What happened

Shares of Nutanix (NASDAQ:NTNX) have gotten destroyed today, down by 16% as of 10:30 a.m. EDT, after the company reported fiscal third-quarter earnings results. The enterprise cloud platform specialist missed revenue expectations and issued a soft outlook.

So what

Revenue in the fiscal third quarter declined to $287.6 million, missing the analyst forecast of $297.2 million in sales. That led to a non-GAAP net loss of $103 million, or $0.56 per share, slightly better than the consensus estimate that called for an adjusted net loss of $0.58 per share. Billings were $346 million, and non-GAAP gross margin came in at 77.1%.

Stylized picture of a data center

Image source: Getty Images.

"While we faced a top-line impact in our third quarter as we continue to execute our strategic shift toward a recurring revenue business model, our strong foundation and commitment to our customers position us well for the long term," CEO Dheeraj Pandey said in a statement.

Now what

Nutanix also disclosed that Chief Product and Development Officer Sunil Potti tendered his resignation earlier this week, effective June 21. Potti has been with Nutanix since January 2015. The company said it has appointed Brian Stevens to the board of directors. Stevens has extensive industry experience, having spent 13 years at Red Hat followed by nearly five years at Alphabet subsidiary Google.

In terms of guidance, Nutanix expects fiscal fourth-quarter revenue to be $280 million to $310 million, which should translate into a non-GAAP net loss of approximately $0.65 per share. Analysts were expecting $332.9 million in sales and an adjusted net loss of $0.49 per share.

"Much needs to be done in the coming quarters as we flush through our pipeline and sales execution issues and leverage the new subscription model to improve profitability and sales leverage," Pandey added on the conference call.