When Will Nutanix, Inc. (NASDAQ:NTNX) Become Profitable?

With the business potentially at an important milestone, we thought we'd take a closer look at Nutanix, Inc.'s (NASDAQ:NTNX) future prospects. Nutanix, Inc. provides an enterprise cloud platform in North America, Europe, the Asia Pacific, the Middle East, Latin America, and Africa. The US$16b market-cap company posted a loss in its most recent financial year of US$255m and a latest trailing-twelve-month loss of US$67m shrinking the gap between loss and breakeven. The most pressing concern for investors is Nutanix's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Nutanix

Nutanix is bordering on breakeven, according to the 14 American Software analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$41m in 2025. The company is therefore projected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 83% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Nutanix's growth isn’t the focus of this broad overview, however, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one issue worth mentioning. Nutanix 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. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

There are too many aspects of Nutanix to cover in one brief article, but the key fundamentals for the company can all be found in one place – Nutanix's company page on Simply Wall St. We've also compiled 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.