We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Nutanix (NTNX - Free Report) incurred second-quarter fiscal 2021 adjusted loss of 37 cents per share, beating the Zacks Consensus Estimate by 21.28%. Moreover, the figure was narrower than the year-ago quarter’s adjusted loss of 60 cents.
Revenues decreased 0.3% year over year to $346 million but beat the consensus mark by 5.26%.
Nutanix's ongoing transition to a subscription-based business model led to a year-on-year decline in the average contract term. This, in turn, adversely impacted the top line.
Product revenues (50.5% of revenues) fell 18.1% year over year to $174.8 million. Support, entitlements & other services revenues (49.5% of revenues) grew 28.8% to $171.6 million.
Subscription revenues (88.4% of revenues) rose 14.8% from the year-ago quarter to $305.9 million. Professional services revenues (5.1% of revenues) grew 38.9% to $17.5 million.
The top line was primarily driven by growth in the company’s core hyper-converged infrastructure software and the strong adoption of its new capabilities. The company also benefited from the strong adoption of its hybrid cloud solution on Amazon’s (AMZN - Free Report) cloud platform, Amazon Web Services (AWS).
Non-Portable Software revenues (6.3% of revenues) plunged 63.3% year over year to $21.7 million. Moreover, hardware revenues (0.4% of revenues) plummeted 84.7% to $1.3 million.
Billings were down 10% year over year to $385.5 million. However, Annual Contract Value (ACV) billings were $159.2 million, up 14% year over year. Moreover, Nutanix’s run-rate ACV grew 27.8% year over year to $1.38 billion.
During the fiscal second quarter, the company added 730 customers, bringing the total number of clients to 18,770.
The company added 20 Global 2000 customers during the quarter. Notable customers include members of the Global 2000 companies, such as Allianz (China) Insurance Holding, HCL Technologies Limited, CaixaBank, Nomura Research Institute, Teleperformance Colombia, Royal Vopak, and more.
Moreover, the company’s partnership with Microsoft (MSFT - Free Report) , to deliver hybrid cloud solutions and unified management across on-premises and Azure environments, is a positive.
Operating Details
In the fiscal second quarter, Nutanix’s non-GAAP gross margin expanded 130 basis points (bps) year over year to 82.7%.
Operating expenses declined 11% year over year to $354 million.
Balance Sheet & Cash Flow
As of Jan 31, 2021, cash and cash equivalents plus short-term investments were $1.29 billion, flat sequentially.
Cash used in operating activities was $15.6 million, significantly lower than $52.5 million in the year-ago quarter.
Free cash outflow was $28.5 million compared with the prior quarter’s $16.3 million.
Guidance
For third-quarter fiscal 2021, ACV billings are expected between $150 million and $155 million. Non-GAAP gross margin is expected to be around 81%. Further, non-GAAP operating expenses are expected between $365 million and $370 million.
Management expects the top line to be driven by increased demand for its hyperconverged solutions and automation services. Also, the ongoing shift to cloud solutions due to the coronavirus-induced remote working environment is expected to serve as a key catalyst.
The long-term earnings growth rate for Skyworks Solutions is currently pegged at 18.98%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Bigstock
Nutanix's (NTNX) Q2 Earnings & Revenues Surpass Estimates
Nutanix (NTNX - Free Report) incurred second-quarter fiscal 2021 adjusted loss of 37 cents per share, beating the Zacks Consensus Estimate by 21.28%. Moreover, the figure was narrower than the year-ago quarter’s adjusted loss of 60 cents.
Revenues decreased 0.3% year over year to $346 million but beat the consensus mark by 5.26%.
Nutanix's ongoing transition to a subscription-based business model led to a year-on-year decline in the average contract term. This, in turn, adversely impacted the top line.
Nutanix Inc. Price, Consensus and EPS Surprise
Nutanix Inc. price-consensus-eps-surprise-chart | Nutanix Inc. Quote
Top-Line Details
Product revenues (50.5% of revenues) fell 18.1% year over year to $174.8 million. Support, entitlements & other services revenues (49.5% of revenues) grew 28.8% to $171.6 million.
Subscription revenues (88.4% of revenues) rose 14.8% from the year-ago quarter to $305.9 million. Professional services revenues (5.1% of revenues) grew 38.9% to $17.5 million.
The top line was primarily driven by growth in the company’s core hyper-converged infrastructure software and the strong adoption of its new capabilities. The company also benefited from the strong adoption of its hybrid cloud solution on Amazon’s (AMZN - Free Report) cloud platform, Amazon Web Services (AWS).
Non-Portable Software revenues (6.3% of revenues) plunged 63.3% year over year to $21.7 million. Moreover, hardware revenues (0.4% of revenues) plummeted 84.7% to $1.3 million.
Billings were down 10% year over year to $385.5 million. However, Annual Contract Value (ACV) billings were $159.2 million, up 14% year over year. Moreover, Nutanix’s run-rate ACV grew 27.8% year over year to $1.38 billion.
During the fiscal second quarter, the company added 730 customers, bringing the total number of clients to 18,770.
The company added 20 Global 2000 customers during the quarter. Notable customers include members of the Global 2000 companies, such as Allianz (China) Insurance Holding, HCL Technologies Limited, CaixaBank, Nomura Research Institute, Teleperformance Colombia, Royal Vopak, and more.
Moreover, the company’s partnership with Microsoft (MSFT - Free Report) , to deliver hybrid cloud solutions and unified management across on-premises and Azure environments, is a positive.
Operating Details
In the fiscal second quarter, Nutanix’s non-GAAP gross margin expanded 130 basis points (bps) year over year to 82.7%.
Operating expenses declined 11% year over year to $354 million.
Balance Sheet & Cash Flow
As of Jan 31, 2021, cash and cash equivalents plus short-term investments were $1.29 billion, flat sequentially.
Cash used in operating activities was $15.6 million, significantly lower than $52.5 million in the year-ago quarter.
Free cash outflow was $28.5 million compared with the prior quarter’s $16.3 million.
Guidance
For third-quarter fiscal 2021, ACV billings are expected between $150 million and $155 million. Non-GAAP gross margin is expected to be around 81%. Further, non-GAAP operating expenses are expected between $365 million and $370 million.
Management expects the top line to be driven by increased demand for its hyperconverged solutions and automation services. Also, the ongoing shift to cloud solutions due to the coronavirus-induced remote working environment is expected to serve as a key catalyst.
Zacks Rank and A Stock to Consider
Nutanix currently has a Zacks Rank #3 (Hold).
A better-ranked stock in the broader technology sector is Skyworks Solutions (SWKS - Free Report) , sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for Skyworks Solutions is currently pegged at 18.98%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>