Nutanix shares have spiked in after-hours trading after the company topped estimates of its first-quarter financial results and followed that up with a clear outline of what the next three months will be like.
The data center software and services company reported a loss before stock compensation (44 cents per share) on revenue of $312.8 million. Wall Street predicted that there would be a bigger loss of 57 cents per share on revenue of $299.34.
Nutanix also reported subscription revenue of $278 million and subscription billings of $294 million. As in other companies, subscriptions are a great way to get a reliable revenue stream than product sales.
Related: What is Nutanix and how it conquers the hybrid and multi-cloud world
After-hours trading action
The company said that its ACV (Annual Contract Value) billings hit $137.8 million, a 10% increase compared to the same period last year. ACV billings is one of the more essential metrics Nutanix has placed emphasis on.
ACV is described as the total annualized value of a contract, exclusion amounts used for professional services and hardware. Nutanix’s forecast for the second quarter places the ACV billings in the $145 to $148 million range, ahead of Wall Street’s forecast of $134.4 million.
Investors seemed content, as the after-hours trading pushed the company’s stock up by 7%.
The pay-off of ACV-first
Dheeraj Pandey, the co-founder, and CEO of Nutanix, said that the company is pleased with its performance in the first quarter. It was a strong start to the fiscal 2021 year. The company has also increased the adoption of new products and seen continued growth in its core hyper-converged infrastructure software.
Duston Williams, the Chief Financial officer, said that the company’s ACV-first approach and the tight go-to-market execution propelled it to outperform in all the key financial metrics.
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