![]() This is a big reason why risk-averse investors won't be looking at this IPO. I would expect this trend to continue for a while as Nutanix hasn't made any real push to reduce its sales and R&D costs as a percentage of revenue. Research and development also came in over $116 million, but still doesn't touch the sales costs. That accounts for more than its entire gross profit. However, the operating loss comes in from the sales and marketing expenses, which are more than $288 million. ![]() Looking at its income statement, you will see that it actually has a fairly strong gross margin of 62% for 2016. However the net loss margin has declined over the years. For fiscal year 2016, Nutanix took a net loss of $168 million on total revenue of $445 million. ![]() While huge losses may scare off many risk-averse investors, it is not necessarily as bad as it seems. It Can Be Awhile Before We See Profitability Some highlights pertaining to this investment: Seeking to raise up to $209 million in proceeds, this young company is offering growth investors a big risk/big reward opportunity. Nutanix (Pending: NTNX), the cloud-based storage technology software unicorn, has been awaiting an IPO which may only be a few trading days away. ![]()
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