Nutanix, Inc. Revenue Disclosure
NOTE 2. REVENUE, DEFERRED REVENUE AND DEFERRED COMMISSIONS
Disaggregation of Revenue and Revenue Recognition
The Nutanix Cloud Platform can be deployed in core data centers, at the edge, or in public clouds, running on a variety of qualified hardware platforms (including out Nutanix-branded NX hardware line), in popular public cloud environments such as Amazon Web Services and Microsoft Azure through Nutanix Cloud Clusters, or, in the case of our cloud-based software and software-as-a-service ("SaaS") offerings, via hosted service. Our subscription term-based licenses are sold separately, or can also be sold alongside configured-to-order servers. Our subscription term-based licenses typically have durations ranging from to five years. Our cloud-based SaaS subscriptions generally have durations extending up to five years.
The following table depicts the disaggregation of revenue by revenue type, consistent with how we evaluate our financial performance:
|
|
Fiscal Year Ended July 31, |
|
|||||||||
|
|
2023 |
|
|
2024 |
|
|
2025 |
|
|||
|
|
(in thousands) |
|
|||||||||
Subscription |
|
$ |
1,730,848 |
|
|
$ |
2,016,776 |
|
|
$ |
2,410,751 |
|
Professional services |
|
|
91,841 |
|
|
|
100,852 |
|
|
|
112,202 |
|
Other non-subscription product |
|
|
40,206 |
|
|
|
31,188 |
|
|
|
14,974 |
|
Total revenue |
|
$ |
1,862,895 |
|
|
$ |
2,148,816 |
|
|
$ |
2,537,927 |
|
Subscription revenue — Subscription revenue includes any performance obligation which has a defined duration and is generated from the sales of software entitlement subscriptions, support subscriptions, subscription software licenses and cloud-based SaaS offerings.
Professional services revenue — We also sell professional services with our products. We recognize revenue related to professional services as they are performed.
Other non-subscription product revenue — Other non-subscription product revenue includes approximately $37.4 million, $27.9 million and $10.8 million of non-portable software revenue for fiscal 2023, 2024 and 2025, respectively, and approximately $2.8 million, $3.3 million and $4.2 million of hardware revenue for fiscal 2023, 2024 and 2025, respectively.
Significant changes in the balance of deferred revenue (contract liability) and deferred commissions (contract cost asset) for the periods presented are as follows:
|
|
Deferred |
|
|
Deferred |
|
||
|
|
(in thousands) |
|
|||||
Balance as of July 31, 2023 |
|
$ |
1,595,032 |
|
|
$ |
357,991 |
|
Additions (1) |
|
|
2,426,490 |
|
|
|
218,876 |
|
Revenue/commissions recognized |
|
|
(2,148,816 |
) |
|
|
(218,056 |
) |
Balance as of July 31, 2024 |
|
|
1,872,706 |
|
|
|
358,811 |
|
Additions (1) |
|
|
2,777,975 |
|
|
|
228,378 |
|
Revenue/commissions recognized |
|
|
(2,537,927 |
) |
|
|
(244,896 |
) |
Balance as of July 31, 2025 |
|
$ |
2,112,754 |
|
|
$ |
342,293 |
|
During the fiscal year ended July 31, 2024, we recognized revenue of approximately $771.2 million pertaining to amounts deferred as of July 31, 2023. During the fiscal year ended July 31, 2025, we recognized revenue of approximately $863.1 million pertaining to amounts deferred as of July 31, 2024.
Many of our contracted but not invoiced performance obligations are subject to cancellation terms. Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized ("contracted not recognized"), which includes deferred revenue and non-cancelable amounts that will be invoiced and recognized as revenue in future periods and excludes performance obligations that are subject to cancellation terms. Contracted not recognized revenue was approximately $2,692.6 million as of July 31, 2025, of which we expect to recognize approximately 49% within 12 months, approximately 36% over the subsequent 13- to 36-month period, and the remainder thereafter.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Sep 24, 2025 | Showing above |
| 2024 | Sep 19, 2024 | |
| 2023 | Sep 21, 2023 | |
| 2022 | Sep 21, 2022 | |
| 2021 | Sep 21, 2021 | |
| 2020 | Sep 23, 2020 | |
| 2019 | Sep 24, 2019 | |
| 2018 | Sep 24, 2018 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.