Jul 31, 2022

Nutanix Q4 2022 Earnings Report

Nutanix reported mixed Q4 2022 results, with revenue slightly decreasing but ACV billings increasing, and achieved positive free cash flow for fiscal year 2022.

Key Takeaways

Nutanix's Q4 2022 saw a slight decrease in revenue compared to the previous year, but demonstrated growth in ACV billings and ARR. The company achieved positive free cash flow for fiscal year 2022, marking progress in its subscription model transition.

Nutanix reported a 1% year-over-year decrease in revenue for Q4 2022.

ACV billings increased by 10% year-over-year in Q4 2022.

ARR grew by 37% year-over-year, reaching $1.20 billion.

The company achieved positive free cash flow for fiscal year 2022.

Total Revenue
$386M
Previous year: $391M
-1.3%
EPS
-$0.17
Previous year: -$0.26
-34.6%
Customers
1.2B
Previous year: 878.73M
+36.6%
Gross Profit
$306M
Previous year: $312M
-2.1%
Cash and Equivalents
$403M
Previous year: $286M
+41.0%
Free Cash Flow
$23.2M
Previous year: -$42.2M
-155.1%
Total Assets
$2.37B
Previous year: $2.28B
+3.9%

Nutanix

Nutanix

Forward Guidance

Nutanix provided its outlook for Q1 and full Fiscal Year 2023, anticipating growth in ACV billings and revenue while maintaining a focus on profitability.

Positive Outlook

  • Q1 2023 ACV Billings are expected to be $210 - $215 million.
  • Q1 2023 Revenue is projected to be $410 - $415 million.
  • Non-GAAP Gross Margin is anticipated to be approximately 82% for Q1 2023.
  • Fiscal Year 2023 ACV Billings are forecasted to be $895 - $900 million.
  • Fiscal Year 2023 Revenue is projected to be $1.77 - $1.78 billion.

Challenges Ahead

  • Non-GAAP Operating Expenses are expected to be $360 - $365 million for Q1 2023.
  • Non-GAAP Operating Margin is projected to be approximately (6)% for Q1 2023.
  • Weighted Average Shares Outstanding are expected to be approximately 229 million for Q1 2023.
  • Non-GAAP Operating Expenses are forecasted to be $1.41 - $1.42 billion for Fiscal Year 2023.
  • Non-GAAP Operating Margin is projected to be approximately 2% for Fiscal Year 2023.