Nutanix (NTNX) reported strong second-quarter fiscal 2024 earnings, surpassing expectations with earnings of 46 cents per share compared to the expected 29 cents. Revenues also grew 16% year over year to $565.2 million, driven by the company’s core hyper-converged infrastructure software and new capabilities. Nutanix continues to see strong adoption of its hybrid multi-cloud solutions among top companies.
Product revenues increased 19.6% to $299.6 million, while support, entitlements, and other services revenues rose 12.6% to $265.6 million. Subscription revenues grew 17.9% to $531.9 million, and professional services revenues improved 6.7% to $25 million. Billings were up 16.5% to $616.5 million, with annual recurring revenues climbing to $1.74 billion.
During the quarter, Nutanix added 440 customers, bringing the total to 25,370. The company’s non-GAAP gross margin expanded to 87.3%, while non-GAAP operating income increased to $123.9 million. Cash and cash equivalents plus short-term investments were $1.64 billion, with cash generated through operating activities totaling $186.4 million and free cash flow at $162.6 million.
For the third quarter, Nutanix expects ACV billings between $265 million and $275 million, with revenues estimated between $510 million and $520 million. The company also provided guidance for fiscal 2024, expecting ACV billings between $1.09 billion and $1.11 billion, and revenues in the range of $2.12-$2.15 billion.
Nutanix carries a Zacks Rank #3 (Hold), with Crowdstrike (CRWD), SEMrush (SEMR), and Adobe (ADBE) being better-ranked stocks in the sector. Crowdstrike is set to release earnings on Mar 5, SEMrush on Mar 4, and Adobe on Mar 13.
Overall, Nutanix’s strong performance and positive outlook for the future indicate continued growth and success in the hyper-converged infrastructure software market.
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https://finance.yahoo.com/news/nutanix-ntnx-q2-earnings-top-130700309.html
