Technology

Tintri Inc (NASDAQ:TNTR) Pays Price for Disappointing Q2 Results

Tintri Inc (NASDAQ:TNTR)

Tintri Inc (NASDAQ:TNTR)

Tintri Inc (NASDAQ:TNTR) felt the wrath of Wall Street after reporting second quarter earnings that fell short of expectations. The stock shed 31.89% in value as investors questioned the company’s growth metrics on revenues coming at the low end of expectations.

Tintri Stock Performance

Tintri Inc (NASDAQ:TNTR)
One month TNTR stock price chart

Last week’s sell off brought to an end a bullish momentum that began last month. The stock of Tintri Inc (NASDAQ:TNTR) gapped lower from the $6.80 per share trading range to record a new 52-week low of $4.20 a share. Changing investor’s sentiments comes months after the cloud company made its debut in the stock market with an opening price of $7.12 a share, reaching highs of $7.75 a share.

The recent sell-off has already triggered a wave of class action lawsuits. Law firm Johnson Fistel, LLP is questioning whether the management provided misleading statements about the company’s business and prospects.

Chief Executive Officer, Ken Klein has sought to dispel the concerns by touting the value proposition offered by Tintri Inc (NASDAQ:TNTR) as well as cash flow improvements. According to the executive, the fact that the company received its largest order in the quarter is a further testament to the firm’s robust growth.

“While the company’s revenue came in at the low end of our expectations, we delivered stronger than projected profitability and cash flow improvements. We remain confident in our competitive position and in the strength of our value proposition. In the quarter we received the largest order in the company’s history and added new enterprise logos,” said Mr. Klein.

Q2 Earnings Report

Tintri Inc (NASDAQ:TNTR) reported revenues of $4.9 million representing a 27% year over year growth. Net loss attributable to shareholder shrunk to (-$2.50) per share from (-$7.53) per share reported last year. The company exited the quarter with cash and cash equivalent of $80.6 million compared to $48 million as of January 31, 2017.

For the third quarter, Tintri Inc (NASDAQ:TNTR) expects revenues of between $36 million and $37 million. Non-GAAP net loss on the other and should range between (-$0.77) and (-$0.81) a share.

The launch of a new all-flash platform Tintri EC6000 according to Mr. Klein is one of the things to look out for in the second half of the year. The cloud Connector which is already integrated to Amazon Web Services and IBM Cloud Object Storage should enhance Tintri’s competitive edge in the cloud enterprise business. The company has also announced the integration of the connector with Cisco Systems, Inc. (NASDAQ:CSCO) UCS Director.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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