Photo Credit: Evgeni Tcherkasski from Pixabay

Enterprise cloud computing player Nutanix (Nasdaq: NTNX) recently announced its fiscal year results that outpaced market expectations. The company’s strong performance and guidance helped drive the stock 15% higher in the after-hours trading session.

Nutanix’s Financials

For the fourth quarter of the year, revenues grew 28% to $494.2 million, ahead of the market’s forecast by 3.91%. ACV billings grew 44% to $278.7 million, ahead of the consensus and guidance by 17 points, making it the highest beat versus guide since the company started guiding on this metric. EPS was $0.24, compared with the Street’s forecast of $0.15.

By segment, Nutanix’s subscription revenues grew 31% to $459.5 million while revenues from non-portable software fell 9% to $10.38 million. Revenues from hardware grew 3% to $351 million and professional software revenue grew 4% to $24.02 million.

For the fiscal year, Nutanix reported revenues of $1.86 billion, up 18%. It ended the year with earnings of $0.60 per share.

For the first quarter, Nutanix forecast revenues of $495-$505 million compared with the market’s estimates of $501.14 million. For the fiscal year, it forecast revenues of $2.085-$2.115 billion compared with the market’s estimates of $2.1 billion.

Nutanix’s Cloud Expansion

Recently, Nutanix announced a partnership with Cisco (CSCO) that will accelerate hybrid multi-cloud deployments by offering the most complete hyper-converged solution for IT modernization and business transformation. The partnership will work to simplify and accelerate the delivery of infrastructure and applications at a global scale through its cloud operating models that will provide flexibility and automated resiliency.

The new offering integrates Cisco Unified Computing System with Cisco Intersight and Nutanix Cloud Infrastructure, Nutanix Cloud Manager, Nutanix Unified Storage, and Nutanix Desktop Services. It will be sold by Cisco and customers will receive a fully integrated and validated solution sold, built, managed, and supported holistically, providing a seamless end-to-end experience. The partnership will also integrate advanced Cisco servers (UCS), networking and security (ACI), and management (UCS Manager, Intersight) with the Nutanix Cloud Platform software.

Nutanix is also building its generative AI muscle and recently announced the Nutanix GPT-in-a-Box solution for customers looking to accelerate their AI and ML capabilities. The new offering is a full-stack software-defined AI-ready platform, along with services to help organizations size and configure hardware and software infrastructure suitable to deploy a curated set of large language models (LLMs) using the open source AI and MLOps frameworks on the Nutanix Cloud Platform. It allows customers to procure AI-ready infrastructure to fine-tune and run generative pre-trained transformers, including LLMs at the edge or in their datacenter. The offering will help its customers quickly and efficiently leverage the power of generative AI and AI/ML applications, especially for those use cases that cannot be run in the public cloud because of data sovereignty, governance, and privacy concerns.

Its stock is currently trading at $34.9 with a market capitalization of $8.23 billion. It hit a 52-week high of $36.50 in August and a 52-week low of $19.96 in September last year.

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