Nutanix Inc.’s stock shot more than 15% higher in extended trading Thursday after the company reported quarterly revenue that topped analysts’ estimates and issued strong sales guidance.
The company’s board also authorized the repurchase of up to $ 350 million in stock.
“Our consistent execution over the course of the year against an uncertain macro backdrop is a testament to the benefits of our subscription model, as well as the value our customers see in [our product] as they look to modernize IT footprints and implement hybrid multi-cloud operating models,” Nutanix Chief Executive Rajiv Ramaswami said in an interview. “The world has moved from everything in the public cloud to a hybrid.”
Nutanix NTNX, +0.94% reported a fiscal fourth-quarter net loss of $ 13.3 million. Adjusted earnings were 24 cents a share.
Revenue leaped 28% to $ 494.2 million, from $ 385.5 million a year ago.
Analysts surveyed by FactSet had expected on average net earnings of 16 cents a share on revenue of $ 475 million.
Nutanix is predicting $ 495 million to $ 505 million in first-quarter sales, blowing past analyst estimates of $ 487 million. Ramaswami expects growth to continue long-term as more companies adopt AI; Nutanix recently introduced ChatGPT in a box.
Shares of Nutanix have gained 19% this year, while the broader S&P 500 index SPX, -0.16% is up 17%.