Nutanix Inc (NASDAQ: NTNX) stock rose over 30% on 29th August, 2019 (as of 12:01 pm GMT-4; Source: Google finance) after the company posted better than expected results for the fourth quarter of FY 19. In Q4, subscription billings accounted for 71% of total billings, up from 65% in Q3, and subscription revenue now accounts for 65% of total revenue, up from 59% in Q3. The faster than expected transition in Q4 was buoyed by some larger deals in the quarter. In Q4, a new term based subscription bookings increased 67% to $150 million, up from $90 million in the prior quarter, and the company expect these subscription percentages to fluctuate a bit plus or minus for the next couple of quarters. Total billings were $372 million in the quarter, within the guided range of $350 million to $380 million, representing a 6% decrease from the year ago quarter and a 7% increase from Q3. Software and support billings were $359 million flat from the year ago quarter and up 11% from the prior quarter. The bill-to-revenue ratio in Q4 was 1.24 times, up from 1.2 times last quarter. New customer bookings represented 26% of total bookings in the quarter, down from 31% in Q4 ’18 and up from 25% in Q3. Further, the non-GAAP gross margin in Q4 rose to 80%, 3 percentage points better than the guidance of 77%. Operating expenses were $344 million and the non-GAAP net loss was $106 million for the quarter.
NTNX in the fourth quarter of FY 19 has reported the adjusted loss per share of 57 cents, beating the analysts’ estimates for the adjusted loss per share of 64 cents, according to FactSet. The company had reported 1 percent fall in the adjusted revenue to $299.9 million in the fourth quarter of FY 19, beating the analysts’ estimates for revenue of $294 million. Hardware accounted for 4% of total revenue, down from 8% in the prior quarter. Software and support revenue was $287 million in Q4, up 7% from the year ago quarter and up 8% from the prior quarter.
For the first quarter of fiscal 2020, Nutanix expects Software and support revenue to be between $290 million and $300 million, Software and support billings to be between $360 million and $370 million, Total hardware to be 3% or less of total billings, Non-GAAP gross margin to be of approximately 80%, Non-GAAP operating expenses to be between $385 million and $390 million and Non-GAAP net loss per share of approximately $0.75, using approximately 190 million weighted shares outstanding.