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Enterprise cloud computing player Nutanix (Nasdaq: ) recently announced its first quarter results that outpaced market expectations. The outlook for the rest of the year was impressive as well, which helped drive the stock upwards in the after-hours trading session.
Nutanix’s FinancialsFor its first quarter of the year, revenues grew 18% to $511.1 million, ahead of the market’s forecast of $501 million. EPS was $0.29, compared with $0.03 a year ago and ahead of the Street’s forecast of $0.18. Annual contract value (ACV) billings came in at $287.2 million compared with estimates of $266.7 million.By segment, Nutanix’s product revenues grew 18% to $246.9 million while revenues from support and other services grew 17% to $225 million.For the second quarter, Nutanix forecast revenues of $545-$555 million compared with the market’s estimates of $534 million. It expects to end the year with revenues of $2.1-$2.13 billion, which was also better than the Street’s consensus of $2.1 billion.
Nutanix’s Cloud ExpansionEarlier this year, Nutanix announced a partnership with Cisco to accelerate hybrid multi-cloud deployments. During the quarter, the two made significant progress on the initiative. Its joint solution was made generally available to be sold by both sales forces, and it saw good customer interest. While it is still early days in the partnership, Nutanix is encouraged by initial market results.On the product front, Nutanix recently announced important enhancements to the Nutanix Cloud Platform to strengthen its capabilities against ransomware attacks on unstructured data. The new features will significantly improve Nutanix’s threat detection, defense, and recovery process.The new features are available in Nutanix Data Lens and Nutanix Unified Storage solutions. They include ransomware detection and blocking capabilities that will enable detection and automated response within 20 minutes of the attack. This provides an extra layer of security for an organization’s unstructured data.The ransomware 1-Click recovery feature will help organizations identify their last known good snapshot and automatically recover the share from the snapshot. Finally, permission visibility and risk visualization will enable customers to better understand permission structures, and audit configurations, and assess risks. These new features strengthen an organization’s security posture across on-premises, public clouds, and edge.Its stock is currently trading at $44.49 with a market capitalization of $10.8 billion. It hit a 52-week high of $45.40 soon after the results announcement. The stock has recovered from the 52-week low of $23.34 that it had fallen to in May this year.More By This Author:
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