Shares of enterprise cloud-platform provider Tintri Inc. (NASDAQ: TNTR) tumbled on Friday after the company reported mixed second-quarter financial results. Revenue came in below the average analyst estimate and at the low end of the company's own expectations, and Tintri's third-quarter guidance called for minimal sequential revenue growth. The stock was down about 27% at 11:15 a.m. EDT.
Continue Reading Below
Tintri reported second-quarter revenue of $34.9 million, up 27% year over year but roughly $0.8 million below the average analyst estimate. Tintri's total customer count now exceeds 1,400; the company did not disclose the precise number of new enterprise and cloud service provider customers gained during the quarter.
The bottom line looked better relative to expectations. Non-GAAP earnings came in at a loss of $0.91 per share, up from a loss of $1.03 per share during the prior-year period and $0.02 better than analysts were expecting. The loss was $2.05 per share on a GAAP basis, driven by significant increases in spending. Research and development spending soared 78% year over year to $23.1 million, while sales and marketing spending surged 33% to $32.6 million.
Tintri CEO Ken Klein acknowledged the weaker-than-expected revenue growth, but pointed to the positives:
Tintri expects to produce third-quarter revenue between $36 million and $37 million, up just 4.6% at the midpoint from the second quarter. A non-GAAP net loss between $0.77 and $0.81 per share is expected. The company is hoping that a recently announced all-flash platform and new software offerings will help drive growth in the second half.
Tintri went public in July, and the second-quarter report was its first as a publicly traded company. Big losses and slowing growth were the themes, and investors responded by pushing down the stock. Tintri has about $80 million of cash on the balance sheet, but with a negative free cash flow of $23.9 million during the second quarter, that cash won't last very long.
10 stocks we like better than Tintri, Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Tintri, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of September 5, 2017
Continue Reading Below