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]

Financial Data and Key Metrics Changes - F5 reported a total revenue growth of 12% year-over-year, reaching $780 million, with product revenue growing by 26%, marking the strongest growth in 14 years [8][27] - The company achieved a GAAP net income of $190 million, translating to $3.25 per share, while non-GAAP net income was $243 million or $4.16 per share, reflecting a 24% EPS growth year-over-year [32][38] - Cash flow from operations reached a record $282 million, with cash and investments totaling approximately $1.44 billion at the end of the quarter [32][33] Business Line Data and Key Metrics Changes - Global services revenue grew by 1% to $392 million, while product revenue increased by 26% to $389 million [27] - Software revenue grew by 16% year-over-year to $208 million, with subscription-based software revenue increasing by 19% to $185 million, representing 89% of total software revenue [28] - Systems revenue totaled $181 million, up 39% year-over-year, driven by tech refresh and data center modernization [28] Market Data and Key Metrics Changes - Revenue from the Americas grew by 13%, accounting for 55% of total revenue, while EMEA delivered 6% growth (26% of revenue) and APAC grew by 21% (19% of revenue) [29] - Enterprise customers represented 70% of product bookings, with government customers at 15% and service providers also at 15% [29] Company Strategy and Development Direction - F5 is focusing on modernizing data centers and adopting hybrid multi-cloud architectures, which are seen as significant growth drivers [7][11] - The company is leveraging its application delivery and security platform to simplify operations and enhance security for customers, particularly in the context of AI workloads [11][12] - F5 aims to continue innovating and expanding its offerings in AI-driven applications and infrastructure [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for data center modernization and hybrid multi-cloud solutions, expecting continued strong demand in Q4 [10][36] - The company anticipates Q4 revenue in the range of $780 million to $800 million, implying approximately 9% revenue growth for FY '25 [10][36] - Management noted that the long-term structural shift towards data center modernization will persist, creating ongoing investment opportunities [11][37] Other Important Information - F5 repurchased $125 million worth of shares during the quarter, with $1 billion remaining on the authorized stock repurchase program [34] - The company ended the quarter with approximately 6,540 employees [35] Q&A Session Summary Question: Can you discuss the strength in hardware and its sustainability? - Management noted strong tech refresh dynamics and secular trends in hybrid cloud and AI driving hardware growth, with expectations for continued growth next year but at a more modest rate [45][50] Question: What is the outlook for software renewals and new deal activity? - Management highlighted a healthy renewal base and strong expansion trends, with new use cases contributing to software growth [52][55] Question: What factors affected gross margins this quarter? - Gross margins were slightly lower due to high-performance use cases with compliance demands and the strength in the systems business, which has a lower margin than software [58][60] Question: How significant is the AI-related business for F5? - Management indicated that direct AI use cases are currently small but growing, with indirect AI-related spending also increasing as customers invest in data capacity for AI [98][99] Question: What is the expected growth for hardware and software in FY '26? - Management expects hardware to grow modestly next year, while software growth is anticipated in the mid-single digits, with potential for reacceleration in FY '27 [67][70]

Financial Data and Key Metrics Changes - The company reported quarterly revenue of $639 million, exceeding the guided range of $620 million to $630 million, representing a year-over-year growth rate of 22% [14][15] - Annual Recurring Revenue (ARR) at the end of Q3 was $2.14 billion, reflecting an 18% year-over-year growth [15] - Non-GAAP gross margin in Q3 was 88.2%, and non-GAAP operating margin was 21.5%, higher than the guided range of 17% to 18% [16] - Non-GAAP net income in Q3 was $125 million, translating to a fully diluted EPS of $0.42 per share [17] - Free cash flow in Q3 was $203 million, representing a free cash flow margin of 32% [18] - The company ended Q3 with cash, cash equivalents, and short-term investments of $1.882 billion, up from $1.743 billion at the end of Q2 [19] Business Line Data and Key Metrics Changes - The company experienced strong new logo growth across all customer segments, with significant wins in the EMEA region and North America [9][10] - The net dollar-based retention rate (NRR) at the end of Q3 was 110%, remaining flat quarter-over-quarter [16] - Average contract duration was 3.1 years, slightly higher than expectations and up slightly quarter-over-quarter [16] Market Data and Key Metrics Changes - The company noted a dynamic macro environment affecting deal cycles, particularly