Nutanix Reports Second Quarter Fiscal 2025 Financial Results
Nutanix (NASDAQ: NTNX) reported strong second quarter fiscal 2025 financial results, highlighting a 19% year-over-year ARR growth and robust free cash flow generation. The company recently strengthened its financial position by issuing $862.5 million in convertible senior notes due 2029 at 0.50% interest and establishing a new $500 million revolving credit facility.
The company's performance benefited from the strength of the Nutanix Cloud Platform and increased demand from businesses seeking long-term partnerships. The company also released its seventh annual Enterprise Cloud Index survey, revealing that GenAI is shifting organizational priorities with a focus on security and privacy concerns.
Nutanix (NASDAQ: NTNX) ha riportato risultati finanziari solidi per il secondo trimestre dell'anno fiscale 2025, evidenziando una crescita dell'ARR del 19% rispetto all'anno precedente e una robusta generazione di flusso di cassa libero. L'azienda ha recentemente rafforzato la sua posizione finanziaria emettendo note senior convertibili per un totale di 862,5 milioni di dollari, con scadenza nel 2029 e un tasso d'interesse dello 0,50%, e stabilendo una nuova linea di credito revolving da 500 milioni di dollari.
Le performance dell'azienda hanno beneficiato della solidità della Nutanix Cloud Platform e dell'aumento della domanda da parte delle aziende che cercano partnership a lungo termine. L'azienda ha anche pubblicato il suo settimo rapporto annuale sull'Enterprise Cloud Index, rivelando che il GenAI sta cambiando le priorità organizzative con un focus su sicurezza e privacy.
Nutanix (NASDAQ: NTNX) reportó resultados financieros sólidos para el segundo trimestre del año fiscal 2025, destacando un crecimiento del ARR del 19% interanual y una robusta generación de flujo de caja libre. La compañía recientemente fortaleció su posición financiera al emitir notas senior convertibles por un total de 862.5 millones de dólares, con vencimiento en 2029 y un interés del 0.50%, y estableció una nueva línea de crédito revolvente de 500 millones de dólares.
El rendimiento de la empresa se benefició de la fortaleza de la Nutanix Cloud Platform y del aumento de la demanda de empresas que buscan asociaciones a largo plazo. La compañía también lanzó su séptima encuesta anual del Enterprise Cloud Index, revelando que el GenAI está cambiando las prioridades organizativas con un enfoque en la seguridad y la privacidad.
Nutanix (NASDAQ: NTNX)는 2025 회계연도 2분기 강력한 재무 결과를 보고하며 전년 대비 ARR 19% 성장과 건전한 자유 현금 흐름 생성을 강조했습니다. 최근 회사는 0.50% 이자로 2029년 만기 전환형 선순위 채권 8억6250만 달러를 발행하고, 새로운 5억 달러 규모의 회전 신용 시설을 설립하여 재무 상태를 강화했습니다.
회사의 실적은 Nutanix Cloud Platform의 강점과 장기 파트너십을 원하는 기업들의 수요 증가로 혜택을 받았습니다. 또한 회사는 제7회 연례 기업 클라우드 지수 조사 결과를 발표하며, GenAI가 보안 및 개인정보 보호 문제에 중점을 두고 조직의 우선 순위를 변화시키고 있음을 밝혔습니다.
Nutanix (NASDAQ: NTNX) a annoncé de solides résultats financiers pour le deuxième trimestre de l'exercice 2025, mettant en avant une croissance de l'ARR de 19% par rapport à l'année précédente et une génération robuste de flux de trésorerie libre. L'entreprise a récemment renforcé sa position financière en émettant des obligations senior convertibles d'un montant de 862,5 millions de dollars, arrivant à échéance en 2029 avec un taux d'intérêt de 0,50%, et en établissant une nouvelle ligne de crédit renouvelable de 500 millions de dollars.
La performance de l'entreprise a bénéficié de la force de la Nutanix Cloud Platform et de l'augmentation de la demande des entreprises recherchant des partenariats à long terme. L'entreprise a également publié sa septième enquête annuelle sur l'Enterprise Cloud Index, révélant que le GenAI modifie les priorités organisationnelles avec un accent sur les préoccupations en matière de sécurité et de confidentialité.
Nutanix (NASDAQ: NTNX) hat starke finanzielle Ergebnisse für das zweite Quartal des Geschäftsjahres 2025 gemeldet und hebt ein 19% Wachstum des ARR im Jahresvergleich sowie eine robuste Generierung von freiem Cashflow hervor. Das Unternehmen hat kürzlich seine finanzielle Position gestärkt, indem es wandelbare vorrangige Anleihen in Höhe von 862,5 Millionen Dollar mit einer Laufzeit bis 2029 und einem Zinssatz von 0,50% ausgegeben hat, und eine neue revolvierende Kreditlinie über 500 Millionen Dollar eingerichtet hat.
Die Leistung des Unternehmens profitierte von der Stärke der Nutanix Cloud Platform und der gestiegenen Nachfrage von Unternehmen, die langfristige Partnerschaften suchen. Das Unternehmen hat auch seine siebte jährliche Umfrage zum Enterprise Cloud Index veröffentlicht, die zeigt, dass GenAI die organisatorischen Prioritäten mit einem Fokus auf Sicherheits- und Datenschutzbedenken verändert.
