Thursday, May 30, 2019

Nutanix revenue dips to $287.6 million as company shifts to subscription model

Nutanix reported revenue of $287.6 million (at 77.1% non-GAAP gross margin) for its third quarter of fiscal 2019, ended April 30, 2019, down from $289.4 million (at 68.4% non-GAAP gross margin) in the third quarter of fiscal 2018. Non-GAAP gross margin was 77.1%, up from 68.4% in the third quarter of fiscal 2018.

Non-GAAP net loss per share was $0.56, compared to a non-GAAP net loss per share of $0.21 in the third quarter of fiscal 2018.

Q3 FY’19 subscription billings increased to 65% of total billings, up 8 percentage points from the previous quarter, and Q3 FY’19 subscription revenue reached $168.4 million, representing a year-over-year increase of 110%.

“While we faced a top-line impact in our third quarter as we continue to execute our strategic shift toward a recurring revenue business model, our strong foundation and commitment to our customers position us well for the long term,” said Dheeraj Pandey, Chairman, Founder and CEO of Nutanix. “Successful businesses are built over time on a bedrock of exceptional products, outstanding customer support and talented and committed employees. With solid sales hiring in Q3 and increased adoption of our AHV hypervisor, indicating a strong product and enthusiastic customers, I truly believe Nutanix has that foundation in place.”

“We are encouraged by the momentum and growth of our subscription business as we transform to a recurring revenue model, which will enable a more predictable revenue stream over time and provide our customers greater flexibility for their hybrid cloud deployments,” said Duston Williams, CFO of Nutanix. “We believe the actions we have been taking to strengthen lead generation and enhance sales execution will position us well for the future.”