Nutanix Inc (NASDAQ:NTNX) stock rose 14.88% (As on May 25, 12:01:04 AM UTC-4, Source: Google Finance) after the company reported earnings and revenue beats in its fiscal third quarter and gave an upbeat outlook. Annual recurring revenue in the quarter rose 32%, to $1.47 billion, and annual contract value rose 17%, to $239.8 million. Net cash provided by operating activities in the quarter was $64.3 million and free cash flow came in at $42.5 million. Recent company highlights include the launch of Nutanix Central, a cloud-delivered interface that simplifies infrastructure management across various platforms, including public clouds, on-premises data centers and edge environments. Nutanix Central is aimed at providing a consistent management experience with integrated security, access to on-demand resources, governance controls and total license portability, simplifying the process of running applications and storing data across various environments. Nutanix announced new capabilities in the Nutanix Cloud Platform to enable customers to integrate data management of containerized and virtualized applications on-premises, on public cloud, and at the edge. This includes comprehensive data services for Kubernetes applications as well as cross-cloud data mobility.
Further, Nutanix also announced a new initiative called Project Beacon, focused on decoupling applications and their data from the underlying infrastructure they’re hosted on. Project Beacon enables developers to write applications once and run them anywhere, avoiding vendor lock-in commonly associated with Platform as a Service. The platform provides the service via a single application programming interface and console, ensuring consistent management across environments and providing developers with control over data governance, protection and compliance.
NTNX in the third quarter of FY 23 has reported the adjusted earnings per share of 4 cents, beating the analysts’ estimates for the adjusted earnings per share of 3 cents. The company had reported the adjusted revenue growth of 11 percent to $448.6 million in the third quarter of FY 23, beating the analysts’ estimates for revenue of $433.12 million.
Nutanix expects revenue to be in the range of $470 million to $480 million in its fiscal fourth quarter. Analysts were expecting an outlook of $452.23 million. For its full fiscal year, the company expects revenue to be in the range of $1.84 billion to $1.85 billion, higher than an expected $1.8 billion. The Company expects the incremental ongoing annual impact to operating expenses of this third-party software usage to be approximately in the low-single-digit millions of dollars. The Company is also implementing, or plans on implementing, remedial measures, including remedial measures to address the material weakness and strengthen its overall internal control over financial reporting.