Core Insights - Nutanix has been recognized as a Leader in the 2025 Gartner Magic Quadrant for Distributed Hybrid Infrastructure, marking its third appearance in this quadrant and its second time as a Leader [1][5] - The recognition reflects Nutanix's commitment to innovation and customer success, as stated by Lee Caswell, SVP of Product & Solutions Marketing [2] Company Overview - Nutanix is a leader in hybrid multicloud computing, providing a secure, unified platform for running applications and managing data across various environments [8] - The Nutanix Cloud Platform (NCP) supports a wide range of public cloud services, including AWS, Microsoft Azure, and Google Cloud, and facilitates the deployment of AI and Kubernetes [2] Customer Use Cases - Organizations in sectors such as financial services, healthcare, public, manufacturing, and retail are utilizing NCP [3] - First Foundation Bank, a California-based customer, leverages NCP for disaster recovery of its virtual desktop infrastructure, highlighting the platform's scalability and cost-effectiveness [3][4]

Core Insights - Nutanix aims to establish itself as a leading infrastructure platform over the next five years, building on its history as a pioneer in hyper-converged infrastructure (HCI) and competing effectively against major incumbents in the market [1][3]. Company Strategy - The company has developed a comprehensive infrastructure platform capable of supporting a wide range of applications, including legacy, modern, and future AI applications, which can be managed across various environments such as on-premises, edge, and public clouds [2]. Market Position - Nutanix has positioned itself as a challenger in the market, successfully competing against established players like legacy storage vendors and VMware, while also addressing the needs of public cloud users [1].

Nutanix 2025 Conference Summary Company Overview - **Company**: Nutanix (NasdaqGS: NTNX) - **Industry**: Hybrid Cloud Infrastructure Key Points and Arguments Vision and Market Position - Nutanix aims to become a de facto platform for applications and data management across various environments, including on-premises, edge, and public clouds, over the next five years [5][4] - The company has been recognized as a leader in Gartner's distributed hybrid infrastructure Magic Quadrant, competing against larger firms like AWS and Microsoft [5] Private vs. Public Cloud - The debate between private and public cloud continues, with private cloud being more cost-effective when properly engineered [9] - Data sovereignty, privacy, and security concerns are driving the need for hybrid cloud solutions, where applications and data can be managed flexibly [10] AI Workloads - Currently, most AI workloads are in public cloud environments for training purposes, but as enterprises adopt AI for daily needs, workloads will likely become more distributed [11][12] Financial Metrics and Methodology Changes - Nutanix has aligned its Annual Recurring Revenue (ARR) recognition with the provision of licenses to customers, reflecting industry practices [14][15] - Fiscal year 2026 guidance anticipates a midpoint growth of approximately 15%, driven by the deployment of HCI architecture and partnerships [19][16] Growth Drivers - Key growth drivers include: - Continued deployment of HCI architecture in legacy environments [16] - The hybrid cloud trend, which is still in early stages [17] - Growth in cloud-native applications through the Nutanix Kubernetes Platform (NKP) [17] - New partnerships that will drive incremental revenue [18] Partnerships and Market Strategy - Nutanix is now supporting external storage, allowing easier integration into existing environments without requiring customers to switch to HCI immediately [20][21] - The company aims to penetrate the remaining 75% of the traditional storage market while maintaining its core HCI offerings [21][24] Customer Momentum - Nutanix has added approximately 2,700 new customers over the past year, with a focus on migrating customers from VMware [52][36] - The company expects to sustain mid to high three-digit new logo additions quarterly [39] Product Portfolio Expansion - The number of use cases within customer environments has increased, with Nutanix now offering solutions that integrate external storage and modern applications [41] - The company is seeing initial success in public cloud migrations, particularly from VMware customers [42] Pricing Strategy - Nutanix aims to maintain competitive pricing while emphasizing the value it provides, rather than competing solely on price [60][59] Margin and Operational Efficiency - Nutanix is focused on driving growth while improving operating margins, with investments in sales, marketing, and R&D [62][63] - The company is not yet at its long-term operating margin goals but is working towards improving sales rep productivity and renewal efficiencies [66] AI and Future Opportunities - Nutanix's AI initiatives, such as GPT-in-a-Box, are still in early stages, with customers exploring use cases like document summarization and fraud detection [67][68] - The company anticipates a rise in inference applications as enterprises optimize workflows and tasks [69] Additional Important Insights - The transition to supporting external storage is seen as a strategic move to capture a larger market share without forcing customers to make significant architectural changes [24][20] - The gradual migration of VMware customers is characterized as a multi-year opportunity, with infrastructure being sticky and requiring careful planning for transitions [52][56]

