Nutanix shares soared 16.7% in premarket trading Thursday after the hybrid multicloud computing company reported fiscal fourth-quarter results that exceeded analyst expectations and provided an upbeat outlook for fiscal 2025.

The company posted adjusted earnings per share of $0.34, surpassing the consensus estimate of $0.20 by a wide margin. Revenue for the quarter came in at $548 million, beating analyst projections of $536.95 million.

Nutanix's Annual Recurring Revenue ( ARR ) grew 22% YoY to $1.91 billion, demonstrating strong momentum in its subscription business model. The company also reported robust free cash flow of $224.3 million for the quarter.

"Our fourth quarter was a solid finish to a fiscal year that showed good progress on our financial model with solid top line growth and sharp year-over-year improvement in profitability," said Rajiv Ramaswami, President and CEO of Nutanix.

Looking ahead, Nutanix provided an optimistic outlook for fiscal 2025, projecting revenue between $2.435 billion and $2.465 billion. The company also expects to generate free cash flow of $540 million to $600 million for the full year.