Search
Homepage Rankings and Research Companies Channelcast Marketing Matters CRNtv Events WOTC Cisco Partner Summit Digital 2020 HPE Zone The Business Continuity Center Enterprise Tech Provider Masergy Zenith Partner Program Newsroom Hitachi Vantara Digital Newsroom IBM Newsroom Juniper Newsroom Intel Partner Connect 2021 Avaya Newsroom Experiences That Matter Lenovo GoChannelFirst The IoT Integrator NetApp Data Fabric Intel Tech Provider Zone

Here Are 5 Reasons Why Nutanix’s Stock Price Is Dropping

These are the five main reasons why Nutanix’s stock is down 28 percent Thursday.

Back 1   2   3   ... 6 Next
photo

Too Quick A Transition To Subscriptions

In 2018, Nutanix made the decision to start pulling away from being an IT hardware provider and shift to becoming a software and services company. Over the past two years, Nutanix has completely transformed its portfolio, innovation road map and go-to-market strategy to focus solely on software subscriptions, services and applications.

However, Nutanix executives this week said the company has transformed more quickly than it expected, which is one of the main reasons why it needed to lower its full-year revenue guidance.

In its second fiscal quarter, 79 percent of billings came from subscriptions, surpassing the company’s previously stated goal of 75 percent by the end of fiscal year 2020.

“We repeatedly stated that it’s our desire to move forward through the subscription transition as fast as possible as we made great progress on this goal in the quarter. Our execution in this area far exceeded our expectations in the second quarter, significantly surpassing our fiscal year 2020 fourth-quarter goal of 75 percent,” said Williams. “Of the $50 million to $80 million decrease in [fiscal year 2020] billing guidance range, approximately $25 [million] to $30 million is related to the faster-than-expected transition to subscription, with the remaining amount attributed to the reduction in our APJ [Asia-Pacific and Japan] region sales plan.”

 
 
Back 1   2   3   ... 6 Next

sponsored resources