Nutanix (NTNX - Free Report) reported non-GAAP third-quarter fiscal 2023 earnings of 4 cents per share, surpassing the Zacks Consensus Estimate of 2 cents per share. The company delivered an adjusted loss per share of 5 cents in the year-ago quarter.
Nutanix reported revenues of $448.6 million, beating the Zacks Consensus Estimate of $431.6 million. The top line climbed 11% from the year-ago quarter’s figure of $403.7 million. NTNX noted that the average contract term length declined to 3 years from 3.2 years in the year-ago quarter, primarily due to higher federal businesses that usually have shorter contract term lengths.
During the fiscal third quarter, Nutanix’s Annual Contract Value (ACV) billings jumped 17% to $239.8 million.
Top-Line Details
Product revenues (47.4% of revenues) increased 6.5% year over year to $212.5 million. Support, entitlements & other services revenues (52.6% of revenues) grew 15.7% to $236.1 million.
The top line was primarily driven by growth in NTNX’s core hyper-converged infrastructure software and the solid adoption of its new capabilities. Nutanix continues to witness a strong adoption of its hybrid multi-cloud solutions across Fortune 100 and Global 2000 companies.
Subscription revenues (93.1% of revenues) climbed 12.7% from the year-ago quarter’s figure to $417.5 million. However, professional services revenues (4.9% of revenues) declined 1.6% to $22.1 million.
Non-Portable Software revenues (1.9% of revenues) increased 1.9% year over year to $8.3 million. Hardware revenues (0.1% of revenues) slumped 53.4% to $619,000.
Billings were up 3.1% year over year to $461.9 million. Annual recurring revenues climbed 32% to $1.47 billion.
During the fiscal third quarter, Nutanix added 430 customers, taking the total number of clients to 24,050.
Operating Details
During the fiscal third quarter, Nutanix’s non-GAAP gross margin expanded 50 basis points year over year to 83.8%.
Non-GAAP operating expenses increased 8% year over year to $369.1 million.
Non-GAAP operating income came in at $7 million against the year-ago quarter’s loss of $5.8 million.
Balance Sheet & Cash Flow
As of Apr 30, 2023, cash and cash equivalents plus short-term investments were $1.36 billion, down from $1.39 billion at the end of first-quarter fiscal 2023.
During the third quarter of fiscal 2023, cash generated through operating activities was $64.3 million and free cash flow was $42.5 million.
Outlook
For the fourth quarter of fiscal 2023, Nutanix expects ACV billings between $240 million and $250 million. Revenues are estimated between $470 million and $480 million.
Non-GAAP gross margin is estimated to be 84%. Non-GAAP operating margin is expected in the band of 9-10%.
For the full fiscal 2023, NTNX expects ACV billings between $915 million and $925 million. Revenues are estimated in the range of $1.84-$1.85 billion.
Non-GAAP gross margin is estimated to be 84% for fiscal 2023. Non-GAAP operating margin is projected in the range of 6-7%.
Zacks Rank & Key Picks
Nutanix carries a Zacks Rank #3 (Hold) at present. Shares of NTNX have gained 18.6% over the past year.
Some top-ranked stocks from the broader Computer and Technology sector are Meta Platforms (META - Free Report) , Momo (MOMO - Free Report) and ServiceNow (NOW - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Meta Platforms' second-quarter 2023 earnings has been revised 14% upward to $2.79 per share over the past 30 days. For 2023, earnings estimates have moved north by 12.1% to $11.76 in the past 30 days.
META’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing twice, the average surprise being 15.5%. Shares of the company have climbed 35.6% in the past year.
The Zacks Consensus Estimate for Momo’s first-quarter 2023 earnings has been revised southward from 36 cents to 32 cents per share over the past 30 days. For 2023, earnings estimates have moved down by 3 cents to $1.55 in the past 30 days.
MOMO's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 31.9%. Shares of the company have jumped 65.4% in the past year.
The Zacks Consensus Estimate for ServiceNow’s second-quarter 2023 earnings has been revised northward by 11 cents to $2.04 per share over the past 30 days. For 2023, earnings estimates have moved up by 39 cents to $9.54 in the past 30 days.
NOW's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 10.4%. Shares of the company have inched up 11.1% in the past year.
(We are reissuing this article to correct a mistake. The original article, issued on May 25, 2023, should no longer be relied upon.)
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Nutanix (NTNX - Free Report) reported non-GAAP third-quarter fiscal 2023 earnings of 4 cents per share, surpassing the Zacks Consensus Estimate of 2 cents per share. The company delivered an adjusted loss per share of 5 cents in the year-ago quarter.
