SAN JOSE, Calif. - Nutanix, Inc. (NASDAQ:NTNX), a leader in hybrid multicloud computing, reported better-than-expected first quarter fiscal 2025 results and provided upbeat guidance, sending its shares surging 10.5% in after-hours trading.
The company reported adjusted earnings per share of $0.42, surpassing the analyst estimate of $0.32 by $0.10. Revenue for the quarter came in at $591 million, beating the consensus estimate of $571.75 million and representing a 16% increase YoY.
Nutanix's Annual Recurring Revenue (ARR) grew 18% YoY to $1.97 billion, demonstrating strong momentum in its subscription-based business model. The company also reported robust free cash flow of $151.9 million, up from $132.5 million in the same quarter last year.
For the second quarter of fiscal 2025, Nutanix expects revenue between $635 million and $645 million, above the consensus estimate of $630.3 million. The company also provided full-year fiscal 2025 revenue guidance of $2.435 billion to $2.465 billion, in line with analyst expectations.
"During our first quarter we delivered outperformance across our guided metrics," said Rajiv Ramaswami, President and CEO of Nutanix. "We also continued to bring innovations to the market supporting our vision of becoming the leading platform for running apps and managing data, anywhere, while strengthening our partner ecosystem."
The company's non-GAAP gross margin improved to 87.5% from 85.9% in the year-ago quarter, while its non-GAAP operating margin expanded to 20% from 15.6%.
Nutanix also announced an expanded strategic collaboration with Amazon (NASDAQ:AMZN) Web Services, Inc. (AWS) to offer access to AWS services for customers looking to migrate to NC2 on AWS.
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