Reports 24% YoY ARR Growth and Strong
Year-to-Date Free Cash Flow
Delivers Outperformance Across All Third
Quarter Guided Metrics
Nutanix, Inc. (NASDAQ: NTNX), a leader in hybrid multicloud
computing, today announced financial results for its third quarter
ended April 30, 2024.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240529830283/en/
“We delivered solid third quarter results reflecting disciplined
execution and the strength of our business model,” said Rajiv
Ramaswami, President and CEO of Nutanix. “Our recent announcements
around modern applications, generative AI and partnerships reflect
our continued focus on driving innovation and broadening our
partnerships to further enhance the value proposition of Nutanix
Cloud Platform.”
“Our third quarter results demonstrated a good balance of top
and bottom line performance with 24% year-over-year ARR growth and
strong year-to-date free cash flow generation,” said Rukmini
Sivaraman, CFO of Nutanix. “We remain focused on delivering
sustainable, profitable growth.”
Third Quarter Fiscal 2024 Financial Summary
Q3 FY’24
Q3 FY’23
Y/Y Change
Annual Contract Value (ACV)1 Billings
$288.9 million
$239.8 million
20%
Annual Recurring Revenue (ARR)2
$1.82 billion
$1.47 billion
24%
Average Contract Duration3
3.0 years
3.0 years
0.0 year
Revenue
$524.6 million
$448.6 million
17%
GAAP Gross Margin
84.8%
81.6%
320 bps
Non-GAAP Gross Margin
86.5%
84.0%
250 bps
GAAP Operating Expenses
$456.5 million
$424.8 million
7%
Non-GAAP Operating Expenses
$380.4 million
$359.8 million
6%
GAAP Operating Loss
$(11.6) million
$(58.6) million
$47.0 million
Non-GAAP Operating Income
$73.3 million
$17.2 million
$56.1 million
GAAP Operating Margin
(2.2)%
(13.1)%
10.9% pts
Non-GAAP Operating Margin
14.0%
3.8%
10.2% pts
Net Cash Provided by Operating
Activities
$96.4 million
$74.5 million
$21.9 million
Free Cash Flow
$78.3 million
$52.7 million
$25.6 million
Reconciliations between GAAP and non-GAAP financial measures and
key performance measures, to the extent available, are provided in
the tables of this press release.
Recent Company Highlights
- Nutanix held its annual .NEXT conference in Barcelona on May 21
- 23, and made the following announcements in conjunction at the
event:
- Nutanix Accelerates Enterprise Adoption of Generative AI:
Nutanix announced the Nutanix AI Partner Program, aimed at bringing
together generative AI (GenAI) applications on top of Nutanix Cloud
Platform and GPT-in-a-Box. Additionally, Nutanix announced
GPT-in-a-Box 2.0, which will deliver expanded NVIDIA GPU and LLM
support, along with simplified foundational model management and
integrations with NVIDIA NIMs and the Hugging Face LLM
Library.
- Nutanix and NVIDIA Collaborate to Accelerate Enterprise AI
Adoption: Integration will bring together Nutanix’s automated and
secure enterprise AI platform with NVIDIA’s access to performant
state-of-the-art AI models.
- Nutanix and Dell Technologies Collaborate on New Joint
Solutions for Hybrid Multicloud: The enhanced partnership will
include Dell Resell, the ability to purchase Nutanix Cloud Platform
software tightly integrated with Dell servers directly from Dell,
and Support for Storage, in which Nutanix Cloud Platform will be
able to run in existing IP-based 3-Tier environments utilizing
Dell’s PowerFlex storage.
- Nutanix Simplifies Management and Operations of Kubernetes
Clusters Anywhere to Speed Innovation: Nutanix announced the
Nutanix Kubernetes® Platform (NKP) to simplify management of
container-based modern applications using Kubernetes across hybrid
multicloud environments.
- Nutanix Widens Coverage for Cloud Native Users With Expanded
Project Beacon: Nutanix announced that it is expanding the scope of
Project Beacon to include cloud native block and file storage
services, providing developers of modern applications access to the
same data and storage services no matter where they choose to
deploy.
- Nutanix Accelerates Hypervisor Innovation to Drive Enterprise
Modernization: Nutanix announced new Nutanix AHV features and a
simplified platform certification path, expanding hardware
compatibilities and delivering efficient customer adoption
options.
- Nutanix and EDB Partner to Deliver a Modern Data Platform: With
EDB on Nutanix Database Service, joint customers can accelerate
their adoption of PostgreSQL to support transactional, analytical,
and AI applications at scale.
