NASDAQ$NTNX

Nutanix Inc A · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Nutanix demonstrated growth and profitability amidst macro uncertainties, completing the Audit Committee investigation.

Nutanix reported strong Q3 FY23 results, outperforming across all guided metrics. The company's cloud platform resonated with customers, driving growth and profitability. The Audit Committee investigation was completed, and the Form 10-Q for Q2 FY23 was filed.

  • ACV Billings reached $239.8 million, a 17% year-over-year increase.
  • ARR grew to $1.47 billion, representing a 32% year-over-year increase.
  • Revenue increased to $448.6 million, up 11% year-over-year.
  • Free cash flow was $42.5 million, a significant improvement compared to $(20.1) million in the prior year.

Headline financials

Total Revenue

$449M

Previous: $404M+11.1%
EPS (adj)

$0.04

Previous: -$0.05+180.0%
Annual Recurring Revenue

$1.47B

Previous: $1.1B+33.4%
Avg Contract Duration

3

Previous: 3.2-6.3%
Capital Expenditures

-$52.6M

Previous: -$34.3M-53.5%
Free Cash Flow

$161M

Previous: -$4.74M+3507.0%
Net Income

-$71M

Previous: -$112M+36.4%
Operating Income

-$58.6M

Previous: -$92.3M+36.5%
Gross Profit

$366M

Previous: $324M+13.1%
Cash & Equivalents

$440M

Previous: $387M+13.8%
Total Assets

$2.4B

Previous: $2.36B+1.7%
Stock-Based Comp

$72.9M

Previous: $84.5M-13.7%

Revenue & EPS history

Nutanix · Revenue · Quarterly

$449M

Q3 2023+11.1%vs Q3 2022
Beat estimate in 12 of 14 quarters(86%)
ActualEstimate

Revenue by segment

Nutanix · $440M total across 2 segments · Q3 2023

  • Subscription Revenue
    $418M+12.7%
  • Professional Services & Other
    $22.1M-1.6%

Forward guidance

Nutanix provided the following outlook for Q4 Fiscal 2023: ACV Billings of $240 - $250 million, Revenue of $470 - $480 million, Non-GAAP Gross Margin of approximately 84%, and Non-GAAP Operating Margin of 9% to 10%. For fiscal year 2023, Nutanix expects ACV Billings of $915 - $925 million, Revenue of $1.84 - $1.85 billion, Non-GAAP Gross Margin of approximately 84%, and Non-GAAP Operating Margin of 6% to 7%.

Tailwinds

  • ACV Billings are expected to be between $240 million and $250 million.
  • Revenue is projected to be between $470 million and $480 million.
  • Non-GAAP Gross Margin is anticipated to be approximately 84%.
  • Non-GAAP Operating Margin is expected to be between 9% and 10%.
  • Weighted Average Shares Outstanding (Diluted) are estimated to be approximately 282 million.

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 2023

Historical avgQ3 2023

+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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