Related: Nutanix Q1 2020 Earnings Conference Call Transcript
At $346.8 million, revenues were up 3% from last year and above analysts’ consensus estimate. Billings increased 4% annually to $428.1 million. Software & Support revenue and Software & Support billings were up 14% and 12%, respectively.
Subscription Push
Reflecting the rapid progress in Nutanix’s business transformation, more than two-thirds of billings came from subscription in the second quarter, which is well ahead of the management’s target.
Dheeraj Pandey, CEO of Nutanix, said, “Our solutions-based approach to our go-to-market strategy is helping customers realize the benefits and power of our new products in conjunction with our core software. As a result, we increased the attach rate of our new products to 31%, up from 21% as of Q2 fiscal 2019 .”
Outlook
For the third quarter, the management currently forecasts a loss of $0.89 per share, on an adjusted basis. Software and support billings are estimated to be $365-$385 million and Software & Support revenue to be between $300 million and $320 million. The guidance for third-quarter adjusted gross margin is around 80%.
For the whole of 2020, the company forecasts Software & Support billings to be between $1.60 billion and $1.67 billion, and Software and Support revenue in the $1.29-$1.36 billion range. The estimate for full-year adjusted gross margin is around 80.5%. The latest projection is below the earlier guidance.
Nutanix Mine
Nutanix announced the GA of Nutanix Mine during the quarter, which is an integrated data protection solution that would help people experience the advanced data management of the company’s HCI software.
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Nutanix shares, which has gained about 3% since the beginning of the year, closed Wednesday’s regular session sharply lower and dropped further during the after-hours session.