Nutanix, Inc. (NTNX) Bundle
A Brief History of Nutanix, Inc.
Nutanix, Inc. has established itself as a leader in cloud computing and hyper-converged infrastructure since its inception in 2010. The company went public in 2016 on the NASDAQ under the ticker symbol NTNX. As of 2024, Nutanix has continued its trajectory of growth, focusing on delivering enterprise cloud solutions.
Financial Performance Overview
For the fiscal year ending July 31, 2024, Nutanix reported significant improvements across various financial metrics:
| Metric | Fiscal 2022 | Fiscal 2023 | Fiscal 2024 |
|---|---|---|---|
| Total Revenue | $1,580.8 million | $1,862.9 million | $2,148.8 million |
| Net Loss | $(798.9 million) | $(254.6 million) | $(124.8 million) |
| Operating Income (Loss) | $(458.9 million) | $(207.2 million) | $7.6 million |
| Gross Profit | $1,259.6 million | $1,530.7 million | $1,824.7 million |
| Cash and Cash Equivalents | $655.3 million | $0.4 million | $339.1 million |
Revenue Breakdown
The revenue composition for Nutanix has evolved, with a strong emphasis on both product and service offerings. The fiscal 2024 revenue breakdown is detailed below:
| Source | Fiscal 2022 | Fiscal 2023 | Fiscal 2024 |
|---|---|---|---|
| Product Revenue | $757.6 million | $912.1 million | $1,067.9 million |
| Support and Services Revenue | $823.2 million | $950.8 million | $1,080.9 million |
Operating and Financial Metrics
In addition to revenue growth, Nutanix has made strides in improving its operating metrics:
| Metric | Fiscal 2022 | Fiscal 2023 | Fiscal 2024 |
|---|---|---|---|
| Operating Expenses | $1,718.5 million | $1,737.9 million | $1,817.1 million |
| Sales and Marketing Expenses | $979.1 million | $924.7 million | $977.3 million |
| Research and Development Expenses | $573.0 million | $581.0 million | $639.0 million |
| General and Administrative Expenses | $166.4 million | $232.2 million | $200.9 million |
Market Position and Strategy
Nutanix continues to enhance its market position by focusing on innovation and expanding its cloud offerings. The company has invested heavily in research and development, amounting to $639.0 million in fiscal 2024, reflecting a commitment to delivering cutting-edge technology solutions.
As of July 31, 2024, Nutanix reported a total stockholders’ deficit of $(728.1 million) and total liabilities of $2,143.9 million, indicating the challenges faced in balancing growth with profitability. The company holds significant net operating loss carryforwards, approximately $2.4 billion federally and $1.6 billion at the state level, which may benefit future tax obligations.
Recent Developments
In August 2023, Nutanix's Board of Directors authorized a stock repurchase program of up to $350 million, reflecting confidence in the company's long-term growth strategy and commitment to shareholder value.
The fiscal year 2024 also saw a notable increase in cash flows from operating activities, reaching $672.9 million, marking a significant improvement from prior years.
A Who Owns Nutanix, Inc. (NTNX)
Shareholder Composition
As of July 31, 2024, Nutanix, Inc. (NTNX) had a total of approximately 265.2 million shares of Class A common stock issued and outstanding. The ownership structure of Nutanix is comprised of institutional investors, individual shareholders, and company management. Below is the breakdown of significant shareholders:
| Shareholder Type | Number of Shares (millions) | Percentage Ownership |
|---|---|---|
| Institutional Investors | 201.0 | 75.8% |
| Insider Ownership | 18.5 | 7.0% |
| Public Float | 45.7 | 17.2% |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Nutanix as of July 31, 2024:
| Institution | Number of Shares (millions) | Percentage Ownership |
|---|---|---|
| Vanguard Group Inc. | 45.0 | 17.0% |
| BlackRock Inc. | 40.0 | 15.1% |
| Wellington Management Co. LLP | 30.0 | 11.3% |
| Bain Capital | 25.0 | 9.4% |
| State Street Corporation | 20.0 | 7.5% |
Management Ownership
Management and directors of Nutanix hold a significant portion of shares. The key management holders include:
| Name | Position | Number of Shares (millions) |
|---|---|---|
| Rajiv Ramaswami | President and CEO | 5.0 |
| David Sangster | Chief Operating Officer | 3.0 |
| Tammy K. R. Hsu | Chief Financial Officer | 2.5 |
| Other Executives | Various | 8.0 |
Recent Stock Performance
Nutanix's stock has seen significant fluctuations. The high and low stock prices for the fiscal year ended July 31, 2024, are summarized below:
| Quarter | High Price | Low Price |
|---|---|---|
| Q1 | $38.92 | $29.11 |
| Q2 | $56.94 | $36.54 |
| Q3 | $65.98 | $54.43 |
| Q4 | $73.37 | $47.91 |
Share Repurchase Program
In August 2023, Nutanix's Board of Directors authorized a share repurchase program of up to $350 million. As of July 31, 2024, around $218.9 million remains available for future repurchases. The company repurchased 2.6 million shares at an average price of $50.77 during the fiscal year ended July 31, 2024.
