NTNX - Earnings call transcript Q4 2021

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Operator

Good day. Thank you for standing by. Welcome to the Nutanix Q4 Fiscal 2021 Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be Q&A - question and answers session to ask a question during the session. advised. be Please Instruction] [Operator Today's conference being recorded. is

Please you and I'd any your today. Investor assistance, conference further X star speaker Relations. VP Valera, press please Richard ahead. like to If over require go to the hand

Richard Valera

call Good results discuss the year of today's in the XXXX. Quarter to afternoon Fourth to and fiscal welcome conference our

its Joining Duston Nutanix After for CFO. closed today, quarter Williams, issued financial are press fourth the Ramaswami, announcing President Nutanix's fiscal Rajiv today the Nutanix's me and and release a year CEO, in market results XXXX.

the If to please like Releases you'd Press section our read release, website. visit IR the of

management During objectives, call, our outlook, business statements, strategies, will today's including and statements regarding make forward-looking as. as vision, initiatives, well plans,

a impact results. benefits timely manner. Our to ability And thereof and financial our in and business, operations, execute thereon And on the successfully.

Our different in or use performance of metrics financial new targets periods. future performance and in

these timing business our of. and anticipated competitive opportunity impact the current the current position adversely impact and driving those These factors cause results and to risks and from future our And statements differ involve control, of to and statements. actual Growth. trends. transitions, some COVID XX materially. are And pandemic. market and industry Our which which by Macroeconomic model Forward-looking could anticipated uncertainties, to beyond from

these on today, call. our revise obligation detailed issued apply as as For XX-K, release including Report undertake Forward-looking these and statements recent statements most refer Earnings after (quarterly Form we no filings, risks our description SEC Annual report) of Form to These a and uncertainties, of this well to our please today. press on as XX-Q

expressed specifically future. unless rely not our on as exclude a representing a having adjusted are basis on measures to views certain otherwise in financial you Please been the As all call use charges. we them non-GAAP today's result, on note, referenced, should

and GAAP IR measures have extent non-GAAP on financial provided to these website available in press release. the of our measures financial We to earnings our reconciliations

Lastly, Piper events. Technology we the participating will Jeffrey I'll at September Deutsche with tenth, September many hope the Global And Nutanix the XXth, Sandler over Conference on turn to the see call be upcoming Rajiv. Rajiv. to on Bank you management of September confidence and these in that, Technology software Conference on XXth,

Rajiv Ramaswami

Thank ones I you, afternoon, healthy Rich. And everyone. you hope the good safe. ended last and for

the As by COVID and marked an progress financial was to pandemic. strong QX good both and through consistent a we navigate hand Fiscal How continue across year, which execution excellent to objectives. strategic was

areas. across Fiscal exceeded strong our Dynex They we of guidance. Quarter of number a Your delivers And a year. XXXX the

team consistently our over each good As felt We Quarter. within the linearity TV.

of improvements we our acceleration go-to-market help As top-line from which And drive improved in renewals the we of and subscription the approach we also continued ongoing benefit operational the completion saw will build-out engine. business, of our as our economics our journey.

this bottom-line carefully while year. drove substantially leading improvement to managing expenses, we top-line Importantly, Fiscal prior performance a compared our to improved

made On Hall. Rod which new to $XXX good our growth. our relationships a Bain agreement progress Lenovo. additional received with provided the front, more million we from strategic our financial recently, signing flexibility extending investment one, And Capital we with partnerships, fund And alliance on a HP, in

all The We years. reported record time, deeper best We up metrics. areas. the the a three all last QX, saw key record ACV a which record Year-over-year. grew in Looking on XX% delivered at Growth our in of we've outperformed Seeing recent Year-over-year. number revenue billing, our XX%

footprint their us Fourth and footprint shift of Company, challenging Overall, both mission-critical years. lift we saw XXXX ACV core software strong strong of cloud products. Europe, against has our A highlight large our good [Indiscernible] e-commerce I'd to On deals momentum our from We and continued Hexis ministry again and the Along cloud simplify our Global identified a two cluster, use on QX, emerging achieve estate hybrid momentum key Quarter In COVID-XX. Including to consolidation. guidance hybrid Unified era Pfizer center We providing the and confidence new and along see multi-cloud across saw One momentum with enable during the some component were a including grew of Year-over-year Fortune well, expand Growth contributed government our bookings, better-than-expected to results. Financial run highest AWS plan our XXXX saw multi-cloud the Which rate portfolio linearity to portfolio ah, now in to and which primary takeaways and our multi-million-dollar that their of a rate a database complete example, data Day quarter. platform, a a Quarter. Fiscal Investor the backdrop core in like highlighted. to that a in our with for fiscal underlying expanded year. gives storage over June. with the cash that [Indiscernible] with of take the the expansion solution solution, of Be our their SMIC, our Company applications. of One in first The during four-quarter my platform. to XX. to thing, to example continued sonics the of that flow. key moment that where record platform, balance XX%. Services Financial XXX for products, Quarter. automate deal for was large solid Our were XXX% management. real cluster investment over The quarter entire business largest a ACV believe And tax rolling the of this pleased we in

in the and growing substantial hyper-converged market. additional in we our position And large opportunity see the leadership infrastructure Our markets. decent

