure to successfully implement or realize the full benefits of, or unexpected difficulties or delays in successfully implementing or realizing the full benefits of, our business plans, strategies, initiatives, vision, objectives, momentum, prospects and outlook; our ability to achieve, sustain and/or manage future growth effectively; the rapid evolution of the markets in which we compete, including the introduction, or acceleration of adoption of, competing solutions, including public cloud infrastructure; failure to timely and successfully meet our customer needs; delays in or lack of customer or market acceptance of our new solutions, products, services, product features or technology; macroeconomic or geopolitical uncertainty; our ability to attract, recruit, train, retain, and, where applicable, ramp to full productivity, qualified employees and key personnel; factors that could result in the significant fluctuation of our future quarterly operating results (including anticipated changes to our revenue and product mix, the timing and magnitude of orders, shipments and acceptance of our solutions in any given quarter, our ability to attract new and retain existing end-customers, changes in the pricing and availability of certain components of our solutions, and fluctuations in demand and competitive pricing pressures for our solutions); our ability to form new or maintain and strengthen existing strategic alliances and partnerships, as well as our ability to manage any changes thereto; our ability to make share repurchases; and other risks detailed in our Annual Report on Form 10-K for the fiscal year ended July 31, 2024 filed with the U.S. Securities and Exchange Commission, or the SEC, on September 19, 2024. Additional information will be set forth in our Quarterly Report on Form 10-Q for the fiscal quarter ended October 31, 2024, which should be read in conjunction with this press release and the financial results included herein. Our SEC filings are available on the Investor Relations section of our website at ir.nutanix.com and on the SEC's website at www.sec.gov. These forward-looking statements speak only as of the date of this press release and, except as required by law, we assume no obligation, and expressly disclaim any obligation, to update, alter or otherwise revise any of these forward-looking statements to reflect actual results or subsequent events or circumstances.

About Nutanix

Nutanix is a global leader in cloud software, offering organizations a single platform for running applications and managing data, anywhere. With Nutanix, companies can reduce complexity and simplify operations, freeing them to focus on their business outcomes. Building on its legacy as the pioneer of hyperconverged infrastructure, Nutanix is trusted by companies worldwide to power hybrid multicloud environments consistently, simply, and cost-effectively. Learn more at www.nutanix.com or follow us on social media @nutanix.

© 2024 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix logo, and all Nutanix product and service names mentioned herein are registered trademarks or unregistered trademarks of Nutanix, Inc. (“Nutanix”) in the United States and other countries. Other brand names or marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s). This press release is for informational purposes only and nothing herein constitutes a warranty or other binding commitment by Nutanix.

Investor Contact:
Richard Valera
ir@nutanix.com

Media Contact:
Lia Bigano
pr@nutanix.com

 
NUTANIX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
  As of 
  July 31,
2024
 
 October 31,
2024
 
  (in thousands) 
Assets      
Current assets:      
Cash and cash equivalents $655,270  $716,604 
Short-term investments  339,072   358,846 
Accounts receivable, net  229,796   198,582 
Deferred commissions—current  159,849   150,975 
Prepaid expenses and other current assets  97,307   98,452 
Total current assets  1,481,294   1,523,459 
Property and equipment, net  136,180   132,455 
Operating lease right-of-use assets  109,133   118,593 
Deferred commissions—non-current  198,962   188,364 
Intangible assets, net  5,153   4,298 
Goodwill  185,235   185,235 
Other assets—non-current  27,961   28,947 
Total assets $2,143,918  $2,181,351 
Liabilities and Stockholders’ Deficit      
Current liabilities:      
Accounts payable $45,066  $44,698 
Accrued compensation and benefits  195,602   164,670 
Accrued expenses and other current liabilities  24,967   18,968 
Deferred revenue—current  954,543   968,642 
Operating lease liabilities—current  24,163   23,621 
Total current liabilities  1,244,341   1,220,599 
Deferred revenue—non-current  918,163   925,743 
Operating lease liabilities—non-current  90,359   100,409 
Convertible senior notes, net  570,073   570,458 
Other liabilities—non-current  49,130   49,438 
Total liabilities  2,872,066   2,866,647 
Stockholders’ deficit:      
Common stock  7   7 
Additional paid-in capital  4,118,898   4,145,942 
Accumulated other comprehensive loss  146   559 
Accumulated deficit  (4,847,199)  (4,831,804)
Total stockholders’ deficit  (728,148)  (685,296)
Total liabilities and stockholders’ deficit $2,143,918  $2,181,351 


