Nutanix recently reported its second-quarter earnings, with non-GAAP earnings per share of 46 cents, exceeding expectations. Revenues also increased by 16% year over year to $565.2 million. The company saw growth in its hyper-converged infrastructure software and adoption of its multi-cloud solutions.
Product revenues rose by 19.6% to $299.6 million, and subscription revenues climbed by 17.9% to $531.9 million. Billings increased by 16.5% to $616.5 million, with the addition of 440 customers during the quarter.
Nutanix’s non-GAAP gross margin expanded to 87.3%, with operating income at $123.9 million. Cash and cash equivalents were $1.64 billion, with operating activities generating $186.4 million.
For the third quarter, Nutanix expects ACV billings between $265 million and $275 million, and revenues between $510 million and $520 million. The company anticipates strong performance for fiscal 2024, with ACV billings between $1.09 billion and $1.11 billion.
Estimates for the stock have been trending upward, with a Zacks Rank #3 (Hold). In comparison, CoStar Group, another player in the same industry, reported revenues of $640.1 million in the last quarter, with an expected earnings decline for the current quarter.
Overall, Nutanix shows promising growth potential, with positive estimates and performance. Investors should keep an eye on the stock in the coming months for further developments.
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