Nutanix (NASDAQ: NTNX) reported Q3 EPS of ($0.69), $0.19 better than the analyst estimate of ($0.88). Revenue for the quarter came in at $318.3 million versus the consensus estimate of $307.41 million.

Q3 Fiscal 2020 Financial Highlights

• Revenue: $318.3 million, up 11% year-over-year from $287.6 million in the third quarter of fiscal 20191
• Billings: $383.5 million, up 11% year-over-year from $346.0 million in the third quarter of fiscal 20191
• Software and Support (TCV)2 Revenue: $314.5 million, up 18% year-over-year from $265.8 million in the third quarter of fiscal 2019
• Software and Support (TCV)2 Billings: $379.7 million, up 17% year-over-year from $324.2 million in the third quarter of fiscal 2019
• Gross Margin: GAAP gross margin of 77.3%, up from 73.9% in the third quarter of fiscal 2019; Non-GAAP gross margin of 80.7%, up from 77.1% in the third quarter of fiscal 2019
• Net Loss: GAAP net loss of $240.7 million, compared to a GAAP net loss of $209.8 million in the third quarter of fiscal 2019; Non-GAAP net loss of $135.2 million, compared to a non-GAAP net loss of $103.0 million in the third quarter of fiscal 2019
• Net Loss Per Share: GAAP net loss per share of $1.23, compared to a GAAP net loss per share of $1.15 in the third quarter of fiscal 2019; Non-GAAP net loss per share of $0.69, compared to a non-GAAP net loss per share of $0.56 in the third quarter of fiscal 2019
• Cash and Short-term Investments: $732.1 million, down from $940.8 million in the third quarter of fiscal 2019
• Deferred Revenue: $1.12 billion, up 34% from the third quarter of fiscal 2019
• Operating Cash Flow: Use of $84.9 million, compared to use of $36.5 million in the third quarter of fiscal 2019
• Free Cash Flow: Use of $117.5 million, compared to use of $58.9 million in the third quarter of fiscal 2019

“We are pleased to have delivered a solid quarter, particularly in light of the global uncertainty caused by the COVID-19 pandemic,” said Dheeraj Pandey, Chairman, Co-Founder and CEO of Nutanix. “We are delighted to be in a position to support our customers with mission-critical solutions as they navigate the rapidly changing landscape of the future of work. Our near-term focus is on thoughtful cash and expense management, while proactively preparing to emerge from this time with the ability to drive long-term growth and scale our business with the market.”

“By adapting quickly to a changing work environment, we were able to meet or exceed our anticipated third quarter results despite the challenging macroeconomic conditions,” said Duston Williams, CFO of Nutanix. “We have also taken proactive measures to manage our operating expenses, which will help meaningfully decrease our cash usage from here and enhance our financial flexibility going forward. While the duration and impact of the pandemic remain uncertain, we are confident that Nutanix is well-positioned to manage the business through this period and will emerge a stronger company with the help of our subscription transition.”

Fiscal 2020 Financial Outlook

Given the uncertainty created by the COVID-19 pandemic, and as previously announced on May 5, 2020, Nutanix has withdrawn its guidance for fiscal 2020, which was originally provided on February 26, 2020, as well as its business model targets for calendar 2021, which were presented during its Investor Day in March 2019. Nutanix plans to resume providing formal guidance when visibility improves.

For earnings history and earnings-related data on Nutanix (NTNX) click here.