Nutanix sets executive compensation for fiscal 2025 By Investing.com

SAN JOSE, CA – Nutanix, Inc. (NASDAQ:), a leader in enterprise cloud computing, today announced the compensation details of its top executives for fiscal year 2025, subject to annual review by the Compensation Committee of the Board of Directors.

The standards, effective August 1, 2024, include a base salary of $800,000 for President and CEO Rajiv Ramaswami, $520,000 for CFO Rukmini Sivaraman and $475,000 each for COO David Sangster and Chief Legal Officer Brian Martin. Sangster’s salary will be prorated due to his planned retirement on October 31, 2024. He will not receive an annual bonus or stock award for fiscal year 2025.

Bonus targets have been set at 100% of their original base salary for Ramaswami and Sivaraman, while Martin’s target is 75%. These incentives are part of the Company’s Executive Incentive Compensation Plan for the fiscal year.

On September 10, 2024, executives were granted additional annual equity awards under the 2016 Equity Incentive Plan. Ramaswami and Sivaraman each received a mix of time-based restricted stock units (RSUs) and performance-based restricted stock units (PRSUs) totaling 136,116 units. Martin, who had already received 45,199 time-based RSUs upon his hire on July 10, 2024, was granted 45,372 PRSUs only as part of his Australian award.

The RSUs will vest quarterly over four years beginning on December 15, 2024. The vesting of the PRSUs will depend on the company’s total shareholder return compared to the NASDAQ Composite Index and will span three performance periods ending in 2025, 2026 and 2027. Depending on performance, between 0% and 200% of the target PRSUs may vest, subject to a value cap.

In other news, Nutanix, Inc. reported strong growth in its annual results. Fourth quarter revenue increased 11% year-over-year to $548 million, while full-year revenue was up 15% to $2.15 billion. Annual Recurring Revenue (ARR) and Annual Contract Value (ACV) billings grew by a notable 22% and 21%, respectively.

Nutanix also secured several large deals, including a multi-million dollar agreement with a Fortune 100 financial services company. Given these positive developments, RBC Capital and JPMorgan raised their price targets on Nutanix to $75 and maintained their “outperform” and “overweight” ratings, respectively.

For fiscal year 2025, Nutanix expects revenue to be between $2,435 billion and $2,465 billion, with non-GAAP operating margins of approximately 15.5% to 17%. Finally, the company announced the retirement of its Chief Operating Officer, David Sangster, effective October 31, 2024.

InvestingPro Insights

While Nutanix aligns its executive compensation plan with corporate performance and shareholder returns, it is worth looking at the company’s financial health and market performance. According to real-time data from InvestingPro, Nutanix has a market capitalization of $14.97 billion and an impressive gross margin of 84.92% over the trailing twelve months through Q4 2024. This high margin underscores the company’s ability to manage costs effectively and could indicate promising future profitability.

InvestingPro Tips show that analysts have revised their earnings estimates for Nutanix upward, indicating a positive outlook. In addition, the company is expected to increase its net income this year – a possible sign of operational efficiency and successful market expansion. Investors can find over 10 additional detailed InvestingPro Tips at https://www.investing.com/pro/NTNX.

With revenue growth of 15.35% over the last twelve months and the prospect of increasing profitability, Nutanix continues to position itself strongly in the competitive enterprise cloud computing market. The company appears well positioned to continue its innovation and expansion.

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