 
NUTANIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
  Three Months Ended
October 31,
 
  2023  2024 
  (in thousands, except per share data) 
Revenue:      
Product $246,922  $301,919 
Support, entitlements and other services  264,132   289,037 
Total revenue  511,054   590,956 
Cost of revenue:      
Product (1)(2)  10,234   8,370 
Support, entitlements and other services (1)  71,725   74,300 
Total cost of revenue  81,959   82,670 
Gross profit  429,095   508,286 
Operating expenses:      
Sales and marketing (1)(2)  235,323   253,401 
Research and development (1)  151,975   173,959 
General and administrative (1)  47,503   53,676 
Total operating expenses  434,801   481,036 
(Loss) income from operations  (5,706)  27,250 
Other (expense) income, net  (5,275)  9,573 
(Loss) income before provision for income taxes  (10,981)  36,823 
Provision for income taxes  4,872   6,897 
Net (loss) income $(15,853) $29,926 
Net (loss) income per share attributable to Class A common stockholders, basic $(0.07) $0.11 
Net (loss) income per share attributable to Class A common stockholders, diluted $(0.07) $0.10 
Weighted average shares used in computing net (loss) income per share attributable to Class A common stockholders, basic  241,490   266,556 
Weighted average shares used in computing net (loss) income per share attributable to Class A common stockholders, diluted  241,490   288,829 

_____________
(1)  Includes the following stock-based compensation expense:

    
  Three Months Ended
October 31,
 
  2023  2024 
  (in thousands) 
Product cost of revenue $1,928  $1,212 
Support, entitlements and other services cost of revenue  7,116   6,820 
Sales and marketing  21,471   20,648 
Research and development  38,404   43,562 
General and administrative  15,079   16,507 
Total stock-based compensation expense $83,998  $88,749 

(2)  Includes the following amortization of intangible assets:

  Three Months Ended
October 31,
 
  2023  2024 
  (in thousands) 
Product cost of revenue $1,111  $767 
Sales and marketing  37   88 
Total amortization of intangible assets $1,148  $855 


 
NUTANIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
  Three Months Ended
October 31,
 
  2023  2024 
  (in thousands) 
Cash flows from operating activities:      
Net (loss) income $(15,853) $29,926 
Adjustments to reconcile net (loss) income to net cash provided by operating activities:      
Depreciation and amortization  18,187   18,180 
Stock-based compensation  83,998   88,749 
Amortization of debt discount and issuance costs  11,055   386 
Operating lease cost, net of accretion  7,872   6,919 
Non-cash interest expense  5,017    
Other  (4,044)  (817)
Changes in operating assets and liabilities:      
Accounts receivable, net  23,656   52,453 
Deferred commissions  5,098   19,472 
Prepaid expenses and other assets  60,696   (1,999)
Accounts payable  3,953   (4,454)
Accrued compensation and benefits  (7,421)  (35,906)
Accrued expenses and other liabilities  (89,029)  (4,727)
Operating leases, net  (7,791)  (6,871)
Deferred revenue  50,079   440 
Net cash provided by operating activities  145,473   161,751 
Cash flows from investing activities:      
Maturities of investments  248,980   91,648 
Purchases of investments  (278,178)  (110,011)
Purchases of property and equipment  (13,020)  (9,831)
Net cash used in investing activities  (42,218)  (28,194)
Cash flows from financing activities:      
Proceeds from sales of shares through employee equity incentive plans  13,783   28,113 
Taxes paid related to net share settlement of equity awards     (79,274)
Repurchases of common stock  (17,513)  (20,100)
Payment of finance lease obligations  (637)  (964)
Net cash used in financing activities  (4,367)  (72,225)
Net increase in cash, cash equivalents and restricted cash $98,888  $61,332 
Cash, cash equivalents and restricted cash—beginning of period  515,771   655,662 
Cash, cash equivalents and restricted cash—end of period $614,659  $716,994 
Restricted cash (1)  2,197   390 
Cash and cash equivalents—end of period $612,462  $716,604 
Supplemental disclosures of cash flow information:      
Cash paid for income taxes $8,134  $9,296 
Supplemental disclosures of non-cash investing and financing information:      
Purchases of property and equipment included in accounts payable and accrued and other liabilities $15,013  $4,517 
Unpaid taxes related to net share settlement of equity awards included in accrued expenses and other liabilities $  $16,788 