- 19% YoY ARR growth
- Strong free cash flow generation
- Secured $862.5M convertible notes at favorable 0.50% rate
- Established new $500M revolving credit facility
- None.
Insights
Nutanix delivered strong Q2 FY2025 results with 19% year-over-year ARR growth, demonstrating continued momentum in its subscription-based business model. This growth rate signals robust customer adoption of the Nutanix Cloud Platform at a time when enterprises are increasingly seeking trusted partners for hybrid multicloud deployments.
The company's financial position has been significantly strengthened through two strategic moves: issuing
The strong free cash flow generation mentioned (though not quantified) suggests improving operational efficiency and reflects the company's successful transition to a subscription model. This transition typically creates initial revenue recognition headwinds but leads to more predictable, higher-quality revenue streams over time.
Nutanix's Enterprise Cloud Index findings about GenAI changing organizational priorities presents both an opportunity and challenge. As businesses implement AI initiatives, they'll need robust, secure infrastructure solutions – precisely what Nutanix aims to provide. However, this also intensifies competition with hyperscalers and specialized AI infrastructure providers.
For investors, Nutanix's outperformance across all guided metrics indicates effective execution against its strategic objectives. The 19% ARR growth demonstrates the company's ability to expand its recurring revenue base while maintaining financial discipline – a critical balance in the current market environment where growth at all costs is no longer rewarded.
Nutanix's Q2 results reveal how their technical approach to hybrid multicloud is resonating with enterprises navigating increasingly complex IT environments. The 19% YoY ARR growth indicates strong market validation of their hyperconverged infrastructure platform, which simplifies operations across disparate environments through a unified control plane.
The company's ECI survey findings about GenAI changing organizational priorities has significant technical implications. As enterprises deploy more AI workloads, infrastructure requirements shift dramatically – demanding solutions that can efficiently manage compute-intensive applications while maintaining strict security controls. Nutanix's architecture, which decouples storage from compute while maintaining unified management, positions them advantageously for these emerging workloads compared to traditional three-tier infrastructure.
From a competitive standpoint, Nutanix occupies a strategic middle ground between on-premises infrastructure providers and hyperscalers. Their software-defined approach allows customers to maintain consistent operations while leveraging public cloud resources selectively – addressing the reality that most enterprises maintain hybrid environments for technical, regulatory, and financial reasons.
The company's focus on partnerships likely includes deeper technical integrations with key ecosystem players. Their relationships with hardware vendors provide flexibility for customers, while cloud partnerships enable true hybrid capabilities rather than just multi-cloud management.
For technical decision-makers, Nutanix's platform offers a compelling proposition: simplified infrastructure management with enterprise-grade security, scalability for modern workloads including AI, and freedom from vendor lock-in. These technical advantages translate directly to the financial outperformance, as organizations increasingly value infrastructure that reduces operational complexity while enabling innovation.
Delivers Outperformance Across All Guided Metrics
Reports
SAN JOSE, Calif., Feb. 26, 2025 (GLOBE NEWSWIRE) -- Nutanix, Inc. (NASDAQ: NTNX), a leader in hybrid multicloud computing, today announced financial results for its second quarter ended January 31, 2025.
“During our second quarter we delivered outperformance across our guided metrics,” said Rajiv Ramaswami, President and CEO of Nutanix. “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.”
“Our second quarter results included
Second Quarter Fiscal 2025 Financial Summary
| Q2 FY’25 | Q2 FY’24 | Y/Y Change | |
| Annual Recurring Revenue (ARR)¹ | |||
| Average Contract Duration² | 3.0 years | 2.8 years | 0.2 year |
| Revenue | |||
| GAAP Gross Margin | 140 bps | ||
| Non-GAAP Gross Margin | 100 bps | ||
| GAAP Operating Expenses | |||
| Non-GAAP Operating Expenses | |||
| GAAP Operating Income | |||
| Non-GAAP Operating Income | |||
| GAAP Operating Margin | 340 bps | ||
| Non-GAAP Operating Margin | 270 bps | ||
| Net Cash Provided by Operating Activities | |||
| Free Cash Flow |
Reconciliations between GAAP and non-GAAP financial measures and key performance measures, to the extent available, are provided in the tables of this press release.
Recent Company Highlights
- Nutanix Announces Findings of its Seventh Annual Enterprise Cloud Index (ECI) Survey and Research Report: Nutanix announced the findings of its seventh annual ECI survey and research report, which measures global enterprise progress with cloud adoption. The study reveals that GenAI is changing organizations’ priorities, with security and privacy being a primary concern.
- Nutanix Issues New Convertible Notes: On December 16, 2024, Nutanix issued and sold an
$862.5 million aggregate principal amount of0.50% convertible senior notes due 2029 in a private offering. - Nutanix Establishes New Revolving Credit Facility: On February 12, 2025, Nutanix entered into a credit agreement providing for a senior secured revolving credit facility in an aggregate principal amount of
$500 million .
Third Quarter Fiscal 2025 Outlook
| Revenue | |
| Non-GAAP Operating Margin | |
| Weighted Average Shares Outstanding (Diluted)³ | Approximately 296 million |
Fiscal 2025 Outlook
| Revenue | |
| Non-GAAP Operating Margin | |
| Free Cash Flow |
Supplementary materials to this press release, including our second quarter fiscal 2025 earnings presentation, can be found at https://ir.nutanix.com/financial/quarterly-results.