- Nutanix Adds Power Monitoring to Help Customers Track
Sustainability Progress: Nutanix announced new capabilities in
Nutanix Cloud Platform that will deliver visibility of the power
consumption of a Nutanix environment.
- Nutanix Study Finds AI, Security, and Sustainability Are Major
Drivers for IT Modernization: Nutanix announced the findings of its
sixth annual Enterprise Cloud Index (ECI) survey and research
report, which measures global enterprise progress with cloud
adoption.
- Wipro Expands Partnership with Nutanix to Launch a New Nutanix
Business Unit: The new business unit will empower mutual clients to
accelerate digital transformation, and hybrid multicloud
innovation.
Fourth Quarter Fiscal 2024 Outlook
ACV Billings
$295 - $305 million
Revenue
$530 - $540 million
Non-GAAP Gross Margin
85% to 86%
Non-GAAP Operating Margin
9% to 10%
Weighted Average Shares Outstanding
(Diluted)4
Approximately 302 million
Fiscal 2024 Outlook
ACV Billings
$1.12 - $1.13 billion
Revenue
$2.13 - $2.14 billion
Non-GAAP Gross Margin
~86%
Non-GAAP Operating Margin
~15%
Free Cash Flow
$520 - $540 million
Supplementary materials to this press release, including our
third quarter fiscal 2024 earnings presentation, can be found at
https://ir.nutanix.com/financial/quarterly-results.
Webcast and Conference Call Information
Nutanix executives will discuss the Company’s third quarter
fiscal 2024 financial results on a conference call today at 4:30
p.m. Eastern Time/1:30 p.m. Pacific Time. Interested parties may
access the conference call by registering at this link to receive
dial in details and a unique PIN number. The conference call will
also be webcast live on the Nutanix Investor Relations website at
ir.nutanix.com. An archived replay of the webcast will be available
on the Nutanix Investor Relations website at ir.nutanix.com shortly
after the call.
Footnotes
1Annual Contract Value, or ACV, is defined as the
total annualized value of a contract. The total annualized value
for a contract is calculated by dividing the total value of the
contract by the number of years in the term of such contract,
using, where applicable, an assumed term of five years for
life-of-device contracts that do not have a specified term.
Excludes amounts related to professional services and hardware.
ACV Billings, for any given period, is defined as the sum of
the ACV for all contracts billed during the given period.
2Annual Recurring Revenue, or ARR, for any given
period, is defined as the sum of ACV for all subscription contracts
in effect as of the end of a specific period. For the purposes of
this calculation, we assume that the contract term begins on the
date a contract is booked, unless the terms of such contract
prevent us from fulfilling our obligations until a later period,
and irrespective of the periods in which we would recognize revenue
for such contract. Excludes all life-of-device contracts.
3Average Contract Duration represents the dollar-weighted
term, calculated on a billings basis, across all subscription and
life-of-device contracts, using an assumed term of five years for
life-of-device licenses, executed in the period.
4Weighted average share count used in computing diluted non-GAAP
net income per share.
Non-GAAP Financial Measures and Other Key Performance
Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with GAAP, this press release
includes the following non-GAAP financial and other key performance
measures: non-GAAP gross margin, non-GAAP operating expenses,
non-GAAP operating income, non-GAAP operating margin, free cash
flow, Annual Contract Value Billings (or ACV Billings), Annual
Recurring Revenue (or ARR), and Average Contract Duration. In
computing non-GAAP financial measures, we exclude certain items
such as stock-based compensation and the related income tax impact,
costs associated with our acquisitions (such as amortization of
acquired intangible assets, income tax-related impact, and other
acquisition-related costs), costs related to the impairment and
early exit of operating lease-related assets, restructuring
charges, litigation settlement accruals and legal fees related to
certain litigation matters, the amortization of the debt discount
and issuance costs, interest expense related to convertible senior
notes, gains on divestitures, and other non-recurring transactions
and the related tax impact. Non-GAAP gross margin, non-GAAP
operating expenses, non-GAAP operating income, and non-GAAP
operating margin are financial measures which we believe provide
useful information to investors because they provide meaningful
supplemental information regarding our performance and liquidity by
excluding certain expenses and expenditures such as stock-based
compensation expense that may not be indicative of our ongoing core
business operating results. Free cash flow is a performance measure
that we believe provides useful information to our management and
investors about the amount of cash generated by the business after
necessary capital expenditures, and we define free cash flow as net
cash provided by (used in) operating activities less purchases of
property and equipment. ACV Billings is a performance measure that
we believe provides useful information to our management and
investors as it allows us to better track the topline growth of our
business during our transition to a subscription-based business
model because it takes into account variability in term lengths.