in the federal business, leading to longer deal cycles and variability [26][30] - The company is optimistic about the federal business benefiting from its platform's focus on modernization and total cost of ownership [26] Company Strategy and Development Direction - The company aims to become the leading platform for running applications and managing data anywhere, focusing on hybrid multi-cloud capabilities and partnerships [13] - Recent partnerships with Dell and Pure Storage are expected to enhance the company's offerings, with new solutions being introduced [12][63] - The company is expanding its cloud platform to support Google Cloud and announced a new solution, Cloud Native AOS, to enable modern applications [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment remaining similar to Q3, with expectations to continue adding new customers [21] - The company plans to increase investments in sales, marketing, and research and development to address market opportunities [21] - Management acknowledged the challenges of year-over-year comparisons for new logo additions in Q4 due to strong performance in the previous year [21] Other Important Information - The company repurchased $38 million worth of common stock under its existing share repurchase authorization [19] - The updated guidance for fiscal year 2025 includes revenue of $2.52 billion to $2.53 billion, representing a year-over-year growth of approximately 17.5% [20] Q&A Session Summary Question: Can you walk us through the linearity seen throughout the quarter? - Management noted that while linearity can vary, they have not seen significant changes in deal cycles, although some variability exists in the federal business [30][31] Question: What is the delta between NCIC and the core standard NCI license? - The NCIC offering includes the platform minus the storage, and early customer feedback has been positive [36][39] Question: What is driving the increase in operating margin guidance? - The increase is attributed to timing of hiring and expected ramp-up in investments in Q4 [41][42] Question: Can you explain the difference between ARR and revenue growth rates? - Revenue is a flow metric while ARR is a stock metric, and factors like contract duration can affect their relative growth rates [50][51] Question: How is the pricing environment and share gains versus VMware? - The pricing environment has been stable, and the company has seen strong traction in acquiring new customers, particularly with its hypervisor [75][72] Question: What is the status of partnerships with Dell and Cisco? - Cisco has been a consistent contributor to new logo growth, while the Dell partnership is still in early stages but expected to ramp up [61][63]

Financial Data and Key Metrics Changes - The company reported quarterly revenue of $639 million, exceeding the guided range of $620 million to $630 million, representing a year-over-year growth rate of 22% [14][15] - Annual Recurring Revenue (ARR) at the end of Q3 was $2.14 billion, reflecting an 18% year-over-year growth [15][18] - Non-GAAP gross margin in Q3 was 88.2%, and non-GAAP operating margin was 21.5%, higher than the guided range of 17% to 18% [16][18] - Non-GAAP net income in Q3 was $125 million, translating to a fully diluted EPS of $0.42 per share [17][18] - Free cash flow in Q3 was $203 million, representing a free cash flow margin of 32% [18] Business Line Data and Key Metrics Changes - The company experienced strong new logo growth across all customer segments, with significant wins in large organizations modernizing their IT infrastructure [9][10] - The average contract duration increased to 3.1 years, slightly higher than expectations [16] - The net dollar-based retention rate (NRR) at the end of Q3 was 110%, remaining flat quarter-over-quarter [16] Market Data and Key Metrics Changes - The company noted strong demand for its solutions, particularly in the federal business, despite longer deal cycles due to changes in the federal government [26][27] - The company is optimistic about opportunities in the federal sector, focusing on modernization and total cost of ownership (TCO) improvements [26] Company Strategy and Development Direction - The company aims to become the leading platform for running applications and managing data anywhere, focusing on hybrid multi-cloud capabilities and partnerships [12][13] - Recent partnerships with Dell and Pure Storage are expected to enhance the company's offerings and market reach [12][63] - The company is expanding its cloud platform to support Google Cloud and announced new solutions to enable modern applications [12][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a dynamic macro environment affecting deal cycles and customer engagement but remains optimistic about continued demand for their solutions [25][26] - The company expects to continue adding new customers while noting that Q4 presents a tough year-over-year comparison for new logo additions [21] - Management raised full-year guidance across all metrics, reflecting confidence in sustained growth and profitability [22][20] Other Important Information - The company repurchased $38 million worth