Webcast and Conference Call Information
Nutanix executives will discuss the Company’s second quarter fiscal 2025 financial results on a conference call today at 4:30 p.m. Eastern Time/1:30 p.m. Pacific Time. Interested parties may access the conference call by registering at this link to receive dial in details and a unique PIN number. The conference call will also be webcast live on the Nutanix Investor Relations website at ir.nutanix.com. An archived replay of the webcast will be available on the Nutanix Investor Relations website at ir.nutanix.com shortly after the call.
Footnotes
¹Annual Recurring Revenue, or ARR, for any given period, is defined as the sum of ACV for all subscription contracts in effect as of the end of a specific period. For the purposes of this calculation, we assume that the contract term begins on the date a contract is booked, unless the terms of such contract prevent us from fulfilling our obligations until a later period, and irrespective of the periods in which we would recognize revenue for such contract. Excludes all life-of-device contracts. ACV is defined as the total annualized value of a contract. The total annualized value for a contract is calculated by dividing the total value of the contract by the number of years in the term of such contract. Excludes amounts related to professional services and hardware.
²Average Contract Duration represents the dollar-weighted term, calculated on a billings basis, across all subscription contracts, as well as our limited number of life-of-device contracts, using an assumed term of five years for life-of-device licenses, executed in the period.
³Weighted average share count used in computing diluted non-GAAP net income per share.
Non-GAAP Financial Measures and Other Key Performance Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, this press release includes the following non-GAAP financial and other key performance measures: non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, free cash flow, Annual Recurring Revenue (or ARR), and Average Contract Duration. In computing non-GAAP financial measures, we exclude certain items such as stock-based compensation and the related income tax impact, costs associated with our acquisitions (such as amortization of acquired intangible assets, income tax-related impact, and other acquisition-related costs), restructuring charges, litigation settlement accruals and legal fees related to certain litigation matters, the amortization and conversion of the debt discount and issuance costs related to convertible senior notes, interest expense related to convertible senior notes, inducement expense related to the repurchase of convertible senior notes, and other non-recurring transactions and the related tax impact. Non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, and non-GAAP operating margin are financial measures which we believe provide useful information to investors because they provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures such as stock-based compensation expense that may not be indicative of our ongoing core business operating results. Free cash flow is a performance measure that we believe provides useful information to our management and investors about the amount of cash generated by the business after capital expenditures, and we define free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment. ARR is a performance measure that we believe provides useful information to our management and investors as it allows us to better track the topline growth of our subscription business because it takes into account variability in term lengths. We use these non-GAAP financial and key performance measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. However, these non-GAAP financial and key performance measures have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, and free cash flow are not substitutes for gross margin, operating expenses, operating income (loss), operating margin, or net cash provided by (used in) operating activities, respectively. There is no GAAP measure that is comparable to ARR or Average Contract Duration, so we have not reconciled the ARR or Average Contract Duration data included in this press release to any GAAP measure. In addition, other companies, including companies in our industry, may calculate non-GAAP financial measures and key performance measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures and key performance measures as tools for comparison. We urge you to review the reconciliation of our non-GAAP financial measures and key performance measures to the most directly comparable GAAP financial measures included below in the tables captioned “Reconciliation of GAAP to Non-GAAP Profit Measures” and “Reconciliation of GAAP Net Cash Provided By Operating Activities to Non-GAAP Free Cash Flow,” and not to rely on any single financial measure to evaluate our business. This press release also includes the following forward-looking non-GAAP financial measures as part of our third quarter fiscal 2025 outlook and/or our fiscal 2025 outlook: non-GAAP operating margin and free cash flow. We are unable to reconcile these forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures without unreasonable efforts, as we are currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact the GAAP financial measures for these periods but would not impact the non-GAAP financial measures.
Forward-Looking Statements
This press release contains express and implied forward-looking statements, including, but not limited to, statements regarding: our business momentum and prospects, including the strength of our platform, demand from businesses looking for a long-term partner committed to innovation and customer care, and go-to-market leverage from our partnerships; our focus on delivering sustainable, profitable growth; our third quarter fiscal 2025 outlook; and our fiscal 2025 outlook.
