Nutanix Inc. provided a positive outlook for its fiscal fourth quarter on Wednesday, resulting in a surge in its shares during aftermarket trading. The cloud-platform company announced a fiscal third-quarter net loss of $81.2 million, or 35 cents per share, compared to a loss of $112.0 million, or 50 cents per share, in the same period last year.
On an adjusted basis, Nutanix reported earnings of 4 cents per share, matching the consensus estimate according to Trade Algo.
Revenue for the quarter increased to $449 million from $404 million, surpassing analysts' projections of $433 million. CFO Rukmini Sivaraman expressed the company's commitment to executing its growing base of subscription renewals and maintaining a focus on sustainable and profitable growth.
Looking ahead to the fiscal fourth quarter, Nutanix expects revenue in the range of $470 million to $480 million, outperforming analysts' expectations of $452 million.
Following these announcements, the company's shares experienced a significant surge of 14% in after-hours trading on Wednesday.
Nutanix also disclosed the findings of its investigation related to third-party software usage. The audit committee concluded that evaluation software from two software providers was utilized in a non-compliant manner over a multi-year period, and certain employees had concealed this non-compliant use.
Furthermore, the company identified a material weakness in its internal control over financial reporting, which resulted in an immaterial understatement of operating expenses and accrued expenses and other current liabilities for periods after August 2014.
Nutanix has taken corrective measures to address these issues and has made the necessary adjustments to its past financials.
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