total a and core noted we markets. different Specifically, market our combined in opportunity available

into laid and roadmap how simplicity, our streamlining hybrid $XX we exceed focus Nutanix a XXXX. performance the single solutions billion our market. fixed As was our strategy said and to We a we're on We by that for plan expect portfolio. to multi-cloud delivering platform hallmarks, out

on a folk fewer, bet. database-as-a-service, the Focusing and area bigger storage, desktop-as-a-service. unified In

by to XXXX from We also on free the XX. explained renewals. solution on on how our And breakeven. executing well low-cost And leverage increasing and through selling finally, second partnerships. cash targeting half of model XX% Annualized we're Benefiting flow, calendar from metrics. year go-to-market Fiscal a focus filings. and In see both provided we expecting tracking we're SEC Both

on of provide Next, I'd previously discussed to like priorities. also update some an our

to on provide on First to our go partnerships impact how we market. more deepening

platform. recently Hat, Enterprise OpenShift Hat industry-leading, with partnership leading together world's Red Our solutions. Linux the Brings Hat announced Red and Red its container OpenFlow of commercial provider around,

simplicity, OpenShift platform. Nutanix, And now Kubernetes Red on If it's choice our OpenShift. preferred of the the for platform. Likewise, platform. to resilience preferred is full-stack for hedge HCI With our hypervisor the support flexibility, now on the Nutanix and on HBE and certified Nutanix enterprise around the Hat's platform. choice

and manage strategy containerized point multi-cloud and in hybrid partnering neutral as with the with best-in-class research partnership have to a providers. virtualized support and also full-stack important customer a cloud-native and build, development ensuring companies integration, other agreement on furthering respectively. this scale and provides by applications in our Finally, an roadmap our platform enhancing This choice see environment. of focused a proof two We and success platform customers a enhanced customer

offering also solutions to Pro-Line operations they bundled and Capex new During the as-a-service are partnership with HBP servers management we Quarter, era expanded HP, HP with an announced multi-database in are agreement. which

In to of core already our is addition platform, offering. part a a which [Indiscernible]

like priorities, of and social, to EFC to our We I'd governance [Indiscernible] turn of our report. Now another released and diversity first environmental,

important the for first various journey initiatives ourselves our in the diversity and We customers. and intuition and detailing having and in During businesses step our workforce our Quarter mechanics our measure can a is baseline. sustainable both This towards more an greater establishing enabling and against.

redefine the of backgrounds it our year, about We model. backdrop to our In I'm perspectives. leadership entire pandemic. execution with given July also spent in has our experts, with first by global the held that ACV leaders we outside board. and how to especially include diverse the closing, Quarter Nutanix created base Conference the and fact a challenging was across our the pleased employee women's Fiscal And And both the Fiscal year full about fourth can

strong We with are a entering our fiscal position. XX

forward next XXth through user XXrd. of September being looking many I'm Finally, held with the upcoming conference connecting doc our you at to

tens our website me on thousands press of forward that, for And customers of look our Duston to welcoming I to and release registration it with our Dustin. Earnings over Let details. hand see partners. Please will Williams.

Duston Williams

included revenue record total highlights continues the all to in million backlog Thank year. to Quarter no total focus. of billings, had the QX Record year-over-year billings, new the QX, record during QX, was A growth of record we ACV well ACV a execution, strong out Sales slippage, $X transactions model you, greater way the benefits There finish total was quarter for few the since fiscal business great build throughout and we largest of And by our record overall metrics exceeded subscription number quarter. unusual total the ACV be our in as entire Rajiv. billings, In strengthened new deal than we key record, the quarter. bookings, guidance products, a emerging revenue. as consistent a quarter. XX. percentage were another in

with you highlights. aligned specific highlights. to XX get onto I that Investor financial and provided the presentation. Now XXnd financial the Day the for roadmap I I move some disclosure with future like QX and details financial metrics, that June before all our into during QX remind disclosures we specific And FY guidance would

for about from range presentation. growth to million, XXX Street slide For my XXX for go-forward QX million. I XX% XXX further number were plan billings would reflecting encourage to details above Investor And disclosure of the million guidance million. the consensus review XX our year-over-year XXX of in clarification disclosure FY plan. Day investors ahead titled of ACV and Guidance our

growing was upsell XX% of New end ACV, since range. XX. Growth strongest end growth QX was billion as which the ACV X.XX ARR growing estimated ACV the the Run-rate Mid-XX% ACV, billion, at rate logo compared Year-over-year, new QX, of well experienced as of XX% bookings, of year-over-year. QX to the X.XX as year-over-year include our

X.X blanks in to largest term. term quarter a X.X years the existing versus contract was customer, X-year as in years QX average from deal our increased Our XX slightly an

Quarter. term few At would trend likely customers. back low down a point, deals expect X-year X-year We next from notable existing also other Most range. the contract to this had our in average lengths we