ARR is a performance measure that we believe provides useful
information to our management and investors as it allows us to
better track the topline growth of our subscription business
because it takes into account variability in term lengths. We use
these non-GAAP financial and key performance measures for financial
and operational decision-making and as a means to evaluate
period-to-period comparisons. However, these non-GAAP financial and
key performance measures have limitations as analytical tools and
you should not consider them in isolation or as substitutes for
analysis of our results as reported under GAAP. Non-GAAP gross
margin, non-GAAP operating expenses, non-GAAP operating income,
non-GAAP operating margin, and free cash flow are not substitutes
for gross margin, operating expenses, operating income (loss),
operating margin, or net cash provided by (used in) operating
activities, respectively. There is no GAAP measure that is
comparable to ACV Billings, ARR, or Average Contract Duration, so
we have not reconciled the ACV Billings, ARR, or Average Contract
Duration data included in this press release to any GAAP measure.
In addition, other companies, including companies in our industry,
may calculate non-GAAP financial measures and key performance
measures differently or may use other measures to evaluate their
performance, all of which could reduce the usefulness of our
non-GAAP financial measures and key performance measures as tools
for comparison. We urge you to review the reconciliation of our
non-GAAP financial measures and key performance measures to the
most directly comparable GAAP financial measures included below in
the tables captioned “Reconciliation of GAAP to Non-GAAP Profit
Measures” and “Reconciliation of GAAP Net Cash Provided By
Operating Activities to Non-GAAP Free Cash Flow,” and not to rely
on any single financial measure to evaluate our business. This
press release also includes the following forward-looking non-GAAP
financial measures as part of our fourth quarter fiscal 2024
outlook and/or our fiscal 2024 outlook: non-GAAP gross margin,
non-GAAP operating margin, and free cash flow. We are unable to
reconcile these forward-looking non-GAAP financial measures to
their most directly comparable GAAP financial measures without
unreasonable efforts, as we are currently unable to predict with a
reasonable degree of certainty the type and extent of certain items
that would be expected to impact the GAAP financial measures for
these periods but would not impact the non-GAAP financial
measures.
Forward-Looking Statements
This press release contains express and implied forward-looking
statements, including, but not limited to, statements regarding:
our business momentum and prospects, our fourth quarter fiscal 2024
outlook, and our fiscal 2024 outlook.
These forward-looking statements are not historical facts and
instead are based on our current expectations, estimates, opinions,
and beliefs. Consequently, you should not rely on these
forward-looking statements. The accuracy of these forward-looking
statements depends upon future events and involves risks,
uncertainties, and other factors, including factors that may be
beyond our control, that may cause these statements to be
inaccurate and cause our actual results, performance or
achievements to differ materially and adversely from those
anticipated or implied by such statements, including, among others:
the inherent uncertainty or assumptions and estimates underlying
our projections and guidance, which are necessarily speculative in
nature; any failure to successfully implement or realize the full
benefits of, or unexpected difficulties or delays in successfully
implementing or realizing the full benefits of, our business plans,
strategies, initiatives, vision, and objectives; our ability to
achieve, sustain and/or manage future growth effectively; the rapid
evolution of the markets in which we compete, including the
introduction, or acceleration of adoption of, competing solutions,
including public cloud infrastructure; failure to timely and
successfully meet our customer needs; delays in or lack of customer
or market acceptance of our new solutions, products, services,
product features or technology; macroeconomic or geopolitical
uncertainty, including supply chain issues; our ability to attract,
recruit, train, retain, and, where applicable, ramp to full
productivity, qualified employees and key personnel; factors that
could result in the significant fluctuation of our future quarterly
operating results (including anticipated changes to our revenue and
product mix, the timing and magnitude of orders, shipments and
acceptance of our solutions in any given quarter, our ability to
attract new and retain existing end-customers, changes in the
pricing and availability of certain components of our solutions,
and fluctuations in demand and competitive pricing pressures for
our solutions); our ability to form new or maintain and strengthen
existing strategic alliances and partnerships, as well as our
ability to manage any changes thereto; the impact of a pandemic or
major public health concern; our ability to make share repurchases;
and other risks detailed in our Annual Report on Form 10-K for the
fiscal year ended July 31, 2023 filed with the U.S. Securities and
Exchange Commission, or the SEC, on September 21, 2023 and our
subsequent Quarterly Reports on Form 10-Q filed with the SEC.