of common stock during Q3 and used approximately $65 million to retire shares related to employee tax liabilities [19] - The updated guidance for fiscal year 2025 includes revenue of $2.52 billion to $2.53 billion, representing a year-over-year growth of approximately 17.5% [20] Q&A Session Summary Question: Can you walk us through the linearity seen throughout the quarter? - Management noted that while linearity can vary, they have not seen significant changes in deal cycles, although some variability exists in the federal business [30][31] Question: What is the delta between NCIC and the core standard NCI license? - The NCIC offering includes the platform minus the storage, and early customer feedback has been positive [39] Question: What is driving the increase in operating margin guidance? - The increase is attributed to timing of hiring and expected productivity improvements, along with prudent investments in areas with anticipated returns [41][45] Question: How did the renewals business perform versus land and expand? - The company saw strong new logo growth and solid renewals in Q3, with a greater mix of larger deals in the pipeline [78][79] Question: What is the pricing environment like? - The pricing environment has been stable, with no significant changes noted, and the company continues to see traction in new customer acquisitions [74][75] Question: How is the company addressing the competitive landscape, particularly with VMware? - The company is gaining traction with new customers, many of whom are adopting their hypervisor, and is optimistic about opportunities arising from VMware's changes [72][74]

Financial Data and Key Metrics Changes - Nutanix reported record quarterly revenue of $655 million, exceeding the guided range of $635 million to $645 million, representing a year-over-year growth rate of 16% [21] - Annual Recurring Revenue (ARR) grew 19% year-over-year to $2.06 billion, surpassing the $2 billion mark [10][21] - Non-GAAP gross margin in Q2 was 88.3%, and non-GAAP operating margin was 24.6%, higher than the guided range of 20% to 21% [24] - Free cash flow in Q2 was $187 million, representing a free cash flow margin of 29% [25] Business Line Data and Key Metrics Changes - New logo growth exceeded 50% year-over-year across all customer segments, including the Global 2000 [10][21] - Net dollar-based retention rate (NRR) at the end of Q2 was 110%, flat quarter-over-quarter [22] Market Data and Key Metrics Changes - The U.S. federal business improved and returned to solid year-over-year growth, although it remains 10% or less of annual revenue [39][42] - The company noted a good pipeline of opportunities in the federal sector, but uncertainty remains due to the new administration [41][73] Company Strategy and Development Direction - Nutanix aims to become the leading platform for running applications and managing data anywhere, focusing on capturing multiyear growth opportunities [18] - The company is investing in sales and marketing and research and development to address its large market opportunity [31][102] - The Nutanix Cloud Platform is positioned to support enterprises in deploying and running GenAI applications efficiently [12][96] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strength in landing new logo customers and steady performance in existing customer expansion [29][71] - The updated guidance for fiscal year 2025 includes revenue of $2.495 billion to $2.515 billion, representing a year-over-year growth rate of approximately 17% at the midpoint [28] - Management acknowledged the challenges of elongated sales cycles and variability in deal structures but noted improvements in closing larger deals [23][137] Other Important Information - Nutanix issued $862.5 million in convertible notes due 2029 and closed a $500 million revolving credit facility, enhancing financial flexibility [25][26] - The company highlighted significant wins with various Global 2000 companies, showcasing its ability to modernize IT footprints [14][16] Q&A Session Summary Question: Insights on customer momentum and federal vertical - Management noted that new logo growth is driven by a matured pipeline and recent go-to-market initiatives, with the federal business showing improved performance [36][39] Question: Confidence in pipeline for Global 2000 customers - Management indicated that many Global 2000 opportunities are second vendor opportunities, with a mix of hyperconverged and three-tier solutions being adopted [48][50] Question: Variability in large deal timing and incentives - Management acknowledged variability in large transactions and emphasized the importance of articulating the value proposition to customers [78][81] Question: Update on GPT-in-a-Box and enterprise adoption - Management reported increasing interest in GenAI applications and noted that customers are moving from experimentation to real-life production deployments [92][96] Question: Investment in sales and marketing and R&D - Management confirmed that investments in sales and marketing and R&D will ramp in the second half of the fiscal year, targeting core platform strengthening and modern applications [101][104]