Nutanix Wins Big Despite Q3 Net Loss

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When Nutanix Inc. (NASDAQ: NTNX) reported its fiscal third-quarter financial results late on Thursday, the company posted a net loss of $0.42 per share and $191.8 million in revenue. The consensus estimates had called for a net loss of $0.43 per share and $185.7 million in revenue.

During this quarter, billings totaled $234.1 million, growing 47% year over year from $159.5 million.

The company ended the third quarter of fiscal 2017 with 6,172 end-customers, adding approximately 790 new end customers during the quarter. At the same time, the company announced plans to expand the supported hardware platforms for its enterprise cloud OS Software to include Hewlett Packard Enterprise (HPE) ProLiant rackmount servers and Cisco UCS B-Series blade servers, which would allow for customers to have a greater choice of hardware.

In terms of the outlook for the fiscal fourth-quarter, Nutanix expects to see a net loss of $0.38 per share and revenues in the range of $215 million to $220 million. The consensus estimates are a net loss of $0.39 per share and $204.72 million in revenue.

On the books, Nutanix cash and short-term investments increased 83% to $350.3 million from the third quarter from the previous fiscal year.

Dheeraj Pandey, CEO, Nutanix, commented:

We continue to execute on our strategy of building a cloud operating system that provides our customers maximum choice of hardware platforms. We recently established a partnership with IBM® to bring to market the industry’s first hyperconverged solution on Power Systems, and introduced support for HPE® ProLiant® and Cisco UCS® blade servers. Our third quarter results reflect our continued focus on the Global 2000 as well as a measurable improvement in the number of larger deals in the quarter, particularly in North America.

Shares of Nutanix were last seen up 11% at $19.55 on Friday, with a consensus analyst price target of $29.35 and a 52-week trading range of $14.38 to $46.78.