Additional information will be set forth in our Quarterly Report on
Form 10-Q for the fiscal quarter ended April 30, 2024, which should
be read in conjunction with this press release and the financial
results included herein. Our SEC filings are available on the
Investor Relations section of our website at ir.nutanix.com and on
the SEC's website at www.sec.gov. These forward-looking statements
speak only as of the date of this press release and, except as
required by law, we assume no obligation, and expressly disclaim
any obligation, to update, alter or otherwise revise any of these
forward-looking statements to reflect actual results or subsequent
events or circumstances. Certain products and features or
functionalities described herein, including with respect to Nutanix
GPT-in-a-Box 2.0 and its integrations with third party product and
services, support for NVIDIA GPU Direct and NX-9151, the new joint
solutions from Nutanix and Dell, functionality and features
contemplated by Project Beacon, new AHV server capabilities, AHV
Metro multi-site DR, and the power consumption dashboard, remain in
varying stages of development and will be offered on a
when-and-if-available basis. The development, release, and timing
of any such products, features or functionalities are subject to
change. Nutanix will not have any liability for any failure to
deliver or delay in the delivery of any such products, features or
functionalities.
About Nutanix
Nutanix is a global leader in cloud software, offering
organizations a single platform for running apps and data across
clouds. With Nutanix, companies can reduce complexity and simplify
operations, freeing them to focus on their business outcomes.
Building on its legacy as the pioneer of hyperconverged
infrastructure, Nutanix is trusted by companies worldwide to power
hybrid multicloud environments consistently, simply, and
cost-effectively. Learn more at www.nutanix.com or follow us on
social media @nutanix.
© 2024 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix
logo, and all Nutanix product and service names mentioned herein
are registered trademarks or unregistered trademarks of Nutanix,
Inc. (“Nutanix”) in the United States and other countries. Other
brand names or marks mentioned herein are for identification
purposes only and may be the trademarks of their respective
holder(s). This press release is for informational purposes only
and nothing herein constitutes a warranty or other binding
commitment by Nutanix. This release may contain express and implied
forward-looking statements, which are not historical facts and are
instead based on Nutanix’s current expectations, estimates and
beliefs. The accuracy of such statements involves risks and
uncertainties and depends upon future events, including those that
may be beyond Nutanix’s control, and actual results may differ
materially and adversely from those anticipated or implied by such
statements. Any forward-looking statements included herein speak
only as of the date hereof and, except as required by law, Nutanix
assumes no obligation to update or otherwise revise any of such
forward-looking statements to reflect subsequent events or
circumstances.
NUTANIX, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
As of
July 31,
2023
April 30,
2024
(in thousands)
Assets
Current assets:
Cash and cash equivalents
$
512,929
$
598,027
Short-term investments
924,466
1,053,354
Accounts receivable, net
157,251
225,301
Deferred commissions—current
120,001
148,435
Prepaid expenses and other current
assets
147,087
114,123
Total current assets
1,861,734
2,139,240
Property and equipment, net
111,865
114,785
Operating lease right-of-use assets
93,554
96,895
Deferred commissions—non-current
237,990
204,357
Intangible assets, net
4,893
6,019
Goodwill
184,938
185,235
Other assets—non-current
31,941
28,393
Total assets
$
2,526,915
$
2,774,924
Liabilities and Stockholders’
Deficit
Current liabilities:
Accounts payable
$
29,928
$
40,286
Accrued compensation and benefits
143,679
173,339
Accrued expenses and other current
liabilities
109,269
22,486
Deferred revenue—current
823,665
923,559
Operating lease liabilities—current
29,567
23,884
Total current liabilities
1,136,108
1,183,554
Deferred revenue—non-current
771,367
823,891
Operating lease
liabilities—non-current
68,940
79,028
Convertible senior notes, net
1,218,165
1,271,966
Other liabilities—non-current
39,754
35,945
Total liabilities
3,234,334
3,394,384
Stockholders’ deficit:
Common stock
6
6
Additional paid-in capital
3,930,668
4,086,671
Accumulated other comprehensive loss
(5,171
)
(3,703
)
Accumulated deficit
(4,632,922
)
(4,702,434
)
Total stockholders’ deficit
(707,419
)
(619,460
)
Total liabilities and stockholders’
deficit
$
2,526,915
$
2,774,924
NUTANIX, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
April 30,
Nine Months Ended
