Summary
Nutanix closed fiscal 2024 with revenue of $547.95 million in the fourth quarter, up 10.9% from the prior-year quarter. Full-year revenue reached $2.15 billion, up 15.3%. Gross profit was $466.97 million for the quarter, up 12.9%, and $1.82 billion for the year, up 19.2%. The company reported a fourth-quarter operating loss of $12.19 million, which widened by 7.4% from the prior-year quarter. For the full year, operating income was $7.56 million, a swing to a profit and an increase of 103.7%. Gross margin was 85.2% in the quarter, up 1.5 percentage points, and 84.9% for the full year, up 2.7 percentage points. Operating margin was -2.2% in the quarter, flat with a 0.1 percentage point change, and 0.4% for the full year, up 11.5 percentage points.
The bottom line showed a fourth-quarter net loss of $126.10 million, which widened by 849.1% from the prior-year quarter. The full-year net loss was $124.78 million, narrowing by 51.0%. Diluted EPS for the full year was -$0.51, an improvement of $0.58 and a 53.2% narrowing of the loss per share. Cash generation was a clear positive. Operating cash flow was $244.70 million in the quarter, up 319.7%, and $672.93 million for the year, up 147.0%. Capital expenditures were $20.44 million in the quarter, up 59.7%, and $75.25 million for the year, up 15.1%. Deferred revenue ended the quarter at $1.87 billion, up 17.4% from the prior-year quarter. On a non-GAAP basis, free cash flow was $224.3 million in the quarter versus $45.5 million a year earlier, and $597.7 million for fiscal 2024 versus $207.0 million. Annual recurring revenue reached $1.91 billion, up 22%, while ACV billings were $338.0 million, up 21%. Average contract duration was 3.1 years, compared with 3.0 years. Non-GAAP operating income was $70.5 million in the quarter, and non-GAAP operating margin was 12.9%. Non-GAAP gross margin was 86.9% in the quarter and 86.7% for the full year.
Guidance points to continued growth. For the first quarter of fiscal 2025, Nutanix expects a non-GAAP operating margin of 14.5% to 15.5%. For the full fiscal year 2025, the company guides to a non-GAAP operating margin of 15.5% to 17.0% and free cash flow of $540 million to $600 million. The first-quarter outlook assumes weighted average diluted shares of approximately 287 million. Management also said it will stop reporting ACV billings beginning with the first quarter of fiscal 2025.
Operational metrics show a broad customer base. As of July 31, 2024, Nutanix had over 26,000 end customers, including approximately 1,060 Global 2000 enterprises. The sales force is 79% fully ramped, with 21% still ramping. Among customers with 18 months or more of tenure, 76% made a repeat purchase, and lifetime orders were more than 8.7 times the initial order on average, rising to 30.8 times for Global 2000 customers. The company signed new or enhanced agreements with Cisco, NVIDIA and Dell during fiscal 2024. Risks remain. Management cited macroeconomic and geopolitical uncertainty, a higher mix of larger deals, modest elongation of sales cycles, competition from public cloud infrastructure, reliance on channel and OEM partners, supply chain delays, and the need to attract and retain qualified personnel. The subscription model also depends on renewals and renewal pricing, and legal contingencies can create volatility in results. The company continues to invest in its platform, including generative AI and modern applications, and it plans to grow its research and development and engineering teams over the long term.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $548.0M | $524.6M | +4.5% | $494.2M | +10.9% |
| Gross profit | $467.0M | $445.0M | +4.9% | $413.8M | +12.9% |
| Gross margin | 85.2% | 84.8% | +0.4 pp | 83.7% | +1.5 pp |
| Research & development | $167.4M | $159.2M | +5.1% | $146.2M | +14.5% |
| Sales & marketing | $259.4M | $245.9M | +5.5% | $229.4M | +13.0% |
| General & administrative | $52.4M | $51.4M | +1.9% | $49.5M | +5.9% |
| Total operating expenses | $479.2M | $456.5M | +5.0% | $425.1M | +12.7% |
| Operating income (loss) | -$12.2M | -$11.6M | -5.2% | -$11.3M | -7.4% |
| Operating margin | -2.2% | -2.2% | -0.0 pp | -2.3% | +0.1 pp |
| Net income (loss) | -$126.1M | -$15.6M | -707.5% | -$13.3M | -849.1% |
| Net margin | -23.0% | -3.0% | -20.0 pp | -2.7% | -20.3 pp |
| Diluted EPS | -$0.52 | -$0.06 | -$0.46 | -$0.06 | -$0.46 |
Risks
The filing cites uncertain global macroeconomic and geopolitical conditions, including high inflation, rising interest rates, the 2024 U.S. elections, the ongoing war in Ukraine, and conflict in the Middle East. These conditions may reduce IT spending, lengthen sales cycles, lower prices, and make forecasting sales and operating results difficult.
