Nutanix Inc. shares wobbled in the extended session Thursday even after the hyperconvergence company reported results and an outlook that topped Wall Street estimates and confirmed plans to pivot toward a software-based model. Nutanix shares, which had dropped as much as 6% after the earnings release, last rose 1.2% to $33.20 after hours. “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,” said Duston Williams, Nutanix chief financial officer, in a statement. Williams said the company would have delivered gross margins north of 80% if it relied on software-only sales. The company reported a fiscal first-quarter loss of $61.5 million, or 39 cents a share, compared with a loss of $140.3 million, or $1.89 a share, in the year-ago period. The company reported an adjusted loss of 16 cents a share. Revenue rose to $275.6 million from $188.6 million in the year-ago period. Analysts surveyed by FactSet had estimated a loss of 26 cents a share on revenue of $266.9 million. Nutanix reported product revenue of $219.1 million, support and services revenue of $56.5 million, and billings of $315.3 million. Analysts had expected product revenue of $206.4 million, support and services revenue of $57.4 million, and a “new orders value” of $307 million, according to FactSet. For the second quarter, Nutanix estimates an adjusted loss of 22 cents to 20 cents a share on revenue of $280 million and $285 million. Analysts expect a loss of 25 cents a share on revenue of $282 million.
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