Nutanix (NTNX) - Get Nutanix, Inc. Class A Report tumbled sharply in premarket trading Friday after the cloud-computing software company's fiscal third-quarter revenue missed estimates and its outlook for the fourth quarter was weaker than expected.

Nutanix posted a third-quarter adjusted loss of 56 cents a share on revenue of $287.6 million. Analysts expected a loss of 58 cents a share on revenue of $297.2 million.

Billings in the quarter were $346 million vs. $351.2 million a year earlier. Nutanix said about 65% of the billings were from subscriptions, up from 41% a year earlier.

For the fourth quarter, Nutanix said it expects an adjusted loss of 65 cents a share, wider than analysts' estimates of a loss of 49 cents. Revenue was forecast at $280 million to $310 million vs. expectations of $332.9 million.

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"We are encouraged by the momentum and growth of our subscription business as we transform to a recurring revenue model, which will enable a more predictable revenue stream over time and provide our customers greater flexibility for their hybrid cloud deployments," said Duston Williams, chief financial officer. "We believe the actions we have been taking to strengthen lead generation and enhance sales execution will position us well for the future."

The stock fell 21.8% to $25.54 in premarket trading.