Nutanix Shares Surge 30% Following Strong Q4 Results & Outlook

Nutanix, Inc. (NASDAQ:NTNX) shares closed nearly 30% higher on Thursday following the company’s reported better-than-expected Q4 results and outlook.

Quarterly EPS came in at ($0.17), compared to the Street estimate of ($0.38). Revenue was $385.5 million, better than the Street estimate of $355.3 million.

Results nicely demonstrated the building base of subscription renewals and were highlighted by ARR of $1.2 billion, up 37% year-over-year, and ACV billings of $193 million beating the guidance of $175–185 million and the Street estimate of $181 million.

For Q1/23, the company anticipates revenue in the range of $410-415 million, compared to the Street estimate of $372.63 million. Full 2023-year revenue is expected in the range of $1.77-1.78 billion, compared to the Street estimate of $1.66 billion.

Analysts at RBC Capital provided their views following the results. While difficulties remain, the analysts noted that they like the step in the right direction and see a number of positives from the quarter. These include renewals that continue to track ahead of expectations, improvements in sales attrition, traction from the new product portfolio, a better full-year outlook that still accounts for the supply chain, and most importantly, the outlook for profitable growth with cash burn part of the legacy bear argument.