Nutanix recently reported third-quarter fiscal 2024 earnings that exceeded expectations, with non-GAAP earnings of 28 cents per share and revenues rising to $524.6 million. The company’s top line growth was driven by increased demand for its hyper-converged infrastructure software and hybrid multi-cloud solutions.
During the quarter, Nutanix added 490 customers, totaling 25,860 clients. The company’s non-GAAP gross margin expanded to 86.5%, with non-GAAP operating income reaching $73.3 million. Cash generated from operating activities was $96.4 million, with free cash flow at $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. The company anticipates a non-GAAP gross margin of 85-86% and a non-GAAP operating margin of 9-10%.
Estimates for Nutanix have been trending upwards, with a Zacks Rank #3 (Hold). The stock has a VGM Score of B, indicating solid growth potential. Comparatively, DXC Technology Company, another player in the IT services industry, reported revenue decline in the last quarter but is expected to post earnings of $0.60 per share for the current quarter.
Investors can monitor Nutanix’s performance and industry trends to make informed decisions about their investments.
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