As much average of customers contract And one amount business. lengths. significant federal our term typically federal usually carries a shorter have

in do Revenue number low term of contract one, approach billings ratio Versus XXX X.X somewhere to was Assuming consensus range QX. X.XX. from XX TCV the substantially we XXX above around million. lines X-year the million approximate growing XX% would the QX, ACV Street be to the in

bookings grew seen year-over-year. revenue We excess since at exceeded sales this Day. have was XX not The rate of our products, assumptions Growth ACV XXX% in attach Year-over-year in products set XX%. rate significantly level new emerging forth QX, productivity emerging The QX Investor rep of

guidance Our XX.X XXX our margin XX.X% QX of guidance XX% was Operating million. versus non-GAAP in XXX versus million Gross expenses our XXX to were of to

disclosed expenses reduction. included XX to million our approximately expenses related severance in Our marketing and QX headcount previously sales

Our QX from were XX XX linearity per or the XX. XX for QX, QX, QX significantly down non-GAAP of good. in in million loss remains days quarter days loss up days $X.XX in share. net very XX XX was and from a DFO's

at and We was X Street of once million XX. again, X.XX slightly billion quarter QX cash cash down linearity in good from negative consensus. short-term sixteen X aided coming billion Our forty-two QX closed with the to million, in the for than free investments by betters flow a

the versus the growing Before to million XXX a XXX range Fiscal XXX do first from we guidance Once last addition million as a Investor provided the simple XX% year XX. versus at of four ACV quarters. quick I uh, our or me the billings ACV not QX of FY we let fiscal FY total and overview, mentioned billing, XX again, were Day. provide quarter, recap derived

a billings than year deal annualized And that our ACV less the any reported one quarterly the one with calculations year length. duplication in yearly this our we For methodology. duration. that term ACV and is renewal occurs deal that on period than within any happens eliminate billings. in Based of is less

account billings growing ACV XX% three this by have the ACV new XX ACV, years, encourage ACV, investors adjusted of XX to we FY with the process. and to some during new Day. billings Over last of We modeling annual ACV XXX would four our the fiscal the to million were upsell exceeded logo which million X% six for distinction provided as well FY fiscal range includes quarters at XXX the XXX as billings, versus Investor versus

well Revenue a The million gross subscription growing performed at in XXX% and XX% to and a million XXX% Emerging were FY versus estimates, versus subscription-based business growth during billion renewals, within FY our year. XX the the loads versus And only versus FY retention growing was new renewals, XXX renewal The including Day Investor XX% was versus the XXX%. for XX% we GXK the support ACV, during compression we year customers than support Day including retention loads, XX%. XXX XXX% bookings was our range XXXX. XX% expectations dollar rate X% added LoD business Yearly million Customer approximately for provided also business, impacted estimate within XX. Our ACV Investor rate, FY versus at the LoD Investor net the the by or approximate XX business for rate FY grew greater FY our of renewals XX including XX including products, estimate FY operate X.XX XXX Day. was in growing XX. revenue XX retention renewals, Day. continued approximately our closed dollar net The subscriptions, as TCV, Investor term of shared of retention,

a in QX and turning a hundred and seventy-seven ACV between outstanding which year-over-year hundred portfolio. all for billings XX, the representing The and XX% on And is continued XX growth Gross XX, of average to XXX our of product backlog, in and for XX.X% operating compares million. based approximately a QX approximately guidance, XX million seventy-two one Now, growth QX margin to XX% a be XX% good for robust growth to street increasing XX% shares to by follows. of actual expenses XX%, billings XXXXXX renewal and guidance growth the execution QX calls XX% of ACV of the between to XX guidance, supported weighted versus by base. an consensus year-over-year as strong QX million

are final QX pleased of the strong Based ATV QX trends to we one renewals. is our XXX XX to or XX-XX. like to billings Year-over-year. ACV make rate, expect comment on XX% year-over-year I'd project billings that We with a our our mix FY of more guidance, XX% rate growth billings us Due for ATV regarding par growing grow XX growth on to billings ACV

to growth With show QX. open and is proportionately in that quarter-over-quarter for increase please Thank you carefully analysts than result amount their ACV would mix of of larger to you look half questions? billings in QX relative strongly second reflected QX is versus the to renewals strong currently where the For FY Operator. estimates QX base our the available what to XX, We Could a QX investors you. in the advise QX ACV billings models. that expect a of estimates. a in QX versus call-up growing ATR direct in to higher of or consensus renew ensure This at shift reflected QX that from is

Operator

to On withdraw question, your to question. your ask pound a the press key. a reminder, telephone, As

from Your first of the Wells Fargo. Aaron Rakers question comes with line

Aaron Rakers

looks of opportunity And relative linearity like progression that fiscal can a the Thanks. is opportunity relative like quarterly in point through basic fiscal to wanted And look Congratulations the linearity quarterly, to on what XX. exactly through you fiscal the size Quarter. this and just how that discussion maybe level base the the way numbers renewal a as large of around frame the year, Duston here. doesn't help just renewal throughout set any there this year. us next kind

Duston Williams

detail increasing. numbers. XX gave fair fiscal increase there We estimate; subscription but a large the there you the much, Again, some script in obviously why I then XX reported but just this the three gave Sure. you've renewals just the that I Day be renewals. increase, comment slight the Aaron. load that, a during Investor on We because We to a tell and on support year we that's of first XX is subscription and have FY Day. on are quarters massive XX know, starts during won't Investor the relative a kick the obviously to FY in in a offsetting the estimate QX the got amount provided to. a was. not tranche you in renewals declining renewals mentioned will And of XX.

