Financial Data and Key Metrics Changes - The company reported quarterly revenue of $671 million, representing a year-over-year growth rate of 13% and within the guided range of $670-$680 million [10][11] - Annual Recurring Revenue (ARR) grew 18% year over year to $2.284 billion [5][11] - Non-GAAP net income for Q1 was $121 million, translating to a fully diluted EPS of $0.41 per share [12] - Free cash flow in Q1 was $175 million, with a free cash flow margin of 26% [12] Business Line Data and Key Metrics Changes - The company experienced a shift in revenue recognition due to a higher proportion of bookings with future start dates, impacting Q1 revenue [10][11] - The average contract duration increased to 3.1 years [11] - Non-GAAP gross margin was reported at 88%, while non-GAAP operating margin was 19.7% [11] Market Data and Key Metrics Changes - The U.S. Federal business saw double-digit year-over-year growth, although it remains a small portion of total revenue [20][21] - The company continues to add large customers, including a significant new logo in the U.S. federal sector focused on AI and modernization [8][9] Company Strategy and Development Direction - The company is focused on modernizing IT infrastructures and adopting hybrid multi-cloud operating models [6][9] - There is an emphasis on flexibility in license start dates to align with customer adoption timelines, particularly in light of Broadcom migrations [14][58] - The company plans to support additional external storage solutions, enhancing its hybrid cloud capabilities [9] Management's Comments on Operating Environment and Future Outlook - Management noted that the fundamentals of the business remain strong despite the revenue timing issues [9][15] - The company expects to see more revenue deferred than previously planned, but the overall revenue recognized over time remains unchanged [10][14] - Management remains optimistic about the demand for their solutions and the potential for growth in the federal sector [20][21] Other Important Information - The company has raised its free cash flow guidance for the full year to $800-$840 million, reflecting a free cash flow margin of 28.9% at the midpoint [13][14] - The company is participating in several upcoming technology conferences, indicating ongoing engagement with investors [2] Q&A Session Summary Question: NRR flat quarter over quarter dynamics - Management explained that new logos do not directly affect NRR, and the stability in NRR reflects good retention and expansion dynamics [17][18] Question: Performance of U.S. Federal business - The U.S. Federal business experienced double-digit growth, but variability is expected due to recent changes in personnel and policies [20][21] Question: RPO bookings growth rate - Management clarified that RPO captures future revenue expectations and noted a year-over-year growth of 26% in RPO [26][28] Question: Supply chain issues and push-outs - Management indicated that supply chain constraints were not a significant factor in Q1 results, but they are monitoring potential impacts going forward [32][34] Question: Customer spending plans and hardware costs - Management has not seen a drop in demand despite rising hardware costs and is focused on providing flexibility to customers [45] Question: Structural changes in bookings - Management confirmed that the increase in bookings with future start dates is likely a structural change driven by customer needs for flexibility [58][61]

Nutanix (NasdaqGS:NTNX) Q1 2026 Earnings Call November 25, 2025 04:30 PM ET Company ParticipantsRajiv Ramaswami - CEOMatthew Martino - VPRuplu Bhattacharya - DirectorRich Valera - VP of Investor RelationsNehal Chokshi - Managing DirectorRukmini Sivaraman - CFOConference Call ParticipantsBen Bollin - AnalystMike Cikos - Senior AnalystJason Ader - Equity Research AnalystSimran Deswal - AnalystParam Singh - Equity Research AnalystJim Fish - AnalystSamik Chatterjee - Managing Director and Senior Equity Research ...

