Nutanix (NTNX) reported strong third-quarter fiscal 2024 results, with non-GAAP earnings of 28 cents per share, surpassing the Zacks Consensus Estimate by 64.71%. Revenues increased 17% year over year to $524.6 million, primarily driven by growth in hyper-converged infrastructure software. Annual Contract Value (ACV) billings jumped 20% to $288.9 million.
Product revenues increased 20.2% to $255.5 million, while support, entitlements & other services revenues rose 14% to $269.1 million. Subscription revenues climbed 16.6% to $486.6 million, and professional services revenues improved 18.7% to $26.2 million. Billings were up 20.6% year over year to $557.28 million.
Nutanix added 490 customers during the quarter, bringing the total number of clients to 25,860. Non-GAAP gross margin expanded to 86.5%, while non-GAAP operating income came in at $73.3 million.
As of April 30, 2024, cash and cash equivalents plus short-term investments were $1.44 billion. Operating activities generated $96.4 million in cash, with free cash flow of $78.3 million.
For the fourth quarter of fiscal 2024, Nutanix expects ACV billings between $295 million and $305 million, with revenues estimated between $530 million and $540 million. Non-GAAP gross margin is projected between 85% and 86%, and non-GAAP operating margin between 9-10%.
For fiscal 2024, Nutanix expects ACV billings between $1.12 billion and $1.13 billion, with revenues estimated in the range of $2.13-$2.14 billion. Non-GAAP gross margin is projected to be 86%, while non-GAAP operating margin is expected to be 15%.
Nutanix currently holds a Zacks Rank #1 (Strong Buy), with other top picks in the sector including Micron Technology (MU), SecureWorks (SCWX) and Planet Labs (PL), each carrying a Zacks Rank #2 (Buy). Micron Technology is set to report third-quarter fiscal 2024 results on June 26, while SecureWorks and Planet Labs are scheduled to release first-quarter fiscal 2025 results on June 6.
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https://finance.yahoo.com/news/nutanix-ntnx-q3-earnings-top-143200093.html