These forward-looking statements are not historical facts and instead are based on our current expectations, estimates, opinions, and beliefs. Consequently, you should not rely on these forward-looking statements. The accuracy of these forward-looking statements depends upon future events and involves risks, uncertainties, and other factors, including factors that may be beyond our control, that may cause these statements to be inaccurate and cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by such statements, including, among others: the inherent uncertainty or assumptions and estimates underlying our projections and guidance, which are necessarily speculative in nature; any failure to successfully implement or realize the full benefits of, or unexpected difficulties or delays in successfully implementing or realizing the full benefits of, our business plans, strategies, initiatives, vision, objectives, momentum, prospects and outlook; our ability to achieve, sustain and/or manage future growth effectively; the rapid evolution of the markets in which we compete, including the introduction, or acceleration of adoption of, competing solutions, including public cloud infrastructure; failure to timely and successfully meet our customer needs; delays in or lack of customer or market acceptance of our new solutions, products, services, product features or technology; macroeconomic or geopolitical uncertainty; our ability to attract, recruit, train, retain, and, where applicable, ramp to full productivity, qualified employees and key personnel; factors that could result in the significant fluctuation of our future quarterly operating results (including anticipated changes to our revenue and product mix, the timing and magnitude of orders, shipments and acceptance of our solutions in any given quarter, our ability to attract new and retain existing end-customers, changes in the pricing and availability of certain components of our solutions, and fluctuations in demand and competitive pricing pressures for our solutions); our ability to form new or maintain and strengthen existing strategic alliances and partnerships, as well as our ability to manage any changes thereto; our ability to make share repurchases; and other risks detailed in our Annual Report on Form 10-K for the fiscal year ended July 31, 2024 filed with the U.S. Securities and Exchange Commission, or the SEC, on September 19, 2024 and our subsequent Quarterly Reports on Form 10-Q filed with the SEC. Additional information will be set forth in our Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2025, which should be read in conjunction with this press release and the financial results included herein. Our SEC filings are available on the Investor Relations section of our website at ir.nutanix.com and on the SEC's website at www.sec.gov. These forward-looking statements speak only as of the date of this press release and, except as required by law, we assume no obligation, and expressly disclaim any obligation, to update, alter or otherwise revise any of these forward-looking statements to reflect actual results or subsequent events or circumstances.
About Nutanix
Nutanix is a global leader in cloud software, offering organizations a single platform for running applications and managing data, anywhere. With Nutanix, companies can reduce complexity and simplify operations, freeing them to focus on their business outcomes. Building on its legacy as the pioneer of hyperconverged infrastructure, Nutanix is trusted by companies worldwide to power hybrid multicloud environments consistently, simply, and cost-effectively. Learn more at www.nutanix.com or follow us on social media @nutanix.
© 2025 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix logo, and all Nutanix product and service names mentioned herein are registered trademarks or unregistered trademarks of Nutanix, Inc. (“Nutanix”) in the United States and other countries. Other brand names or marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s). This press release is for informational purposes only and nothing herein constitutes a warranty or other binding commitment by Nutanix.
Investor Contact:
Richard Valera
ir@nutanix.com
Media Contact:
Jennifer Massaro
pr@nutanix.com
| NUTANIX, INC. | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (Unaudited) | ||||||||
| As of | ||||||||
| July 31, 2024 | January 31, 2025 | |||||||
| (in thousands) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 655,270 | $ | 1,072,161 | ||||
| Short-term investments | 339,072 | 670,686 | ||||||
| Accounts receivable, net | 229,796 | 327,294 | ||||||
| Deferred commissions—current | 159,849 | 153,330 | ||||||
| Prepaid expenses and other current assets | 97,307 | 111,923 | ||||||
| Total current assets | 1,481,294 | 2,335,394 | ||||||
| Property and equipment, net | 136,180 | 138,753 | ||||||
| Operating lease right-of-use assets | 109,133 | 112,051 | ||||||
| Deferred commissions—non-current | 198,962 | 184,904 | ||||||
| Intangible assets, net | 5,153 | 3,443 | ||||||
| Goodwill | 185,235 | 185,235 | ||||||
| Other assets—non-current | 27,961 | 29,210 | ||||||
| Total assets | $ | 2,143,918 | $ | 2,988,990 | ||||
| Liabilities and Stockholders’ Deficit | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 45,066 | $ | 45,903 | ||||
| Accrued compensation and benefits | 195,602 | 203,040 | ||||||
| Accrued expenses and other current liabilities | 24,967 | 22,428 | ||||||
| Deferred revenue—current | 954,543 | 1,024,364 | ||||||
| Operating lease liabilities—current | 24,163 | 21,819 | ||||||
| Total current liabilities | 1,244,341 | 1,317,554 | ||||||
| Deferred revenue—non-current | 918,163 | 995,173 | ||||||
| Operating lease liabilities—non-current | 90,359 | 93,828 | ||||||
| Convertible senior notes, net | 570,073 | 1,341,388 | ||||||
| Other liabilities—non-current | 49,130 | 48,721 | ||||||
| Total liabilities | 2,872,066 | 3,796,664 | ||||||
| Stockholders’ deficit: | ||||||||
| Common stock | 7 | 7 | ||||||
| Additional paid-in capital | 4,118,898 | 4,120,529 | ||||||
| Accumulated other comprehensive loss | 146 | 404 | ||||||
| Accumulated deficit | (4,847,199 | ) | (4,928,614 | ) | ||||
| Total stockholders’ deficit | (728,148 | ) | (807,674 | ) | ||||
| Total liabilities and stockholders’ deficit | $ | 2,143,918 | $ | 2,988,990 | ||||
| NUTANIX, INC. | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended January 31, | Six Months Ended January 31, | |||||||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| Revenue: | ||||||||||||||||
