Nutanix powers on in software transition
@Nutanix Inc.’s strong quarterly results proved to naysayers that its transition to a more software-centric approach may be going better than expected. Earlier Thursday, Nutanix NTNX, +3.84% reported a better-than-expected fiscal second quarter and outlook, even as it eliminates more hardware sales from its total revenue. The hybrid cloud company said late last year that it would no longer include hardware revenue that is passed on to the original equipment manufacturers in its financial statements. Some investors have been nervous that revenue growth would slow further after last year’s strong double-digit rates with the company’s de-emphasis of hardware sales. But Nutanix forecast for the April quarter $260 million to $275 million in revenue, with calls for growth ranging from 43% to 46%, in the same range as this quarter’s 44% growth to $286.7 million in revenue. “We are still scratching the surface of this market,” Nutanix founder and Chief Executive Dheeraj Pandey told analysts on a conference call. He said that the buyers of the company’s software, which lets corporations move seamlessly from public and private cloud networks, are increasingly coming from higher up in the corporate echelon, as customers expand their purchases to include more parts of the corporation, as they de-emphasize some of their spending on public cloud computing systems.