Jan 31, 2023

Nutanix Q2 2023 Earnings Report

Nutanix's Q2 2023 financial performance was solid, driven by its subscription-based business model and demonstrating a balance of topline performance and profitability.

Key Takeaways

Nutanix reported a solid Q2 financial performance with a 23% year-over-year growth in ACV billings and a record free cash flow margin. The company is dealing with an audit committee investigation regarding the use of third-party software, which has led to a delay in filing the 10-Q and an inability to provide expense information.

ACV billings grew by 23% year-over-year.

Annual Recurring Revenue (ARR) increased by 32% year-over-year.

The company is undergoing an audit committee investigation regarding the use of third-party software.

Fiscal year 2023 revenue and ACV billings guidance were raised.

Total Revenue
$486M
Previous year: $413M
+17.8%
EPS
-$0.3
Previous year: -$0.03
+900.0%
Customers
1.38B
Previous year: 1.04B
+32.5%
Gross Profit
$400M
Previous year: $333M
+20.0%
Cash and Equivalents
$407M
Previous year: $401M
+1.5%
Free Cash Flow
$63M
Previous year: $17.2M
+265.9%
Total Assets
$2.37B
Previous year: $2.32B
+2.4%

Nutanix

Nutanix

Nutanix Revenue by Segment

Forward Guidance

Nutanix provided revenue guidance of $430 - $440 million and ACV Billings of $220 - $225 million for Q3 2023. For fiscal year 2023, Nutanix provided revenue guidance of $1.80 - $1.81 billion and ACV Billings of $905 - $915 million.

Positive Outlook

  • Reaffirming free cash flow guidance of $100 to $125 million for fiscal year 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income