quite to Just based to quarterly relative the a increases bit renew QX. the there amount kind will of at there look the ATR, QX, splits available QX because just the and to on certain in be in

Aaron Rakers

to that talked XQ. trend follow-on fiscal Relative And then 'XX? fiscal think through real successive the the in weighted average terms quick downward continue about Do down. X.X that quarters you to course, a the coming is we through you

Duston Williams

that not probably much. Well,

here the quite there business XXth percentage a just September being But Now, of larger federal lower the bit up are and much in ends a total maybe. in in QX the business federal general. terms federal again, of because year-end

QX, So last and honestly, then one, to it's a three-tenths same year. kind from Quite think I of flattened QX I little QX exactly like From a the you but to -- it it me, thing bit. of actually that. front have a and decrease, don't year in saw of you something saw

there's little at as flattish X bit, any. the don't as certainly come month then but out get we laid what see today. of we through And we to it first see So as as Shane But X.X and we kind be would today, the we're think definitely that I will from a it suspect that's seeing I Day. the kind down already. of Investor

Aaron Rakers

You're you, Duston. going. Thank

Duston Williams

welcome. You're

Operator

comes Your with Blair. line Ader of question from the William next Jason

Jason Ader

ones. quick X Yeah. Thanks. have I

why HCI the was of I you seems calendar and just hoping about in you're it think in that's market first the half could taking happening? talk XX, you like is, First share

Rajiv Ramaswami

a think mean, there's I Look, Yes. knock. I

in We data, obviously this best and the and window. in offering seeing terms offering nice are are storage. goalie continued dad managing throughout very entire to that of quarter-over-quarter And the year. get focused execution very They're VTM all to on better. of has fundamentally, improvement They strong a market. our we improve continue forms with

you NPS Moving course, across the across that fact. get dot the everybody across like customers, what forward to XX better hybrid Cognex almost cloud choice and we be continues then know, provide hypervisors, the And our than farms, of of multiple else. cloud, and going best we freedom as me provide of simplicity as to

year, with our increasing That's improvements the So execution. The sustainable we this to launch leading combined a focus. focus. what's have in operational the

Jason Ader

Alright, follow-up thanks. how a is of pendulum swing the changing seeing this And are environment? your over on you And that terms towards cloud then customers in conversations versus on-prem with year? just about the last whole on-prem any are debate,

Rajiv Ramaswami

customers want that now we all I at, about specific new obviously, I lot are in use a Both just. but about play this going go recently different the are be to there's here. mean, across I into a set customers to been going nuanced Yes. how be cases customers be think clouds. multi-cloud things, are a don't application, need There's one looking I cooking And world. come applications be are running And into, right. I the very seeing There. lag looking come cloud. And to that to of applications to more product they think right cloud. at locked. The san,

people moving cloud. on-prem, to migrate customers the of or to class one wanting So

South footprints expanding cloud-oriented take, desktop Our case into user look that the recovery customers costs. Disaster historically, having cloud. are the use to existing to use cloud. public their of We're us more at seeing for them expand,

are governance that starting Just see cloud look multi-cloud at more coming they're environment, looking that environment. data to they're at hybrid also of a and security, to lock-in at there look

base there these. happening more customer starting were And the I play, are right? around think In doesn't that conversations with So happening, again, come we're It into see production. to definitely our youth.

Jason Ader

Thanks very much.

Operator

from the Fish with James Piper question Sandler. next comes Your line of

James Fish

your the estimate. versus biggest upside Hey four in guys, years our so thanks Pretty that's for questions.

out. see to and software coming equity nice transition that This So really driving the upside speed. side

steady-state too So for a high what quarters. for you hyper-converged? the in last seeing around guys. traditional And pickup going or any cases three-tier cases, you to changes the At are conversions of hyper-converged said storage back versus just architectures kudos the few a used to level, used you

Rajiv Ramaswami

[Indiscernible]. good apply, Yeah. these set at the Simplicity this but right? TCO, they year. seeing seen David, Day address And as tradition continued then able we that. what now competitor bringing in benefits of with to are a fundamental broad And silos said Management, Operations we're we've enterprise Investor HCI, together whining, to of

of of financial they largest our our databases all example, platform. with course running And of a large deal quarter the And high-performance are that's a services was For customer. this workout.

workloads. for so broadening HCI And And we're seeing. lots of adoption of enterprise the

becomes second so but I continues. it's cloud, then cloud. think And that replacements, becomes you is, also just treaty platform or take an And the to trend not it the they logical, that on-prem go a to can trend as really HCI then the

James Fish

Understood. And And Analyst sustainable you're compares productivity at high about for this mid how years. few how any for that the next to that your analyst. any alluded growth further specify commentary and you productivity teen’s be, to guys can that year over thinking to you next can the Day to change increasing doesn't provide on how expectations

Duston Williams

Okay.

me the thing. Let with productivity start

many We going things have productivity forward. help so to

certainly think productivity we're the running strong. of Day we Investor the be in estimates, will As ahead And I QX. said, To continue.

