Core Insights - Nutanix, Inc. is hosting a webinar to discuss its cloud native capabilities, including the Nutanix Kubernetes Platform, Nutanix Data Services for Kubernetes, and Nutanix Enterprise AI [1] - The webinar is scheduled for June 13, 2025, at 8:00 a.m. PDT and will be accessible via live webcast and replay on the Nutanix Investor Relations website [2] - Nutanix is recognized as a global leader in cloud software, providing a unified platform for application management and data handling across hybrid multicloud environments [2] Company Overview - Nutanix simplifies operations for organizations, allowing them to focus on business outcomes by reducing complexity [2] - The company has established itself as a pioneer in hyperconverged infrastructure, gaining trust from companies worldwide for consistent and cost-effective hybrid multicloud solutions [2]

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 - 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% [13] - Annual Recurring Revenue (ARR) at the end of Q3 was $2.14 billion, reflecting an 18% year-over-year growth [6][13] - 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% [14] - Non-GAAP net income in Q3 was $125 million, translating to a fully diluted EPS of $0.42 per share [15] - Free cash flow in Q3 was $203 million, representing a free cash flow margin of 32% [16] 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 [7][9] - The net dollar-based retention rate (NRR) at the end of Q3 was 110%, remaining flat quarter-over-quarter [14] - Average contract duration increased to 3.1 years, slightly higher than expectations [14] Market Data and Key Metrics Changes - The company noted a dynamic macroeconomic environment affecting deal cycles, particularly in the federal business sector [25][30] - The company is optimistic about opportunities in the federal business, focusing on modernization and total cost of ownership (TCO) improvements [25] 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] - Recent product announcements include support for Google Cloud and enhancements to the Nutanix Cloud Platform, indicating a commitment to innovation [11] - The company is expanding its partner ecosystem, particularly with Dell and Cisco, to drive new logo growth and market penetration [62] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic uncertainties but expressed confidence in continued demand for their solutions [30][88] - The company expects to maintain strong performance in Q4, with guidance for revenue between $635 million and $645 million [17][18] - Management highlighted the importance of investing in sales, marketing, and R&D to capture market opportunities [19] Other Important Information - The company repurchased $38 million worth of common stock during Q3 [17] - 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% [18] 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 [29][30] 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 investments in sales and marketing, with a focus on sustainable growth [41][44] Question: Can you explain the difference between ARR and revenue growth rates? - Revenue is a flow metric while ARR is a stock metric, and various factors such as contract duration can affect their relative growth rates [50][52] Question: How is the company performing against VMware in terms of share gains? - The company is seeing strong traction with new customers, particularly those adopting their hypervisor, indicating competitive wins against VMware [74][76] Question: What is the outlook for partnerships with Dell and Cisco? - The company continues to expand its partner ecosystem, with Cisco contributing steadily to new logo growth and Dell's PowerFlex solution just entering the market [62][108]

Core Insights - Nutanix and Pure Storage have announced a partnership to create an integrated solution for managing virtual workloads on a scalable infrastructure, addressing the needs of high-demand environments [1][2] - The collaboration comes at a crucial time as organizations are increasingly focused on virtualization and operational effectiveness, with Gartner predicting significant migration of virtual workloads by 2028 [2] Group 1: Partnership Overview - The partnership aims to combine Nutanix Cloud Infrastructure with Pure Storage FlashArray, enhancing customer experience for data-intensive workloads, including AI [2][4] - The solution will be supported by major server hardware partners such as Cisco, Dell, HPE, Lenovo, and Supermicro, facilitating both existing and new deployments [4][5] Group 2: Key Benefits - The integrated solution will provide high-performance, flexible, and efficient infrastructure for mission-critical workloads, enhancing operational agility [5][6] - Built-in cyber resilience features will be included, leveraging Nutanix's capabilities like Flow micro-segmentation and Pure Storage's data-at-rest encryption [5][6] - Customers will benefit from increased freedom of choice, allowing for better control over their mission-critical environments [5][6] Group 3: Market Context - The virtualization market is evolving rapidly, with IT leaders needing to adapt to changing technology landscapes while improving operational effectiveness [2] - The partnership is expected to help both companies reach more customers and modernize their storage-rich environments [4][5]