Data center infrastructure company Nutanix dropped about 5 percent in extended trading on Thursday after losing more money in the fiscal third quarter than analysts expected.
While revenue beat estimates, Nutanix also gave a forecast for the current quarter that disappointed investors.
Nutanix said in a statement that it expects a loss of 20 to 22 cents per share, excluding certain items, on $295 to 300 million in revenue for its fiscal fourth quarter, which ended on April 30. Analysts had been expecting a loss of 13 cents per share, excluding certain items, on $289 million in revenue, according to Thomson Reuters.
The company has been transitioning to focus much more on software than hardware in the past nine months, CEO Dheeraj Pandey told analysts during a conference call on Thursday.
"We have seen some large deals in terms of what we see on the horizon that would not have been possible had we continued to sell appliances," Pandey said.
In the fiscal third quarter Nutanix's software revenue, totaling $158.5 million, was up 57 percent year over year. In the same period the company's hardware revenue came out to $62.6 million, which was up 5.6 percent.
Shares of Nutanix, which went public in 2016, are up 57 percent since the beginning of the year. In April Bloomberg reported that the company had delayed the release of its Xi cloud service. "As we talked about at our investor day in March, we are providing early access to Xi this summer," Pandey said.