top partner

for CFD

What happened

Shares of Nutanix (NASDAQ: NTNX) were up 12.3% as of 2:20 p.m. ET Friday after the cloud computing and hyperconverged infrastructure (HCI) specialist announced strong fiscal 2023 fourth-quarter results (for the period ended July 31).

Nutanix’s quarterly revenue climbed 28% year over year, to $494.2 million, translating to adjusted earnings of $67.5 million, or $0.24 per diluted share. By comparison, most analysts were modeling adjusted earnings of only $0.16 per share on revenue of $475.9 million.

So what

Nutanix CEO Rajiv Ramaswami credited the company’s subscription model for driving “consistent execution over the course of the year against an uncertain macro backdrop.”

Nutanix’s annual contract value (ACV) billings — a key metric helping analysts measure future growth — grew an impressive 44% year over year during the quarter, to $278.7 million, while annual recurring revenue (ARR) climbed 30% to $1.56 billion to end the fiscal year. The average contract term for Nutanix’s clients was exactly three years, contracting only slightly from 3.2 years at the same point last year.

Nutanix also saw a sharp improvement in its cash generation, with quarterly free cash flow nearly doubling year over year to $45.5 million.

Now what

If that wasn’t enough, Nutanix announced its board of directors has authorized the repurchase of up to $350 million of its Class A common stock — a sum representing around 4.5% of Nutanix’s total shares outstanding at today’s prices.

Finally, Nutanix initiated full fiscal-year 2024 guidance for revenue in the range of $2.085 billion to $2.115 billion, with even the bottom end well above analysts’ consensus expectations for revenue of $2.08 billion.

All things considered, this was as strong a quarter as any Nutanix investor (including myself) could have hoped. Shares of the leading cloud computing stock are responding in kind.

10 stocks we like better than Nutanix
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now… and Nutanix wasn’t one of them! That’s right — they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of August 28, 2023

Steve Symington has positions in Nutanix. The Motley Fool recommends Nutanix. The Motley Fool has a disclosure policy.

Read the full story: Read More“>

Blog powered by G6

Disclaimer! A guest author has made this post. G6 has not checked the post. its content and attachments and under no circumstances will G6 be held responsible or liable in any way for any claims, damages, losses, expenses, costs or liabilities whatsoever (including, without limitation, any direct or indirect damages for loss of profits, business interruption or loss of information) resulting or arising directly or indirectly from your use of or inability to use this website or any websites linked to it, or from your reliance on the information and material on this website, even if the G6 has been advised of the possibility of such damages in advance.

For any inquiries, please contact [email protected]