Nutanix (NASDAQ: NTNX) Inc., a leader in hybrid multicloud computing, reported third-quarter earnings that surpassed Wall Street expectations but saw its shares plummet by 16% following weaker-than-expected guidance for the fourth quarter.

The company's earnings per share (EPS) for the third quarter came in at $0.28, $0.11 higher than the analyst estimate of $0.17. Revenue for the quarter was also strong at $524.6 million, exceeding the consensus estimate of $515.96 million.

Nutanix anticipates revenue to be between $530 million and $540 million, which falls short of the analyst consensus of $548.1 million. For the full fiscal year 2024, the company expects revenue to range from $2.13 billion to $2.14 billion, slightly below the consensus estimate of $2.141 billion.

President and CEO Rajiv Ramaswami attributed the solid third-quarter results to "disciplined execution and the strength of our business model."

He highlighted recent initiatives in modern applications and generative AI, as well as expanded partnerships, as key drivers of the Nutanix Cloud Platform's value proposition.

CFO Rukmini Sivaraman emphasized the company's balance of top and bottom-line performance, pointing to a 24% increase in annual recurring revenue (ARR) YoY and robust free cash flow generation year-to-date.

"We remain focused on delivering sustainable, profitable growth," Sivaraman added.