Nutanix, Inc. (NASDAQ: NTNX), a leader in hybrid multicloud computing, today announced financial results for its first quarter ended October 31, 2021.
“Our first quarter was a good start to our fiscal year, demonstrating strong year-over-year top and bottom-line improvement,” said Rajiv Ramaswami, President and CEO of Nutanix. “We continued to execute towards our targets of free cash flow break-even in the second half of calendar 2022 and a 25 percent-plus ACV billings CAGR through fiscal 2025.”
“In our first quarter, we achieved record ACV billings, which grew 33 percent year-over-year, and saw 21 percent year-over-year revenue growth, our highest growth in over three years,” said Duston Williams, CFO of Nutanix. “With the continued progress we’ve made on our subscription model, we believe it’s now appropriate to provide annual guidance. Additionally, having gained a better understanding of potential fluctuations in our average contract term lengths, we are guiding to revenue, on both a quarterly and annual basis.”
First Quarter Fiscal 2022 Financial Summary
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|
Q1 FY’22 |
Q1 FY’21 |
Y/Y Change |
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|
Annual Contract Value (ACV)1 Billings |
$183.3 million |
$137.8 million |
33% |
|||
|
Annual Recurring Revenue (ARR)2 |
$952.6 million |
$569.5 million |
67% |
|||
|
Run-rate Annual Contract Value (ACV)3 |
$1.59 billion |
$1.29 billion |
23% |
|||
|
Average Contract Term4 |
3.1 years |
3.5 years |
(0.4) year |
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|
Revenue5 |
$378.5 million |
$312.8 million |
21% |
|||
|
GAAP Gross Margin |
78.5% |
78.3% |
20 bps |
|||
|
Non-GAAP Gross Margin |
82.1% |
81.9% |
20 bps |
|||
|
GAAP Operating Expenses |
$434.3 million |
$426.9 million |
2% |
|||
|
Non-GAAP Operating Expenses |
$352.6 million |
$341.2 million |
3% |
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|
Free Cash Flow |
$(1.9) million |
$(16.3) million |
$14.4 million |
Reconciliations between GAAP and non-GAAP financial measures and key performance measures, to the extent available, are provided in the tables of this press release.
Recent Company Highlights
- Formed Strategic Partnership with Citrix to Power the Future of Work: Nutanix and Citrix announced a strategic partnership to provide secure, on-demand, and elastic access to apps, desktops, and data from any device, in any location, at any scale through Nutanix hyperconverged infrastructure (HCI) and hybrid multicloud deployments of Citrix DaaS and Virtual Apps and Desktops services.
- Received Recognition from Gartner for Both Core and Emerging Products6: Nutanix was named as a leader in Gartner, Inc.’s Magic Quadrant for Hyperconverged Infrastructure for the fifth time in a row. Nutanix was also named for the first time in Gartner’s October 2021 Gartner Magic Quadrant for Distributed Files and Objects Storage as a Visionary.
- Appointed Dominick Delfino as Chief Revenue Officer: Nutanix announced that it appointed Dominick Delfino to lead the Company’s worldwide sales organization, including sales engineering, sales operations, inside sales, OEM sales, and channel sales, effective December 6, 2021. Mr. Delfino brings more than 20 years of global sales experience, having led software sales and system engineering teams at multiple technology and software companies.
- Appointed Anja Hamilton as Chief People Officer: Nutanix announced that it named Anja Hamilton as Chief People Officer, effective January 4, 2022. She will be responsible for the Company’s global people strategy and operations as Nutanix continues to attract, support and retain top talent. Rukmini Sivaraman, Chief People Officer and SVP of Strategic Finance, will transition to SVP of Finance and Planning and report to Chief Financial Officer, Duston Williams.
- Hosted .NEXT Digital Experience: Nutanix hosted its signature customer event where it saw a record number of new Nutanix professional certifications and viewership of keynotes and breakout sessions.
- Announced New Capabilities for Nutanix’s Cloud Platform: Nutanix launched AOS 6.0 with new integrated, zero-trust security, disaster recovery and virtual networking innovations. The Company also introduced new capabilities that make it easier for customers to simplify data management and optimize database and big data workload performance on the Nutanix Cloud Platform.
Second Quarter Fiscal 2022 Outlook
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|
|
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ACV Billings |
$195 – $200 million |
|
Revenue |
$400 – $410 million |
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Non-GAAP Gross Margin |
Approximately 82% to 82.5% |
|
Non-GAAP Operating Expenses |
$360 – $365 million |
|
Weighted Average Shares Outstanding |
Approximately 218 million |
Fiscal 2022 Outlook
|
|
|
|
ACV Billings |
$740 – $750 million |
|
Revenue |
$1.615 – $1.630 billion |
|
Non-GAAP Gross Margin |
Approximately 82% |
|
Non-GAAP Operating Expenses |
$1.48 – $1.49 billion |
Supplementary materials to this press release, including our first quarter fiscal 2022 earnings presentation, can be found at https://ir.nutanix.com/company/financial.
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