Why Nutanix, Inc. (NTNX) stock is gloomy today?

Shares of the Nutanix, Inc. (NTNX) stock were gloomy today on May 27, 2021, after recording a rise of 2.10% at previous closing in response to the announcement of third-quarter 2021 financial results. NTNX stock price saw a downtrend of 0.32% to drop at $31.52 a share at the time of this writing. Let’s deep dive to explore more of it.

Third Quarter Financial Results:

• The revenue for the NTNX stock reached $344.5 million for the third quarter of 2021 as compared to $318.3 million in the same quarter of the prior year representing 8% yearly growth.
• GAAP gross margin and non-GAAP gross margin for NTNX stock were 78.4% and 81.7% in the reported quarter while these were $77.3% and 80.7% respectively in the same tenure of the prior year.
• GAAP operating expenses were totaled $450.6 million in Q3 2021 representing a 5% decrease as compared to $476.2 million in the Q3 of 2020.
• Non-GAAP operating expenses for NTNX stock were reduced by 7% to drop at $361.5 million from $390.3 million in the third quarter of 2020.
• The ACV billings of NTNX recorded growth of 18% over the year to reach $159.9 million as compared to $135.3 million in the same tenure of the previous year.

Fourth Quarter Financial Outlook for NTNX stock:

• Nutanix stock projected ACV Billings in the range of $170 – $175 million for the fourth quarter of 2021.
• Non-GAAP gross margin would be between 81.5% to 82.0% approximately.
• No-GAAP operating expenses for NTNX stock projected to be in the range of $380 – $385 million in the fourth quarter of 2021.

Business Developments:

• Nutanix stock has made a partnership agreement in order to deliver as a service solution for hosted desktops for the convenience of customers.
• Nutanix stock extended its cloud platform to AWS GovCloud in order to provide improved security features to U.S. public sector organizations.
• NTNX stock collaborated with Microsoft according to which Azure Arc services have been delivered to the Nutanix Kubernetes environment.
• At the end of the third quarter, approximately 19,430 customers have been reported in the database of Nutanix stock.

In a Nutshell:

After reporting positive third-quarter financial results, NTNX stock went up in the last trade but then profit-takers stepped in due to which NTNX stock became red today.