Nutanix, Inc. ( NTNX ) shares are trading lower after the company reported third-quarter FY24 results.

Revenue rose 17% Y/Y to $524.6 million, beating the consensus of $516.18 million.

Annual Contract Value (ACV) billings increased 20% Y/Y to $288.9 million, and Annual Recurring Revenue (ARR) rose 24% Y/Y to $1.82 billion.

Adjusted gross margin expanded 250 bps Y/Y to 86.5% and, adjusted operating margin increased 10.2ppt Y/Y to 14.0% in the quarter. Adjusted EPS of $0.28 exceeded the consensus of $0.17.

Operating cash flow stood at $96.4 million, and free cash flow came in at $78.3 million. As of April-end, cash and cash equivalents stood at $598.03 million, with short-term investments at $1.05 billion.

Outlook: Nutanix ( NTNX ) sees fourth-quarter ACV billings of $295 million-$305 million and revenue of $530 million-$540 million vs. consensus of $546.07 million.

Nutanix ( NTNX ) expects FY24 revenue of $2.13 billion-$2.14 billion (prior view $2.12 billion- $2.15 billion) vs. street view of $2.141 billion.

Related: These Analysts Boost Their Forecasts On Nutanix After Q3 Earnings

Investors can gain exposure to the stock via ProShares Big Data Refiners ETF ( DAT ) and Series Portfolios Trust Adaptiv Select ETF .

Price Action: NTNX shares are down 18.1% at $60.02 at the last check Thursday.