Nutanix: Fiscal 4Q22 Financial Results

(in $ million)	4Q21	4Q22	FY21	FY22
Revenue	390.7	385.5	1,394	1,581
*Growth*		-1%		*13%*
Net income (loss)	(358.1)	(151.0)	(1,034)	(797.5)

Nutanix, Inc. announced financial results for its fourth quarter and fiscal year ended July 31, 2022.

“Our 4FQ22 capped off a fiscal year that showed strong Y/Y top and bottom line improvement,” said Rajiv Ramaswami, president and CEO. “FY22 was an important data point in demonstrating the long-term benefits of our subscription business model transition. We expect these benefits to compound further in the coming years as renewals become a bigger share of our business.”

“Our FY22 results reflect strong progress on our subscription model with 27% Y/Y ACV billings growth and achievement of positive free cash flow, which we expect to be sustainable on an annual basis,” said Rukmini Sivaraman, CFO. “We continue to see good execution on our building base of subscription renewals and remain focused on driving towards profitable growth.”

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Nutanix Fiscal 4q22 Financial Results F1

As announced last quarter, revenue was supposed between $340 and $360 million or -19% to -11% for 4FQ22. Final result is higher at $385.5 million, but down 1% Y/Y and 5% Q/Q.

ARR at the end 4FQ22 was $1.202 billion and grew 37% Y/Y. Average contract duration was 3.2 years in 4FQ22, flat from 3.2 years in 3FQ22.

The 4FQ22 came in better than the expectations that the company had set forth in its last earnings call, as indicated earlier this month. ACV billings for 4FQ22 were $193 million, above guidance range of $175 million to $185 million. The outperformance was due to both, renewals and new ACV bookings coming in better than expected. 4FQ22 also benefited from a few large deals, which are harder to forecast. New logo additions in 4FQ22 were around 620.

Customer growth
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Nutanix Fiscal 4q22 Financial Results F3

ACV billings in FY22 were $756 million, representing growth of 27% Y/Y compared to yearly growth of 18% in FY21.

Nutanix closed the quarter with cash and cash equivalents of $1.324 billion, up slightly from $1.3 billion in 3FQ22.

4FQ22 and FY22 Subscription Highlights

Nutanix Fiscal 4q22 Financial Results F2

Earlier this month, the firm reduces its headcount by letting go of approximately 270 employees, about 4% of total headcount which we expect to result in estimated annualized expense reduction of $55 million to $60 million.

Revenue guidance:

For 1FQ23: $410-415 million up 6% to 8% Q/Q, or 8% to 10% Y/Y

For FY23: $1.77-$1.78 billion (the figure announced at the end of 3FQ22 was $1.535 to $1.555 billion) or up 12% to 13% compared to FY22

Revenue and loss of Nutanix
(in $ million)

FY ended
in July

Revenue

Loss

2012

6.6

14.0

2013

30.5