Posted on Tuesday, Jul 28th 2020
According to a recent report by
Fortune Business Insights, the global cloud computing market size is expected to grow at 19% CAGR to reach $760.98 billion by 2027. The recent COVID-19 crisis has accelerated some of this transition to the cloud. Enterprise cloud computing companies like Nutanix (Nasdaq: NTNX) are seeing strong revenue growth as well. Nutanix’s Financials
Third quarter revenues grew 11% to $318.3 million, ahead of the market’s forecast by 1.11%. It continued to report losses and ended the quarter with an adjusted loss of $0.69 per share which was significantly better than the market’s forecast loss of $0.85 per share. A year ago, the company had reported a loss of $0.56 per share.
Product revenues fell 2% over the to $180.8 million due to an 83% decline in hardware revenues. Support, entitlements & other services revenues grew 34% to $137.5 million.
Subscription revenues grew 55% over the year to $261 million. Professional services revenues grew 35% to $11.6 million. Non-Portable Software revenues fell 53% to $41.9 million and hardware revenues fell 83% to $3.8 million.
Among key metrics, billings grew 11% over the year to $383.5 million. Software and Support billings were up 17% to $379.7 million. Total Contract Value (TCV) revenues increased 18% to $314.5 million. Nutanix has been migrating to a subscription-based billing model, and during the quarter, it saw 82% of its revenues come from subscription services.
Given the current crisis, Nutanix withdrew its outlook for the year. It did not provide an outlook for the quarter as well.
Nutanix’s Product Expansion
Nutanix continued to expand its market reach through product enhancement and by widening its partner network. During the quarter, it launched Nutanix FastTrack for VDI, a service focused on helping partners and customers expand their remote workforce capabilities at an accelerated pace. FastTrack for VDI includes pre-sized configurations for a range of user types that can be shipped quickly. It also includes remote services to enable rapid deployment of users, and incentives to enhance partner profitability.
It also expanded its platform to include new features geared for big data and analytics applications. It released Nutanix Objects 2.0 that provides organizations with the ability to manage object data across multiple clusters, thus helping achieve scale. It also obtained a formal Splunk SmartStore certification and its platform is optimized for big data to deliver performance while reducing cost.
It also added several new capabilities to its HCI software and AHV hypervisor that are focused on helping protect business-critical applications. The new capabilities include advanced automation for recovering applications and data, seamless multi-site DR, and a near-zero data loss.
With reference to its expanding partner program, it entered into an alliance with Wipro to announce Digital Database Services that are powered by Nutanix Era. The joint solution from Wipro has been powered by Nutanix, and it empowers customers to consolidate their database workloads onto a shared infrastructure to manage database sprawl. It thus helps provides better efficiency, agility, and cost-effectiveness to customers by simplifying database administration.
Nutanix recently achieved FedRAMP Authorization for Xi Government Cloud that includes its multi-cloud Desktop-as-a-Service offering Xi Frame and a hybrid cost governance tool Xi Beam. The FebRAMP status will allow it to market these products within the government sector, thus helping federal agencies to quickly and securely expand telework capabilities.
Besides the federal sector, Nutanix expanded its offerings for the Media and Entertainment industry by announcing a partnership with Avid to deliver the first HCI Platform. The Nutanix hyperconverged infrastructure software is now certified to run with Avid Media Composer video editing software and the Avid MediaCentral media collaboration platform, making it the first HCI-powered private cloud solution to be certified for Avid products.
Its stock is currently trading at $22.38 with a market capitalization of $4.2 billion. It was trading at a 52-week high of $37.86 in February this year. It fell to a 52-week low of $11.31 in March this year amid the turmoil.
