Tintri (TNTR) is trading sharply lower (-24%) following its first earnings report as a public company last night. Tintri sells an enterprise cloud platform which is a cloud infrastructure deployed on a company's own data center but with connections to public cloud services.
It offers many of the same benefits as public cloud (autonomous services, automation, self-service and analytics) but with the added control, security, and support for enterprise applications that only a private cloud can provide. It basically offers the benefits of both the private cloud and the public cloud.
Turning to the Q2 (Jul) results, Tintri reported a non-GAAP loss of $(0.91), which was better than expected. However, revenue rose 26.5% year/year to $34.9 mln, which was a bit shy of market expectations.
The guidance for Q3 (Oct) is the main reason the stock is under pressure today. While its non-GAAP EPS guidance of $(0.81)-(0.77) is pretty much in-line, the revenue guidance of $36-37 mln was a good bit below market expectations.
On the positive side, Tintri says it remains confident in its competitive position. In fact, Tintri received the largest order in its history in JulQ and added new enterprise logos. Additionally, the company saw momentum in it what it calls its land-and-expand strategy with more purchases from current customers. Tintri also recently announced a new all-flash platform and additional software offerings.
Tintri made its IPO debut on June 30. The pricing on this IPO was slashed to $7-8 from $10.50-12.50. It priced at $7 and opened at $7.12 but has done little since then. Revenue growth has been good (hit $125 mln last year) but they are far away from being profitable.
It was a small deal size (8.5 mln shares) with quality underwriters (Morgan Stanley, BofA Merrill Lynch and Pacific Crest). That's usually a good combination. However, this earnings report and especially the guidance is likely to spook investors at least for the near term. The first earnings report for a new IPO is very important and this is being seen as a disappointment. As such, there likely will be a cloud over the stock in the coming months.