Nutanix tops estimates as external storage growth helps counter hardware squeeze
Nutanix Inc. closed out its fiscal year with stronger-than-expected fourth-quarter revenue and profit as annual recurring revenue grew 16% and customers adopted more of the company’s external storage, public-cloud and portfolio offerings.
Revenue for the quarter ended July 31 rose 16% from a year earlier, to $757.1 million, beating the $738.3 million consensus estimate. Adjusted earnings increased to 60 cents a share from 37 cents a year ago, beating the 49-cent analyst estimate.
Annual recurring revenue reached $2.55 billion, also up 16%. Operating income jumped to $198 million from $119.5 million, lifting the adjusted operating margin to 26.2% from 18.3%. Free cash flow rose to $277.6 million from $207.8 million.
Shares climbed more than 6% in initial after-hours trading.
