Nutanix Narrowed Its Losses, Outpaced Estimates in Fiscal Q4 2018

Nutanix (NTNX) reported its financial results for the fiscal fourth quarter on August 30. Its non-GAAP (generally accepted accounting principles) EPS after adjustments came in at -$0.11 per share compared to -$0.17 per share in the previous year’s quarter. It beat analysts’ estimate of -$0.22 per share.

In the graph above, we can see Nutanix’s EPS trend over the last five quarters. The company easily surpassed analysts’ estimates in all quarters.

In the fiscal fourth quarter, the company’s revenue came in at $252.5 million, a rise of 20.5% YoY. The 49% YoY growth in the company’s software and support business contributed to its overall revenue growth. Its billings in the fiscal fourth quarter of 2018 stood at $395.1 million, up 37% YoY. Nutanix is gaining from its strategic alliances with large IT companies such as Dell (DVMT), Lenovo, Cisco (CSCO), and IBM (IBM), which are driving its international contract wins.

The company’s non-GAAP gross margin in the quarter was 77.7% compared to 62.6% in the fiscal fourth quarter of 2017.

Nutanix expects its non-GAAP EPS in the fiscal first quarter of 2019 to be in the range of -$0.26 to -$0.28, whereas it expects its revenue to be between $295 million and $310 million. Likewise, the company expects its non-GAAP gross margin to be 78%–79%. The software and support business’s revenue growth is expected to be in the range of 40%–45% YoY.

Nutanix expects its billings to be in the range of $370 million–$390 million. Its bill-to-revenue ratio is expected to come in at ~1.26x. It also expects non-GAAP operating expenses of $280 million–$290 million.