Why Nutanix (NTNX) Shares Are Skyrocketing Today - Nutanix (NASDAQ:NTNX)

Nutanix Inc NTNX reported a Q3 FY23 revenue increase of 11% Y/Y to $448.6 million, beating the consensus of $432.9 million.
Annual recurring revenues rose 32% Y/Y to $1.47 billion, and annual Contract value (ACV) billings stood at $239.8 million (+17% Y/Y).
Adjusted gross margin expanded 50 basis points to 83.8%, and adjusted operating margin stood at 1.6% vs (1.4)% a year ago.
Operating cash flow improved to $64.3 million compared to cash used in operating activities of $3.2 million a year ago.
Cash and equivalents stood at $1.4 billion at the end of Q3 FY23.
Adjusted EPS of $0.04 beat the consensus of $0.03.
Outlook: NTNX expects Q4 FY23 revenues of $470 million - $480 million (consensus $432.91 million), ACV billings of $240 million - $250 million, adjusted gross margin of ~84%, and adjusted operating margin of 9% to 10%.
For FY23, the company raised guidance for revenues to $1.84 billion - $1.85 billion (vs. $1.80 billion - $1.81 billion earlier vs. consensus of $1.80 billion) and ACV billings to $915 million - $925 million (from $905 million - $915 million previously).
The company expects an adjusted gross margin of ~84% and an adjusted operating margin of 6% to 7%.
"Our business performed well in the third quarter against an uncertain macro backdrop, as the value proposition of our cloud platform continued to resonate with customers. We are also pleased to have completed the Audit Committee investigation regarding third-party software usage and to have filed our Form 10-Q for our second quarter of fiscal 2023," stated Rajiv Ramaswami, President and CEO.
Related: Nutanix Gets Price Target Bumps By Analysts Following Upbeat Q3 Results, Shares Surge
Price Action: NTNX shares are trading higher by 16.8% at $29.68 premarket on the last check Thursday.

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