Outlook
There has been steady improvement in bottom-line performance sequentially in the recent quarters – though the company remained in loss – which is expected to continue this time.
The top-line is estimated to have benefited from the portfolio revamp, which was supported by intense promotional activity. Going forward, investor sentiment might get a strong boost from the ongoing improvement in revenue performance. Also, the efforts to expand the SME business overseas and forge partnerships in key markets should help the company return to profitability in the long term.
Competition
Nutanix hopes that its expertise in the hyper-converged infrastructure technology will help it stay ahead of rivals. By offering high levels of flexibility and convenience, the technology has been transforming the way data-centers are built and operated.
Nutanix’s competitor Hewlett Packard Enterprise (HPE) will be unveiling its first-quarter numbers on March 3 after the regular trading hours. Among others, VMWare (VMW) will be publishing results for its most recent quarter on Thursday evening.
Looking Back
For the first quarter, Nutanix reported a wider loss, mainly due to a sharp increase in operating expenses. At $315 million, revenues were broadly unchanged from the year-ago quarter. The results came in above the consensus estimates.
Also see: Nutanix Q1 2020 Earnings Conference Call Transcript
Nutanix shares, which gained 11% since the beginning of the year, closed the last session broadly at the levels seen a year ago. The stock pared its recent gains this week and traded lower ahead of the earnings release.