SAN JOSE, Calif. - Nutanix, Inc. (NASDAQ: NASDAQ:NTNX), a leader in hybrid multicloud computing, today reported financial results for its second quarter ended January 31, 2024, exceeding analyst expectations for both earnings and revenue.
The company posted adjusted EPS of $0.69, significantly surpassing the analyst estimate of $0.29. Revenue for the quarter was also strong at $565.2 million, beating the consensus estimate of $551.28 million.
The company's performance reflects a robust 26% YoY growth in Annual Recurring Revenue (ARR), reaching $1.74 billion, and a solid 16% increase in revenue from the same quarter last year. This growth, coupled with disciplined execution and a focus on operating leverage, has enabled Nutanix to achieve GAAP operating profitability for the first time.
For the third quarter of fiscal 2024, Nutanix anticipates revenue to be between $510-520 million, with the midpoint of this range slightly above the consensus estimate of $510 million. Looking further ahead, the company's guidance for fiscal year 2024 is a revenue range of $2.12-2.15 billion, with the midpoint aligning with the consensus estimate of $2.12 billion.
Following the earnings release, Nutanix shares experienced a uptick of 1.39%, indicating a modestly positive market response. The earnings and revenue beat, coupled with guidance ahead of consensus, are the primary drivers behind the stock's movement.
Rajiv Ramaswami, President and CEO of Nutanix, stated, "Our disciplined execution enabled us to deliver a solid second quarter financial performance against an uncertain, but stable macro backdrop." He further emphasized the company's commitment to being a strategic and innovative partner to customers in a hybrid multicloud world.
Rukmini Sivaraman, CFO of Nutanix, highlighted the balance of top and bottom line performance, noting the company's achievement of GAAP operating profitability and strong free cash flow generation, which reflects the progress made in driving operating leverage and optimizing results.
Investors appear cautiously optimistic as Nutanix continues to demonstrate its ability to grow and manage profitability effectively, despite the challenging economic environment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.