Nutanix
NTNX]

Nutanix Announces $750 Million Investment From Bain Capital Private Equity to Support Growth Initiatives

Monday, August 31, 2020

Nutanix (NASDAQ: NTNX), a leader in enterprise cloud computing, today announced that Bain Capital Private Equity will make an investment of $750 million in Convertible Senior Notes to support the Companys growth initiatives.

Bain Capital Private Equity has deep technology investing experience and a strong track record of helping companies scale, said Dheeraj Pandey, Chairman, Co-Founder and CEO of Nutanix. Bain Capital Private Equitys investment represents a strong vote of confidence in our position as a leader in the hybrid cloud infrastructure (HCI) market and our profound culture of customer delight.

Nutanix is executing on a compelling vision for a differentiated hybrid cloud platform that provides flexible environments and is easily paired with other cloud platforms, commented David Humphrey, a Managing Director at Bain Capital Private Equity. We look forward to working closely with the Board and the management team to build on Nutanixs leadership position and realize its strong vision for the future, added Max de Groen, a Managing Director at Bain Capital Private Equity. In connection with the investment, Humphrey and de Groen will join the Nutanix Board of Directors following the close of the transaction, which is expected to occur in late September 2020.

Bain Capital Private Equity has deep experience in the technology sector, having made investments in a wide range of companies including Applied Systems, BMC Software, CentralSquare Technologies, KIOXIA (formerly known as Toshiba Memory Corp.), NortonLifeLock Inc., Rocket Software, Symantec, Viewpoint Construction Software, Vertafore, Waystar, and Zelis.

CORRECTING and REPLACING: Nutanix Reports Third Quarter Fiscal 2023 Financial Results

Wednesday, June 21, 2023

SAN JOSE, Calif --. Nutanix, Inc. determined that a total of $10.2 million of withholding taxes due upon the vesting of certain employee RSUs which were satisfied by net share settlement on a one-time basis was incorrectly recorded as expense for the fiscal quarter ended April 30, 2023 ($9.3 million of which was incorrectly recorded as operating expense and $0.9 million of which was incorrectly recorded as cost of revenue) instead of a reduction to additional paid-in capital as of April 30, 2023. This corrected press release reflects corrections to address this error.

“Our third quarter results continued to demonstrate a good balance of growth and profitability, resulting in year-to-date ACV Billings growth exceeding 20%, combined with strong year-to-date free cash flow generation”

In an updated release, Nutanix, Inc. (NASDAQ: NTNX), a prominent player in hybrid multicloud computing, disclosed its financial results for the third quarter of fiscal year 2023. The company achieved exceptional performance across all the guided metrics for the fiscal Q3'23. Furthermore, Nutanix successfully concluded the Audit Committee Investigation and filed Form 10-Q for the fiscal Q2'23. The quarter ended on April 30, 2023.

“Our business performed well in the third quarter against an uncertain macro backdrop, as the value proposition of our cloud platform continued to resonate with customers,” said Rajiv Ramaswami, President and CEO of Nutanix. “We are also pleased to have completed the Audit Committee investigation regarding third-party software usage and to have filed our Form 10-Q for our second quarter of fiscal 2023.”

“Our third quarter results continued to demonstrate a good balance of growth and profitability, resulting in year-to-date ACV Billings growth exceeding 20%, combined with strong year-to-date free cash flow generation,” said Rukmini Sivaraman, CFO of Nutanix. “We continue to execute on our growing base of subscription renewals and remain focused on sustainable, profitable growth.”

Furthermore, following the completion of its investigation concerning the utilization of third-party software, the Audit Committee determined that assessment software obtained from two software providers had been employed in a manner that did not comply with regulations over several years. Moreover, it was discovered that certain employees had intentionally concealed this non-compliant use of assessment software, thereby violating the Company's code of business conduct and ethics as well as other policies.

As a result of the investigation, the Company has identified a significant weakness in its internal control over financial reporting. This weakness has led to a minor understatement of operating expenses, accrued expenses, and other current liabilities for prior periods starting in August 2014. To account for the financial impact of the non-compliant software usage from the two vendors in question, the Company has recorded cumulative estimated expenses of $11 million as of the second quarter of fiscal 2023. These expenses represent the estimated future payments related to the past non-compliant software usage, which had accrued over multiple years. Additionally, the Company has rectified the financial statements for the previous periods presented in the recently filed Form 10-Q for the second quarter of fiscal 2023.