Financial Data and Key Metrics Changes - In Q1 2026, the company reported quarterly revenue of $671 million, representing a year-over-year growth rate of 13% [10][12] - Annual Recurring Revenue (ARR) grew 18% year-over-year to $2.284 billion [11][12] - Non-GAAP net income for Q1 was $121 million, translating to a fully diluted EPS of $0.41 per share [12] - Free cash flow in Q1 was $175 million, with a free cash flow margin of 26% [12] Business Line Data and Key Metrics Changes - The company experienced solid demand across its cloud platform, with notable wins in various sectors, including agriculture and government [5][7] - The average contract duration in Q1 was 3.1 years, indicating a stable customer commitment [11] - Non-GAAP gross margin for Q1 was 88%, while non-GAAP operating margin was 19.7% [11][12] Market Data and Key Metrics Changes - The company noted a double-digit year-over-year growth in its US Federal business, which typically sees seasonal strength in Q1 [20] - The company is seeing a growing proportion of its business through third-party OEM partners, impacting revenue recognition timing [15][24] Company Strategy and Development Direction - The company is focused on modernizing IT infrastructures and adopting hybrid multi-cloud operating models, which aligns with customer needs [5][9] - The strategy includes enhancing partnerships with OEMs like Dell and Cisco, which is expected to grow over time [49] - The company aims to balance prudent investments for growth while expanding margins, reflected in its updated operating margin and free cash flow guidance [16][55] Management's Comments on Operating Environment and Future Outlook - Management indicated that the shift in revenue recognition is primarily a timing issue and does not reflect a change in overall demand [4][10] - The company remains optimistic about its business fundamentals, with unchanged bookings growth expectations and an increase in free cash flow guidance [14][15] - Management acknowledged potential supply chain challenges but emphasized that they do not currently see a drop in demand [40][31] Other Important Information - The company plans to support Dell's PowerStore with general availability expected in summer 2026 [9] - Nutanix was recognized as a leader in the 2025 Gartner Magic Quadrant for distributed hybrid infrastructure [9] Q&A Session Summary Question: Can you elaborate on the dynamics of NRR being flat quarter over quarter? - Management explained that new logos do not directly affect NRR, and the stability in NRR reflects good retention and expansion dynamics [18] Question: How did the US Federal business perform relative to expectations? - The US Federal business saw double-digit year-over-year growth, but variability is expected due to recent personnel and policy changes [20] Question: Why did RPO bookings only grow by 6% despite better-than-expected bookings? - Management clarified that RPO captures future revenue expectations and that the small decline in backlog is consistent with historical seasonality [23][25] Question: What is the impact of customer-requested future start dates on revenue? - Management indicated that the shift in revenue recognition is primarily due to the proportion of bookings with future start dates, not a decline in demand [34][35] Question: How does the company view the competitive landscape? - Management stated that the competitive dynamics remain unchanged, with no significant shifts in competitors or market conditions [42] Question: What percentage of revenue is coming from third-party OEM partners? - While specific percentages were not disclosed, management noted that revenue from OEM partners is growing and expected to continue [49] Question: Is there a risk that investing less now could hurt future revenue growth? - Management emphasized the importance of balancing investments for growth with maintaining margins, indicating confidence in future revenue despite current adjustments [55]

Core Insights - Dell Technologies (DELL) and Nutanix (NTNX) are significant players in the cloud infrastructure and hyperconverged infrastructure (HCI) market, with both companies positioned to benefit from the increasing adoption of hybrid cloud solutions [1][2] Dell Technologies - Dell's Infrastructure Solutions Group (ISG) revenues, which include cloud offerings, increased by 12% year over year to $10.31 billion in Q1 FY26 [3][9] - The company is expanding its cloud services through partnerships and infrastructure solutions, including a recent collaboration with Singapore's Institute of Technical Education to launch a hybrid cloud VDI Center [4] - Dell is experiencing strong demand for AI-optimized servers, particularly the PowerEdge XE9680L, driven by digital transformation and interest in generative AI applications [5][9] - Despite a challenging macroeconomic environment, Dell's innovation in AI infrastructure and positive earnings outlook support its long-term strength, with a Zacks Consensus Estimate for fiscal 2026 earnings at $9.44 per share, indicating a 15.97% year-over-year increase [15][16] Nutanix - Nutanix offers software-defined HCI solutions that support multi-hypervisor and multi-cloud environments, gaining traction as a cost-effective alternative for customers [6] - The company added 620 customers in Q3 FY25, bringing its total client count to 27,490, demonstrating strong recurring revenue momentum [7][9] - Nutanix expanded its portfolio with new solutions like Cloud Native AOS and Nutanix Kubernetes Platform, as well as launching Nutanix Enterprise AI to support modern applications [8] - The Zacks Consensus Estimate for Nutanix's fiscal 2025 earnings is $1.74 per share, reflecting a 32.82% year-over-year increase, although its high valuation may limit near-term upside [15][17] Stock Performance and Valuation - Year-to-date, DELL shares have appreciated by 5.7%, while NTNX shares have increased by 22.9%, with Nutanix's outperformance attributed to its expanding partnerships and clientele [10] - DELL shares are currently trading at a forward Price/Sales ratio of 0.77X, indicating a cheaper valuation compared to NTNX's 6.97X, which is considered overvalued [13] - DELL holds a Zacks Rank of 1 (Strong Buy), while NTNX has a Zacks Rank of 2 (Buy), suggesting a stronger investment case for Dell [19]

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 - 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]