| Product | $ | 299,660 | $ | 354,187 | $ | 546,582 | $ | 656,106 | ||||||||
| Support, entitlements and other services | 265,573 | 300,534 | 529,705 | 589,571 | ||||||||||||
| Total revenue | 565,233 | 654,721 | 1,076,287 | 1,245,677 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Product (1)(2) | 9,402 | 8,823 | 19,636 | 17,193 | ||||||||||||
| Support, entitlements and other services (1) | 72,154 | 76,465 | 143,879 | 150,765 | ||||||||||||
| Total cost of revenue | 81,556 | 85,288 | 163,515 | 167,958 | ||||||||||||
| Gross profit | 483,677 | 569,433 | 912,772 | 1,077,719 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing (1)(2) | 236,702 | 261,382 | 472,025 | 514,783 | ||||||||||||
| Research and development (1) | 160,401 | 182,785 | 312,376 | 356,744 | ||||||||||||
| General and administrative (1) | 49,529 | 59,828 | 97,032 | 113,504 | ||||||||||||
| Total operating expenses | 446,632 | 503,995 | 881,433 | 985,031 | ||||||||||||
| Income from operations | 37,045 | 65,438 | 31,339 | 92,688 | ||||||||||||
| Other income (expense), net | 2,096 | (355 | ) | (3,179 | ) | 9,218 | ||||||||||
| Income before provision for income taxes | 39,141 | 65,083 | 28,160 | 101,906 | ||||||||||||
| Provision for income taxes | 6,346 | 8,656 | 11,218 | 15,553 | ||||||||||||
| Net income | $ | 32,795 | $ | 56,427 | $ | 16,942 | $ | 86,353 | ||||||||
| Net income per share attributable to Class A common stockholders, basic | $ | 0.13 | $ | 0.21 | $ | 0.07 | $ | 0.32 | ||||||||
| Net income per share attributable to Class A common stockholders, diluted | $ | 0.12 | $ | 0.19 | $ | 0.09 | $ | 0.30 | ||||||||
| Weighted average shares used in computing net income per share attributable to Class A common stockholders, basic | 243,853 | 267,138 | 242,667 | 266,842 | ||||||||||||
| Weighted average shares used in computing net income per share attributable to Class A common stockholders, diluted | 298,540 | 293,351 | 294,851 | 291,086 | ||||||||||||
____________________________
(1) Includes the following stock-based compensation expense:
| Three Months Ended January 31, | Six Months Ended January 31, | |||||||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Product cost of revenue | $ | 1,697 | $ | 812 | $ | 3,625 | $ | 2,024 | ||||||||
| Support, entitlements and other services cost of revenue | 7,183 | 7,325 | 14,299 | 14,145 | ||||||||||||
| Sales and marketing | 20,738 | 21,397 | 42,209 | 42,045 | ||||||||||||
| Research and development | 40,541 | 46,765 | 78,945 | 90,327 | ||||||||||||
| General and administrative | 15,810 | 17,129 | 30,889 | 33,636 | ||||||||||||
| Total stock-based compensation expense | $ | 85,969 | $ | 93,428 | $ | 169,967 | $ | 182,177 | ||||||||
____________________________
(2) Includes the following amortization of intangible assets:
| Three Months Ended January 31, | Six Months Ended January 31, | |||||||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Product cost of revenue | $ | 749 | $ | 767 | $ | 1,860 | $ | 1,534 | ||||||||
| Sales and marketing | 82 | 88 | 119 | 176 | ||||||||||||
| Total amortization of intangible assets | $ | 831 | $ | 855 | $ | 1,979 | $ | 1,710 | ||||||||
| NUTANIX, INC. | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (Unaudited) | ||||||||
| Six Months Ended January 31, | ||||||||
| 2024 | 2025 | |||||||
| (in thousands) | ||||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 16,942 | $ | 86,353 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 36,389 | 36,427 | ||||||
| Stock-based compensation | 169,967 | 182,177 | ||||||
| Amortization of debt discount and issuance costs | 22,300 | 1,185 | ||||||
| Inducement expense from partial repurchase of the 2027 Notes | — | 11,347 | ||||||
| Operating lease cost, net of accretion | 16,046 | 13,962 | ||||||
| Non-cash interest expense | 10,064 | — | ||||||
| Other | (8,859 | ) | (2,130 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | (19,662 | ) | (72,745 | ) | ||||
| Deferred commissions | 4,830 | 20,577 | ||||||
| Prepaid expenses and other assets | 40,575 | (5,833 | ) | |||||
| Accounts payable | 8,695 | (334 | ) | |||||
| Accrued compensation and benefits | 34,158 | 7,792 | ||||||
| Accrued expenses and other liabilities | (86,009 | ) | (1,680 | ) | ||||
| Operating leases, net | (14,884 | ) | (15,754 | ) | ||||
| Deferred revenue | 101,329 | 122,077 | ||||||
| Net cash provided by operating activities | 331,881 | 383,421 | ||||||
| Cash flows from investing activities: | ||||||||
| Maturities of investments | 429,219 | 162,139 | ||||||
| Purchases of investments | (455,254 | ) | (493,156 | ) | ||||
| Payments for acquisitions, net of cash acquired | (4,500 | ) | — | |||||
| Purchases of property and equipment | (36,784 | ) | (44,438 | ) | ||||
| Net cash used in investing activities | (67,319 | ) | (375,455 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from sales of shares through employee equity incentive plans | 15,153 | 29,300 | ||||||
| Taxes paid related to net share settlement of equity awards | (53,180 | ) | (148,194 | ) | ||||
| Proceeds from the issuance of convertible notes, net of issuance costs | — | 848,010 | ||||||
| Payment of third-party debt issuance costs | — | (2,771 | ) | |||||
| Partial repurchase of the 2027 Notes | — | (95,453 | ) | |||||
| Repurchases of common stock | (59,192 | ) | (220,100 | ) | ||||
| Payment of finance lease obligations | (1,758 | ) | (1,945 | ) | ||||
| Net cash (used in) provided by financing activities | (98,977 | ) | 408,847 | |||||
| Net increase in cash, cash equivalents and restricted cash | $ | 165,585 | $ | 416,813 | ||||
| Cash, cash equivalents and restricted cash—beginning of period | 515,771 | 655,662 | ||||||
| Cash, cash equivalents and restricted cash—end of period | $ | 681,356 | $ | 1,072,475 | ||||
| Restricted cash(1) | 2,110 | 314 | ||||||
| Cash and cash equivalents—end of period | $ | 679,246 | $ | 1,072,161 | ||||
| Supplemental disclosures of cash flow information: | ||||||||
| Cash paid for income taxes | $ | 14,168 | $ | 19,283 | ||||
| Supplemental disclosures of non-cash investing and financing information: | ||||||||
| Purchases of property and equipment included in accounts payable and accrued and other liabilities | $ | 1,648 | $ | 1,601 | ||||
| Unpaid taxes related to net share settlement of equity awards included in accrued expenses and other liabilities | $ | — | $ | 11,460 | ||||
____________________________
(1) Included within other assets—non-current in the condensed consolidated balance sheets.
