Apr 30, 2023

Nutanix Q3 2023 Earnings Report

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

Key Takeaways

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.

Total Revenue
$449M
Previous year: $404M
+11.1%
EPS
$0.04
Previous year: -$0.05
-180.0%
Customers
1.47B
Previous year: 1.1B
+33.4%
Gross Profit
$365M
Previous year: $324M
+12.8%
Cash and Equivalents
$440M
Previous year: $387M
+13.8%
Free Cash Flow
$42.5M
Previous year: -$20.1M
-311.7%
Total Assets
$2.4B
Previous year: $2.36B
+1.7%

Nutanix

Nutanix

Nutanix Revenue by Segment

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%.

Positive Outlook

  • 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.

Revenue & Expenses

Visualization of income flow from segment revenue to net income