San Jose-based Nutanix  (Nasdaq: NTNX) was set up to deliver invisible infrastructure for enterprise computing. Its proprietary software-driven Xtreme Computing Platform converges compute, virtualization, and storage into a single solution to provide a simpler solution to the datacenter. The company was a pioneer in the development of a compute and storage infrastructure that could implement enterprise-class virtualization without involving the investments in expensive network storage. After a disappointing IPO, the Billion Dollar Unicorn hyper-converged storage leader appears to be on a path of recovery.

Nutanix’s Financials

For the recently reported second quarter, revenues grew 44% to $286.7 million, compared with the market expectations of $283 million. Loss per share came in at $0.14, better than the market’s forecast of a loss of $0.21 per share.

By segment, product revenues grew 41% over the year to $223.3 million, and support and other services revenues grew 55% to $63.6 million. Recently, Nutanix changed its revenue accounting policy. It no longer recognizes pass-through hardware revenues as part of its revenues.

During the quarter, Nutanix’s billings grew 57% to $355.9 million. Software accounted for 42% billings and Support services brought in 35% of the billings. The remaining 23% billings came from the hardware segment. Overall, Software and support billings grew 60% over the year. It added 1,057 customers, ending the quarter with 8,870 customers.

Nutanix expects revenues to grow 35% over the year to $275-$280 million with a non-GAAP net loss of $0.19-$0.21 for the quarter. The market was looking for revenues of $268.4 million with a loss of $0.23 per share.

Nutanix’s Expansion

Nutanix recently released the version 5.5 of its core product. This was the biggest software release in its history. Some of the enhancements to the platform include single node clusters, software-based encryption, real-time replication, self-service portal in Calm for DevOps, antivirus support in software-defined file services, and cross-hypervisor migration.

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