Nutanix shares rise as FYQ1 results top expectations, year revenue view higher

Nutanix resumed its revenue forecasting for the first time since May of 2020.
Written by Tiernan Ray, Contributing Writer on

Hyper-converged infrastructure pioneer Nutanix this afternoon reported fiscal Q1 revenue and profit that both topped Wall Street's expectations. The company's outlook for the current quarter's revenue, and for the full year, is higher as well.

The report sent Nutanix shares up 4% in late trading

CEO Rajiv Ramaswami called the quarter's results, "a good start to our fiscal year," adding that the results  "[demonstrate] strong year-over-year top and bottom-line improvement."

Added Ramaswami, "We continued to execute towards our targets of free cash flow break-even in the second half of calendar 2022 and a 25 percent-plus ACV billings CAGR through fiscal 2025."

Nutanix's CFO, Duston Williams, noted that the company "achieved record ACV billings, which grew 33 percent year-over-year, and saw 21 percent year-over-year revenue growth, our highest growth in over three years."

Added Williams, "With the continued progress we've made on our subscription model, we believe it's now appropriate to provide annual guidance."

"Having gained a better understanding of potential fluctuations in our average contract term lengths, we are guiding to revenue, on both a quarterly and annual basis," said Williams.

Revenue in the three months ended in October rose 21%, year over year, to $378.5 million, yielding a net loss of 22 cents a share, excluding some costs.

Analysts had been modeling $367 million and a net loss of 34 cents per share.

Nutanix's Annual Contract Value, or ACV, billings rose 33% to $183.3 million, the company said. Wall Street had modeled $175 million. 

The company's annual recurring revenue rose to $952.6 million. 

For the current quarter, the company sees annual contract value billings in a range of $195 million to $200 million. That compares to consensus for $190.1 million.

Revenue is seen in a range of $400 million to $410 million, higher than the average estimate for $400 million. 

The forecast for revenue is the first quarterly revenue forecast offered since May of 2020.

For the full fiscal year 2022, the company sees annual contract value billings in a range of $740 million to $750 million, which is below consensus for $753.1 million. 

The company sees full-year revenue of $1.615 billion to $1.63 billion, above consensus for $1.598 billion.

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