Nutanix: Fiscal 1Q24 Financial Results

(in $ million)	1Q23	1Q24	Growth
Revenue	433.6	511.1	*18%*
Net income (loss)	(99.5)	(15.9)

Nutanix, Inc. announced financial results for its first quarter ended October 31, 2023.

“We delivered a solid first quarter financial performance vs. an uncertain macro backdrop reflecting the value our customers see in the Nutanix Cloud Platform and the strength of our subscription business model,” said Rajiv Ramaswami, president and CEO. “I’m excited about our future as we look to capitalize on our large and growing market opportunity, favorable industry competitive dynamics, and our ramping partnerships.”

“Our first quarter marked a good start to our fiscal year with 24% Y/Y ACV billings growth along with strong free cash flow generation,” said Rukmini Sivaraman, CFO. “We continue to see good execution and remain focused on driving towards the targets we shared at our recent Investor Day and delivering durable growth and increasing profitability.”

2FQ4 outlook

ACV billings $295-$305 million
Revenue $545-$555 million
Non-GAAP gross margin 85-86%
Non-GAAP operating margin 14% to 16%
Weighted average shares outstanding (diluted) approximately 297 million

FY24 Outlook

ACV billings $1.08-$1.10 billion
Revenue $2.095-$2.125 billion
Non-GAAP gross margin ~85%
Non-GAAP operating margin 11.5% to 12.5%
Free cash flow $340-$360 million

Comments

Ramaswami commented: "We delivered a solid first quarter with results that came in ahead of our guidance. The uncertain macro backdrop that we saw in our first quarter was largely unchanged compared with the prior quarter. However, we saw a steady demand for our solutions driven by businesses prioritizing their digital transformation and infrastructure modernization initiatives and looking to optimize their TCO."

Revenue in 1FQ24 was a record of $511 million, higher than the guided range of $495 million to $505 million, and growth rate of 18% Y/Y and 3% Q/Q, well ahead of analysts’ estimates of $500.8 million.