Why Nimble Storage, Inc. Stock Skyrocketed Today

By Markets Fool.com

Image source: Nimble Storage, Inc.

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What:Shares of Nimble Storage Inc. were up 25% as of 12 p.m. EDT Wednesday after the company announced better-than-expected fiscal first-quarter 2017 results.

So what:Quarterly revenue climbed 21% year over year, to $86.4 million, and translated to an adjusted net loss of $20.1 million, or $0.24 per share. Analysts, on average, were anticipating a wider net loss of $0.26 per share on revenue of just $84.6 million.

"We saw strong customer and channel partner interest in our All Flash Arrays with deal sizes substantially above our overall average," stated Nimble Storage CEO Suresh Vasudevan. "All Flash Arrays accounted for 12% of our total array bookings during the first quarter after launch."

Nimble CFO Anup Singh elaborated: "We delivered solid financial results in Q1 as we executed against our financial and operational plans as outlined last quarter. We saw steady progress in larger deals greater than$250K, which were up 51% year-over-year, and continued growth in our customer base, which was up 48% year-over-year."

Now what:For the current quarter, Nimble Storage anticipates revenue in the range of $93 million to $96 million, and an adjusted net loss per share of $0.19 to $0.21. Analysts, on average, were looking for roughly the same net loss on revenue slightly below the low end of Nimble Storage's outlook.

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In the end, this is a fairly cut-and-dry case of Nimble Storage beating expectations as it forsakes bottom-line profitability in favor of driving revenue growth and taking market share. Combined with its strong guidance, it's no surprise to see shares trading higher today.

The article Why Nimble Storage, Inc. Stock Skyrocketed Today originally appeared on Fool.com.

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