| Reconciliation of Revenue to Billings | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended January 31, | Six Months Ended January 31, | |||||||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Total revenue | $ | 565,233 | $ | 654,721 | $ | 1,076,287 | $ | 1,245,677 | ||||||||
| Change in deferred revenue | 51,250 | 121,637 | 101,329 | 122,077 | ||||||||||||
| Total billings | $ | 616,483 | $ | 776,358 | $ | 1,177,616 | $ | 1,367,754 | ||||||||
| Disaggregation of Revenue and Billings | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended January 31, | Six Months Ended January 31, | |||||||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Disaggregation of revenue: | ||||||||||||||||
| Subscription revenue | $ | 531,983 | $ | 624,418 | $ | 1,011,461 | $ | 1,185,114 | ||||||||
| Professional services revenue | 25,008 | 28,030 | 47,843 | 55,315 | ||||||||||||
| Other non-subscription product revenue | 8,242 | 2,273 | 16,983 | 5,248 | ||||||||||||
| Total revenue | $ | 565,233 | $ | 654,721 | $ | 1,076,287 | $ | 1,245,677 | ||||||||
| Disaggregation of billings: | ||||||||||||||||
| Subscription billings | $ | 572,759 | $ | 733,737 | $ | 1,101,673 | $ | 1,298,029 | ||||||||
| Professional services billings | 35,482 | 40,348 | 58,960 | 64,477 | ||||||||||||
| Other non-subscription product billings | 8,242 | 2,273 | 16,983 | 5,248 | ||||||||||||
| Total billings | $ | 616,483 | $ | 776,358 | $ | 1,177,616 | $ | 1,367,754 | ||||||||
Subscription revenue — Subscription revenue includes any performance obligation which has a defined term, and is generated from the sales of software entitlement and support subscriptions, subscription software licenses and cloud-based software-as-a-service, or SaaS, offerings.
- Ratable — We recognize revenue from software entitlement and support subscriptions and SaaS offerings ratably over the contractual service period, the substantial majority of which relate to software entitlement and support subscriptions.
- Upfront — Revenue from our subscription software licenses is generally recognized upfront upon transfer of control to the customer, which happens when we make the software available to the customer.
Professional services revenue — We also sell professional services with our products. We recognize revenue related to professional services as they are performed.
Other non-subscription product revenue — Other non-subscription product revenue includes approximately
- Non-portable software revenue — Non-portable software revenue includes sales of our platform when delivered on a configured-to-order appliance by us or one of our OEM partners. The software licenses associated with these sales are typically non-portable and can be used over the life of the appliance on which the software is delivered. Revenue from our non-portable software products is generally recognized upon transfer of control to the customer.
- Hardware revenue — In the infrequent transactions where the hardware appliance is purchased directly from Nutanix, we consider ourselves to be the principal in the transaction and we record revenue and costs of goods sold on a gross basis. We consider the amount allocated to hardware revenue to be equivalent to the cost of the hardware procured. Hardware revenue is generally recognized upon transfer of control to the customer.
