Nutanix Incorporation has published the financial results for the second quarter financial results as the market closes on this Thursday. The firm has outdone all the estimates both in term of its total earnings as well as their revenue, yet, the business faced guidance which was weaker than they expected, this eventually caused the prices of shares to fall by over 24 percent.
As far as the second quarter is concerned, the firm announced the loss in their earnings of almost 23 cents for every share on the proceeds of 335.40 Million US Dollars. The financial analysts predicted these earnings to face a loss of 25 cents for every share on the proceeds of 331.22 Million US Dollars.
The quarterly revenue of the firm rose by over 17 percent as compared to the previous year which became the most prominent cause of the growth in the firm’s revenue from software and support. The revenue from Software and Support contributes to a major portion of the firm’s revenue. Whereas in the 2nd quarter, the reported revenue of the firm was around 297.4 Million US Dollars which was almost 42 percent higher than that reported in the previous year.
In the words of the Chairman, CEO and the founder of the firm, Mr. Dheeraj Pandey:
“Our product portfolio is coming together really well as we double down on simplicity and reliability. On a trailing four quarter basis, Q2 saw a record 40 percent adoption of AHV, and 21 percent of deals included Essentials and Enterprise product offerings beyond the Core,”
He continued on to add that
“We also saw growing momentum toward a recurring revenue model, delivering 57 percent of billings from subscriptions this quarter. And we are also pleased to announce the promotion of Chris Kaddaras to lead our sales organization in the Americas region in addition to his existing EMEA responsibilities.”
The strong growth strategy failed miserably as reflected by Nutanix’s weaker guidance.
For the following quarter, the firm predicts its adjusted earnings for every share to have a loss of around 60 cents on the total revenue which would lie somewhere between 290 and 300 Million US Dollars.