Group 1 - Nutanix Inc (NTNX) shares are trading higher following the announcement that it will be added to the S&P MidCap 400 index, effective prior to the market opening on September 22 [1][2] - The inclusion in the S&P MidCap 400 is a significant milestone for Nutanix, as it typically leads to increased demand from index funds and institutional investors [2] - Nutanix will replace Acadia Healthcare Company Inc (ACHC) in the index [2] Group 2 - Nutanix shares have increased by 7.24% to $74.98, with a 52-week high of $83.36 and a low of $54.66 [4] - According to Benzinga Edge rankings, Nutanix has a Growth score of 57.77 but a low Value score of 8.29 [3]

Core Viewpoint - S&P Dow Jones Indices will implement changes to the S&P 100, S&P 500, S&P MidCap 400, and S&P SmallCap 600 indices effective September 22, 2025, to enhance market capitalization representation [1][2]. Changes Summary - **S&P 100 Changes**: - Addition of Uber Technologies (Ticker: UBER) in the Industrials sector - Deletion of Charter Communications (Ticker: CHTR) from the index [2][3]. - **S&P 500 Changes**: - Additions: - AppLovin (Ticker: APP) in the Information Technology sector - Robinhood Markets (Ticker: HOOD) in the Financials sector - Emcor Group (Ticker: EME) in the Industrials sector - Deletions: - MarketAxess Holdings (Ticker: MKTX) in the Financials sector - Caesars Entertainment (Ticker: CZR) in the Consumer Discretionary sector - Enphase Energy (Ticker: ENPH) in the Information Technology sector [2][3]. - **S&P MidCap 400 Changes**: - Additions: - Nutanix (Ticker: NTNX) in the Information Technology sector - TransUnion (Ticker: TRU) in the Industrials sector - MP Materials (Ticker: MP) in the Materials sector - Kratos Defense & Security Solutions (Ticker: KTOS) in the Industrials sector - Deletions: - Emcor Group (Ticker: EME) in the Industrials sector - The Wendy's Company (Ticker: WEN) in the Consumer Discretionary sector - Acadia Healthcare Company (Ticker: ACHC) in the Health Care sector - ManpowerGroup (Ticker: MAN) in the Industrials sector [3][4]. - **S&P SmallCap 600 Changes**: - Additions: - MarketAxess Holdings (Ticker: MKTX) in the Financials sector - Caesars Entertainment (Ticker: CZR) in the Consumer Discretionary sector - Enphase Energy (Ticker: ENPH) in the Information Technology sector - The Wendy's Company (Ticker: WEN) in the Consumer Discretionary sector - Acadia Healthcare Company (Ticker: ACHC) in the Health Care sector - Noble Corporation (Ticker: NE) in the Energy sector - Q2 Holdings (Ticker: QTWO) in the Information Technology sector - Waystar Holding (Ticker: WAY) in the Health Care sector - Hecla Mining (Ticker: HL) in the Materials sector - Deletions: - MP Materials (Ticker: MP) in the Materials sector - Kratos Defense & Security Solutions (Ticker: KTOS) in the Industrials sector - ProPetro Holding (Ticker: PUMP) in the Energy sector - Xerox Holdings (Ticker: XRX) in the Information Technology sector - TechTarget (Ticker: TTGT) in the Communication Services sector - Mesa Laboratories (Ticker: MLAB) in the Health Care sector - Owens & Minor (Ticker: OMI) in the Health Care sector - B&G Foods (Ticker: BGS) in the Consumer Staples sector - Jack in the Box (Ticker: JACK) in the Consumer Discretionary sector - Simulations Plus (Ticker: SLP) in the Health Care sector [3][4].

Core Viewpoint - Nutanix is experiencing significant growth, adding 2,700 new customers in the past year, driven by channel partners and a shift from VMware to hyper-converged infrastructure [2][3][4]. Customer Growth - The total customer count for Nutanix has reached 29,000, including over 50 Global 2000 companies, following the addition of 2,700 new customers [3][4]. - Nutanix expects to maintain a mid-to-high single-digit growth rate in new customer acquisition for the upcoming fiscal year [3]. Market Opportunity - Nutanix is in a "second inning" of capturing market share from VMware, with a market opportunity expected to last 5 to 10 years [3][4]. - Despite the growth, VMware still has 200,000 customers, indicating substantial market space for Nutanix to explore [4]. Financial Performance - For the fiscal year ending July 31, Nutanix reported revenues of $2.54 billion, an 18% increase year-over-year, and a net profit of $39 million, recovering from a net loss of $108 million the previous year [6]. - In the fourth quarter, Nutanix's revenue grew by 19% to $653.2 million, with a net profit of $13.9 million [7]. Strategic Partnerships - Nutanix has formed a partnership with Dell Technologies to support PowerFlex storage arrays, successfully migrating two Global 2000 companies to its platform [5][6]. - The collaboration with Pure Storage is in beta testing, aiming to integrate Pure's flash arrays with Nutanix's hyper-converged infrastructure [6].