Nutanix reported revenues of $448.6 million, beating the Zacks Consensus Estimate of $431.6 million. The top line climbed 11% from the year-ago quarter’s figure of $403.7 million. NTNX noted that the average contract term length declined to 3 years from 3.2 years in the year-ago quarter, primarily due to higher federal businesses that usually have shorter contract term lengths.
During the fiscal third quarter, Nutanix’s Annual Contract Value (ACV) billings jumped 17% to $239.8 million.
Top-Line Details
Product revenues (47.4% of revenues) increased 6.5% year over year to $212.5 million. Support, entitlements & other services revenues (52.6% of revenues) grew 15.7% to $236.1 million.
The top line was primarily driven by growth in NTNX’s core hyper-converged infrastructure software and the solid adoption of its new capabilities. Nutanix continues to witness a strong adoption of its hybrid multi-cloud solutions across Fortune 100 and Global 2000 companies.
Subscription revenues (93.1% of revenues) climbed 12.7% from the year-ago quarter’s figure to $417.5 million. However, professional services revenues (4.9% of revenues) declined 1.6% to $22.1 million.
Non-Portable Software revenues (1.9% of revenues) increased 1.9% year over year to $8.3 million. Hardware revenues (0.1% of revenues) slumped 53.4% to $619,000.
Billings were up 3.1% year over year to $461.9 million. Annual recurring revenues climbed 32% to $1.47 billion.
During the fiscal third quarter, Nutanix added 430 customers, taking the total number of clients to 24,050.
Operating Details
During the fiscal third quarter, Nutanix’s non-GAAP gross margin expanded 50 basis points year over year to 83.8%.
Non-GAAP operating expenses increased 8% year over year to $369.1 million.
Non-GAAP operating income came in at $7 million against the year-ago quarter’s loss of $5.8 million.
Balance Sheet & Cash Flow
As of Apr 30, 2023, cash and cash equivalents plus short-term investments were $1.36 billion, down from $1.39 billion at the end of first-quarter fiscal 2023.
During the third quarter of fiscal 2023, cash generated through operating activities was $64.3 million and free cash flow was $42.5 million.
Outlook
For the fourth quarter of fiscal 2023, Nutanix expects ACV billings between $240 million and $250 million. Revenues are estimated between $470 million and $480 million.
Non-GAAP gross margin is estimated to be 84%. Non-GAAP operating margin is expected in the band of 9-10%.
For the full fiscal 2023, NTNX expects ACV billings between $915 million and $925 million. Revenues are estimated in the range of $1.84-$1.85 billion.
Non-GAAP gross margin is estimated to be 84% for fiscal 2023. Non-GAAP operating margin is projected in the range of 6-7%.
Zacks Rank & Key Picks
Nutanix carries a Zacks Rank #3 (Hold) at present. Shares of NTNX have gained 18.6% over the past year.
Some top-ranked stocks from the broader Computer and Technology sector are Meta Platforms (META - Free Report) , Momo (MOMO - Free Report) and ServiceNow (NOW - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Meta Platforms' second-quarter 2023 earnings has been revised 14% upward to $2.79 per share over the past 30 days. For 2023, earnings estimates have moved north by 12.1% to $11.76 in the past 30 days.
META’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing twice, the average surprise being 15.5%. Shares of the company have climbed 35.6% in the past year.
The Zacks Consensus Estimate for Momo’s first-quarter 2023 earnings has been revised southward from 36 cents to 32 cents per share over the past 30 days. For 2023, earnings estimates have moved down by 3 cents to $1.55 in the past 30 days.
MOMO's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 31.9%. Shares of the company have jumped 65.4% in the past year.
The Zacks Consensus Estimate for ServiceNow’s second-quarter 2023 earnings has been revised northward by 11 cents to $2.04 per share over the past 30 days. For 2023, earnings estimates have moved up by 39 cents to $9.54 in the past 30 days.
NOW's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 10.4%. Shares of the company have inched up 11.1% in the past year.
(We are reissuing this article to correct a mistake. The original article, issued on May 25, 2023, should no longer be relied upon.)
Where Will Stocks Go…
If Biden Wins? If Trump Wins?
The answers may surprise you.
Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!
Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…
1. Medical manufacturer has gained +11,000% in the last 15 years.
2. Rental company is absolutely crushing its sector.
3. Energy powerhouse plans to grow its already large dividend by 25%.
4. Aerospace and defense standout just landed a potentially $80 billion contract.
5. Giant Chipmaker is building huge plants in the U.S.
Hurry, Download Special Report FREE >>
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