SAN JOSE, Calif.--(BUSINESS WIRE)-- Nutanix, Inc. (NASDAQ: NTNX), a leader in enterprise cloud computing, today announced financial results for its second quarter of fiscal 2019, ended January 31, 2019.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190228005879/en/
Q2 Fiscal 2019 Financial Highlights
- Revenue: $335.4 million (at 76.8% non-GAAP gross margin), up from $286.7 million (at 63.5% non-GAAP gross margin) in the second quarter of fiscal 2018
- Billings: $413.4 million, up from $355.9 million in the second quarter of fiscal 2018
- Software and Support Revenue: $297.4 million, growing 42% year-over-year from $208.7 million in the second quarter of fiscal 2018
- Software and Support Billings: $375.5 million, growing 37% year-over-year from $274.5 million in the second quarter of fiscal 2018
- Gross Margin: GAAP gross margin of 74.4%, up from 62.2% in the second quarter of fiscal 2018; Non-GAAP gross margin of 76.8%, up from 63.5% in the second quarter of fiscal 2018
- Net Loss: GAAP net loss of $122.8 million, compared to a GAAP net loss of $62.6 million in the second quarter of fiscal 2018; Non-GAAP net loss of $40.4 million, compared to a non-GAAP net loss of $23.2 million in the second quarter of fiscal 2018
- Net Loss Per Share: GAAP net loss per share of $0.68, compared to a GAAP net loss per share of $0.39 in the second quarter of fiscal 2018; Non-GAAP net loss per share of $0.23, compared to a non-GAAP net loss per share of $0.14 in the second quarter of fiscal 2018
- Cash and Short-term Investments: $965.9 million, up from $918.3 million in the second quarter of fiscal 2018
- Deferred Revenue: $779.9 million, up 63% from the second quarter of fiscal 2018
- Operating Cash Flow: $38.5 million, compared to $46.4 million in the second quarter of fiscal 2018
- Free Cash Flow: Use of $4.1 million, compared to the generation of $32.4 million in the second quarter of fiscal 2018
Reconciliations between GAAP and non-GAAP financial measures and key performance measures are provided in the tables of this press release.
“Our product portfolio is coming together really well as we double down on simplicity and reliability. On a trailing four quarter basis, Q2 saw a record 40 percent adoption of AHV, and 21 percent of deals included Essentials and Enterprise product offerings beyond the Core,” said Dheeraj Pandey, Chairman, Founder and CEO of Nutanix. “We also saw growing momentum toward a recurring revenue model, delivering 57 percent of billings from subscriptions this quarter. And we are also pleased to announce the promotion of Chris Kaddaras to lead our sales organization in the Americas region in addition to his existing EMEA responsibilities.”
“We were pleased with our large deal activity and our progress in moving toward a subscription model,” said Duston Williams, CFO of Nutanix. “Looking ahead, our third quarter guidance reflects the impact of inadequate marketing spending for pipeline generation and slower than expected sales hiring. We took a critical look at these areas and have taken actions to address them.”
Recent Company Highlights
- Expanded Customer Base: Nutanix ended Q2 FY’19 with 12,410 end-customers, adding 920 new end-customers during the quarter. Customer wins included Apache Corporation, GS Energy Corporation, Harris Corporation, IHG, Komatsu America Corp., and Nedbank.
- Continued Momentum in $1 Million+ Customers: Our number of customers with at least $1 million in lifetime spend reached 779 during Q2 FY’19, growing 44% year-over-year. Six customers purchased at least $5 million of products and services during the quarter as they continued their datacenter modernization journey with Nutanix.
- Launched “You Decide” Campaign to Expand Brand Reach into Market: This new campaign promotes expanded customer choice in server vendor, hypervisor and cloud provider. It is designed to increase lead generation returns by highlighting the financial, operational and personal benefits of the Nutanix platform.
- Received 2018 Product of the Year for Nutanix Era: CRN honored Nutanix Era as the winner of the publication’s Hyperconverged Infrastructure category for its 2018 Product of the Year Awards. This award recognizes products and services that demonstrate best-in-breed technological innovation, financial opportunity for partners, and customer demand.
- Recognized by Forbes on its Just 100: Forbes recognized Nutanix on its Just 100 list, which honors America’s best corporate citizens among the Russell 1000 based on positive employee treatment, customer treatment and job creation.
- Named a Leader in the Gartner Magic Quadrant for Hyperconverged Infrastructure 2 : Nutanix believes its placement as a Leader for the second time in a row is strong validation of its continued dominance in the market it pioneered and its vision to deliver a true hybrid cloud experience so IT teams can seamlessly deliver applications across platforms.
Q3 Fiscal 2019 Financial Outlook
For the third quarter of fiscal 2019, Nutanix expects:
- Revenue between $290 million and $300 million;
- Billings between $360 million and $370 million;
- Non-GAAP gross margin between 75% and 76%;
- Non-GAAP operating expenses between $330 million and $340 million; and
- Non-GAAP net loss per share of approximately $0.60, using approximately 183 million weighted shares outstanding
1 Based on a trailing four-quarter average.
2 The Gartner reference(s) described herein, (the "Gartner Reference(s)") represent(s) research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and are not representations of fact. Each Gartner Reference speaks as of its original publication date (and not as of the date of this press release) and the opinions expressed in the Gartner Reference(s) are subject to change without notice. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Supplementary materials to this earnings release, including the company’s second quarter fiscal 2019 investor presentation, can be found at https://ir.nutanix.com/company/financial. The full release can be found here: https://www.businesswire.com/news/home/20190228005879/en/