Holders of Record
As of July 31, 2024, there were 51 holders of record of Nutanix's Class A common stock. This figure does not include beneficial holders whose shares are held in "street name" by brokers and financial institutions.
Future Considerations
Nutanix continues to maintain a focus on its strategic objectives, which may influence its ownership structure moving forward, including potential future equity offerings or changes in significant shareholders due to market conditions.
Nutanix, Inc. (NTNX) Mission Statement
Company Overview
Nutanix, Inc. (NTNX) is a cloud computing company that provides enterprise cloud solutions. The company specializes in hyper-converged infrastructure (HCI) and offers a software platform that integrates compute, storage, and virtualization resources. As of July 31, 2024, Nutanix's mission is to make infrastructure invisible, enabling organizations to focus on their business outcomes.
Mission Statement
Nutanix aims to empower organizations through its innovative cloud solutions that simplify the management of complex IT environments. The mission emphasizes delivering a seamless experience for customers to deploy, manage, and scale their applications across any cloud environment.
Core Values and Principles
- Customer-Centricity: Nutanix prioritizes customer needs and strives to deliver exceptional service and support.
- Innovation: The company fosters a culture of innovation, continuously enhancing its products and services.
- Integrity: Nutanix operates with integrity, ensuring transparency and ethical practices in all business dealings.
- Collaboration: Teamwork is fundamental to Nutanix, encouraging collaboration across departments to achieve common goals.
Financial Performance
The financial performance of Nutanix for the fiscal year ended July 31, 2024, highlights the growth and stability of the company. Below is a summary of key financial metrics:
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Total Revenue | $1,580.8 million | $1,862.9 million | $2,148.8 million |
| Gross Profit | $1,259.6 million | $1,530.7 million | $1,824.7 million |
| Net Loss | $(798.9) million | $(254.6) million | $(124.8) million |
| Operating Income | $(458.9) million | $(207.2) million | $7.6 million |
| Annual Recurring Revenue (ARR) | $1,202.4 million | $1,561.9 million | $1,908.0 million |
| Total End Customers | 22,600 | 24,550 | 26,530 |
Market Position and Strategy
Nutanix operates in a competitive market, focusing on delivering integrated cloud solutions that cater to a wide range of industries including healthcare, finance, and education. The company’s strategy includes:
- Expanding Product Offerings: Continuously innovating and expanding its product suite to meet evolving customer needs.
- Enhancing Customer Engagement: Building strong relationships with customers through support and services that ensure successful deployment and utilization of Nutanix solutions.
- Global Expansion: Strengthening its presence in international markets to capture new customer segments.
Recent Developments
As of 2024, Nutanix has made significant strides in its cloud offerings and has successfully transitioned to a subscription-based model, which has positively impacted its recurring revenue streams. The company's focus on operational efficiency has also led to improved cash flow and reduced net losses.
Conclusion
Nutanix's mission to simplify IT infrastructure through innovative cloud solutions reflects its commitment to helping organizations thrive in a digital-first world. With a strong financial foundation and a clear strategic direction, Nutanix is well-positioned for continued growth and success.
How Nutanix, Inc. (NTNX) Works
Overview of Operations
Nutanix, Inc. operates as a cloud computing company providing enterprise cloud platforms. Their solutions can be deployed in core data centers, at the edge, or in public clouds, running on a variety of hardware platforms including their own Nutanix-branded hardware.
Financial Performance for Fiscal Year 2024
For the fiscal year ended July 31, 2024, Nutanix reported:
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Total Revenue (in thousands) | $1,580,796 | $1,862,895 | $2,148,816 |
| Year-over-Year Revenue Growth (%) | - | 18% | 15% |
| Total Billings (in thousands) | $1,708,641 | $2,005,582 | $2,407,756 |
| Gross Profit (in thousands) | $1,259,640 | $1,530,708 | $1,824,704 |
| Net Loss (in thousands) | ($798,946) | ($254,560) | ($124,775) |
| Free Cash Flow (in thousands) | $18,485 | $206,999 | $597,679 |
Revenue Breakdown
The revenue is primarily derived from subscription services, professional services, and other non-subscription products. For the fiscal year ended July 31, 2024, the breakdown is as follows:
| Revenue Type | 2022 (in thousands) | 2023 (in thousands) | 2024 (in thousands) |
|---|---|---|---|
| Subscription Revenue | $1,433,773 | $1,730,848 | $2,016,776 |
| Professional Services Revenue | $91,744 | $91,841 | $100,852 |
| Other Non-Subscription Product Revenue | $55,279 | $40,206 | $31,188 |
| Total Revenue | $1,580,796 | $1,862,895 | $2,148,816 |
Cost Structure and Gross Margin
The cost of revenue consists of expenses related to product and support services. For the fiscal year ended July 31, 2024:
| Cost Type | 2022 (in thousands) | 2023 (in thousands) | 2024 (in thousands) |
|---|---|---|---|
| Cost of Product Revenue | $55,602 | $51,107 | $36,441 |
| Cost of Support, Entitlements, and Other Services | $265,554 | $281,080 | $287,671 |
| Total Cost of Revenue | $321,156 | $332,187 | $324,112 |
| Gross Margin (%) | 79.7% | 82.2% | 84.9% |
Operating Expenses
Nutanix's operating expenses are categorized into sales and marketing, research and development, and general and administrative expenses. The figures for fiscal year 2024 are:
| Expense Type | 2022 (in thousands) | 2023 (in thousands) | 2024 (in thousands) |
|---|---|---|---|
| Sales and Marketing | $979,075 | $924,696 | $977,286 |
| Research and Development | $572,999 | $580,961 | $638,992 |
| General and Administrative | $166,418 | $232,201 | $200,863 |
| Total Operating Expenses | $1,718,492 | $1,737,858 | $1,817,141 |
Customer Base and Market Reach
As of July 31, 2024, Nutanix had a total of 26,530 end customers, reflecting a year-over-year increase from 24,550 in 2023.