April 30,
2023
2024
2023
2024
(in thousands, except per
share data)
Revenue:
Product
$
212,507
$
255,465
$
671,619
$
802,047
Support, entitlements and other
services
236,074
269,112
697,066
798,817
Total revenue
448,581
524,577
1,368,685
1,600,864
Cost of revenue:
Product (1)(2)
12,430
8,469
40,452
28,105
Support, entitlements and other services
(1)
69,999
71,150
211,277
215,029
Total cost of revenue
82,429
79,619
251,729
243,134
Gross profit
366,152
444,958
1,116,956
1,357,730
Operating expenses:
Sales and marketing (1)(2)
229,261
245,901
695,271
717,926
Research and development (1)
143,016
159,220
434,760
471,596
General and administrative (1)
52,515
51,425
182,728
148,457
Total operating expenses
424,792
456,546
1,312,759
1,337,979
(Loss) income from operations
(58,640
)
(11,588
)
(195,803
)
19,751
Other (expense) income, net
(7,168
)
659
(30,696
)
(2,520
)
(Loss) income before provision for income
taxes
(65,808
)
(10,929
)
(226,499
)
17,231
Provision for income taxes
5,161
4,687
14,774
15,905
Net (loss) income
$
(70,969
)
$
(15,616
)
$
(241,273
)
$
1,326
Net (loss) income per share attributable
to Class A common stockholders, basic
$
(0.30
)
$
(0.06
)
$
(1.04
)
$
0.01
Net (loss) income per share attributable
to Class A common stockholders, diluted
$
(0.30
)
$
(0.06
)
$
(1.04
)
$
0.05
Weighted average shares used in computing
net (loss) income per share attributable to Class A common
stockholders, basic
234,735
245,766
231,702
243,688
Weighted average shares used in computing
net (loss) income per share attributable to Class A common
stockholders, diluted
234,735
245,766
231,702
297,055
(1)
Includes the following stock-based
compensation expense:
Three Months Ended
April 30,
Nine Months Ended
April 30,
2023
2024
2023
2024
(in thousands)
Product cost of revenue
$
1,831
$
1,576
$
6,103
$
5,201
Support, entitlements and other services
cost of revenue
6,565
6,391
20,083
20,690
Sales and marketing
19,383
18,901
63,425
61,110
Research and development
32,003
38,719
107,116
117,664
General and administrative
13,126
16,705
42,426
47,594
Total stock-based compensation expense
$
72,908
$
82,292
$
239,153
$
252,259
(2)
Includes the following amortization of
intangible assets:
Three Months Ended
April 30,
Nine Months Ended
April 30,
2023
2024
2023
2024
(in thousands)
Product cost of revenue
$
2,438
$
766
$
7,779
$
2,626
Sales and marketing
169
99
716
218
Total amortization of intangible
assets
$
2,607
$
865
$
8,495
$
2,844
NUTANIX, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
April 30,
2023
2024
(in thousands)
Cash flows from operating
activities:
Net (loss) income
$
(241,273
)
$
1,326
Adjustments to reconcile net (loss) income
to net cash provided by operating activities:
Depreciation and amortization
59,078
54,986
Stock-based compensation
239,153
252,259
Amortization of debt discount and issuance
costs
31,767
33,738
Operating lease cost, net of accretion
27,065
24,009
Early exit of lease-related assets
(1,109
)
—
Non-cash interest expense
14,772
15,143
Other
(6,275
)
(14,117
)
Changes in operating assets and
liabilities:
Accounts receivable, net
(4,768
)
(49,669
)
Deferred commissions
16,919
5,199
Prepaid expenses and other assets
(33,858
)
37,588
Accounts payable
(5,106
)
10,326
Accrued compensation and benefits
2,356
29,660
Accrued expenses and other liabilities
53,451
(83,857
)
Operating leases, net
(30,134
)
(22,394
)
Deferred revenue
92,056
134,037
Net cash provided by operating
activities
214,094
428,234
Cash flows from investing
activities:
Maturities of investments
722,983
625,519
Purchases of investments
(711,253
)
(740,034
)
Payments for acquisitions, net of cash
acquired
—
(4,500
)
Purchases of property and equipment
(52,603
)
(54,813
)
Net cash used in investing activities
(40,873
)
(173,828
)
Cash flows from financing
activities:
Proceeds from sales of shares through
employee equity incentive plans
23,268
50,660
Taxes paid related to net share settlement
of equity awards
(10,214
)
(111,620
)
Repayment of convertible notes
(145,704
)
—
Repurchases of common stock
—
(106,131
)
Payment of finance lease obligations
(3,711
)
(2,928
)
Net cash used in financing activities
(136,361
)
(170,019
)
Net increase in cash, cash equivalents and
restricted cash
$
36,860
$
84,387
Cash, cash equivalents and restricted
cash—beginning of period
405,862
515,771
Cash, cash equivalents and restricted
cash—end of period
$
442,722
$
600,158
Restricted cash (1)
2,804
2,131
Cash and cash equivalents—end of
period
$
439,918
$
598,027
Supplemental disclosures of cash flow
information:
Cash paid for income taxes
$
21,578
$
20,938
Supplemental disclosures of non-cash
investing and financing information:
Purchases of property and equipment
included in accounts payable and accrued and other liabilities
$
16,214
$
983
(1)
Included within other assets—non-current
in the consolidated balance sheets.
