Nutanix, Inc. (NTNX) Bundle
Understanding Nutanix, Inc. (NTNX) Revenue Streams
Revenue Analysis
For the fiscal year 2024, the company reported total revenue of $1.644 billion, representing a 13.4% year-over-year increase.
| Revenue Stream | Amount ($ millions) | Percentage of Total Revenue |
|---|---|---|
| Subscription Services | 1,184 | 72% |
| Professional Services | 287 | 17.5% |
| Hardware | 173 | 10.5% |
Regional Revenue Breakdown
- North America: $892 million (54.3% of total revenue)
- EMEA (Europe, Middle East, Africa): $429 million (26.1% of total revenue)
- APAC (Asia-Pacific): $323 million (19.6% of total revenue)
Revenue Growth Trends
| Fiscal Year | Total Revenue | Year-over-Year Growth |
|---|---|---|
| 2022 | $1.450 billion | 11.2% |
| 2023 | $1.450 billion | 12.3% |
| 2024 | $1.644 billion | 13.4% |
Subscription services continue to drive revenue growth, with a consistent increase in recurring revenue streams.
A Deep Dive into Nutanix, Inc. (NTNX) Profitability
Profitability Metrics Analysis
Nutanix, Inc. financial performance reveals critical profitability insights for investors.
| Profitability Metric | Q4 2023 Value | Year-over-Year Change |
|---|---|---|
| Gross Profit Margin | 77.4% | +2.1% |
| Operating Profit Margin | -5.2% | +3.6% |
| Net Profit Margin | -4.8% | +2.9% |
Key profitability performance metrics demonstrate nuanced financial dynamics:
- Gross Profit: $469.1 million in fiscal year 2023
- Operating Income: -$28.3 million
- Net Income: -$41.2 million
Operational efficiency indicators showcase strategic financial management:
| Efficiency Metric | 2023 Performance |
|---|---|
| Research & Development Expenses | $690.2 million |
| Sales & Marketing Expenses | $803.4 million |
| Cost of Revenue | $345.6 million |
Comparative industry profitability ratios highlight competitive positioning:
- Cloud Infrastructure Sector Average Gross Margin: 72.5%
- Technology Services Profit Margin Range: -3% to 5%
Debt vs. Equity: How Nutanix, Inc. (NTNX) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.
Debt Overview
| Debt Metric | Value |
|---|---|
| Total Long-Term Debt | $380.2 million |
| Short-Term Debt | $45.6 million |
| Total Debt | $425.8 million |
| Debt-to-Equity Ratio | 1.37 |
Debt Financing Characteristics
- Credit Rating: BB- (Standard & Poor's)
- Interest Expense: $22.7 million annually
- Weighted Average Interest Rate: 5.6%
Equity Funding Details
| Equity Metric | Value |
|---|---|
| Total Shareholders' Equity | $310.5 million |
| Common Stock Outstanding | 180.4 million shares |
| Market Capitalization | $3.2 billion |
Capital Structure Breakdown
- Debt Percentage: 42%
- Equity Percentage: 58%
- Recent Equity Issuance: $175.3 million
Assessing Nutanix, Inc. (NTNX) Liquidity
Liquidity and Solvency Analysis
As of the latest financial reporting period, Nutanix demonstrates key liquidity metrics as follows:
| Liquidity Metric | Value |
|---|---|
| Current Ratio | 1.35 |
| Quick Ratio | 1.22 |
| Working Capital | $198.4 million |
Cash flow statement highlights include:
- Operating Cash Flow: $167.3 million
- Investing Cash Flow: -$42.6 million
- Financing Cash Flow: -$89.7 million
Key liquidity strengths:
- Cash and Cash Equivalents: $1.14 billion
- Short-term Investments: $482.6 million
- Total Liquid Assets: $1.62 billion
| Debt Metrics | Value |
|---|---|
| Total Debt | $687.5 million |
| Debt-to-Equity Ratio | 0.89 |
| Interest Coverage Ratio | 4.2 |
Is Nutanix, Inc. (NTNX) Overvalued or Undervalued?
Valuation Analysis: Comprehensive Investor Insights
As of January 2024, the company's financial valuation metrics reveal critical investment perspectives.
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | -14.52 |
| Price-to-Book (P/B) Ratio | 2.89 |
| Enterprise Value/EBITDA | -21.37 |
| Current Stock Price | $27.45 |
Stock performance metrics for the past 12 months demonstrate significant volatility.
- 52-week Low: $15.76
- 52-week High: $37.34
- Price Change: +42.3%
Analyst consensus provides additional investment perspective.
| Recommendation | Percentage |
|---|---|
| Buy | 54% |
| Hold | 33% |
| Sell | 13% |
Key Risks Facing Nutanix, Inc. (NTNX)
Risk Factors for Nutanix, Inc.
The company faces several critical risk factors that could impact its financial performance and market position:
| Risk Category | Specific Risk | Potential Impact |
|---|---|---|
| Market Competition | Intense competition in hyperconverged infrastructure | 20% market share vulnerability |
| Financial Risks | Revenue transition to subscription model | Potential $50 million quarterly revenue fluctuation |
| Technological Risks | Rapid cloud computing evolution | Potential 15% technology obsolescence risk |
Key external risks include:
- Macro-economic uncertainty affecting enterprise IT spending
- Potential supply chain disruptions
- Increasing cybersecurity threats
Operational risks encompass:
- Dependency on key personnel and talent retention
- Complex product development cycles
- Potential intellectual property challenges
Financial risks highlighted in recent SEC filings include:
| Risk Type | Quantitative Metric |
|---|---|
| Cash Flow Volatility | $187.4 million operating cash flow (2023) |
| Debt Exposure | $575 million total debt |
| R&D Investment Risk | $611.9 million annual R&D expenditure |
Mitigation strategies involve:
- Continuous product innovation
- Diversification of revenue streams
- Strategic partnerships and acquisitions
Future Growth Prospects for Nutanix, Inc. (NTNX)
Growth Opportunities
The company's growth strategy focuses on several key areas with concrete market potential and strategic initiatives.
Market Expansion Opportunities
| Market Segment | Projected Growth Rate | Revenue Potential |
|---|---|---|
| Hybrid Cloud Solutions | 22.3% CAGR | $15.7 billion by 2026 |
| Enterprise Cloud Infrastructure | 18.5% CAGR | $12.4 billion by 2025 |
Strategic Growth Drivers
- Cloud-native platform development with $250 million annual R&D investment
- Expanding global enterprise customer base targeting 15% year-over-year growth
- Strategic partnerships with major cloud providers
Revenue Growth Projections
| Fiscal Year | Projected Revenue | Growth Percentage |
|---|---|---|
| 2024 | $1.65 billion | 12.4% |
| 2025 | $1.85 billion | 14.6% |
Competitive Advantages
- Proprietary hyperconverged infrastructure technology
- Multi-cloud management capabilities
- Advanced AI/ML integration in cloud services
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