Enterprise cloud computing company Nutanix (NTNX 2.33%) saw its stock rise as much as 16.7% on Friday, following the company's first-quarter results for fiscal 2018. The stock is up 6.8% at the time of this writing.
The stock's rise is likely due to better-than-expected revenue and earnings per share, as well as confirmation from management about its plans to shift toward a software-centric business model.
Nutanix reported revenue of $276 million, up 46% year over year. On average, analysts were expecting revenue of about $267 million. Nutanix's non-GAAP loss per share was $0.16 -- narrower than a consensus analyst estimate for a loss of $0.26.
Nutanix CFO Duston Williams said the company "will be focusing even more intently on selling software going forward." Williams went on to note that Nutanix would have registered about $800 million in pure software and support billings, as well as non-GAAP gross profit margins above 80%, over the past 12 months if it had not billed "pass-through hardware-related transactions."
Looking to Q2, Nutanix expects revenue to be between $280 and $285 million, including the elimination of about $12 million in pass-through hardware sales.