Customers are increasingly allocating IT spending toward artificial intelligence, machine learning, and generative AI capabilities, and the AI infrastructure market is described as intensely competitive and rapidly evolving. Nutanix is investing in AI offerings such as GPT-in-a-Box, but AI technologies bring regulatory, intellectual property, and reputational risks, including the EU AI Act.
MD&A states the sales pipeline has evolved to include a higher mix of larger deal opportunities, which take longer to close, involve greater competition, and have greater variability in timing and outcome. The company also saw a modest elongation of average sales cycles compared to historical levels, and this trend is expected to drive greater variability in landing new customers and expanding sales.
The competitive market is intensifying across VMware by Broadcom, public cloud providers such as AWS, Google Cloud, Oracle Cloud, and Azure, and traditional IT vendors such as Dell, HPE, and NetApp. The VMware-Broadcom acquisition may create market share opportunities, but many prospects may not be ready due to multi-year VMware contracts or hardware refresh cycles, and Broadcom may respond competitively.
Sales through the top two distributors represented 47% of total revenue for fiscal 2024, and Nutanix relies primarily on indirect sales channels. The filing warns that channel disruption, partner consolidation, or a move to fewer channel partners may reduce contact with end customers, slow renewals, and adversely affect revenue.
The company cites higher-than-normal attrition among sales representatives and the need to recruit, train, and ramp them to full productivity. As of July 31, 2024, approximately 79% of global sales team members were fully ramped and approximately 21% were still ramping, which may affect the ability to achieve growth targets.
Subscription revenue represented 94% of total revenue for fiscal 2024, and a significant portion is recognized ratably over the contractual service period. This delays the revenue impact of any decline in new or renewed subscriptions, makes it difficult to rapidly increase revenue through additional sales, and cloud-based ratable offerings are generally short-term and cancellable.
Nutanix depends on Supermicro and OEM partners to manufacture and ship hardware, and the agreement with Supermicro has no minimum long-term commitment. Chip shortages, manufacturing delays, quality issues, or a switch of contract manufacturers could impair the availability of certified hardware and delay customer consumption of Nutanix software.
The company has outstanding 2027 Notes, and conversion may dilute existing stockholders, reduce earnings per share, and depress the price of its securities. During fiscal 2024, it settled the 2026 Notes conversion by paying $817.6 million in cash and delivering approximately 16.9 million shares, contributing to $107.9 million of interest expense recognized in other expense, net.
Nutanix has incurred GAAP net losses in all annual periods since inception and had an accumulated deficit of $4.8 billion as of July 31, 2024. Although FY2024 year to date operating income was $7.56 million, a swing to a profit from a prior-year loss, and FY2024 year to date net loss narrowed to $124.78 million, the filing says it may not maintain non-GAAP profitability or achieve GAAP profitability in the future.
SaaS KPIs
All quarters →Free Cash Flow
Annual Recurring Revenue (ARR)
Total Billings
Subscription Billings
Non-GAAP Operating Margin
Average Contract Duration
Global 2000 End Customers
ACV Billings
Summary, forecast, risks and KPIs are extracted from Nutanix, Inc.'s SEC filings for Q4 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.