Nutanix (NTNX) Q4 2024 earnings summary

Executive summary

• FY 2024 revenue reached $2.15B, up 15% year-over-year, with ARR growing 22% to $1.91B and free cash flow of $598M, nearly triple last year.

• Achieved first annual GAAP operating profit of $8M in FY 2024, marking a key milestone in profitability.

• Q4 2024 revenue was $548M, up 11% year-over-year, with 670 new logos added, the highest in three years.

• Expanded partnerships with Cisco, Dell, and NVIDIA, with Dell XC Plus now generally available and strategic collaborations driving go-to-market leverage.

• Notable customer wins included a Fortune 100 financial services company, a global research provider, a top North American university, and a major semiconductor firm.

Financial highlights

• Q4 ACV billings were $338M, up 21% year-over-year, and Q4 non-GAAP gross margin was 86.9%, with non-GAAP operating margin at 12.9%.

• Q4 free cash flow was $224.3M (41% margin), and FY 2024 free cash flow reached $598M, with a margin of 28%.

• FY 2024 non-GAAP operating margin was 16%, and non-GAAP net income was $384M, with EPS of $1.31 per share.

• Q4 net loss was $(126.1)M; FY 2024 net loss was $(124.8)M, improved from $(254.6)M in FY23.

• Net dollar-based retention rate for FY 2024 was 114%.

Outlook and guidance

• FY 2025 revenue guidance: $2.435B–$2.465B, representing 14% growth at midpoint; non-GAAP operating margin: 15.5%–17%; free cash flow: $540M–$600M.

• Q1 2025 revenue guidance: $565M–$575M; non-GAAP operating margin: 14.5%–15.5%.

• Renewals expected to remain strong, with average contract duration flat to slightly lower.

• Guidance assumes prudent investment in sales, marketing, and R&D, and a $30M headwind from lower interest income.

• Company will discontinue ACV Billings and non-GAAP gross margin guidance starting FY 2025.