Nutanix shares surge 12% on strong earnings beat and outlook By Investing.com

San Jose, California – Nutanix Company Microsoft (NASDAQ:MSFT) shares rose 12.45% in after-hours trading Wednesday after the hybrid cloud computing company reported fourth-quarter financial results that beat analysts’ expectations and offered an upbeat outlook for fiscal 2025.

The company reported adjusted earnings per share of $0.34, beating the consensus estimate of $0.20 by a wide margin. Revenue for the quarter was $548 million, beating analysts’ expectations of $536.95 million.

Nutanix’s annual recurring revenue rose 22% year-over-year to $1.91 billion, demonstrating strong momentum in its subscription business model. The company also reported strong free cash flow of $224.3 million for the quarter.

“The fourth quarter was a strong end to the fiscal year that demonstrated good progress in our financial model with strong revenue growth and sharp improvement in profitability year-over-year,” said Rajiv Ramaswamy, CEO of Nutanix.

Looking ahead, Nutanix has given an optimistic outlook for fiscal 2025, projecting revenues of between $2.435 billion and $2.465 billion. The company also expects to generate free cash flow of between $540 million and $600 million for the full year.

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