Nutanix Inc. (NTNX) shares experienced a significant surge in after-hours trading on Wednesday, fueled by the company’s strong performance in its fiscal fourth quarter. The cloud computing company surpassed analysts’ expectations for both revenue and earnings per share.
In the fourth quarter, Nutanix generated $547.95 million in revenue, surpassing the consensus estimate of $536.94 million. The company also reported earnings per share of 27 cents, exceeding the anticipated 20 cents. This marked a substantial year-over-year increase in revenue, up 11%, and demonstrated improved profitability.
Nutanix highlighted its continued growth in recurring revenue, which climbed 22% year-over-year, further solidifying its position in the cloud computing market. The company also reported strong cash flow metrics, with operating cash flow reaching $244.7 million and free cash flow hitting $224.3 million in the quarter.
Rajiv Ramaswami, president, and CEO of Nutanix, expressed satisfaction with the company’s financial performance, stating that the fourth quarter marked a solid conclusion to a fiscal year that showcased positive progress in their financial model, particularly in terms of top-line growth and enhanced profitability.
Looking ahead, Nutanix is optimistic about its prospects. The company anticipates first-quarter revenue to fall between $565 million and $575 million, surpassing analysts’ estimates of $536.91 million. For the full year, Nutanix projects revenue to range from $2.435 billion to $2.465 billion, a significant increase compared to the consensus estimate of $2.139 billion.
The positive financial results and upbeat outlook spurred investor confidence, leading to a substantial increase in Nutanix’s stock price. NTNX shares surged by 14.09% in after-hours trading, reaching $59.66 at the time of publication.
