Nutanix Surpasses Guidance with 18% YoY Growth in Annual Recurring Revenue
Nutanix, a leading provider of enterprise cloud platforms, has reported impressive first-quarter results that exceeded its guidance. The company's steady demand for its solutions continues to drive growth, as businesses prioritize their digital transformation and infrastructure modernization initiatives.
In the first quarter of fiscal year 2025, Nutanix delivered quarterly revenue of $591 million, marking a significant milestone in the company's journey towards becoming a leading platform for running all apps and managing data anywhere. The ARR (Annual Recurring Revenue) grew by an impressive 18% year-over-year to $1.966 billion, solidifying the company's position in the industry.
Nutanix's largest wins in the quarter showcased the appeal of its cloud platform to organizations seeking to modernize their IT footprint and adopt hybrid multi-cloud operating models. A notable example is a full-stack expansion with a global provider of IT consulting services based in the APAC region, which enabled them to increase automation and self-service capabilities while reducing exposure to an incumbent infrastructure provider.
Another significant win was a large-scale expansion with a North American-based Fortune 100 provider of food services and products. This customer chose Nutanix's cloud platform, including its Cloud Clusters running on AWS, along with Cloud Management, to reduce projected TCO by nearly 50% and consolidate their existing data center footprint.
The company also made significant strides in product development, announcing the general availability of GPT-in-a-Box 2.0, a solution for simplifying the deployment of generative AI applications. This new capability helps further Nutanix's vision of becoming a leading platform for running all apps and managing data anywhere.
Nutanix's President and CEO, Rajiv Ramaswami, highlighted the company's strong year-over-year growth in new logos and solid free cash flow generation. He emphasized that these results demonstrate the appeal of Nutanix's cloud platform to organizations seeking to modernize their IT footprint and adopt hybrid multi-cloud operating models.
With its impressive first-quarter performance, Nutanix is poised to continue driving growth and innovation in the enterprise cloud space. The company's commitment to delivering cutting-edge solutions that meet the evolving needs of businesses will undoubtedly shape the industry landscape in the years to come.
