Nutanix soars after earnings and full-year guidance top expectations

Nutanix (NASDAQ:NTNX) rallied in postmarket trading on Wednesday after sailing past consensus estimates with its FQ4 earnings report.

Revenue rose 10.9% year-over-year to $548.0 million for the quarter that ended on July 31. That mark topped the consensus expectation of $537.3 million. The San Jose-based company said annual recurring revenue was up 22% year-over-year to $1.91 billion. Annual contract value billings were 21% higher to $338.0 million. The average contract duration increased to 3.1 years from 3.0 years.

Non-GAAP operating income was $70.5 million to account for 12.9% of sales. EPS slotted in at $0.27 vs. $0.20 consensus and $0.17 a year ago. Nutanix (NTNX) generated free cash flow of $224.3 million for the quarter, vs. $45.5 million a year ago.

“Our fourth quarter was a solid finish to a fiscal year that showed good progress on our financial model with solid top line growth and sharp year-over-year improvement in profitability,” stated CEO Rajiv Ramaswami.

Looking ahead, Nutanix (NTNX) guided for FQ1 revenue of $565 million to $575 million (midpoint $570 million) vs. $571.7 million consensus and FY25 revenue of $2.435 billion to $2.465 billion (midpoint $2.450 billion) vs. $2.43 billion consensus. The company also sees a FY25 adjusted operating margin rate of 15.5% to 17.0%.

Shares of Nutanix (NTNX) soared 18.00% to $61.70 in postmarket action vs. the 52-week range of $30.27 to $73.69.