Hybrid multi-cloud computing company, Nutanix (NASDAQ:NTNX) went up in pre-market trading after the company reported a loss of $0.07 per share in the fiscal first quarter as compared to a loss of $0.44 per share in the same period last year, beating consensus estimates by $0.06 per share.
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The company generated revenues of $511.1 million, up by 17.9% year-over-year and surpassing analysts’ estimates of $521.4 million.
Rukmini Sivaraman, CFO of Nutanix, “Our first quarter marked a good start to our fiscal year with 24% year-over-year ACV billings growth along with strong free cash flow generation. We continue to see good execution and remain focused on driving towards the targets we shared at our recent Investor Day and delivering durable growth and increasing profitability.”
Looking forward, in the fiscal second quarter, the company expects annual contract value (ACV) billings in the range of $295 million to $305 million with revenues anticipated to be between $545 million and $555 million. Adjusted operating margin is likely to be between 14% and 16%.
In FY24, Nutanix has projected annual contract value (ACV) billings in the range of $1.08 billion to $1.10 billion, while revenues are likely to be between $2.095 billion and $2.125 billion.
Is Nutanix a Good Stock to Buy?
Wall Street analysts remain bullish about NTNX stock with a Strong Buy consensus rating based on eight Buys and two Holds. Year-to-date, NTNX stock has surged by more than 50%, and the average NTNX price target of $45.60 implies an upside potential of 9.7% at current levels.
