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Nutanix reports better than expected Q2 preliminary results but stock drops

Published 03/07/2023, 07:32 AM
© Reuters.
NTNX
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By Davit Kirakosyan

Nutanix (NASDAQ:NTNX) shares fell more than 4% after-hours despite the company reporting better-than-expected Q2 preliminary results.

Revenue grew 18% year-over-year to $486.5 million, compared to the consensus estimate of $464.97M. Annual Contract Value (ACV) billings were up 23% year-over-year to $267.6M.

“We delivered a solid second quarter financial performance against an uncertain macro backdrop, underpinned by the strength of our subscription-based business model,” said Rajiv Ramaswami, President and CEO of Nutanix.

For Q3/23, the company expects revenue in the range of $430M-$440M, compared to the consensus of $425.38M. ACV billings are seen at $220M-$225M.

For the full year, the company expects revenue in the range of $1.8 billion-$1.81 billion, compared to the consensus of $1.78B. ACV billings are expected in the range of $905M - $915M.

Furthermore, management said they found out that certain evaluation software from one of its third-party providers was instead used for interoperability testing, validation, and customer proofs of concept over a multi-year period. The issue is being investigated by the Audit Committee with the assistance of outside counsel.

The financial impact is being assessed, and additional costs are expected. As a result, financial information regarding expenses for Q2 and Q3, and fiscal year 2023 has not been provided. The company doesn’t expect to be able to file its Form 10-Q on time or after the allowed 5-day prescribed extension period due to ongoing review.

 

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