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Till earlier this year, there was concern if hyperconverged storage provider Nutanix (NASDAQ: NTNX) could manage to sustain its Billion Dollar Unicorn status. But recent quarterly results and its strategic moves suggest that the company may be back on track.
Nutanix’s Financials
Nutanix’s fourth quarter revenues grew 62% over the year to $226 million, ahead of the market’s forecast of $218 million. Billings for the quarter increased 40% to $289.2 million and deferred revenue increased 77% to $526.1 million. Net loss of $0.33 came in better than the Street’s estimated loss of $0.38 per share.
By segment, product revenues grew 57% to $171.7 million and revenues from support and other services increased 78% to $54.4 million.
Nutanix ended the year with revenues growing 72% to $766.9 million. GAAP net loss per share of $3.57 was lower than previous year’s GAAP net loss per share of $3.83.
For the current quarter, Nutanix forecast revenues of $240-$250 million, significantly ahead of the consensus of $232 million. Net loss was estimated at $0.37, in line with market expectations.
Nutanix’s Google Tie-up
The quarter’s performance and market confidence in Nutanix is buoyed by its recent tie-up with Google. Earlier this summer, the company entered a strategic alliance with Google Cloud. The tie-up with Google will allow joint customers to deploy and manage both cloud-based and traditional enterprise applications as a unified public cloud service. They will be able to integrate the Nutanix environment with Google Cloud Platform (GCP) and the two companies will partner to address the technology opportunities for building and operating hybrid clouds that integrate the benefits of private cloud architectures with scalable public cloud environments.
Enterprise customers will have access to a single click hybrid set-up for managing applications between GCP and Nutanix cloud environments. Customers will be able to provision traditional and cloud-native applications into GCP or Nutanix cloud environments with a single click, and even migrate between the two cloud environments seamlessly.