as lot selling. we're channel and Clearly, We the renewals selling things like channel; partnerships solution Not enablement and of we'll of picking our to far background the that to mention going in that. start trying some a as a lot autonomous up. have are on with things enable

is of sizes go performing stronger has to building deal on continued like really strong well. products environment So and that. the the a of stuff as if renewals stuff only think backed And and a a or good the products The not there. as is here. up I Emerging good, higher productivity talk level bit then the strong. of pipe kind The of you've happening. ASP, quality pipeline little get increase lots to increasing and even pipeline perspective, From demand we continue

about that, mapped at obviously you when for look media. FY the feel and step XX provided in we for Day our when FY on good that happy back we The meant that have modeling pleased planned assumptions at really Investor FY XX, with and happened XX are XX, with you likes So the help We're of there. a what one-time what be with certainly a to in can efforts. for guided one thing we We're was and obviously modeling kind to really QX. the

So we the in that to address we feel of going go And year. really into move look fiscal as very this we kind meant XX, as the things into while but But a XX good at forward. year. we'll one-time we again, point at general. in was good, fiscal time, to And be about feel

James Fish

Thanks, Helpful. guys.

Operator

of. from comes question JPMorgan. with Bora next Your the line Pinjalim

Pinjalim Bora

Hey as side questions, thanks Great. congrats my well. my for and taking from guys,

August are step center kind at in you through any due taking Could kind back. them versus a to of revenue demand get anything this the we talk the around versus, slowdown about trend that seeing did demand you the in kind fee hesitancy how you're expectations a environment transformation maybe Just and of of the And point. big or data that projects here? seeing Delta

Rajiv Ramaswami

start here. have I'll Things Maybe been there.

used and COVID we're it's being And a demand. So now all, realized customers as there environment. first operating [Indiscernible] Being this is in seeing and some capitalized, pent-up become to actually broad demand extent transformation of of acceleration have corporate digital a healthy by like initiatives, I backdrop. the of driven think style

of four areas migrate I our the we Now this demand to to certainly infrastructure. work for and FlexX, helping another continuing of has by to driven the Delta question that's work through helping would about fee overall, on more for not. the we're hybrid here [Indiscernible] key right? Are about is And driver platform is move the then, they being And -- Running as our say remote cloud, customers the extended us cloud. to continuing modernization stay. what legacy only their specifically, course,

In these to We're us. still invest in environment. demand. And with continuing people demand good seeing are initiatives fact a

Pinjalim Bora

understood. I

been that. But you're for your government I you available customers? feel And the I side? Thank feedback going clusters, into thing area, about think about What clusters federal the cloud. on forming Okay. AWS quarter. how the one do it's guess conversations federal know from in I has early you Gulf the biggest in that now

Rajiv Ramaswami

Yes, I think.

As a be agencies at you fluxes [Indiscernible] cloud. And clubs. we number in know, government looking have do golf again in operating AWS available become of here expect to

And use the only cases so to them, scene them with but knock-on as the relations And we're. essentially apply Right. well.

in And be calls in for at days So some of government. do public still to And I customers consolidate us. available? I early I just talk cases, offering again, hope think extend it's expansion, how out become starting how I the point. to how able I government do [Indiscernible] So future to I the they and Has you the the centers? about see government future cloud, customers play sense recovery, data do used my do how do disaster capacity do are to also

Pinjalim Bora

you. Thank Understood.

Operator

the of Needham. comes Your next question from line Andrews with Jack

Jack Andrews

life afternoon. the some seeing, various a my bit devices. you little could Could that unpack if more strong for Thanks taking on question. I really and excluding provide number? retention you you're XXX% wondering net dollar contexts what's the rates Good particularly was of more driving

Duston Williams

But and you sizes take XXX. obviously Rajiv output it Again, upsell, in may only deal it’s the larger. that of Let better. getting to want me there inputs get few chime to continuing And here. a the to are are

happy small And so gross far, a to is relatively retention slash rate. we internally a seen our business. natural enhancement the sizes retention deal retention But that's what on continue A the total we're up base. the that. offering, in think I stack rate the rates. gross up-sell to focus product But as huge still with go the gross we've with

there pretty down perspective. competitive as. bit think Again, still as a far little as that Investor Day, in be at a come up from the but that So top showed the will we I product will to Metric and and scores to sizes, a net increased well, the stay retention of up all continues rate. still at lot and add a good NPS upselling things deal perform XX plus those

Rajiv Ramaswami

Yeah.

