Nutanix (NTNX) Q1 2025 earnings summary

Executive summary

• Achieved Q1 FY25 revenue of $591 million, up 16% year-over-year, with ARR rising 18% to $1.97 billion and strong new logo growth.

• Net income reached $29.9 million, reversing a prior year loss, and free cash flow was $151.9 million.

• Recognized as a leader in the 2024 Gartner Magic Quadrant for Distributed Hybrid Infrastructure.

• Expanded partnership with AWS, including new migration incentives and promotional credits.

• End customer base surpassed 27,000, including over 1,000 Global 2000 enterprises.

Financial highlights

• Q1 revenue was $591 million, up 16% year-over-year, exceeding guidance.

• Non-GAAP gross margin was 87.5%, GAAP gross margin 86.0%; non-GAAP operating margin was 20.0%.

• Net income was $29.9 million; non-GAAP net income was $122 million, with EPS of $0.42.

• Free cash flow was $151.9 million, with a margin of 26%.

• Cash, cash equivalents, and short-term investments totaled $1.08 billion at quarter end.

Outlook and guidance

• Q2 FY25 revenue guidance: $635–$645 million; non-GAAP operating margin: 20%–21%.

• FY25 revenue guidance: $2.435–$2.465 billion; non-GAAP operating margin: 16%–17%; free cash flow: $560–$610 million.

• Guidance assumes continued strong renewals, prudent investment, and flat to slightly lower average contract duration.

• Management expects continued investment in sales and marketing, leveraging channel and OEM partners.

• Cash position expected to be sufficient for anticipated needs over the next 12 months.