By Davit Kirakosyan

Nutanix (NASDAQ:) shares dropped more than 27% after-hours following the company’s weaker-than-expected Q3 results and lower guidance. The cloud software posted EPS ($0.41) which is well below its Street estimate of ($0.22). The Street estimate was $397.87 millions. Revenue reached $403.7 million.

Rajiv Ramaswami is the President and CEO, Nutanix. He said the unexpected effect was due to the challenges faced late in Q3. These difficulties impacted the company’s Q4 outlook and limited its upside. The main impact on the lower outlook was a result of increased supply chain delays with the company’s hardware partners.

Revenue for Q4/22 is expected to range between $340 and 360 million. This compares with the consensus figure of $439.44 millions. The revenue for 2022 is estimated to range from $1.535-1.555billion, which compares to the consensus estimate at $1.63billion.

Nutanix’s shares fell 33% over the past year, according to the results.