Jack Andrews

that. appreciate I sense. Well, makes

Rajiv Ramaswami

just customer expanded they Yeah, and right, that where with the I small deployment, they buying saying this portfolio. don't the add the their more they're would Duston larger we start of -- that quarter, not continuously all more had to [Indiscernible] scheme deployment everything in to said, that and continuously our buying went

Pinjalim Bora

increasing maybe great just own given solution-based some navigate just as That's technology their partners would a on hear. bundle And typically of selling, you you look focus to maybe your follow-up, relationships offerings an speak Rajiv, who could to with into also the how to solutions. just

Rajiv Ramaswami

that it's Its Yeah, being the traditional and all very we're another course, of solution database clouded. plays And computing. I end-user on from management today, think is on focused if nicely Hybrid a is one. And you of this perspective. our solutions look focus cloud example. at

with If some look partners. at you examples

So cloud offering go cloud perspective bundling from HP, subscription, database, software a with doing whether that at they're all our said with Greenlee. And risk, when a hardware they're platform all that their and along they offering. now that looking hybrid for both of as has it's

at with will with [Indiscernible] what's Lenovo [Indiscernible] as-a-service. we can ah, you typically. our offering partners, staff stack from end-to-end do do solutions combined Nutanix for us, example. left So what several What including selling find To with

results. you. business and So makes push that and value it. solution I Yes. the form. we on see what safe. appreciate the of customers to Thanks need for overall in Thank congratulations that it to Enhances And would context. the the easier outcome simpler

good A in Huberty metrics Morgan the Your of next productivity line afternoon Stanley. with tracking with comes all indicators demand the sales from question Katy

Jack Andrews

so see X% sequentially, the if it what's And more over scaling, or business October last of is just billings three the that function read on into decline Really up look have and the that? X% Exiting the business to was ACV else you past years, quarter seasonality well. we'll in year, follow-up. anything a driving about average, a of I

Duston Williams

Sure.

know You there as XX% to far still the as the Katie, guide X as the year-over-year you of XX% a compared increase years. and XX, saw prior is from

out, so us. playing is When the kind a were look what is Federal and it, out there IMEA. bit playing QX it's trends wildcard was year-over-year fine for the when typically, huge of fed increase. look a you at at usually So QX. in far. Roland Certainly you slower

have fly see, for we'll in of going So QX things I only but but us. not Certainly, a think XX. lot net we

So we'll backlog, robust of pretty lot out a which things us obviously, gives comforts. there. And how play see a

Jack Andrews

clear. tied XXX spending XXX. around timing reduction then it. as of or run then temporary your well and the rate Is sustainable reopening do of is what and to below prior guidance tracking that tightness dynamics think Duston, the a this more Got you That's just to is market And OPEX labor

Duston Williams

think year-over-year, were saying travel growth I Investor continue which down, point expense but still to year-over-year. you think Clearly, of drive side still what to fund As but that to is XX% will expecting to single-digit continue and We variables time, see XX to we the that we was quarter. projects it again, you'll still things To continues. on still bigger focus the somewhere be our the continues single-digit and one we what single we're continue will we're part. But were we so expenses a equation, stay did increases the need one for at most try that we're guides the like on doing. locked robust it from way. and grow I down there. in the that, in this we're Day, doing just reps And At the assuming, business. But some engineering see of obviously, Anyway, for pretty to like growth we'll plus.

Jack Andrews

quarter. restructuring? in just in which remarks? referenced Dustin related marketing sales to prior your Is you that heads is all restructuring is Is prepared the this the the the XXX reduction quarter, than and that bigger that

Duston Williams

is of it, that that in there. And all some the you the we saw booked that's and of restructuring quarter there. is in clearly Clearly, this not there, servers but in restructuring

Jack Andrews

Okay. Thank you.

Operator

comes question Bank line from next with Your the of Mohan Wamsi America. of

Wamsi Mohan

we Thank expect a of seasonality carries that. that, in ACV stabilization Yes. congrats maybe to the given renew, beyond what more is that should that And is some a Quarters results. And over you. Dustin, billings weighted it? available in when follow-up. you XQ on did dynamic into

Richard Valera

going right. there, acceleration ultimate number given going Investor again, FYXX to you're to to on that, for see three And continue Well, in for an stabilization been the we've to increase, you're of [Indiscernible] continue not the the what working renewals Day to going see so we've last is an presentation

Duston Williams

a to transition subscription for going renewal. the to so, more or are Years would tranches come in

we there'll one comment is sure on will we'd again again, you're linear. for a you well any be. QX was just up QX that as and given that as running you'll be two bit FY XX. see linear. on was to there. of expect to still QX. we're down, saying some size call of little see sequential to to made not going pretty honest, a we in ATR more from clear that What to thought to we All to expect not because XX, make it to But of to you've up that's from trying gives modeling of So a out The I XX, type there but into bumps why feel I little, quarter-over-quarter, A QX Relative a you'll that's was obviously QX that perspective. that massive Certainly, step-ups But QX. the a It's XX benchmark see still what in QX quarter. big had to continue that this just we big more on got be bump kind why FY little from of basis. a growth sort for and

Wamsi Mohan

Okay, thanks.

Duston Williams

sorry. Continue to increase,

Wamsi Mohan

in trends questioning on-trend get later there's an points. Yes. it out abnormality if those No, I sequentially call just that I'm

places. work that was at follow-up, a to Rajiv XX% back XX workloads Day in Analyst VDI in the many I curious, thinks As on of given to just order and

mean, the And the from at are clearly, demand roll-over. seeing Thank I media any any to expecting understand you're decelerating. but all. business that a and wondering you're concerns just I PC if If there see between you. distinction PCs, on that of impact of side, signs

Rajiv Ramaswami

say back be continue going mix. once. offices, a is remain to I hybrid, mean, no because I come people we're to think even to No, of I that. to largely the going And not signs would

has so And to in XX% I would overall. us say trended is to be that range that business XX for

significance. just So I don't you people see of work to back come those one any Can here?

