Nutanix CFO Explains Conservative Guidance: 'There Is A Chance For Over Performance'

Nutanix's Guidance

Specifically, Nutanix guided its third-quarter loss to be in a range of $0.45 to $0.48 per share versus analyst expectations of a loss of $0.35 per share. Revenue was guided to a range of $180 million to $190 million versus the $188.45 million analysts were expecting. Also, gross margin was guided to a range of 57 percent to 58 percent, which marks a drop from the reported 60 percent in the second quarter and 63 percent in the second quarter a year ago.

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After the earnings report, Nutanix's management hosted a conference call and needless to say the company's guidance was a key focus.

Here is what the company's Chief Financial Officer Duston Williams said during the call regarding the guidance.

• The guidance factors in a seasonally slow Q3 and efforts that were put in place to boost North American sales and productivity.
• The timing of the company's efforts is "a bit uncertain" which reflects "conservatism" in the guidance.
• Given a 30 to 40 percent expected increase in DRAM prices in Q3 the company was forced to raise its product list prices on February 1.
• But if the price increase holds "there is a chance for over performance" on the guidance.
• However, the executive added that "it's just too early to tell."

At last check, shares of Nutanix were down 19.02 percent at $25.20.