Nutanix stock surges as results, outlook beat estimates

Though the hybrid cloud-computing company’s fourth-quarter revenue saw a year-over-year decline, it reported an increase in billings and annual recurring revenue. Its annual contract value billings rose to $756.3 million from $594.3 million in the same period last year, while annual recurring revenue increased to $1.20 billion from $878.7 million in the fourth quarter last year. Analysts had expected billings of $743.6 million.

“Fiscal 2022 was an important data point in demonstrating the long-term benefits of our subscription business-model transition,” said Rajiv Ramaswami, president and chief executive of Nutanix, in a statement. 

The San Jose, Calif.-based company reported a fourth-quarter loss of $151 million, or 67 cents a share, compared with a loss of $358.2 million, or $1.68 a share, in the year-ago period. Adjusted for sales and marketing, research and development, and other costs, the company’s net loss was 17 cents a share. Revenue fell to $385.5 million from $390.7 million in the year-ago quarter.

Analysts surveyed by FactSet had forecast an adjusted loss of 38 cents a share on revenue of $355.3 million.

For the full year, the company’s revenue rose to $1.58 billion, compared with $1.39 billion in the previous fiscal year. Its full-year loss narrowed to $797.5 million, or $3.62 a share, compared with a loss of $1.03 billion, or $5.01 a share, in fiscal-year 2021. Its adjusted loss was $101.4 million, or 46 cents a share, adjusted for sales and marketing, R&D and other costs.

Analysts had expected an adjusted loss of 67 cents a share on revenue of $1.55 billion for the fiscal year.

Nutanix expects first-quarter revenue of $410 million to $415 million, while analysts had forecast revenue of $371.7 million.

Shares of Nutanix have fallen almost 46% year to date, while the S&P 500 index
SPX,
-0.78%
has seen a 17% decrease so far this year.