Nutanix Inc. (NASDAQ: NTNX) reported its third quarter financial results, despite beating revenue estimates, the company reported wider-than-expected loss. Shares were trading higher on Friday before falling 3.2 percent below Thursday’s closing price.
For the third quarter, Nutanix reported revenue of $289.4 million, growing 41 percent year over year and topping Thomson Reuters’ estimates of $279 million. The company reported an EPS of 21 cents, posting 2 cents higher than Thomson Reuters’ estimates.
Nutanix said its strong revenue growth was driven by its investments as well as high demands for its solutions in software and support segments.c
“Investment in our innovation engine is delivering strong results. At .NEXT, we introduced major new products that extend our unique consumer-grade value into security, networking, database operations, and multi-cloud markets,” said Dheeraj Pandey, Chairman, Founder and CEO of Nutanix.
“Demand for our solutions remains strong as we saw 67 percent growth in software and support billings and 55 percent growth in software and support revenue. We had strong success in our hiring in the quarter that positions us to deliver on our future growth plans.” said Duston Williams, CFO of Nutanix.
By end of the quarter, Nutanix reported 9,690 end-customers, adding 820 new end-customers during the quarter and growing deals greater than $1 million by 28 percent year over year.
Nutanix also announced three new products for its multi-cloud environments: Nutanix Flow, Nutanix Era and Nutanix Beam.
Nutanix Flow helps customers through its core infrastructure services with a software-defined networking solution to solve unique series of concerns. Nutanix Era expands on the company’s platform services offering. It empowers database administrators to clone, restore and refresh their database to any point in time. Nutanix Beam enables IT manager to visualize, predict and manage cost, security and regulations across multiple clouds.
For the fourth quarter, Nutanix forecasts revenue to be between $295 million and $300 million, while adjusted EPS is estimated to be between 20 cents to 22 cents. Thomson Reuters analysts are calling for a loss of 13 cents on revenue of $289 million.