_____________
(1)  Included within other assets—non-current in the condensed consolidated balance sheets.

 
Reconciliation of Revenue to Billings
(Unaudited)
 
  Three Months Ended
October 31,
 
  2023  2024 
  (in thousands) 
Total revenue $511,054  $590,956 
Change in deferred revenue  50,079   440 
Total billings $561,133  $591,396 


 
Disaggregation of Revenue and Billings
(Unaudited)
 
  Three Months Ended
October 31,
 
  2023  2024 
  (in thousands) 
Disaggregation of revenue:      
Subscription revenue $479,478  $560,696 
Professional services revenue  22,835   27,285 
Other non-subscription product revenue  8,741   2,975 
Total revenue $511,054  $590,956 
Disaggregation of billings:      
Subscription billings $528,914  $564,292 
Professional services billings  23,478   24,129 
Other non-subscription product billings  8,741   2,975 
Total billings $561,133  $591,396 
         

Subscription revenue — Subscription revenue includes any performance obligation which has a defined term, and is generated from the sales of software entitlement and support subscriptions, subscription software licenses and cloud-based software-as-a-service, or SaaS, offerings.

  • Ratable — We recognize revenue from software entitlement and support subscriptions and SaaS offerings ratably over the contractual service period, the substantial majority of which relate to software entitlement and support subscriptions.
  • Upfront — Revenue from our subscription software licenses is generally recognized upfront upon transfer of control to the customer, which happens when we make the software available to the customer.

Professional services revenue — We also sell professional services with our products. We recognize revenue related to professional services as they are performed.

Other non-subscription product revenue — Other non-subscription product revenue includes $8.1 million and $1.9 million of non-portable software revenue for the three months ended October 31, 2023 and 2024, respectively, and $0.6 million and $1.1 million of hardware revenue for the three months ended October 31, 2023 and 2024, respectively.

  • Non-portable software revenue — Non-portable software revenue includes sales of our platform when delivered on a configured-to-order appliance by us or one of our OEM partners. The software licenses associated with these sales are typically non-portable and can be used over the life of the appliance on which the software is delivered. Revenue from our non-portable software products is generally recognized upon transfer of control to the customer.
  • Hardware revenue — In the infrequent transactions where the hardware appliance is purchased directly from Nutanix, we consider ourselves to be the principal in the transaction and we record revenue and costs of goods sold on a gross basis. We consider the amount allocated to hardware revenue to be equivalent to the cost of the hardware procured. Hardware revenue is generally recognized upon transfer of control to the customer.
 
