Nutanix (NTNX) Q4 2024 earnings summary

Executive summary

• FY 2024 revenue reached $2.15 billion, up 15% year-over-year, with strong free cash flow of $598 million, nearly triple the prior year, and 22% ARR growth to $1.91 billion.

• Achieved first full year of positive GAAP operating income ($8 million), marking a key milestone in profitability.

• Q4 2024 revenue was $548 million, up 11% year-over-year, with the highest new logo count in three years (670 added).

• Expanded partnerships with Cisco, Dell, and NVIDIA, and launched innovations like GPT-in-a-Box and Nutanix Data Services for Kubernetes.

• Notable customer wins included a Fortune 100 financial services firm and major deals in EMEA, North America, and Asia.

Financial highlights

• Q4 ACV billings were $338 million, up 21% year-over-year; Q4 ARR was $1.91 billion, up 22%.

• Q4 non-GAAP gross margin was 86.9%; non-GAAP operating margin was 12.9%; non-GAAP net income was $76 million (EPS $0.27).

• Q4 free cash flow was $224.3 million (41% margin); FY 2024 free cash flow was $598 million (28% margin), nearly triple last year.

• FY 2024 non-GAAP operating margin was 16%, up over 700 basis points year-over-year; first full year of positive GAAP operating income ($8 million).

• Rule of 40 score for FY 2024 was 43, up 14 points year-over-year.

Outlook and guidance

• FY 2025 revenue guidance: $2.435–$2.465 billion (14% growth at midpoint); non-GAAP operating margin: 15.5%–17%.

• FY 2025 free cash flow guidance: $540–$600 million (23% margin at midpoint), with a $30 million headwind from lower interest income.

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

• Renewals expected to perform well; average contract duration expected flat to slightly lower.

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