Nutanix Reports 22% Revenue Growth to $638.98 Million in Latest Quarter

Nutanix, Inc. reported significant financial growth in its latest quarterly results, with total revenue reaching $638.98 million for the three months ended April 30, 2025, marking a 22% increase from $524.58 million in the same period last year. For the nine months ending April 30, 2025, revenue also rose to $1.88 billion, up 18% from $1.60 billion year-over-year. The company achieved a net income of $63.36 million for the quarter, a substantial turnaround from a net loss of $15.62 million in the prior year, while net income for the nine-month period was $149.72 million, compared to a modest profit of $1.33 million in the previous year.

The financial performance reflects a notable increase in both product and service revenues. Product revenue surged by 35% to $345.48 million for the quarter, driven by higher software sales and increased adoption of Nutanix's cloud solutions. Support and services revenue also grew by 9% to $293.50 million, attributed to a 10% increase in the customer base, which now exceeds 28,000 end customers. The average contract duration remained stable at approximately 3.1 years, indicating consistent customer engagement and retention.

Operationally, Nutanix has made strategic investments in its sales and marketing efforts, which have resulted in a 5% increase in the sales headcount. The company is focusing on major accounts and large deals to enhance its sales pipeline. As of April 30, 2025, approximately 80% of the global sales team members were fully ramped, contributing to improved productivity. The company also reported a net dollar-based retention rate of 110%, down from 117% a year earlier, indicating a slight decline in revenue growth from existing customers.

In terms of financial health, Nutanix's cash and cash equivalents increased to $872.60 million, alongside short-term investments of $1.01 billion, providing a solid liquidity position. The company has also entered into a revolving credit agreement with a capacity of $500 million, which matures in February 2030. This financial flexibility is expected to support ongoing operational needs and potential growth initiatives. Looking ahead, Nutanix plans to continue investing in research and development to enhance its product offerings, particularly in the areas of generative AI and multicloud environments, while also optimizing its operational efficiencies to sustain profitable growth.