Shares of Nutanix (NASDAQ: NTNX) were plunging on Thursday after the cloud-based hyperconvergence specialist offered underwhelming guidance in its second-quarter earnings report.
The stock finished the day down nearly 30% even as the company beat estimates in the quarter. As Nutanix continues to transition from hardware to a software subscription model, overall revenue inched up 3.4% to $346.8 million, topping analyst expectations at $341.9 million. While gross margin improved as the company moves to the subscription model, it also spent heavily on sales and marketing in the period to push its new subscription-based offerings. As a result, its adjusted loss per share widened from $0.23 to $0.60, but that was still better than estimates at a loss of $0.69 share.
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