Nutanix, which is a leading enterprise cloud computing company, announced their new Q4 and fiscal 2019 financial results. Soon after the company’s stock price shot up to even 15%.
Nutanix, a company which operates in the cloud computing industry, announced their Q4 Fiscal 2019 Financial results. It beat all the expectations that the financial experts and the company as well had put down. As a reward, NTNX stock price shot up to almost 15%.
While this year hasn’t been the best for Nutanix, judging by these reports, it is clear that the company has survived their transition. Previously, the company made some drastic changes within the company as it transitioned from a hardware-based business to a software-based business.
While their sales and losses continue to fall, it still managed to beat some of the experts’ expectations for the financial results. Also, these results aren’t of how much money the company has netted, but more like how less the company is starting to lose.
So, Nutanix reported fiscal fourth-quarter losses of $194.3 million on revenue of $299.9 million which is also down from last year’s sales of $303.7. Recently, the company decided to remove stock-based compensation and other costs, Nutanix reported losses of 57 cents per share. This measure is also way worse than it was a year ago when it was only 11 cents. So why would someone be happy about such horrible financial results?
Well, because the analysts predicted an even worse outcome. For example, the experts expected the adjusted losses to be around 64 cents a share, but it turned out to be 57 cents. Moreover, analysts predicted the total sales of $294 million, but that also turned out to be slightly more than predicted – $299.9 million.
NTNX stock which saw a devastating loss of value, loosing more than a half of their value in 2019, after these, so-called, positive news, have finally decided to change direction and reported a 15% increase after the release of the results, now sitting at $19.60 per share.
All-in-all, these results mark the successful shifting for Nutanix from a hardware-based business model to a software-based subscription business model. The company delivered 71% of billings from subscriptions and recorded 80% gross margin which is the main highlight for the company’s successful business switch. Also, the company managed to expand their customer base to over 14,000 and the growth in numbers of deals worth over $1 million has increased by 16%.
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