Image source: Nutanix.

What happened

Shares of freshly public cloud infrastructure company Nutanix (NASDAQ:NTNX) have sunk today, down by 12% as of 3 p.m. EST, as the post-earnings sell-off continued after the company reported its fiscal first quarter on Nov. 29. This follows a 6% decline yesterday.

So what

Revenue in the first quarter jumped 90% to $166.8 million, with billings growing 87% to $239.8 million. That all translated into a non-GAAP net loss per share of $0.37. The results were better than the $152 million in sales and $0.44-per-share adjusted net loss that analysts were expecting. Nutanix now has $347.1 million in cash and short-term investments, up significantly thanks to the recent IPO that raised $221 million in September.

Now what

The company ended the quarter with nearly 4,500 end customers, adding over 700 end customers during the quarter. Nutanix also completed the acquisitions of PernixData and, which it says will accelerate and automate the delivery of Nutanix's Enterprise Cloud operating system. Strong government spending helped Nutanix deliver better-than-expected results. Guidance for the fiscal second quarter calls for revenue in the range of $175 million to $180 million, with an adjusted net loss of $0.35 to $0.36 per share.

One possible reason why investors may be selling shares is concerns over escalating competition from larger infrastructure companies. Cisco and Hewlett Packard Enterprise have both recently entered the hyper-converged cloud infrastructure market, which threatens to commoditize Nutanix's offerings.