Nutanix (NTNX) is up 5% after beating second quarter estimates and issuing third quarter guidance above consensus.
Revenue grew 44% to $287 million versus the $280-285 million guidance as billings grew 57% to $356 million.
Nutanix ended the second quarter of fiscal 2018 with 8,870 end-customers, adding a record 1,057 new end-customers during the quarter. Customers with deals over $1 million in the quarter were up 104% year-over-year to 57. Nutanix signed five software and support deals worth more than $3 million, of which three were worth more than $5 million during the quarter, all with Global 2000 customers.
Nutanix reported a smaller than forecast non-GAAP net loss of $0.14/share for the second quarter.
The company also guided for a third quarter revenue of $275-280 million, about 4% above consensus at the midpoint, and a smaller than expected non-GAAP net loss.
Chief Executive Dheeraj Pandey: "We had an outstanding quarter that demonstrated our strong execution across many business initiatives. Our shift toward a software-centric strategy is on track and we aligned our sales compensation in February to support this transition."
Nutanix also acquired Minjar, the maker of Botmetric, a service that provides customers with unified cost control and enhanced visibility into their workloads running in public clouds. Botmetric, along with Minjar's other cloud solutions SmartAssist Assurance and SmartAssist Managed Cloud, help enterprises embrace the cloud effectively and optimize their multi-cloud environments for performance and cost. Terms of the deal were not disclosed.
Nutanix has a $6.3 billion market capitalization and trades at just under 6x sales estimates for the year. Nutanix is expected to become profitable on a non-GAAP basis in 2020.
The stock is encountering resistance near the $38 level.