Reconciliation of Revenue to
Billings
(Unaudited)
Three Months Ended
April 30,
Nine Months Ended
April 30,
2023
2024
2023
2024
(in thousands)
Total revenue
$
448,581
$
524,577
$
1,368,685
$
1,600,864
Change in deferred revenue
13,333
32,708
92,056
134,037
Total billings
$
461,914
$
557,285
$
1,460,741
$
1,734,901
Disaggregation of Revenue and
Billings
(Unaudited)
Three Months Ended
April 30,
Nine Months Ended
April 30,
2023
2024
2023
2024
(in thousands)
Disaggregation of revenue:
Subscription revenue
$
417,516
$
486,620
$
1,271,388
$
1,498,081
Professional services revenue
22,101
26,240
67,821
74,083
Other non-subscription product revenue
8,964
11,717
29,476
28,700
Total revenue
$
448,581
$
524,577
$
1,368,685
$
1,600,864
Disaggregation of billings:
Subscription billings
$
428,959
$
515,920
$
1,364,752
$
1,617,593
Professional services billings
23,991
29,648
66,513
88,608
Other non-subscription product
billings
8,964
11,717
29,476
28,700
Total billings
$
461,914
$
557,285
$
1,460,741
$
1,734,901
Subscription revenue — Subscription revenue includes any
performance obligation which has a defined term, and is generated
from the sales of software entitlement and support subscriptions,
subscription software licenses and cloud-based Software as a
Service, or SaaS offerings.
- Ratable — We recognize revenue from software entitlement and
support subscriptions and SaaS offerings ratably over the
contractual service period, the substantial majority of which
relate to software entitlement and support subscriptions.
- Upfront — Revenue from our subscription software licenses is
generally recognized upfront upon transfer of control to the
customer, which happens when we make the software available to the
customer.
Professional services revenue — We also sell professional
services with our products. We recognize revenue related to
professional services as they are performed.
Other non-subscription product revenue — Other non-subscription
product revenue includes $8.4 million and $27.0 million of
non-portable software revenue for the three and nine months ended
April 30, 2023, respectively, $11.1 million and $26.3 million of
non-portable software revenue for the three and nine months ended
April 30, 2024, respectively, $0.6 million and $2.5 million of
hardware revenue for the three and nine months ended April 30,
2023, respectively, and $0.6 million and $2.4 million of hardware
revenue for the three and nine months ended April 30, 2024,
respectively.
- Non-portable software revenue — Non-portable software revenue
includes sales of our enterprise cloud platform when delivered on a
configured-to-order appliance by us or one of our OEM partners. The
software licenses associated with these sales are typically
non-portable and can be used over the life of the appliance on
which the software is delivered. Revenue from our non-portable
software products is generally recognized upon transfer of control
to the customer.
- Hardware revenue — In transactions where the hardware appliance
is purchased directly from Nutanix, we consider ourselves to be the
principal in the transaction and we record revenue and costs of
goods sold on a gross basis. We consider the amount allocated to
hardware revenue to be equivalent to the cost of the hardware
procured. Hardware revenue is generally recognized upon transfer of
control to the customer.