This segment is a part in the series : Cloud Stocks . Smartsheet Acquiring Bootstrapped Startups to Drive Growth . Bootstrapped Unicorn Atlassian is Acquiring Capital Efficient Startups . Netflix Price Hike Ruffles Competition . How Will Carbon Black Differentiate? . ServiceNow Grows Through Addition of Capital-Efficient Startups . Zendesk and Freshworks Follow Different Acquisition Strategies . Tableau Grows Through Small Acquisitions . Open Platform Strategy Stands Intuit in Good Stead . Will GoDaddy Follow the PaaS Route? . Adobe Delivers Via PaaS More »» . A Look at Oracle’s 2018 M&A Activity . What Apps Will Drive More Traction for Cloudera? . Slack's App Focus Will Be Key to Post-IPO Success . IBM Counts on its Cloud and Platform for the Turnaround . Atlassian Acquires From its PaaS Marketplace . What Should SAP Acquire to Triple its Value by 2023? . Expect ServiceNow to Acquire From App Marketplace . Should Alarm.com Follow a PaaS Strategy? . 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Proofpoint Targets Insider Threats Through Acquisition . RingCentral's Powerful Partner Strategy Would Augment with PaaS . Qualys Counts on Google and Microsoft for Growth . Shopify Soars on Improved Merchant Offerings . HubSpot Believes in the Importance of PaaS . BlackLine Remains Focused on SAP Integration . Recently Public Cloudflare has New Edge . GoDaddy is on a Shopping Spree . Intuit Targets Online User Base Through Acquisition . Should Palo Alto Networks Acquire ZScaler? . Why Salesforce Buying Vlocity Proves the Growing Importance of PaaS . Datadog Performing Well Post Recent IPO . Workday Should Open Up About its PaaS Success . Anaplan Focuses on API Connectors for its Platform . Veeva . Five9 Strengthens its PaaS Focus . RealPage Brings AI and SaaS to Real Estate . Splunk Should Open up About its PaaS Metrics . Okta Benefiting from App Diversity . Oracle Sees Growth Momentum . Xero Focuses on a PaaS Strategy . DocuSign Resilient to COVID-19 . Smartsheet Looking up to Enterprise Customers for Growth . Paylocity Delivers Solid Results . Q2 Holdings Expands TAM with Acquisitions . New Relic Focuses on PaaS . AppFolio Leverages AI for Product Enhancement . Will Adobe Open Up About its PaaS Statistics? . Change Healthcare Pushes APIs . Dropbox Needs to Share API Metrics . Upwork Improves Monetization . MongoDB has Miles to go . Nutanix Needs to Define a PaaS Strategy . Cloudera Focuses on Hybrid Cloud . Atlassian Gears Up for Growth, Unfazed by Covid-19 . Shopify Helps Merchants Pivot to Online Stores . ServiceNow Steady in Turbulent Seas . RingCentral Sees Strong Traction . Twilio Hits 52-Week High Amidst COVID Crisis . HubSpot Lowers Outlook Amidst Virus Concerns . Proofpoint Acquiring Even Amidst Crisis . BlackLine Looks Solid In The Face of Covid-19 . GoDaddy Continues to Acquire . Qualys Expands Cloud Offerings to Soar to New Highs . Zendesk Struggling Amidst the Downturn . Alteryx Bounces Back Despite Low Outlook . 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One Medical Supports COVID-19 Care Digitally . Microsoft Rides High on Teams and Gaming . Investors Say Yes to nCino’s IPO . Nutanix Focuses on Government and Media Verticals . SAP Rethinks Qualtrics Acquisition . Tenable Expands Into Industrial Cyber-Security . ServiceNow Expands Ties with Zoom . Cloudera Powers its Data Platform with Partnerships . Atlassian Continues to Acquire from PaaS Ecosystem . Shopify Soars to an All-Time High . The PaaS Landscape . HubSpot Focuses on the Enterprise Segment . GoDaddy Restructures During COVID . Akamai's Security Solutions Thriving . BlackLine Needs a PaaS Strategy . Twilio - A Successful PaaS Story . Zendesk Invests in the Future . Qualys Continues to Acquire Indian Startups . ZoomInfo Lists Despite COVID-19 . Analysis of Alteryx PaaS Strategy . Fastly Needs to Diversify from TikTok . Way to Go, Salesforce . Intuit Continues to Acquire . VMware Continues Buying Spree . Analysis of Five9's PaaS Strategy . 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ServiceNow Firing on All Cylinders But One . Snowflake Focuses on Developer Community for Growth . Is SAP Acquiring Alteryx? . Qualys Focuses on SaaS App Security . SurveyMonkey Remains Focused on APIs, ISV PaaS Still Missing . Domo Needs to Open up About PaaS Metrics . Like Wix, GoDaddy Needs to Focus on PaaS . Datadog on an Acquisition Spree . Twilio Soars, Focuses on Social Initiatives . HubSpot Expands Content Offering Through Acquisition . Zendesk Adds Products, While Freshdesk Keeps Acquiring . Shopify and BigCommerce Building API-based Ecosystems . RingCentral Acquires and Adds Partners, But PaaS is Still Missing . Salesforce can Transform Slack PaaS, But Acquisition Still Pending . After Acquisitions, Five9 Focuses on Channel and Network Partnerships . Workday Drives Enterprise Use Cases Through PaaS, as Anaplan Taps Into Consultants