Financial Results in Focus: Nutanix (NASDAQ: NTNX)

On Thursday, Shares of Nutanix (NASDAQ: NTNX) declined -1.34% to $53.66. The stock opened its trade at $54.28 and after floating in a price range of $53.66 to $54.98; the stock grabbed the investor’s attention and traded 641,963 shares as compared to its average daily volume of 4.35M shares. The stock’s institutional ownership stands at 76.50%.

Nutanix, Inc. (NASDAQ: NTNX), a leader in enterprise cloud computing, recently declared financial results for its third quarter of fiscal 2018, ended April 30, 2018.

Third Quarter Fiscal 2018 Financial Highlights:

• Revenue: $289.40M, growing 41% year-over-year from $205.70M in the third quarter of fiscal 2017, reflecting the elimination of about $52.0M in pass-through hardware revenue in the quarter as the company executes its shift toward increasing software revenue
• Billings: $351.20M, growing 50% year-over-year from $234.10M in the third quarter of fiscal 2017
• Gross Profit: GAAP gross profit of $193.80M, up 58% year-over-year from $122.50M in the third quarter of fiscal 2017; Non-GAAP gross profit of $197.80M, up 57% year-over-year from $125.90M in the third quarter of fiscal 2017
• Net Loss: GAAP net loss of $85.70M, contrast to a GAAP net loss of $96.80M in the third quarter of fiscal 2017; Non-GAAP net loss of $34.60M, contrast to a non-GAAP net loss of $45.70M in the third quarter of fiscal 2017
• Cash and Short-term Investments: $923.50M, up 164% from the third quarter of fiscal 2017
• Deferred Revenue: $539.90M, up 62% from the third quarter of fiscal 2017
• Operating Cash Flow: $13.30M, contrast to $(16.0)M in the third quarter of fiscal 2017
• Free Cash Flow: $(0.80)M, contrast to $(29.20)M in the third quarter of fiscal 2017

Q4 Fiscal 2018 Financial Outlook:

For the fourth quarter of fiscal 2018, Nutanix anticipates:

• Revenues between $295 and $300.0M; assuming the elimination of about $95.0M in pass-through hardware revenue and a boosted billings-to-revenue ratio of 1.25;
• Non-GAAP gross margin between 73% and 74%;
• Non-GAAP operating expenses between $250 and $260.0M;
• Non-GAAP net loss per share between $0.20 and $0.22, using 171.0M weighted shares outstanding.

NTNX has a market value of $9.42B while its EPS was booked as $-2.15 in the last 12 months. The stock has 173.26M shares outstanding. In the profitability analysis, the company has gross profit margin of 59.40% while net profit margin was -33.20%. Beta value of the company was N/A; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 2.00.