Nutanix delivered better-than-expected first quarter financial results on Monday. The company reported a non-GAAP net loss per share of 44 cents on revenue of $312.8 million. Wall Street was looking for a net loss of 57 cents per share on revenue of $299.34 million.
Elsewhere on the balance sheet, Nutanix said subscription billings were $294 million, while subscription revenue came to $278 million. The company said annualized contract value (ACV) billings rose 10% to $137.8 million.
Shares of Nutanix were up over 8% after hours.
Nutanix started out as a provider of virtual desktop infrastructure, but the company has been extending its software-defined hyperconverged infrastructure control stack over recent years. In September the company announced a partnership with Microsoft to develop its HCI portfolio on Azure, mirroring a similar deal it announced with AWS in August.
"Our ACV-first strategy and solid go-to-market execution drove outperformance across all key financial metrics including ACV billings growth of 10 percent year-over-year and run-rate ACV growth of 29 percent year-over-year," said Nutanix CFO Duston Williams. "Looking ahead, we remain focused on thoughtfully managing operating expenses as we continue to execute on our business model transformation and are confident in Nutanix's ability to drive long-term growth for the benefit of all stakeholders."
Nutanix announced last quarter that Dheeraj Pandey will retire as chief executive once a replacement has been selected. The company did not provide an update on the search in its initial earnings release Monday.