Nutanix maintained a high growth rate in the second quarter of its fiscal year 2022. The publisher generated $413 million in revenue between November and January last year, an increase of 19.3% year over year. other. This good result follows the 21% increase in invoicing recorded by the company during the previous three months. For its part, annual recurring revenue soared by 55% to $1.04 billion, while the annual value of contracts increased by 37% to $217.9 million.
At its earnings call, Nutanix attributed its business growth to the growing adoption of hybrid cloud and the launch of its own portfolio of hybrid cloud solutions. The publisher also recorded a higher than expected number of contract renewals.
$427.5 million in quarterly operating expenses
Still, Nutanix remains a loss-making company. In three months, the supplier suffered a net loss of $115 million, lower, however, than the $287.4 million recorded on the balance sheet for its first quarter of 2021. This improvement is due both to the growth of 20% to $333.1 million in gross margin and a slight decrease (-0.9%) in operating expenses. The latter still amount to $427.5 million.
The real good news for the quarter is that Nutanix was free cash flow positive ($17.2M). A first since the company began its transition to a subscription model about three years ago. “We are on track to achieve our sustainable positive free cash flow target by the second half of calendar year 2022,” said Rajiv Ramaswami, CEO of Nutanix.
$1.63 million in annual revenue expected
For the current quarter, the publisher anticipates sales of between $395 and $400 million and a gross margin rate of around 82%. Over 12 months, revenues should be between $1.625 billion and $1.63 billion and the gross margin rate at 82.5%.