| Annual Recurring Revenue | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended January 31, | Six Months Ended January 31, | |||||||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Annual Recurring Revenue (ARR) | $ | 1,737,364 | $ | 2,059,506 | $ | 1,737,364 | $ | 2,059,506 | ||||||||
| Reconciliation of GAAP to Non-GAAP Profit Measures | ||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||
| GAAP | Non-GAAP Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||||||
| Three Months Ended January 31, 2025 | (1) | (2) | (3) | (4) | (5) | (6) | (7) | Three Months Ended January 31, 2025 | ||||||||||||||||||||||||||||
| (in thousands, except percentages and per share data) | ||||||||||||||||||||||||||||||||||||
| Gross profit | $ | 569,433 | $ | 8,137 | $ | 767 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 578,337 | ||||||||||||||||||
| Gross margin | 87.0 | % | 1.2 | % | 0.1 | % | — | — | — | — | — | 88.3 | % | |||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||||||
| Sales and marketing | 261,382 | (21,397 | ) | (88 | ) | — | — | — | — | — | 239,897 | |||||||||||||||||||||||||
| Research and development | 182,785 | (46,765 | ) | — | — | — | — | — | — | 136,020 | ||||||||||||||||||||||||||
| General and administrative | 59,828 | (17,129 | ) | — | (1,568 | ) | — | — | — | — | 41,131 | |||||||||||||||||||||||||
| Total operating expenses | 503,995 | (85,291 | ) | (88 | ) | (1,568 | ) | — | — | — | — | 417,048 | ||||||||||||||||||||||||
| Income from operations | 65,438 | 93,428 | 855 | 1,568 | — | — | — | — | 161,289 | |||||||||||||||||||||||||||
| Operating margin | 10.0 | % | 14.3 | % | 0.1 | % | 0.2 | % | — | — | — | — | 24.6 | % | ||||||||||||||||||||||
| Net income | $ | 56,427 | $ | 93,428 | $ | 855 | $ | 1,568 | $ | (20 | ) | $ | 1,674 | $ | 11,347 | $ | (151 | ) | $ | 165,128 | ||||||||||||||||
| Weighted shares outstanding, basic | 267,138 | 267,138 | ||||||||||||||||||||||||||||||||||
| Weighted shares outstanding, diluted (8) | 293,351 | 293,351 | ||||||||||||||||||||||||||||||||||
| Net income per share, basic | $ | 0.21 | $ | 0.35 | $ | - | $ | 0.01 | $ | - | $ | 0.01 | $ | 0.04 | $ | - | $ | 0.62 | ||||||||||||||||||
| Net income per share, diluted (9) | $ | 0.19 | $ | 0.56 | ||||||||||||||||||||||||||||||||
____________________________
(1) Stock-based compensation expense
(2) Amortization of intangible assets
(3) Legal fees
(4) Other
(5) Amortization of debt issuance costs and interest expense related to convertible senior notes
(6) Inducement expense related to partial repurchase of the 2027 Notes
(7) Income tax effect primarily related to stock-based compensation expense
(8) Includes 26,214 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans
(9) In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back
| GAAP | Non-GAAP Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||||||
| Six Months Ended January 31, 2025 | (1) | (2) | (3) | (4) | (5) | (6) | (7) | Six Months Ended January 31, 2025 | ||||||||||||||||||||||||||||
| (in thousands, except percentages and per share data) | ||||||||||||||||||||||||||||||||||||
| Gross profit | $ | 1,077,719 | $ | 16,169 | $ | 1,534 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,095,422 | ||||||||||||||||||
| Gross margin | 86.5 | % | 1.3 | % | 0.1 | % | — | — | — | — | — | 87.9 | % | |||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||||||
| Sales and marketing | 514,783 | (42,045 | ) | (176 | ) | — | — | — | — | — | 472,562 | |||||||||||||||||||||||||
| Research and development | 356,744 | (90,327 | ) | — | — | — | — | — | — | 266,417 | ||||||||||||||||||||||||||
| General and administrative | 113,504 | (33,636 | ) | — | (2,935 | ) | — | — | — | — | 76,933 | |||||||||||||||||||||||||
| Total operating expenses | 985,031 | (166,008 | ) | (176 | ) | (2,935 | ) | — | — | — | — | 815,912 | ||||||||||||||||||||||||
| Income from operations | 92,688 | 182,177 | 1,710 | 2,935 | — | — | — | — | 279,510 | |||||||||||||||||||||||||||
| Operating margin | 7.4 | % | 14.7 | % | 0.1 | % | 0.2 | % | — | — | — | — | 22.4 | % | ||||||||||||||||||||||
| Net income | $ | 86,353 | $ | 182,177 | $ | 1,710 | $ | 2,935 | $ | (130 | ) | $ | 11,347 | $ | 2,419 | $ | 90 | $ | 286,901 | |||||||||||||||||
| Weighted shares outstanding, basic | 266,842 | 266,842 | ||||||||||||||||||||||||||||||||||
| Weighted shares outstanding, diluted (8) | 291,086 | 291,086 | ||||||||||||||||||||||||||||||||||
| Net income per share, basic | $ | 0.32 | $ | 0.69 | $ | 0.01 | $ | 0.01 | $ | - | $ | 0.04 | $ | 0.01 | $ | - | $ | 1.08 | ||||||||||||||||||
| Net income per share, diluted (9) | $ | 0.30 | $ | 0.99 | ||||||||||||||||||||||||||||||||
____________________________
(1) Stock-based compensation expense
(2) Amortization of intangible assets
(3) Legal fees
(4) Other
(5) Inducement expense related to partial repurchase of the 2027 Notes
(6) Amortization of debt issuance costs and interest expense related to convertible senior notes
(7) Income tax effect primarily related to stock-based compensation expense
(8) Includes 24,243 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans
(9) In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back
