Nutanix, Inc. (NASDAQ:NTNX): When Will It Breakeven?

Nutanix, Inc. (NASDAQ:NTNX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Nutanix, Inc. provides an enterprise cloud platform in North America, Europe, the Asia Pacific, the Middle East, Latin America, and Africa. The US$12b market-cap company’s loss lessened since it announced a US$255m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$12m, as it approaches breakeven. The most pressing concern for investors is Nutanix's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Nutanix

Consensus from 15 of the American Software analysts is that Nutanix is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$57m in 2025. Therefore, the company is expected to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 85%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Nutanix's upcoming projects, though, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with Nutanix is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are key fundamentals of Nutanix which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Nutanix, take a look at Nutanix's company page on Simply Wall St. We've also put together a list of essential aspects you should look at:

1. Valuation: What is Nutanix worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Nutanix is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Nutanix’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.