Wamsi Mohan

lot. a Thanks Okay.

Operator

Hall of Sachs. next question from Goldman line Rod with Your the comes

Rod Hall

the the had I made thanks the into And us think deal. I there said comment I question, five-year you other you five-year deals jump than on guys. wanted Yeah, for think there. in were the to then

Just curious can. if you

of us five kind or that deals they all, are I better quantify color deals that Firstly, kind can why the were around billings give you doing have that for it giving you're thanks. And a also follow-up. at why stack was on billing five-years five-year Any and customers you help they just in before us five-years us seeing like. are years renewing looks them color any of idea years. five give And any that these then percentage what

Rajiv Ramaswami

Yes.

So will ACV the routes website and be breakout by should you quarterly term. presentation on the loaded investor that the give

think deal to in happens I or had And the a like X-year existing something down five-year that the that that turned to been a the somebody that question customers bit has that And we if This it them have get takes five that. little years, can So you you. to into on be largest are On answers deal, yeah, again, five-year these purchased. for term. once

Duston Williams

nice referred a there -- others to It's away to five-year that there also, purchases. mark, sometimes. we What had a so at to see. a very we're large the were use I bulked and In chronic at there cases. on up which customer we really as to continues of repeat fair a example and products emerging of purchaser. was kind workloads different to yeah, they eat And in already textbook several amount existing. But that referred just But it's case, then is this some

So saw that's therein what we

Duston Williams

to back three come three-year there. in three's that low one I And said Royal as around the QX. somewhere will reverse down and

Rod Hall

I'm in for that's other the thanks Yes. the thing some that. I terms. missed that sorry, color Does presentation, the is on of but Right. good

bit you're quarter. were back now thinking What slips look thinking it think stabilizing links level, this are down just So of quarters, of of I do a three. I mean, what I But little you of at think do comes about kind keeps coming several now -- you think know are towards we we thinking slowly kind you are out [Indiscernible]? X.X kind it saying as on down now you it X.X, next we term it

Duston Williams

to new there. somewhere -- Day XX, thought. we Same mix ago a around the see had put everything and of business, that and year still businesses two I existing Yes. XX with this the I or it's in Investor presentation,

around low somewhere fiscal I range year three the three, remains think there. probably this and in

like see on be As tweaked the get XX, would that into we a But little down terms. view migrate that we there. maybe continued more today, everything

Rod Hall

Great.

Okay.

So appreciate anomaly right. we've on on. been yeah, we an All I of this continue it. quarter is just Great and trend kind that guys.

Duston Williams

Yes.

Operator

With next SIG. Your Mehdi from question comes of the line Hosseini.

Mehdi Hossein

booking if Yes. talk or can hybrid By a two Thanks a I'm Is quantitatively? It the understand. You was you question application wondering my follow-ups. for about great native a just versus qualitatively model. there of taking a to data booking. like way see can and help me

Rajiv Ramaswami

we've starting what TDS small to use, more is that more public with In related say I hybrid still of migrating one Right? workloads. but our mean, And see businesses, I nicely. and time would I as portion we the mix of it customers I because growing tried So it, cloud-based of on-prem, cases, the of public general, to I try. early that quantify can So on-prem. I you're is bulk to Maybe today think. bulk but I cloud. more over today of that will Okay. -- is And more a of would large Right. call to use these just right? some of by see mean, what the expect the

to our boatloads. addition on-prem In

it. of piece one that's So

The is if need like way we've think And workflows that other said, business. what of between tends End-User XX% quantified but the is haven't workloads, it Computing. which And anything it virtualization TAVI to type our -- The rest other quantified, we running. kind workloads. was overall also, be runs XX, we databases, of they're that the to about loads is solar other database one of typically like

perhaps So me you a reasonable give let framework.

Mehdi Hossein

Sure, sure. Yes.

the is but the perhaps to billion it's is is the growth, smallest scale, going fastest I'm time data You secular, XX not piece take TAM, and referenced it -- I think I to native some if for but mistaking right. think

Rajiv Ramaswami

said, next hybrid, $XX as enterprise several we native, years. sort is in And on publisher right? Unified top and. is to for We've mean, Which which means about. this? different share exceeding that ACI, nicely, I And then One are I I against also opportunities cloud, that, is talked out on of talking when continuing three-tier. talked And to hybrid the that, of that's we then of about all the of talk talked it component service grow billion broke it top say It's about you cloud-native the the we more a capturing When grow optic, you and TAM, very that hyper-converged files into right? business right? continues Greg, of is our And we of the core read, Over to that it. database about down club? component full, and storage, workloads or gaining But you. mean, providers. about the where extends think about pieces couple we're then from

Mehdi Hossein

Slide at premises gains I my actually just was XX. question, share on don't look

year like quarters ago. a over or It mid-XX, you're And adoption, are now. a was going follow-up, there well gain, of the you're so you XX% is as XX%. in cap? like share two a definitely eight Your to from Are

we going to to go from be there? XX you're and do where closer If

Rajiv Ramaswami

our I multiple will up reasons. for pick continue to adoption expect that

that the capabilities. broader [Indiscernible] stronger stronger getting in is First, and hypervisor [Indiscernible] is of and in terms broader

is such as confidence in platform. more obviously HVS that that Hat there with why for we Linux adopting Hat, now -- is tweak. Second, Red and the example, with But are one partnerships Red our customers certified the a did just

adapt do customers over going as to it's that to time continue up pick and more workloads. So to more their expect I

