Yahoo Finance Nutanix's (NTNX) Earnings and Revenues Beat Estimates in Q3
Nutanix NTNX incurred third-quarter fiscal 2020 loss of 69 cents per share, beating the Zacks Consensus Estimate by 18.8%. However, the figure was wider than the year-ago loss of 56 cents.
Revenues increased 11% year over year to $318.3 million and also beat the consensus mark by 1.1%.
Product revenues (57% of revenues) fell 2.2% year over year to $180.8 million, primarily due to an 82.7% slump in hardware revenues, partially offset by 8.6% growth in software revenues.
Support, entitlements & other services revenues (43% of revenues) surged 33.7% to $137.5 million.
Total Contract Value (TCV) revenues increased 18.3% year over year to $314.5 million.
Nutanix Inc. Price, Consensus and EPS Surprise
Nutanix Inc. price-consensus-eps-surprise-chart | Nutanix Inc. Quote
Top Line Details
Subscription revenues (82% of revenues) jumped 54.9% from the year-ago quarter to $261 million. Professional services revenues (3.6% of revenues) grew 34.9% to $11.6 million.
Non-Portable Software revenues (13.2% of revenues) plunged 52.8% year over year to $41.9 million. Moreover, hardware revenues (1.2% of revenues) plummeted 82.7% to $3.8 million.
Billings were up 10.8% year over year to $383.5 million. Software and Support billings were $379.7 million, up 17.1% year over year.
During the fiscal third quarter, the company added 700 new customers, bringing the total client numbers to 16,580.
Operating Details
In the fiscal third quarter, the company’s non-GAAP gross profit of $257 million was up 15.9% year over year. Non-GAAP gross margin was 80.7%, up from the 77.1% reported in the year-ago quarter.
Operating expenses on a non-GAAP basis flared up 19.5% year over year to $390.3 million.
Operating loss on a non-GAAP basis widened to $133.3 million from the year-ago quarter’s $104.8-million loss.
Balance Sheet & Cash Flow
As of Apr 30, 2020, cash and cash equivalents plus short-term investments were $732 million compared with $819 million as of Jan 31, 2020.
Cash outflow from operations was $163.5 million compared with the outflow of $52.5 million witnessed in the previous quarter.
Free cash outflow was $117.5 million compared with the prior quarter’s $73.7 million.
Deferred revenues surged 34% year over year to $1.12 billion at the end of the reported quarter.
Zacks Rank & Other Stocks to Consider
Nutanix currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader technology sector are NVIDIA Corporation NVDA, Apple Inc. AAPL and Fortinet, Inc. FTNT, all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth rate for NVIDIA, Apple and Fortinet is currently pegged at 16.9%, 10.7% and 14%, respectively.
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