NASDAQ$NTNX

Nutanix Inc A · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Increased remote work and demand for “zero touch” IT drove TCV revenue growth year-over-year and subscription billings represented 84% of total billings during continued transition to subscription business model.

Nutanix reported a solid third quarter, driven by increased remote work and demand for "Zero Touch" IT, with TCV revenue growth of 18% year-over-year. The company's transition to a subscription-based business model continued, with 84% of billings coming from subscriptions. Proactive operating expense management also aided bottom-line results.

  • TCV revenue increased 18% year-over-year.
  • Subscription billings were up 43% year-over-year, representing 84% of total billings.
  • GAAP gross margin improved to 77.3%, up from 73.9% in the third quarter of fiscal 2019.
  • Nutanix ended the third quarter with 16,580 end-customers.

Headline financials

Total Revenue

$318M

Previous: $288M+10.7%
EPS (adj)

-$0.69

Previous: -$0.56-23.2%
Annual Recurring Revenue

$1.12B

No prior period
Capital Expenditures

-$72.1M

Previous: -$94.8M+24.0%
Free Cash Flow

-$236M

Previous: -$43M-448.0%
Net Income

-$241M

Previous: -$210M-14.7%
Operating Income

-$230M

Previous: -$204M-12.7%
Gross Profit

$246M

Previous: $213M+15.7%
Cash & Equivalents

$262M

Previous: $445M-41.1%
Total Assets

$1.77B

Previous: $1.8B-1.6%

Revenue & EPS history

Nutanix · Revenue · Quarterly

$318M

Q3 2020+10.7%vs Q3 2019
Beat estimate in 2 of 16 quarters(13%)
ActualEstimate

Revenue by segment

Nutanix · $273M total across 2 segments · Q3 2020

  • Subscription Revenue
    $261M+54.9%
  • Professional Services & Other
    $11.6M

Forward guidance

Given the uncertainty created by the COVID-19 pandemic, Nutanix has withdrawn its guidance for fiscal 2020 as well as its business model targets for calendar 2021. Nutanix plans to resume providing formal guidance when visibility improves.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.2%

Avg return

Earnings day

+0.1%

Avg return

5 days after

-1.9%

Avg return

30 days after

53%

20 / 38 earnings

Positive

+29.5%

Q4 2020

Best reaction

-33.7%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026
Q2 2026+4.0%+5.9%-2.2%
Q1 2026-17.8%-19.7%-10.1%
Q4 2025-5.1%-3.6%+10.8%
Q3 2025-3.9%-1.5%-4.5%
Q2 2025+10.4%+11.1%+2.4%
Q1 2025-8.4%-10.3%-12.5%
Q4 2024+18.3%+18.8%+12.0%
Q3 2024-21.5%-26.1%-20.8%
Q2 2024+8.5%+12.4%+6.0%
Q1 2024+6.4%+9.8%+17.7%
Q4 2023+13.3%+13.1%+13.2%
Q3 2023+16.2%+15.3%+7.1%
Q2 2023-7.4%-13.8%-11.6%
Q1 2023+12.5%+11.3%-4.0%
Q4 2022+23.3%+20.0%+15.0%
Q3 2022-21.2%-19.4%-26.1%
Q2 2022-2.1%-13.3%+3.9%
Q1 2022+6.4%+4.5%-1.9%
Q4 2021+9.5%+17.1%+5.8%
Q3 2021+3.0%+1.7%+29.0%
Q2 2021-6.8%-3.9%-15.7%
Q1 2021-0.9%-1.4%+16.6%
Q4 2020+29.5%+30.1%+0.6%
Q3 2020-6.5%-1.6%-7.2%
Q2 2020-32.9%-30.6%-51.2%
Q1 2020+14.2%+27.5%+10.1%
Q4 2019+25.6%+26.7%+37.1%
Q3 2019-16.7%-16.8%-23.0%
Q2 2019-33.7%-33.4%-25.7%
Q1 2019+3.3%+7.2%-4.3%
Q4 2018-7.9%-7.8%-30.1%
Q3 2018-6.7%-7.7%-3.4%
Q2 2018+6.6%+21.1%+34.7%
Q1 2018+10.9%+4.9%+8.5%
Q4 2017+0.5%-2.7%+2.2%
Q3 2017+12.3%+4.0%+10.7%
Q2 2017-25.2%-30.4%-38.9%
Q1 2017-4.0%-16.7%-21.5%
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2014
Q1 2014
Q4 2014
Q3 2014

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