Nutanix Announces Second Quarter Financial Results | Financial Buzz

Nutanix Announces Second Quarter Financial Results

Nutanix is a global leader in cloud software and a pioneer in hyperconverged infrastructure solutions, making computing invisible anywhere. Companies around the world use Nutanix software to leverage a single platform to manage any app at any location for their private, hybrid and multi-cloud environments.

Nutanix, Inc. (NASDAQ: NTNX) reported financial results for the second quarter of fiscal year 2020 that ended on January 31st, 2020.  For the second quarter, revenue reached USD 346.8 Million, an increase from USD 335.4 Million a year ago.  The billings segment increased to USD 428.1 Million from USD 413.4 Million a year ago.  The software and support section reported a USD 419.5 Million, a 12% increase year-over-year from USD 375.5 Million in the second quarter of fiscal 2019.

“Our solutions-based approach to our go-to-market strategy is helping customers realize the benefits and power of our new products in conjunction with our core software. As a result, we increased the attach rate of our new products to 31%, up from 21% as of Q2 fiscal 2019,” said Dheeraj Pandey, Chairman, Co-founder and CEO of Nutanix. “We were also pleased with several other key drivers of growth for our business in the quarter, including our partnership with HPE and traction in the U.S. commercial segment.”

“We saw strong momentum in the shift of our business towards subscription. In the second quarter, 79% of billings came from subscription, surpassing our stated goal of 75% by the end of the fiscal year and well ahead of our internal plan, while still delivering on our guidance for top line growth,” said Duston Williams, CFO of Nutanix. “Looking forward, the change in our fiscal 2020 TCV guidance is driven by two factors – first, a much faster than expected shift to subscription, coupled with a more cautious view on business activities in the greater APJ region due to the anticipated impact of the coronavirus.”

Shares of Nutanix fell over 20% on Thursday, post announcement.