April 13, 2024
Nutanix stock pops after earnings as company gives upbeat outlook

Nutanix stock pops after earnings as company gives upbeat outlook

Nutanix Inc. gave an upbeat outlook for its fiscal fourth quarter Wednesday, and its shares were surging in the aftermarket.

The cloud-platform company reported a fiscal third-quarter net loss of $81.2 million, or 35 cents a share, compared with a loss of $112.0 million, or 50 cents a share, in the year-earlier period. On an adjusted basis, Nutanix NTNX, +15.27% earned 4 cents a share, matching the FactSet consensus.

Revenue rose to $449 million from $404 million, whereas analysts were projecting $433 million.

“We continue to execute on our growing base of subscription renewals and remain focused on sustainable, profitable growth,” Chief Financial Officer Rukmini Sivaraman said in a release.

For the fiscal fourth quarter, Nutanix expects $470 million to $480 million in revenue, whereas analysts were modeling $452 million.

Shares were up 14% in after-hours trading Wednesday.

Nutanix disclosed that “upon conclusion of its investigation related to third-party software usage,” its audit committee “determined that evaluation software from two software providers was used in a non-compliant manner over a multi-year period and that certain employees had concealed this non-compliant use of evaluation software.”

Additionally, the company noted that it “identified a material weakness in its internal control over financial reporting” that led to “an immaterial understatement of operating expenses and accrued expenses and other current liabilities” for periods after August 2014. Nutanix has corrected its past financials.


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