May 25th, 2018 by Adam Armstrong
Nutanix Reports 3Q18 Earnings
Nutanix Inc. reported its earnings for the third quarter of its fiscal year that ended April 30, 2018. Overall the company had good numbers and a fairly good quarter considering they are transitioning to software defined. Their stock, like most other tech stocks in the current market, took a beating. This may have more to do with the mood of the market and less to do with anything reported by Nutanix.
Looking at the numbers, Nutanix reported revenue of $289.4 million up 41% from the same time last year while reflecting the elimination of roughly $52 million in pass-through hardware revenue. The company saw a net loss of $85.7 million GAAP ($0.51/share) and $34.6 million non-GAAP ($0.21/share), both an improvement over the same time last year. Nutanix reported cash and short-term investments at $923.5 million; up significantly form the same time last year. The company saw a dip in operating cash flow, $13.3 million, and free cash flow, $800,000 compared to this time last year.
On the non-numbers side of the quarter, things looked up for Nutanix. They acquired the application discovery and operations management company, Netsil, Inc. Continued on their transition to a software-defined company, seeing software and support billings go up by 67%. And they were able to add nearly a thousand new customers bringing the total to 9,690 end-customers.
For the fourth quarter the company is expected revenue between $295 and $300 million, non-GAAP gross margin in the range of 73%-74%, non-GAAP operating expenses between $250 and $260 million, and non-GAAP net loss between $0.20 and $0.22 per share.