Nutanix (NTNX) Posts Strong Q1 Earnings Beat, Continued Customer Growth

Nutanix Inc. (NASDAQ:NTNX) just released its first quarter fiscal 2018 earnings results, posting earnings of a loss of 16 cents per share and revenues of $275.6 million. Currently, NTNX is a #3 (Hold) on the Zacks Rank, and is up a slight 0.91% to $33.10 per share in trading shortly after its earnings report was released.

Beat earnings estimates. The company reported earnings of a loss of 16 cents per share, soaring past the Zacks Consensus Estimate of a loss of 26 cents per share. Non-GAAP net loss was 24.7 million for the quarter.

Beat revenue estimates. The company saw revenue estimates of $275.6 million, also beating our consensus estimate of $266.73 million and growing 46% year-over-year.

Billings came in at $315.3 million, an increase of 32% from the prior-year period.

Nutanix also saw continued customer growth, and ended Q1 with 7,813 end-customers; it added over 760 new end-customers during the quarter.

The company expects revenues between $280 and $285 million for the second quarter, with non-GAAP net loss per share between $0.20 and $0.22. Nutanix also estimates non-GAAP gross margin between 62.5% and 63.5%.

“While we will be focusing even more intently on selling software going forward, it’s worth noting what the past twelve months would have looked like had we chosen not to bill any pass-through hardware-related transactions. Nutanix would have recorded nearly $800 million⁽¹⁾ in pure software and support billings and delivered gross margins above 80%,⁽²⁾ while continuing to be a leader in very large market,” said Duston Williams, Chief Financial Officer of Nutanix. “Looking forward, we expect continued strong top line growth in the remainder of fiscal 2018.”

Here’s a graph that looks at Nutanix’s price, consensus, and EPS surprise:

Nutanix Inc. Price, Consensus and EPS Surprise

Nutanix Inc. Price, Consensus and EPS Surprise | Nutanix Inc. Quote

Nutanix, Inc. provides an enterprise cloud platform which converges silos of servers, virtualization and storage into integrated solutions and connects to public cloud services. Nutanix, Inc. is based in San Jose, United States.

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