Nutanix Q2 Revenue Rises 16%, Margins Expand As Cloud Business Gains Momentum

Nutanix, Inc. NTNX shares are trading higher premarket on Thursday after the company reported second-quarter results on Wednesday.

Revenue rose 16% year over year to $654.7 million, beating the consensus of $641.9 million, with annual recurring revenue growing 19% Y/Y.

Adjusted gross margin expanded 100 bps Y/Y to 88.3%. Adjusted operating income rose to $161.3 million from $123.9 million a year ago quarter, with the margin expanding 270 bps Y/Y to 24.6%.

Adjusted EPS of 56 cents exceeded the consensus of 47 cents.

Operating cash flow stood at $221.7 million and free cash flow came in at $187.1 million.

Rajiv Ramaswami, President and CEO of Nutanix, said “Our results are benefiting from the strength of the Nutanix Cloud Platform, demand from businesses looking for a trusted long-term partner committed to innovation and customer care, and go-to-market leverage from our partnerships and programs.”

Outlook: Nutanix sees third-quarter revenue of $620 million-$630 million vs. consensus of $594.385 million and adjusted operating margin of 17% to 18%.

For FY25, the company expects revenue of $2.495 billion – $2.515 billion versus the prior outlook of $2.435 billion – $2.465 billion and the estimate of $2.461 billion.

The company expects adjusted operating margin of 17.5% to 18.5% (prior view 16% to 17%) and free cash flow of $650 million – $700 million (Previous view $560 million – $610 million).

Investors can gain exposure to the stock via ProShares Big Data Refiners ETF DAT and First Trust Cloud Computing ETF SKYY.

Price Action: NTNX shares are up 14.6% at $79.46 premarket at the last check Thursday.

Read Next:

• US Stocks Likely To Open Higher After Nvidia’s Blowout Earnings: ‘This Is Still A Bull Market,’ Says Expert

Photo by Blackboard on Shutterstock.