Annual Contract Value Billings
and Annual Recurring Revenue
(Unaudited)
Three Months Ended
April 30,
Nine Months Ended
April 30,
2023
2024
2023
2024
(in thousands)
Annual Contract Value Billings (ACV
Billings)
$
239,810
$
288,851
$
698,378
$
861,870
Annual Recurring Revenue (ARR)
$
1,467,178
$
1,820,207
$
1,467,178
$
1,820,207
Reconciliation of GAAP to
Non-GAAP Profit Measures
(Unaudited)
GAAP
Non-GAAP Adjustments
Non-GAAP
Three
Months
Ended
April 30, 2024
(1)
(2)
(3)
(4)
(5)
(6)
Three
Months
Ended
April 30, 2024
(in thousands, except
percentages and per share data)
Gross profit
$
444,958
$
7,967
$
766
$
—
$
—
$
—
$
—
$
453,691
Gross margin
84.8
%
1.6
%
0.1
%
—
—
—
—
86.5
%
Operating expenses:
Sales and marketing
245,901
(18,901
)
(99
)
—
—
—
—
226,901
Research and development
159,220
(38,719
)
—
—
—
—
—
120,501
General and administrative
51,425
(16,705
)
—
(1,707
)
—
—
—
33,013
Total operating expenses
456,546
(74,325
)
(99
)
(1,707
)
—
—
—
380,415
(Loss) income from operations
(11,588
)
82,292
865
1,707
—
—
—
73,276
Operating margin
(2.2
)%
15.7
%
0.2
%
0.3
%
—
—
—
14.0
%
Net (loss) income
$
(15,616
)
$
82,292
$
865
$
1,707
$
(110
)
$
16,876
$
(764
)
$
85,250
Weighted shares outstanding, basic
245,766
245,766
Weighted shares outstanding, diluted
(7)
245,766
301,860
Net (loss) income per share, basic
$
(0.06
)
$
0.33
$
-
$
0.01
$
-
$
0.07
$
-
$
0.35
Net (loss) income per share, diluted
$
(0.06
)
$
0.28
(1)
Stock-based compensation expense
(2)
Amortization of intangible assets
(3)
Litigation-related costs
(4)
Other
(5)
Amortization of debt discount and issuance
costs and interest expense related to the convertible senior
notes
(6)
Income tax effect primarily related to
stock-based compensation expense
(7)
Includes 56,094 potentially dilutive
shares related to the convertible senior notes and the issuance of
shares under employee equity incentive plans
GAAP
Non-GAAP Adjustments
Non-GAAP
Nine
Months
Ended
April 30, 2024
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Nine
Months
Ended
April 30, 2024
(in thousands, except
percentages and per share data)
Gross profit
$
1,357,730
$
25,891
$
2,626
$
—
$
—
$
—
$
—
$
—
$
1,386,247
Gross margin
84.8
%
1.6
%
0.2
%
—
—
—
—
—
86.6
%
Operating expenses:
Sales and marketing
717,926
(61,110
)
(218
)
194
—
—
—
—
656,792
Research and development
471,596
(117,664
)
—
—
—
—
—
—
353,932
General and administrative
148,457
(47,594
)
—
—
(1,755
)
(225
)
—
—
98,883
Total operating expenses
1,337,979
(226,368
)
(218
)
194
(1,755
)
(225
)
—
—
1,109,607
Income from operations
19,751
252,259
2,844
(194
)
1,755
225
—
—
276,640
Operating margin
1.2
%
15.8
%
0.2
%
—
0.1
%
—
—
—
17.3
%
Net income
$
1,326
$
252,259
$
2,844
$
(194
)
$
1,755
$
925
$
49,874
$
(313
)
$
308,476
Weighted shares outstanding, basic
243,688
243,688
Weighted shares outstanding, diluted
(8)
297,055
297,055
Net income per share, basic
$
0.01
$
1.04
$
0.01
$
-
$
0.01
$
-
$
0.20
$
-
$
1.27
Net income per share, diluted (9)
$
0.05
$
1.04
(1)
Stock-based compensation expense
(2)
Amortization of intangible assets
(3)
Restructuring charges (reversals)
(4)
Litigation-related costs
(5)
Other
(6)
Amortization of debt discount and issuance
costs and interest expense related to the convertible senior
notes
(7)
Income tax effect primarily related to
stock-based compensation expense
(8)
Includes 53,367 potentially dilutive
shares related to the convertible senior notes and the issuance of
shares under employee equity incentive plans
(9)
In accordance with ASC 260, in order to
calculate GAAP net income per share, diluted, the numerator has
been adjusted to add back $12,749 of interest expense, net of tax,
related to the convertible senior notes
GAAP
Non-GAAP Adjustments
Non-GAAP
Three
Months
Ended
April 30, 2023
(1)
(2)
(3)
(4)
(5)
Three