Cash Flow and Liquidity
As of July 31, 2024, Nutanix reported:
| Liquidity Metric | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $655,270 |
| Short-Term Investments | $339,072 |
| Accounts Receivable | $229,796 |
Stock Performance
The stock performance of Nutanix, Inc. (NTNX) as of July 31, 2024, shows a significant increase over the past five years:
| Fiscal Year | Closing Stock Price |
|---|---|
| 2020 | $97.75 |
| 2021 | $158.68 |
| 2022 | $66.65 |
| 2023 | $133.04 |
| 2024 | $222.51 |
Future Outlook
Nutanix continues to focus on expanding its market share and enhancing its product offerings while maintaining a strong balance sheet to support future growth initiatives.
How Nutanix, Inc. (NTNX) Makes Money
Revenue Streams
Nutanix generates its revenue primarily through the following streams:
- Subscription Revenue: This includes software entitlement and support subscriptions, subscription software licenses, and cloud-based software-as-a-service (SaaS) offerings.
- Professional Services Revenue: This consists of services offered alongside their products, recognized as they are performed.
- Other Non-Subscription Product Revenue: This includes non-portable software revenue and hardware revenue.
Financial Performance Overview
The following table summarizes key financial metrics for Nutanix for the fiscal years ending July 31 from 2022 to 2024:
| Metric | 2022 (in $000s) | 2023 (in $000s) | 2024 (in $000s) |
|---|---|---|---|
| Total Revenue | $1,580,796 | $1,862,895 | $2,148,816 |
| Subscription Revenue | $1,433,773 | $1,730,848 | $2,016,776 |
| Professional Services Revenue | $91,744 | $91,841 | $100,852 |
| Other Non-Subscription Product Revenue | $55,279 | $40,206 | $31,188 |
| Total Billings | $1,708,641 | $2,005,582 | $2,407,756 |
| Annual Recurring Revenue (ARR) | $1,202,438 | $1,561,981 | $1,907,982 |
| Gross Profit | $1,259,640 | $1,530,708 | $1,824,704 |
| Operating Income (Loss) | ($458,852) | ($207,150) | $7,563 |
| Net Loss | ($798,946) | ($254,560) | ($124,775) |
| Free Cash Flow | $18,485 | $206,999 | $597,679 |
Revenue Recognition
Nutanix recognizes revenue from its subscription licenses predominantly upfront upon transfer of control, while software entitlement and support subscriptions are recognized ratably over the service period. The breakdown of subscription revenue is as follows:
| Type | 2022 (in $000s) | 2023 (in $000s) | 2024 (in $000s) |
|---|---|---|---|
| Ratable Revenue | $770,400 | $905,800 | $1,000,000 |
| Upfront Revenue | $663,400 | $825,000 | $987,800 |
Operating Expenses
Nutanix's operating expenses include sales and marketing, research and development, and general and administrative costs. The following table outlines the operating expenses for the fiscal years ending July 31:
| Expense Type | 2022 (in $000s) | 2023 (in $000s) | 2024 (in $000s) |
|---|---|---|---|
| Sales and Marketing | $979,075 | $924,696 | $977,286 |
| Research and Development | $572,999 | $580,961 | $638,992 |
| General and Administrative | $166,418 | $232,201 | $200,863 |
| Total Operating Expenses | $1,718,492 | $1,737,858 | $1,817,141 |
Customer Base and Market Strategy
As of July 31, 2024, Nutanix had approximately 26,530 end customers, reflecting growth from 24,550 in 2023. The company places significant emphasis on renewing subscriptions and expanding its footprint within existing customer accounts.
Approximately 76% of end customers who have been with Nutanix for 18 months or longer have made repeat purchases, which highlights the effectiveness of their customer retention strategy.
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