Dheeraj Pandey, CEO, Nutanix
Scott Mlyn | CNBC
Nutanix allots sank as much as 24% in extended trading on Wednesday after the developer of cloud storage and networking software cited coronavirus unsettles as one reason for lowering its 2020 revenue outlook.
The company said that software and support sales for the full year, based on whole contract value (TCV), will be between $1.29 billion and $1.36 billion, down from an earlier forecast of $1.3 billion to $1.4 billion. In pecuniary 2019, about 22% of Nutanix’s revenue came from the Asia Pacific and Japan (APJ) region.
“Nutanix’s TCV management for both the third quarter of fiscal 2020 and the full year of fiscal 2020 is impacted by the much faster than reckon oned transition to subscription coupled with a more cautious view on business activities in the greater APJ region due to the anticipated smash of the coronavirus,” the company said in a press release.
The announcement came just as Microsoft said it doesn’t expect to run across quarterly revenue guidance for the segment that includes Windows, and a week after Apple warned that the spread of the coronavirus wishes leave the company shy of its own expectations for the March quarter. Online travel giant Booking Holdings said on Wednesday that the outbreak desire damp travel demand and drive down sales in the first quarter, and Workday canceled its annual internal vendings meeting over fears of the coronavirus, and will be moving the program online.
Stocks have plunged to start the week, with the S&P 500 decline 6.6% over the past three days. The Centers for Disease Control and Prevention confirmed 59 cases of coronavirus in the U.S., a adulthood of which came from passengers repatriated from the Diamond Princess cruise ship that was quarantined off the littoral of Japan. A total of more than 80,200 cases have been confirmed worldwide, the vast majority in China, with 2,704 deaths.
In into the bargain to slashing its revenue guidance, Nutanix said software and support billings for 2020 will come in at $1.6 billion to $1.67 billion, down from a last estimate of $1.65 billion to $1.75 billion. Even before Wednesday’s announcement, Nutanix shares were down 36% above the past 12 months.
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