Months
Ended
April 30, 2023
(in thousands, except
percentages and per share data)
Gross profit
$
366,152
$
8,396
$
2,438
$
—
$
—
$
—
$
376,986
Gross margin
81.6
%
1.9
%
0.5
%
—
—
—
84.0
%
Operating expenses:
Sales and marketing
229,261
(19,383
)
(169
)
—
—
—
209,709
Research and development
143,016
(32,003
)
—
—
—
—
111,013
General and administrative
52,515
(13,126
)
—
(314
)
—
—
39,075
Total operating expenses
424,792
(64,512
)
(169
)
(314
)
—
—
359,797
(Loss) income from operations
(58,640
)
72,908
2,607
314
—
—
17,189
Operating margin
(13.1
)%
16.2
%
0.6
%
0.1
%
—
—
3.8
%
Net (loss) income
$
(70,969
)
$
72,908
$
2,607
$
314
$
16,188
$
669
$
21,717
Weighted shares outstanding, basic
234,735
234,735
Weighted shares outstanding, diluted
(6)
234,735
282,362
Net (loss) income per share, basic
$
(0.30
)
$
0.31
$
0.01
$
-
$
0.07
$
-
$
0.09
Net (loss) income per share, diluted
$
(0.30
)
$
0.08
(1)
Stock-based compensation expense
(2)
Amortization of intangible assets
(3)
Litigation settlement accrual and legal
fees
(4)
Amortization of debt discount and issuance
costs and interest expense related to convertible senior notes
(5)
Income tax effect primarily related to
stock-based compensation expense
(6)
Includes 47,627 potentially dilutive
shares related to convertible senior notes and the issuance of
shares under employee equity incentive plans
GAAP
Non-GAAP Adjustments
Non-GAAP
Nine
Months
Ended
April 30, 2023
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Nine
Months
Ended
April 30, 2023
(in thousands, except
percentages and per share data)
Gross profit
$
1,116,956
$
26,186
$
7,779
$
—
$
230
$
—
$
—
$
—
$
1,151,151
Gross margin
81.6
%
1.9
%
0.6
%
—
—
—
—
—
84.1
%
Operating expenses:
Sales and marketing
695,271
(63,425
)
(716
)
—
(3,283
)
—
—
—
627,847
Research and development
434,760
(107,116
)
—
—
(1,661
)
—
—
—
325,983
General and administrative
182,728
(42,426
)
—
(1,726
)
(129
)
(38,499
)
—
—
99,948
Total operating expenses
1,312,759
(212,967
)
(716
)
(1,726
)
(5,073
)
(38,499
)
—
—
1,053,778
(Loss) income from operations
(195,803
)
239,153
8,495
1,726
5,303
38,499
—
—
97,373
Operating margin
(14.3
)%
17.5
%
0.6
%
0.1
%
0.4
%
2.8
%
—
—
7.1
%
Net (loss) income
$
(241,273
)
$
239,153
$
8,495
$
1,726
$
5,303
$
38,499
$
47,805
$
1,716
$
101,424
Weighted shares outstanding, basic
231,702
231,702
Weighted shares outstanding, diluted
(8)
231,702
279,238
Net (loss) income per share, basic
$
(1.04
)
$
1.02
$
0.04
$
0.01
$
0.02
$
0.17
$
0.21
$
0.01
$
0.44
Net (loss) income per share, diluted
$
(1.04
)
$
0.36
(1)
Stock-based compensation expense
(2)
Amortization of intangible assets
(3)
Costs related to early exit of existing
leases
(4)
Restructuring charges
(5)
Litigation settlement accrual and legal
fees
(6)
Amortization of debt discount and issuance
costs and interest expense related to convertible senior notes
(7)
Income tax effect primarily related to
stock-based compensation expense
(8)
Includes 47,536 potentially dilutive
shares related to convertible senior notes and the issuance of
shares under employee equity incentive plans
Reconciliation of GAAP Net
Cash Provided by Operating Activities to Non-GAAP Free Cash
Flow
(Unaudited)
Three Months Ended
April 30,
Nine Months Ended
April 30,
2023
2024
2023
2024
(in thousands)
Net cash provided by operating
activities
$
74,497
$
96,353
$
214,094
$
428,234
Purchases of property and equipment
(21,831
)
(18,029
)
(52,603
)
(54,813
)
Free cash flow
$
52,666
$
78,324
$
161,491
$
373,421
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240529830283/en/
Investor Contact: Richard Valera ir@nutanix.com
Media Contact: Lia Bigano pr@nutanix.com
Nutanix (NASDAQ:NTNX)
過去 株価チャート
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Nutanix (NASDAQ:NTNX)
過去 株価チャート
から 6 2023 まで 6 2024