Nutanix stock plummets more than 20% after weak forecast

Nutanix Inc. shares plunged more than 20% in after-hours trading Thursday after the company forecast a sharp downturn in the current quarter that executives blamed on a lack of marketing and sales hiring. Nutanix reported a fiscal second-quarter net loss of $122.8 million, or 68 cents a share, on sales of $335.4 million, up from $286.7 million a year ago. After adjustments for stock-based compensation and other effects, the company claimed a loss of 14 cents a share, improving from a loss of 23 cents a share last year. Billings, which reflects contracts that were signed but are not yet fully on the books, came in at $413.4 million, up from $355.9 million a year ago. Analysts on average expected adjusted losses of 25 cents a share on sales of $331 million, with billings of $416.5 million. That shortfall in billings may be part of the company's disappointing guidance, which called for fiscal third-quarter adjusted losses of 60 cents a share on sales of $290 million to $300 million and billings of $360 million to $370 million. Analysts on average were expecting adjusted losses of 28 cents a share on sales of $348 million and billings of $430.2 million. "Our third quarter guidance reflects the impact of inadequate marketing spending for pipeline generation and slower than expected sales hiring," Chief Financial Officer Duston Williams said in Thursday's announcement. "We took a critical look at these areas and have taken actions to address them." Nutanix shares closed with a 1.4% decline at $50.09, but fell to less than $40 in immediate trading after the results were released.

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