Nutanix Inc (NASDAQ: NTNX) stock fell over 3.1% on 31st August, 2018 (as of 11:24 AM GMT-4 ; Source: Google finance) after the company forecast a wider-than-expected loss for the quarter. For the first quarter FY 19, Nutanix expects an adjusted loss t be in the range of 28 cents to 26 cents a share on revenue expected to be in the range of $295 million to $310 million. Analysts surveyed by FactSet expect a loss of 23 cents a share on revenue of $308.8 million. For the first quarter of 2019, Billings to be between $370 and $390 million, implying software and support billings growth of 50-55% YoY and non-GAAP gross margin to be between 78% and 79%. The company has ended the fourth quarter of FY18 with 10,610 end-customers, adding 1,000 new end-customers in the quarter. Notably, the company passed an important milestone, adding its 10,000th customer during the quarter. The company also expanded an existing customer engagement by closing a deal greater than $20 million in the quarter, the largest in Nutanix history.
Meanwhile, the company has recently Acquired Frame, which is a leader in cloud-based Windows desktop and application delivery, increasing the company’s addressable market. IDC estimates that the desktops-as-a-service (DaaS) software market is forecast to grow to $3 billion in 2021 at a compound annual growth rate of 32%.2 With the addition of Frame, Nutanix customers will be able to deliver desktops-as-a-service from multiple clouds, combining the consumer-grade simplicity and web-scale design of cloud applications with the functionality of traditional virtual desktop applications.
Further, the company launched its Velocity channel program in June, aimed at accelerating the selling processes, incentives, and marketing investments for strategic, mid-market focused channel partners. The program provides a frictionless experience for channel partners, giving them more leverage to grow their business.
On the other hand, NTNX has rapidly increased and evolved its operations in India over the past five years and recently ranked second on “India’s Great Mid-Size Workplaces 2018” list. Additionally, the company continues to increase its headcount in Bangalore, Belgrade and Berlin as it further disrupts traditional enterprise IT incumbents with an increasingly global workforce.
NTNX in the fourth quarter of FY 18 has reported the adjusted loss per share of 11 cents, beating the analysts’ estimates for the adjusted loss per share of 22 cents. The company had reported the adjusted revenue of $303.7 million in the fourth quarter of FY 18, beating the analysts’ estimates for revenue of $298.6 million.