On November 29, 2023, Nutanix Inc (NTNX, Financial) released its 8-K filing, announcing its financial results for the first quarter ended October 31, 2023. The company reported a robust start to the fiscal year with a 24% year-over-year growth in ACV Billings, reaching $287.2 million, and an 18% increase in revenue, which amounted to $511.1 million. Nutanix also saw a significant improvement in its free cash flow, which soared to $132.5 million from $45.8 million in the same quarter of the previous fiscal year.
Financial Performance Overview
Nutanix's financial results for the first quarter of fiscal 2024 reflect a solid performance, with notable year-over-year improvements across several key metrics. The company's Annual Recurring Revenue (ARR) saw a 30% increase to $1.66 billion, while the GAAP Gross Margin expanded by 300 basis points to 84.0%. Non-GAAP Gross Margin also improved by 250 basis points to 85.9%. Operating expenses on a GAAP basis saw a marginal increase of 1% to $434.8 million, while Non-GAAP Operating Expenses were up 2% to $359.8 million. The GAAP Operating Loss narrowed significantly to $(5.7) million from $(80.7) million in Q1 FY23, and the company achieved a Non-GAAP Operating Income of $79.5 million, a substantial increase from $10.2 million in the prior year.
Balance Sheet and Cash Flow Highlights
The balance sheet of Nutanix Inc (NTNX, Financial) as of October 31, 2023, shows total assets of $2.57 billion, with current assets accounting for $1.92 billion. Cash and cash equivalents stood at $612.5 million, and short-term investments totaled $958.7 million. The company's total liabilities amounted to $3.21 billion, with a stockholders' deficit of $(642.2) million. The net cash provided by operating activities was a robust $145.5 million, reflecting the company's strong operational performance.
Key Business Highlights and Outlook
During the quarter, Nutanix was recognized as a leader in the Forrester Waveâ„¢ for Hyperconverged Infrastructure and announced enhancements to its platform to bolster cyber resilience against ransomware attacks. Additionally, Micron Technology selected Nutanix's Cloud Platform for its global manufacturing facilities, indicating confidence in Nutanix's solutions.
Looking ahead to the second quarter of fiscal 2024, Nutanix anticipates ACV Billings to be between $295 million and $305 million, with revenue projected in the range of $545 million to $555 million. The company expects Non-GAAP Gross Margin to be between 85% and 86%, and Non-GAAP Operating Margin to range from 14% to 16%. For the full fiscal year 2024, Nutanix forecasts ACV Billings of $1.08 billion to $1.10 billion, revenue between $2.095 billion and $2.125 billion, a Non-GAAP Gross Margin of approximately 85%, and a Non-GAAP Operating Margin of 11.5% to 12.5%. The company also projects a free cash flow of $340 million to $360 million.
These results and forward-looking statements were discussed in more detail during a conference call and webcast held by Nutanix executives on the day of the announcement. Interested parties can find supplementary materials and a replay of the webcast on the Nutanix Investor Relations website.
In summary, Nutanix Inc (NTNX, Financial) has demonstrated a strong start to fiscal 2024, with significant growth in ACV Billings, revenue, and free cash flow. The company's focus on driving towards targets and delivering durable growth and increasing profitability is reflected in its financial performance and outlook for the coming quarters.
Explore the complete 8-K earnings release (here) from Nutanix Inc for further details.
