Shares in data centers operator Nutanix Inc (NASDAQ:NTNX) were flying high in lunchtime trading on the back of sparkling fiscal third quarter results.
Shares were trading at US$19.41, up 10.5% on the day, but less than half the all-time high achieved in early October shortly after it floated on Nasdaq at US$16 a share.
The hype surrounding the company quickly faded and the shares received another blow in March when second quarter results underwhelmed and the 180-day shares lock-in period post-flotation expired.
The latest numbers, released after the bell last night, have restored some faith that the California-based technology company can deliver the sort of growth to justify a premium rating.
Revenue in the three months to 30 April rose to US$191.8mln from US$114.7mln the year before.
Billings rose 47% to US$234.1mln from US$159.5mln.
It is a California technology company, however, so it should be no surprise it is loss-making at this stage of its evolution,
Underlying losses of US$60.8mln were some 50% higher than the US$40.4mln lost the year before.
Nevertheless, investors were encouraged that the company’s customer-base rose by around 790 during the quarter to 6,172, and included some big names such as Caterpillar, Kyocera, Volkswagen and Sprint.
The company said the number of million-dollar-plus deals during the quarter numbered 34 as a result of an increased focus on large deals.
“We continue to execute on our strategy of building a cloud operating system that provides our customers maximum choice of hardware platforms. We recently established a partnership with IBM to bring to market the industry’s first hyper-converged solution on Power Systems, and introduced support for HPE ProLiant and Cisco UCS blade servers,” said Dheeraj Pandey, Nutanix’s chief executive officer.
“Our third quarter results reflect our continued focus on the Global 2000 as well as a measurable improvement in the number of larger deals in the quarter, particularly in North America,” he added.