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Nutanix (NTNX) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
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For the quarter ended April 2024, Nutanix (NTNX - Free Report) reported revenue of $524.58 million, up 16.9% over the same period last year. EPS came in at $0.28, compared to $0.04 in the year-ago quarter.
The reported revenue represents a surprise of +1.64% over the Zacks Consensus Estimate of $516.13 million. With the consensus EPS estimate being $0.17, the EPS surprise was +64.71%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Nutanix performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Annual Contract Value Billings (ACV Billings): $288.85 million compared to the $270.57 million average estimate based on six analysts.
Total Billings: $557.29 million versus $532.62 million estimated by four analysts on average.
Disaggregation of billings - Professional services billings: $29.65 million versus $26.91 million estimated by four analysts on average.
Disaggregation of billings - Subscription billings: $515.92 million versus $497.33 million estimated by three analysts on average.
Annual Recurring Revenue (ARR): $1.82 billion versus the two-analyst average estimate of $1.84 billion.
Revenue- Product: $255.47 million versus the six-analyst average estimate of $248.48 million. The reported number represents a year-over-year change of +20.2%.
Revenue- Support, entitlements and other services: $269.11 million versus $267.67 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +14% change.
Disaggregation of Revenue- Subscription revenue: $486.62 million versus the four-analyst average estimate of $484.11 million. The reported number represents a year-over-year change of +16.6%.
Disaggregation of Revenue- Non-portable software revenue: $11.10 million versus the four-analyst average estimate of $6.35 million. The reported number represents a year-over-year change of +33%.
Disaggregation of Revenue- Professional services revenue: $26.24 million versus $24.50 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +18.7% change.
Disaggregation of Revenue- Hardware revenue: $0.60 million versus $0.53 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -3.1% change.
Shares of Nutanix have returned +18.3% over the past month versus the Zacks S&P 500 composite's +4.3% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.
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Nutanix (NTNX) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended April 2024, Nutanix (NTNX - Free Report) reported revenue of $524.58 million, up 16.9% over the same period last year. EPS came in at $0.28, compared to $0.04 in the year-ago quarter.
The reported revenue represents a surprise of +1.64% over the Zacks Consensus Estimate of $516.13 million. With the consensus EPS estimate being $0.17, the EPS surprise was +64.71%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Nutanix performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Annual Contract Value Billings (ACV Billings): $288.85 million compared to the $270.57 million average estimate based on six analysts.
- Total Billings: $557.29 million versus $532.62 million estimated by four analysts on average.
- Disaggregation of billings - Professional services billings: $29.65 million versus $26.91 million estimated by four analysts on average.
- Disaggregation of billings - Subscription billings: $515.92 million versus $497.33 million estimated by three analysts on average.
- Annual Recurring Revenue (ARR): $1.82 billion versus the two-analyst average estimate of $1.84 billion.
- Revenue- Product: $255.47 million versus the six-analyst average estimate of $248.48 million. The reported number represents a year-over-year change of +20.2%.
- Revenue- Support, entitlements and other services: $269.11 million versus $267.67 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +14% change.
- Disaggregation of Revenue- Subscription revenue: $486.62 million versus the four-analyst average estimate of $484.11 million. The reported number represents a year-over-year change of +16.6%.
- Disaggregation of Revenue- Non-portable software revenue: $11.10 million versus the four-analyst average estimate of $6.35 million. The reported number represents a year-over-year change of +33%.
- Disaggregation of Revenue- Professional services revenue: $26.24 million versus $24.50 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +18.7% change.
- Disaggregation of Revenue- Hardware revenue: $0.60 million versus $0.53 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -3.1% change.
View all Key Company Metrics for Nutanix here>>>Shares of Nutanix have returned +18.3% over the past month versus the Zacks S&P 500 composite's +4.3% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.