Breaking Down Nutanix, Inc. (NTNX) Financial Health: Key Insights for Investors

Breaking Down Nutanix, Inc. (NTNX) Financial Health: Key Insights for Investors

US | Technology | Software - Infrastructure | NASDAQ

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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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