So it's.

point it to expect So but bit and whether it up I is early, little not a I'm it's to there's continue see would going sure. hard be ceiling it at a too to on this tick certainly to or something

Mehdi Hossein

as scale finally, follow-up products would how products help But of the scaling you new quick point your I the more imagine be some could share incremental new gains just sustain then complement And and would just -- growth. at a challenging. be could

Rajiv Ramaswami

Dustin new out, products Yeah, number there I above very excited about XX% I our as mean, of leaders. think our I'm were a pointed

markets, this service I database a for opportunities quarter. big last growing a is us great market I And as opportunity our a into where rapidly growing also all small a core as the we me but than huge, think percentage again, for into they're storage share small sizeable our rapidly. this are management attached relates related newer that unlocking database platform. larger in forget last all with our markets where XX And unified and have these Opportunity response related all emerging products to to for grow share. gain

Mehdi Hossein

Great. Thank you.

Operator

with your the And line from comes Raymond question of Leopold next James. Simon

Simon Leopold

Thank you for wanted taking thinking. the question. I ask should we be to about how

about change I a linear should to I quarter coming XX imagining of provided metric? but XX, think this think getting to the for should a not billings XX% of that particular for this you've of quarter from last. this In is How about rate similar and progression. of fiscal am And be very was that percent renewals, we forecast that terms

Duston Williams

Yeah.

You'll varied this the Investor some into see again that Day package. of

a there, There's there. gives that in that Simon, reference to so a feel want XX you might number You

And the yet. or perspective renewals just play. just a up see years XX, an deals in that Netfly XX up that's are just percentage But FY and than haven't average you'll on into come in tranches again, a in So and plus percentage. occur it that for both X a that But from ratcheting bigger larger TCV FY ACV XX percentage naturally as rather there increase timing will come XX. they these

Simon Leopold

and the question, new observe a sales that and be If it long Thank it. you. and you Anyway, the to quantify, less allocation? hypothetically, how may where it of but for And on take made What's underspend, of more productivity? judge a in in want renewals little Been making guess difficult transition I on focus essentially. other acquisition. bit terms mistake to to your marketing we sort the under-invest could in you've would delay you you customer

Duston Williams

A of the but of to the I upsell. something is those taking like and new cost just majority not the and that of part It's equation. clear. going mix from where mix, want can vast here, mention to make massive of we're to the the the and cost also in right? XX% in Sales energy That's the I up-sell might As pitch to come leverage of yeah, increased Well, less the new leverage is want out going generation renewal. less, come the perspective. gotten helping gen working perspective, all is and yes, efforts. well and significantly stuff, going continuing that now, our focus digital it's more, this not and more leverage come is And a from which that test more whatever majority This pipeline from to on shift. we're up-sell. like lot we're cutting the is those new on mix come that, drive But from of that a But we do efficient is on-demand really can. which to we've the the

Simon Leopold

very That's helpful. Thank you much.

Operator

from And the your Erik line Securities. last question with JMP of Suppiger comes

Erik Suppiger

In side? VMware. you then competitive of And secondly, there's the what out from hardware for you bit a know question. often don't front. little you Thanks on hardware, see can if with big I Can on that guys the component the change taking is sell but you curious on there your comment? any just do are think been the comment the many Yeah. Congrats particular software constraints hardware. effects quarter. on to tied I

Rajiv Ramaswami

Sure.

that, me Let Rick. take

new kind sales of it's look, of So tie hardware I platforms our not in price. one-on-one hardware software ramp variety think and to also

that not it's always we're along with So hardware. selling

Sometimes course. talked. software haven't procured. of independent I hardware, And they've already they'll have of buy people

has impact customers They've to seen again And Very some try we're very chain our against supply hardware. that business our on in customers competitor, a and said the focused. fourth have continue competitors. are to but but will they And quarter, this XQ your sort terms And competitive in the so of bit, orders the here, and largest this have modest. some said, we rates say the said relatively in to been win seen ATI other a earlier access also we're need to us. that that on So category. also monitor far we ensure forward been fundamentally guided we've pretty market? very that so of we here. the that little dynamics I for seeing minimal so placements of in second, but to we focused forecasts eight our results quarter-over-quarter execution I [Indiscernible] with the far the little bit pulling what nice a I would comfortable situation improvement [Indiscernible] you think Eric,

Our with customer product is strong. choice. XX. of We provide simplicity fleet NPS A great our sitting experience at

is strong. So the product offering really

last quarters, a Our well go-to-market several that as to. good and combination strong, execution benefiting improving improved go-to-market continuously is the of plus. product of Good, have operations because leading what's and from that over we're

Erik Suppiger

have increased, okay, rates thank These you.

Operator

conference may Ladies and and participating you now today's call. gentlemen, disconnect. this Thank concludes you for

Nutanix (NTNX) 2 Sep 212021 Q4 Earnings call transcript