{"id":18291,"date":"2022-03-03T01:51:12","date_gmt":"2022-03-03T01:51:12","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/03\/03\/data-center-infrastructure-firms-nutanix-pure-storage-deliver-strong-earnings-results\/"},"modified":"2022-03-03T01:51:12","modified_gmt":"2022-03-03T01:51:12","slug":"data-center-infrastructure-firms-nutanix-pure-storage-deliver-strong-earnings-results","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/03\/03\/data-center-infrastructure-firms-nutanix-pure-storage-deliver-strong-earnings-results\/","title":{"rendered":"Data center infrastructure firms Nutanix & Pure Storage deliver strong earnings results"},"content":{"rendered":"

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Data center infrastructure firms Nutanix Inc.<\/a> and Pure Storage Inc.<\/a> both delivered strong earnings results today, beating Wall Street\u2019s expectations and gaining in after-hours trading.<\/p>\n

Nutanix reported<\/a> a net loss for the second quarter of $5.1 million, with a loss before certain costs such as stock compensation of 3 cents per share. Revenue for the period came to $413 million.<\/p>\n

That was better than expected, with Wall Street modeling a wider loss of 17 cents per share on just $407 million in sales.<\/p>\n

Nutanix also reported annual contract value billings, or ACV billings of $217.9 million, up 37%. ACV is a key metric that measures how much the company invoiced its clients for in the quarter.<\/p>\n

\u201cWe had a solid quarter, we outperformed all our guidance metrics,\u201d Nutanix Chief Executive Rajiv Ramaswami (pictured) told SiliconANGLE in an interview. \u201c[We saw] billings growth of 37% and revenue growth of 19%. We\u2019re well on our target to be cash flow positive this year.\u201d<\/p>\n

Nutanix sells a software-defined hyperconverged infrastructure or HCI stack that integrates compute, storage and networking components into a single appliance or cloud service. Cloud is a big area of focus for the company. In recent months, Nutanix has worked to simplify its product portfolio<\/a>, shifting to become a \u201chybrid multicloud company\u201d in order to deliver more consistency for its customers, Ramaswami said.<\/p>\n

He explained there are four unique aspects to Nutanix\u2019s multicloud approach, including its expertise at managing customer\u2019s data and its simplicity.<\/p>\n

\u201cOur history is bringing simplicity to complex enterprise software,\u201d the CEO explained. \u201cWe did that with HCI and now we\u2019re doing that with the clouds. We don\u2019t need elaborate IT teams to run our product.\u201d<\/p>\n

Nutanix also provides customers with plenty of flexibility and freedom of choice at every level in the stack, with one license that covers every deployment. Lastly, Nutanix has a strong net promoter score, a customer loyalty and satisfaction measurement taken from asking customers how likely they are to recommend a company, product or service. According to Ramaswami, Nutanix\u2019s NPR is better than 90% of others in the infrastructure space.<\/p>\n

Ramaswami said Nutanix\u2019s multicloud approach resonates with major public cloud infrastructure providers such as Amazon Web Services and Microsoft Azure just as much as it does with its customers.<\/p>\n

\u201cFor the big cloud providers, they\u2019re perfectly happy landing customers through our platform,\u201d he said. And as far as customers are concerned, he said: \u201cFor those that want to go to the cloud, we provide an easy way to do that. For new customers that want hybrid multicloud, we are a platform that can take them to the cloud whenever they want to.\u201d<\/p>\n

Looking to the next quarter, Nutanix offered a revenue forecast of $395 million to $400 million, just below Wall Street\u2019s consensus of $401 million. The full year forecast is a little better though, with Nutanix saying it expects revenue of $1.625 billion to $1.63 billion, versus the $1.626 billion estimate.<\/p>\n

Pure Storage Crushes Expectations<\/strong><\/h3>\n

\"\"Nutanix\u2019s strong earnings were overshadowed by Pure Storage, which published results that beat estimates by some distance.<\/p>\n

For the fourth quarter, Pure Storage reported earnings of 36 cents per share on revenue of $708.6 million, well ahead of Wall Street\u2019s forecast of a 26 cents per share profit on sales of $629.3 million. The company\u2019s revenue<\/a> jumped 41% from a year ago, its strongest growth in eight quarters. That helped it to deliver a net profit of $14.9 million in the quarter.<\/p>\n

Pure\u2019s stock jumped 9% in the extended trading session on the back of the report.<\/p>\n

\u201cBy every measure, Pure had an outstanding quarter and fiscal year,\u201d Pure Storage Chairman and CEO Charles Giancarlo (pictured, right) said in a statement. \u201cAs evidenced by the 41% growth in Q4, our strategy to deliver an innovative portfolio of data storage and services, with industry-leading customer experiences and flexible, efficient operations continues to position Pure as the trusted provider for all organizations.\u201d<\/p>\n

Pure also revealed that it passed the 10,000 paying customer mark in the quarter. Meanwhile, its subscription services revenue rose 42% to $216 million. For the full fiscal 2022 year, Pure reported revenue of $2.18 billion, up 29% from a year ago.<\/p>\n

Pure Chief Financial Officer Kevan Krysler said the company\u2019s strong performance was due to its \u201crelentless focus on innovating for our customers\u201d.<\/p>\n

During the quarter, Pure announced it was teaming up with AWS<\/a> to make a key, three-year investment focused on helping joint customers use its Portworx container storage platform to manage applications running on Amazon EKS. As part of the investment, the companies plan to launch \u201csolution development and enablement programs.\u201d Pure also announced a new data protection tool for AWS customers in early access.<\/p>\n

That announcement came two months after Pure launched its latest FlashArray system<\/a>, FlashArray\/\/XL, a top-tier all-flash storage system that\u2019s designed to run mission-critical enterprise applications such as containerized and cloud-native applications, plus massive databases.<\/p>\n

Analyst Steve McDowell of Moor Insights & Strategy told SiliconANGLE at the time that FlashArray\/\/XL is a big deal, as it will allow Pure to operate in the highest tier of the storage market, where only Dell Technologies Inc. and a handful of small providers participate. Before that, Pure had always been locked out of deals requiring an array with so much horsepower and capacity.<\/p>\n

What with its strong results, closer ties with AWS and its powerful new array, Pure Storage enters fiscal 2023 with lots of confidence. For the first quarter it said it expects revenue of $520 million, well ahead of Wall Street\u2019s forecast of $512 million. For the full year, it said it sees total revenue of $2.6 billion, representing growth of almost 20%, versus Wall Street\u2019s forecast of $2.1 billion.<\/p>\n

Photos: SiliconANGLE<\/h5>\n
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