Core Insights - Nutanix ended fiscal 2025 with a stronger-than-expected fourth quarter, achieving double-digit revenue growth and indicating progress from large strategic deals and industry partnerships [1][2] - Despite the positive performance, near-term contract timing issues affected investor sentiment, leading to a decline in share price [1][8] Financial Performance - The company reported fourth-quarter revenue of $653.3 million, a 19% increase from the previous year, surpassing guidance due to steady new customer additions and expanding enterprise adoption [2] - Annual recurring revenue (ARR) and net revenue retention (NRR) faced temporary challenges due to contracts with deferred start dates [2] Analyst Ratings and Forecasts - Needham analyst Mike Cikos maintained a Buy rating on Nutanix but reduced the price target from $92 to $80, citing near-term valuation pressures while remaining confident in the company's long-term prospects [3][8] - For fiscal 2026, management projected revenue between $2.90 billion and $2.94 billion, operating margins of 21%–22%, and free cash flow of $790–$830 million [6] Growth Catalysts - Key growth drivers include strong execution, expanding partnerships with Cisco, Dell, and Pure Storage, and early adoption of the Nutanix Cloud Infrastructure (NCI) Compute platform [4][6] - The NCI Compute platform has gained traction since its launch in April 2025, with Dell PowerFlex integration and expected support from Pure Storage by year-end [6] Future Expectations - In the first quarter of fiscal 2026, Nutanix anticipates revenue of $670–$680 million, operating margins of 19.5%–20.5%, and earnings per share of 37 cents [7] - The company expects to add several hundred new customers per quarter while continuing to grow renewal annual contract value (ACV) and partner-led revenue contributions [7]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported quarterly revenue of $653 million, representing a 19% year-over-year increase [7][14] - Full fiscal year 2025 revenue was $2.54 billion, up 18% year-over-year, with an annual recurring revenue (ARR) of $2.22 billion, increasing 17% year-over-year [8][17] - Free cash flow for Q4 was $208 million, yielding a free cash flow margin of 32%, while for the full year, free cash flow was $750 million, representing a 30% margin [16][19] - Non-GAAP net income for Q4 was $109 million, or $0.37 per share, while GAAP net income was $39 million, or $0.13 per share [15][16] Business Line Data and Key Metrics Changes - The company added over 2,700 new customers in fiscal year 2025, the highest in four years, including over 50 Global 2000 accounts [8][17] - The average contract duration increased to 3.2 years in Q4, slightly above expectations [15] - The net dollar retention rate (NRR) at the end of Q4 was 108% [15] Market Data and Key Metrics Changes - The company enhanced its platform with new capabilities, including support for Google Cloud and a partnership with Pure Storage [9][10] - The company was recognized as a leader in the 2024 Gartner Magic Quadrant for Distributed Hybrid Infrastructure and as a challenger in the 2025 Gartner Magic Quadrant for container management [10] Company Strategy and Development Direction - The company is focused on capitalizing on multi-year opportunities in the face of industry disruption, with a strategic decision to enable customers to utilize existing external storage hardware [9][13] - The company aims to continue landing new customers at a rate of mid to high three digits per quarter in fiscal year 2026 [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term potential of the business despite macroeconomic uncertainties, particularly in U.S. Federal government spending [21][44] - The company expects some decline in average contract duration due to larger contracts in fiscal year 2025 that may not recur [22][23] Other Important Information - The company announced a $350 million increase to its existing share repurchase authorization [25] - The first quarter fiscal 2026 guidance includes revenue of $670 million to $680 million and a non-GAAP operating margin of 19.5% to 20.5% [20] Q&A Session Summary Question: Can you talk about the FI win and the size of the deal? - Management noted that the FI win was significant, involving a long-term partnership, but did not quantify the deal size [30][31] Question: NRR was down a couple of points sequentially; can you explain? - Management explained that NRR can be affected by the net impact of ARR contributions from prior quarters and noted that larger initial deal sizes could lead to lower future expansion [34][35] Question: How should we think about Dell PowerFlex customers compared to traditional Nutanix customers? - Management indicated that Dell PowerFlex targets large customers, and initial wins were achieved quickly, with expectations for continued growth [40][41] Question: What is the outlook for the U.S. Federal business? - Management acknowledged longer deal cycles and variability in the U.S. Federal sector but remained optimistic about modernization opportunities [44][45] Question: Can you discuss the enterprise AI maturity and its impact on Nutanix? - Management stated that enterprise AI adoption is still in early stages but is expected to accelerate over the next few years [54][55] Question: What are the dynamics around average contract duration and its impact on revenue? - Management explained that average contract duration can vary based on business mix and noted that a slight decline is expected, impacting revenue [85][88]

