Nutanix stock popped late Monday as the maker of cloud computing network management software reported a narrower-than-expected loss while revenue topped estimates. Nutanix earnings guidance came in above views.
For its fiscal first quarter, San Jose, Calif.-based Nutanix (NTNX) said it lost 44 cents per adjusted share vs. a 71-cent loss a year earlier. Revenue fell a fraction to $312.8 million.
Analysts had projected Nutanix would report a loss of 57 cents a share on revenue of $299.2 million.
The company said annualized contract value, or ACV, of its billings rose 10% to $137.8 million compared with estimates of $119.7 million. For the current January-ending quarter, Nutanix forecast ACV billings in a range of $145 million to $148 million vs. estimates of $134 million.
Nutanix Stock: Transition to Subscription Revenue
Nutanix stock popped 8% to near 30.75 in extended trading on the stock market today, moving into a buy zone. Heading into the Nutanix earnings report, the company had an entry point of 29.42. Nutanix stock holds a Relative Strength Rating of 65 out of a possible 99.
Nutanix’s software manages network, storage and server infrastructure in cloud-computing platforms.
Nutanix has been transitioning to a subscription software model from selling hardware appliances. In addition, Nutanix recently changed its sales compensation structure. A Morgan Stanley report said that move could impact revenue growth and profits.
Also, private equity firm Bain Capital invested $750 million in Nutanix stock in August. In the October quarter, Nutanix announced a cloud marketing deal with Microsoft (MSFT).
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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