Earnings Highlights and Review: Nutanix's Revenue Soared 67%; Billings Advanced 47%
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LONDON, UK / ACCESSWIRE / June 19, 2017 / Pro-Trader Daily publishes post-earnings coverage on Nutanix, Inc. (NASDAQ: NTNX) following the Company's announcement of its third quarter fiscal 2017 financial results on May 25, 2017. The enterprise cloud platform services provider reported better than expected revenue and earnings numbers. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Earnings Reviewed
For its third quarter of fiscal 2017 ended April 30, 2017, Nutanix's revenue surged 67% to $191.76 million compared to $114.69 million in Q3 FY16. The Company's revenue numbers exceeded analysts' expectations of $186.8 million.
For Q3 FY17, Nutanix's Billings rose 47% to $234.1 million, growing 47% compared to $159.5 million in Q3 FY16. The Company's bill to revenue ratio was 1.22 times, slightly lower than the Company's estimated range of 1.25 to 1.3. Nutanix ended the reported quarter with 6,172 end-customers, adding approximately 790 new end-customers during Q3 FY17, with key customer wins including Caterpillar Inc., KYOCERA Communication Systems Co., Ltd, MobileIron, SAIC Volkswagen, Société Générale, and Sprint.
Nutanix also reported that completed deals with 34 customers with over $1 million in the reported quarter as a result of an increased focus on large deals. The Company stated that it executed 13 deals above $2 million in bookings for a total of $45 million in bookings compared to deals higher than $2 million in Q2 FY17.
During Q3 FY17, Nutanix partnered with IBM for New HCI Solution, that will bring a turnkey hyperconverged solution combining Nutanix's software and IBM Power Systems™ targeting high-performance workloads and one-click private clouds for large enterprises.
For Q3 FY17, Nutanix posted GAAP net loss of $112.0 million, or $0.78 per share, compared to a GAAP net loss of $46.8 million, or $0.39 per share, in Q3 FY16. The Company reported non-GAAP net loss of $60.8 million, or $0.42 per share, compared to a non-GAAP net loss of $40.4 million, or $0.33 per share, in the prior year's same quarter. Nutanix's results were better than Wall Street's expectations for a loss of $0.45 per share.
"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," said Dheeraj Pandey, CEO of Nutanix.
Cash Matters
As on April 30, 2017, Nutanix had cash and short-term investments worth $350.3 million, up 83% from Q3 FY16. The Company's deferred revenue more than doubled, rising by 102%, on a y-o-y basis to $463.0 million.
For Q3 FY17, Nutanix recorded negative operating cash flow of $16.0 million compared to $2.4 million in Q3 FY16, reflecting a $9.6 million outflow of operating cash related to the purchase of ESPP's shares. The Company reported negative free cash flow of $29.2 million compared to negative free cash flow of $11.0 million in the prior year's same quarter, also reflecting an outflow of operating cash related to the purchase of ESPP's shares
Financial Outlook
For Q4 FY17, Nutanix is forecasting revenues in the range of $215 million and $220 million. The Company expects to report non-GAAP gross margin of approximately 58%. For the upcoming quarter, Nutanix expects to report non-GAAP net loss per share of $0.38, using 152 million weighted shares outstanding. The Company expects book to bill ratio to be approximately 1.25 times for the upcoming quarter.
Stock Performance
On Friday, June 16, 2017, the stock closed the trading session at $17.67, climbing 1.17% from its previous closing price of $17.46. A total volume of 3.42 million shares have exchanged hands, which was higher than the 3-month average volume of 3.07 million shares. Nutanix's stock price advanced 9.38% in the last one month. The stock currently has a market cap of $2.65 billion.
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