Financial Data and Key Metrics Changes - In Q4 2025, Nutanix reported quarterly revenue of $653 million, representing a 19% year-over-year increase [5][13] - For the full fiscal year 2025, revenue was $2.54 billion, up 18% year-over-year, with an annual recurring revenue (ARR) of $2.22 billion, increasing 17% year-over-year [6][16] - Free cash flow for FY 2025 was $750 million, a 26% increase year-over-year, yielding a free cash flow margin of 30% [6][18] - Non-GAAP net income for Q4 was $109 million, or $0.37 per share, while GAAP net income was $39 million, or $0.13 per share [14][15] Business Line Data and Key Metrics Changes - The company added over 2,700 new customers in FY 2025, the highest in four years, including over 50 Global 2000 accounts [6][16] - The average contract duration increased to 3.2 years in Q4, slightly above expectations [14] - Non-GAAP gross margin for Q4 was 88.3%, and for FY 2025, it was 88.1%, reflecting a year-over-year increase of 140 basis points [14][18] Market Data and Key Metrics Changes - Nutanix enhanced its platform with new capabilities, including support for Google Cloud and partnerships with Pure Storage and Dell PowerFlex [7][8][9] - The company was recognized as a leader in the 2024 Gartner Magic Quadrant for Distributed Hybrid Infrastructure and as a challenger in the 2025 Gartner Magic Quadrant for container management [8][9] Company Strategy and Development Direction - Nutanix is focused on capitalizing on multi-year opportunities in the face of industry disruption, emphasizing partnerships and ongoing innovation [12] - The company aims to enhance its Gen AI capabilities and extend hybrid multi-cloud capabilities [7][8] - Nutanix plans to continue landing new customers at a rate of mid to high three digits per quarter in FY 2026 [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term potential of the U.S. Federal business despite current uncertainties and longer deal cycles [44][70] - The company anticipates some macroeconomic uncertainties but remains confident in solid demand for its solutions [69][70] - Guidance for Q1 FY 2026 includes revenue expectations of $670 million to $680 million, with an initial FY 2026 revenue guidance of $2.9 billion to $2.94 billion, reflecting a 15% year-over-year growth rate at the midpoint [19][21] Other Important Information - Nutanix announced a $350 million increase to its existing share repurchase authorization [25] - The company will update its methodology for calculating ARR and NRR starting Q1 FY 2026 to align with the timing of license provisioning [24] Q&A Session Summary Question: Can you talk about the FI win and the size of the deal? - Management noted that the FI win is significant, involving a long-term partnership, but did not quantify the deal size [30][31] Question: NRR was down a couple of points sequentially; can you explain? - Management explained that NRR can be affected by the timing of ARR contributions from prior deals and noted that larger initial deal sizes may impact future expansion [33][35] Question: How should we think about Dell PowerFlex customers compared to traditional Nutanix customers? - Management indicated that Dell PowerFlex targets large customers, and initial wins were achieved quickly, reflecting strong interest [40][41] Question: Can you provide insights on the federal government business? - Management acknowledged longer deal cycles and variability in the U.S. Federal sector but remains optimistic about modernization opportunities [44][45] Question: What is the outlook for enterprise AI maturity? - Management stated that enterprise AI adoption is still in early stages, with expectations for significant growth in the coming years [54][55] Question: How are you managing revenue timing dynamics for larger deals? - Management confirmed that they have visibility into transactions scheduled for FY 2026 and have factored this into their guidance [56][57] Question: Can you elaborate on the impact of average contract duration on revenue? - Management explained that average contract duration can vary and that a slight decline is expected, which may impact revenue [82][84]

Q4 FY2025 Earnings August 27, 2025 2 Safe Harbor Forward Looking Statements This presentation contains express and implied forward-looking statements, including, but not limited to, statements regarding: our business momentum and prospects, including our continued innovation across our cloud platform, including modern applications and AI; our first quarter fiscal 2026 outlook; and our fiscal 2026 outlook. Safe Harbor Non-GAAP Financial Measures and Other Key Performance Measures To supplement our consolidat ...