Nutanix Shares Surge After Company Beats Q4 Earnings Estimates, Announces Buyback

Nutanix Inc NTNX shares are trading higher in Thursday's after-hours session after the company reported better-than-expected results and announced a buyback.

Q4 Earnings: Nutanix said fiscal fourth-quarter revenue increased 28% year-over-year to $494.21 million, which beat the consensus estimate of $475.16 million, according to Benzinga Pro. The company reported quarterly adjusted earnings of 24 cents per share, which beat analyst estimates of 16 cents per share.

ACV (annual contract value) billings grew 44% year-over-year. Annual recurring revenue jumped 30% on a year-over-year basis. 

"Our fourth quarter capped off a fiscal year that showed healthy year-over-year top line growth and sharp year-over-year improvements in profitability and free cash flow," said Rajiv Ramaswami, president and CEO of Nutanix.

"Our consistent execution over the course of the year against an uncertain macro backdrop is a testament to the benefits of our subscription model, as well as the value our customers see in the Nutanix Cloud Platform as they look to modernize their IT footprints and implement hybrid multicloud operating models."

Nutanix's board also authorized a share repurchase program of up to $350 million. 

Outlook: Nutanix sees fiscal first-quarter revenue of $495 million to $505 million versus estimates of $487.22 million. The company expects full-year revenue to be between $2.085 billion and $2.115 billion versus estimates of $2.08 billion.

A conference call to discuss these results kicked off at 4:30 p.m. ET.

See Also: Broadcom Stock Drops On Q3 Earnings: The Details

NUTX Price Action: Nutanix shares were up 13.67% after hours at $35.35 at the time of publication, according to Benzinga Pro.

Photo: Lorenzo Cafaro from Pixabay.