Technology

Can Nutanix Turn Itself Around After This Dismal Q3 Report?

Chris Lange

Published: May 31, 2019 10:45 am

Last Updated: January 6, 2020 4:12 am

Nutanix Inc. (NASDAQ: NTNX) shares tumbled after it released its most recent quarterly results late on Thursday. The cloud computing software firm posted a net loss of $0.56 per share and $287.6 million in revenue, while consensus estimates had called for a net loss of $0.60 per share and $297.22 million in revenue. The fiscal third quarter of last year reportedly had a net loss of $0.21 per share and $289.41 million in revenue.

Software and support revenues increased 17% year over year to $265.8 million, up from $226.8 million.

During the most recent quarter, billings decreased slightly to $346.0 million from last year’s billings of $351.2 million. At the same time, software and support billings increased 11% year over year to $324.2 million.

For the fiscal third quarter, deferred revenues increased 55% year over year to $838.3 million.

Dheeraj Pandey, board chair, founder and CEO of Nutanix, commented:

While we faced a top-line impact in our third quarter as we continue to execute our strategic shift toward a recurring revenue business model, our strong foundation and commitment to our customers position us well for the long term. Successful businesses are built over time on a bedrock of exceptional products, outstanding customer support and talented and committed employees. With solid sales hiring in Q3 and increased adoption of our AHV hypervisor, indicating a strong product and enthusiastic customers, I truly believe Nutanix has that foundation in place.

Looking ahead to the fiscal fourth quarter, the company expects to see a net loss per share of $0.65 and revenues in the range of $280 million to $310 million. Consensus estimates call for a net loss of $0.48 per share and $334.23 million in revenue for the quarter.

Shares of Nutanix were last seen down about 15% at $27.71, in a 52-week range of $25.50 to $64.87. The consensus price target is $47.32.