Nutanix (NTNX) shares fell more than 4% after hours despite the company reporting better-than-expected preliminary Q2 results.
Revenue increased 18% year-over-year to $486.5 million compared to consensus expectations of $464.97 million. Annual contract value (ACV) invoices increased 23% year over year to $267.6 million.
Rajiv Ramaswami, President and CEO of Nutanix, said:
For the third quarter of 2023, the company expects revenue in the range of $430 million to $440 million, compared to consensus of $425.38 million. ACV is billed between $220 million and $225 million.
For the full year, the company expects earnings in the range of $1.8 billion to $1.81 billion, versus consensus of $1.78 billion. ACV claims are expected to be in the range of $905 million to $915 million.
Additionally, management said it discovered that certain evaluation software from one of its third-party providers had instead been used for interoperability testing, validation, and proof-of-concept by customers for multiple years. The matter is being investigated by the Audit Committee with the help of outside counsel.
The financial impact is being evaluated and additional costs are expected. As a result, financial information has not been provided for expenses in the second and third quarters and fiscal year 2023. The company does not anticipate being able to submit Form 10-Q on time or after his prescribed extension of five days as granted due to ongoing review.
#Nutanix #reports #betterthanexpected #preliminary #results #shares