| GAAP | Non-GAAP Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||
| Three Months Ended January 31, 2024 | (1) | (2) | (3) | (4) | (5) | (6) | Three Months Ended January 31, 2024 | |||||||||||||||||||||||||
| (in thousands, except percentages and per share data) | ||||||||||||||||||||||||||||||||
| Gross profit | $ | 483,677 | $ | 8,880 | $ | 749 | $ | — | $ | — | $ | — | $ | — | $ | 493,306 | ||||||||||||||||
| Gross margin | 85.6 | % | 1.6 | % | 0.1 | % | — | — | — | — | 87.3 | % | ||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||
| Sales and marketing | 236,702 | (20,738 | ) | (82 | ) | 194 | — | — | — | 216,076 | ||||||||||||||||||||||
| Research and development | 160,401 | (40,541 | ) | — | — | — | — | — | 119,860 | |||||||||||||||||||||||
| General and administrative | 49,529 | (15,810 | ) | — | — | (227 | ) | — | — | 33,492 | ||||||||||||||||||||||
| Total operating expenses | 446,632 | (77,089 | ) | (82 | ) | 194 | (227 | ) | — | — | 369,428 | |||||||||||||||||||||
| Income from operations | 37,045 | 85,969 | 831 | (194 | ) | 227 | — | — | 123,878 | |||||||||||||||||||||||
| Operating margin | 6.6 | % | 15.2 | % | 0.1 | % | — | — | — | — | 21.9 | % | ||||||||||||||||||||
| Net income | $ | 32,795 | $ | 85,969 | $ | 831 | $ | (194 | ) | $ | 117 | $ | 16,651 | $ | 177 | $ | 136,346 | |||||||||||||||
| Weighted shares outstanding, basic | 243,853 | 243,853 | ||||||||||||||||||||||||||||||
| Weighted shares outstanding, diluted (7) | 298,540 | 298,540 | ||||||||||||||||||||||||||||||
| Net income per share, basic | $ | 0.13 | $ | 0.36 | $ | - | $ | - | $ | - | $ | 0.07 | $ | - | $ | 0.56 | ||||||||||||||||
| Net income per share, diluted (8) | $ | 0.12 | $ | 0.46 | ||||||||||||||||||||||||||||
____________________________
(1) Stock-based compensation expense
(2) Amortization of intangible assets
(3) Restructuring charges (reversals)
(4) Other
(5) Amortization of debt discount and issuance costs and interest expense related to convertible senior notes
(6) Income tax effect primarily related to stock-based compensation expense
(7) Includes 54,687 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans
(8) In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back
| GAAP | Non-GAAP Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||
| Six Months Ended January 31, 2024 | (1) | (2) | (3) | (4) | (5) | (6) | Six Months Ended January 31, 2024 | |||||||||||||||||||||||||
| (in thousands, except percentages and per share data) | ||||||||||||||||||||||||||||||||
| Gross profit | $ | 912,772 | $ | 17,924 | $ | 1,860 | $ | — | $ | — | $ | — | $ | — | $ | 932,556 | ||||||||||||||||
| Gross margin | 84.8 | % | 1.6 | % | 0.2 | % | — | — | — | — | 86.6 | % | ||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||
| Sales and marketing | 472,025 | (42,209 | ) | (119 | ) | 194 | — | — | — | 429,891 | ||||||||||||||||||||||
| Research and development | 312,376 | (78,945 | ) | — | — | — | — | — | 233,431 | |||||||||||||||||||||||
| General and administrative | 97,032 | (30,889 | ) | — | — | (273 | ) | — | — | 65,870 | ||||||||||||||||||||||
| Total operating expenses | 881,433 | (152,043 | ) | (119 | ) | 194 | (273 | ) | — | — | 729,192 | |||||||||||||||||||||
| Income from operations | 31,339 | 169,967 | 1,979 | (194 | ) | 273 | — | — | 203,364 | |||||||||||||||||||||||
| Operating margin | 2.9 | % | 15.8 | % | 0.2 | % | — | — | — | — | 18.9 | % | ||||||||||||||||||||
| Net income | $ | 16,942 | $ | 169,967 | $ | 1,979 | $ | (194 | ) | $ | 1,083 | $ | 32,998 | $ | 451 | $ | 223,226 | |||||||||||||||
| Weighted shares outstanding, basic | 242,667 | 242,667 | ||||||||||||||||||||||||||||||
| Weighted shares outstanding, diluted(7) | 294,851 | 294,851 | ||||||||||||||||||||||||||||||
| Net income per share, basic | $ | 0.07 | $ | 0.70 | $ | 0.01 | $ | - | $ | - | $ | 0.14 | $ | - | $ | 0.92 | ||||||||||||||||
| Net income per share, diluted(8) | $ | 0.09 | $ | 0.76 | ||||||||||||||||||||||||||||
____________________________
(1) Stock-based compensation expense
(2) Amortization of intangible assets
(3) Restructuring charges (reversals)
(4) Other
(5) Amortization of debt discount and issuance costs and interest expense related to convertible senior notes
(6) Income tax effect primarily related to stock-based compensation expense
(7) Includes 52,184 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans
(8) In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back
| Reconciliation of GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended January 31, | Six Months Ended January 31, | |||||||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Net cash provided by operating activities | $ | 186,408 | $ | 221,670 | $ | 331,881 | $ | 383,421 | ||||||||
| Purchases of property and equipment | (23,764 | ) | (34,607 | ) | (36,784 | ) | (44,438 | ) | ||||||||
| Free cash flow | $ | 162,644 | $ | 187,063 | $ | 295,097 | $ | 338,983 | ||||||||
FAQ
What was Nutanix's (NTNX) ARR growth in Q2 2025?
How much did Nutanix raise through convertible notes in December 2024?
What is the size of Nutanix's new revolving credit facility in 2025?
What were the key findings from Nutanix's 7th Enterprise Cloud Index Survey?
