Nutanix Inc (NASDAQ:NTNX) stock surges 28.73% (As on September 1, 11:19:25 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 22. Fiscal 2022 results reflect strong progress on the subscription model with 27% year-over-year ACV billings growth and achievement of positive free cash flow, which the company expects to be sustainable on an annual basis. Nutanix’s performance in the quarter came as a real shock to most observers, according to analyst Steve McDowell of Moor Insights & Strategy. The analyst explained that Nutanix’s subscription revenue growth was likely the result of the company’s expansion into adjacent markets, where it has delivered more cloudlike management capabilities within its portfolio, plus the uncertainty around VMware Inc. amid its pending acquisition by Broadcom Inc. Meanwhile, Nutanix sells a software-defined hyperconverged infrastructure or HCI stack that integrates compute, storage and networking components into a single appliance or cloud service. Although it still sells physical gear, the company has attempted to shift away from its hardware roots, putting more focus on its “hyperconvergence” software that can run on third-party servers and systems. At the same time, the company has also been urging customers to adopt its new subscription model.
NTNX in the fourth quarter of FY 22 has reported the adjusted loss per share of 17 cents, beating the analysts’ estimates for the adjusted loss per share of 38 cents. The company had reported the adjusted revenue growth of 1 percent to $385.5 million in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $355.3 million.
Nutanix expects Q1 2023 revenue to be in the range of $410-415 million, versus the consensus of $372.63 million.
Nutanix expects FY2023 revenue to be in the range of $1.77-1.78 billion, versus the consensus of $1.66 billion.
On the other hand, Nutanix announced the appointment of Andrew Brinded as Chief Revenue Officer on August 1, 2022. Andrew has been a Nutanix sales leader for over five years, previously having served as Senior Vice President & Worldwide Sales Chief Operating Officer, where he led global sales strategy and operations.
In addition, the company Announced Nutanix Cloud Clusters (NC2) on Microsoft Azure Progressed to Public Preview. This is expected to significantly increase the number of customers who will have access to NC2 on Azure in the near term.