Monday, November 25, 2019

Nutanix reports flat quarterly revenue of $315 million

Nutanix reported revenue of $314.8 million for its first quarter of fiscal 2020 ended October 31, 2019, up from $313.3 million in the first quarter of fiscal 2019, reflecting revenue compression from the company’s ongoing transition to subscription and the significant reduction of hardware revenue from the prior year. There was a GAAP net loss of $229.3 million, compared to a GAAP net loss of $94.3 million in the first quarter of fiscal 2019. Non-GAAP net loss was $135.3 million, compared to a non-GAAP net loss of $23.7 million in the first quarter of fiscal 2019.

“Our solid Q1 performance, particularly in the Americas, gives us confidence that we have the right formula for global sales leadership as demonstrated by improved productivity and sales hiring over the last six months,” said Dheeraj Pandey, Chairman, Founder and CEO of Nutanix. “We have also seen momentum in key areas of our business, including the transition to subscription and an improved 28% attach rate of new products onto our core HCI platform.”

“We continued to make progress towards our goal of more than 75% of billings coming from subscription by the end of the fiscal year, further demonstrating that customers want the freedom and flexibility that a subscription software model offers,” said Duston Williams, CFO of Nutanix. “Our last two quarters of solid execution position us well to deliver on our growth plans for fiscal 2020.”

Some highlights

  • First quarter fiscal 2020 subscription billings grew 41% year-over-year to $276 million, representing 73% of total billings, and subscription revenue increased 72% year-over-year to $218 million, representing 69% of total revenue.
  • Nutanix ended the first quarter with 14,960 total customers and closed a record high of 66 deals worth more than $1 million. First quarter customer wins included Anheuser-Busch InBev, Akron Children’s Hospital, Banco Patagonia S.A., Huaxia Bank, and The College of Education and Human Ecology at Ohio State University.
  • Nutanix saw continued new product traction with 28%2 of deals including at least one product outside of the company’s core offering.