Why Is Cloud Computing Company Nutanix's Stock Diving Thursday?

Zinger Key Points
  • Nutanix's Q3 revenue rose 17% Y/Y to $524.6M, beating consensus of $516.18M, with ACV billings up 20% Y/Y to $288.9M.
  • Nutanix sees Q4 revenue below consensus and also tightened its FY24 revenue forecast.

Nutanix, Inc. NTNX shares are trading lower after the company reported third-quarter FY24 results.

Revenue rose 17% Y/Y to $524.6 million, beating the consensus of $516.18 million.

Annual Contract Value (ACV) billings increased 20% Y/Y to $288.9 million, and Annual Recurring Revenue (ARR) rose 24% Y/Y to $1.82 billion.

Adjusted gross margin expanded 250 bps Y/Y to 86.5% and, adjusted operating margin increased 10.2ppt Y/Y to 14.0% in the quarter. Adjusted EPS of $0.28 exceeded the consensus of $0.17.

Operating cash flow stood at $96.4 million, and free cash flow came in at $78.3 million. As of April-end, cash and cash equivalents stood at $598.03 million, with short-term investments at $1.05 billion.

Outlook: Nutanix sees fourth-quarter ACV billings of $295 million-$305 million and revenue of $530 million-$540 million vs. consensus of $546.07 million.

Nutanix expects FY24 revenue of $2.13 billion-$2.14 billion (prior view $2.12 billion- $2.15 billion) vs. street view of $2.141 billion.

Related: These Analysts Boost Their Forecasts On Nutanix After Q3 Earnings

Investors can gain exposure to the stock via ProShares Big Data Refiners ETF DAT and Series Portfolios Trust Adaptiv Select ETF ADPV.

Price Action: NTNX shares are down 18.1% at $60.02 at the last check Thursday.

Photo via Shutterstock

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