Annual Recurring Revenue
(Unaudited)
 
  Three Months Ended
October 31,
 
  2023  2024 
  (in thousands) 
Annual Recurring Revenue (ARR) $1,663,918  $1,966,105 


 
Reconciliation of GAAP to Non-GAAP Profit Measures
(Unaudited)
 
  GAAP  Non-GAAP Adjustments  Non-GAAP 
  Three Months Ended October 31, 2024  (1)  (2)  (3)  (4)  (5)  (6)  Three Months Ended October 31, 2024 
  (in thousands, except percentages and per share data) 
Gross profit $508,286  $8,032  $767  $  $  $  $  $517,085 
Gross margin  86.0%  1.4%  0.1%              87.5%
Operating expenses:                        
Sales and marketing  253,401   (20,648)  (88)              232,665 
Research and development  173,959   (43,562)                 130,397 
General and administrative  53,676   (16,507)     (1,367)           35,802 
Total operating expenses  481,036   (80,717)  (88)  (1,367)           398,864 
Income from operations  27,250   88,749   855   1,367            118,221 
Operating margin  4.6%  15.1%  0.1%  0.2%           20.0%
Net income $29,926  $88,749  $855  $1,367  $(110) $745  $241  $121,773 
Weighted shares outstanding, basic  266,556                     266,556 
Weighted shares outstanding, diluted (7)  288,829                     288,829 
Net income per share, basic $0.11  $0.34  $-  $0.01  $-  $-  $-  $0.46 
Net income per share, diluted $0.10                    $0.42 

_____________
(1)  Stock-based compensation expense
(2)  Amortization of intangible assets
(3)  Legal fees
(4)  Other
(5)  Amortization of debt issuance costs related to convertible senior notes
(6)  Income tax effect primarily related to stock-based compensation expense
(7)  Includes 22,273 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans

          
  GAAP  Non-GAAP Adjustments  Non-GAAP 
  Three Months Ended October 31, 2023  (1)  (2)  (3)  (4)  (5)  (6)  Three Months Ended October 31, 2023 
  (in thousands, except percentages and per share data) 
Gross profit $429,095  $9,044  $1,111  $  $  $  $  $439,250 
Gross margin  84.0%  1.7%  0.2%              85.9%
Operating expenses:                        
Sales and marketing  235,323   (21,471)  (37)              213,815 
Research and development  151,975   (38,404)                 113,571 
General and administrative  47,503   (15,079)     (46)           32,378 
Total operating expenses  434,801   (74,954)  (37)  (46)           359,764 
(Loss) income from operations  (5,706)  83,998   1,148   46            79,486 
Operating margin  (1.1)%  16.5%  0.2%              15.6%
Net (loss) income $(15,853) $83,998  $1,148  $46  $16,347  $(920) $274  $85,040 
Weighted shares outstanding, basic  241,490                     241,490 
Weighted shares outstanding, diluted (7)  241,490                     292,861 
Net (loss) income per share, basic $(0.07) $0.35  $-  $-  $0.07  $-  $-  $0.35 
Net (loss) income per share, diluted $(0.07)                   $0.29 

 _____________
(1)  Stock-based compensation expense
(2)  Amortization of intangible assets
(3)  Legal fees
(4)  Amortization of debt discount and issuance costs and interest expense related to convertible senior notes
(5)  Other
(6)  Income tax effect primarily related to stock-based compensation expense
(7)  Includes 51,371 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans

 
Reconciliation of GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow
(Unaudited)
 
  Three Months Ended
October 31,
 
  2023  2024 
  (in thousands) 
Net cash provided by operating activities $145,473  $161,751 
Purchases of property and equipment  (13,020)  (9,831)
Free cash flow $132,453  $151,920 

FAQ

What was Nutanix (NTNX) revenue in Q1 FY2025?

Nutanix reported revenue of $591.0 million in Q1 FY2025, representing a 16% increase year-over-year.

What was Nutanix (NTNX) Annual Recurring Revenue (ARR) in Q1 FY2025?

Nutanix's ARR reached $1.97 billion in Q1 FY2025, showing an 18% growth compared to the previous year.

What is Nutanix (NTNX) revenue guidance for FY2025?

Nutanix provided FY2025 revenue guidance of $2.435 - $2.465 billion.

What was Nutanix (NTNX) free cash flow in Q1 FY2025?

Nutanix generated free cash flow of $151.9 million in Q1 FY2025, an increase from $132.5 million in the previous year.

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18.09B
249.81M
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1.98%
Software - Infrastructure
Services-prepackaged Software
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United States of America
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