The Company anticipates that the ongoing annual impact on operating expenses resulting from the utilization of third-party software will amount to several million dollars in the low-single-digit range. Furthermore, the Company is actively implementing, or intends to implement, corrective actions to address the identified material weakness and enhance its overall internal control over financial reporting. These remedial measures are being undertaken to ensure improved governance and compliance.

For a comprehensive understanding of the second-quarter results of fiscal year 2023, as well as detailed information regarding the estimated financial impact and remedial actions associated with the third-party software review, please refer to the Form 10-Q for the second quarter of fiscal 2023. This document contains additional information and provides a thorough overview of the mentioned topics.

Nutanix Simplifies Adoption of Generative AI with New Nutanix GPT-in-a-Box Solution

Monday, August 21, 2023

AI infrastructure solution accelerates customers’ path to GPT and LLMs while keeping organizations in control of their data

SAN JOSE - Nutanix (NASDAQ: NTNX), announced the Nutanix GPT-in-a-Box™ solution for customers looking to jump-start their artificial intelligence (AI) and machine learning (ML) innovation, while maintaining control over their data. The new offering, available today, is a full-stack software-defined AI-ready platform, along with services to help organizations size and configure hardware and software infrastructure suitable to deploy a curated set of large language models (LLMs) using the leading open source AI and MLOps frameworks on the Nutanix Cloud Platform™. It allows customers to easily procure AI-ready infrastructure to fine-tune and run generative pre-trained transformers (GPT), including LLMs at the edge or in their datacenter.

Numerous enterprises are currently facing the challenge of efficiently and securely harnessing the capabilities of generative AI and AI/ML applications. This is especially relevant for scenarios where public cloud usage is impractical due to factors such as data sovereignty, governance, and privacy considerations. The diversity of new applications utilizing generative AI is expanding regularly as organizations seek ways to enhance customer service, boost developer efficiency, and streamline operations. These applications range from automated internal document transcription to rapid multimedia content searches and automated analysis. Despite recognizing the potential benefits of AI, organizations are grappling with concerns surrounding safeguarding intellectual property, compliance, and privacy.

Furthermore, organizations aiming to construct a robust AI infrastructure often encounter difficulties in effectively supporting ML administrators and data scientists. The potential costs associated with substantial AI investments have also led many enterprises to a standstill in their AI and ML strategy development.

"As customers look to design and deploy generative AI solutions, they find themselves struggling with balancing the deep expertise required to install, configure, and run these workloads with concerns around their data security and protecting company IP – all while controlling costs," said Greg Macatee, Senior Research Analyst, Infrastructure Systems, Platforms and Technologies Group at IDC. "With GPT-in-a-Box, Nutanix offers customers a turnkey, easy-to-use solution for their AI use cases, offering enterprises struggling with generative AI adoption an easier on-ramp to deployment."

Nutanix Reports Second Quarter Fiscal 2024 Financial Results

Wednesday, March 06, 2024

SAN JOSE, Calif, Nutanix, Inc. (NASDAQ: NTNX), a leader in hybrid multicloud computing, today announced financial results for its second quarter ended January 31, 2024.


“Our disciplined execution enabled us to deliver a solid second quarter financial performance against an uncertain, but stable macro backdrop,” said Rajiv Ramaswami, President and CEO of Nutanix. “We continue to remain focused on being a long-term strategic and innovative partner to our customers as they look to operate in a hybrid multicloud world.”


“Our second quarter results demonstrated a good balance of top and bottom line performance with 26% year-over-year ARR growth and strong free cash flow generation,” said Rukmini Sivaraman, CFO of Nutanix. “We also achieved GAAP operating profitability for the first time, reflecting the progress we’ve made in driving operating leverage in our model and optimizing the difference between our GAAP and non-GAAP results.”


Second Quarter Fiscal 2024 Financial Summary




Reconciliations between GAAP and non-GAAP financial measures and key performance measures, to the extent available, are provided in the tables of this press release.


Third Quarter Fiscal 2024 Outlook


Supplementary materials to this press release, including our second quarter fiscal 2024 earnings presentation, can be found at https://ir.nutanix.com/financial/quarterly-results.


Webcast and Conference Call Information


Nutanix executives will discuss the Company’s second quarter fiscal 2024 financial results on a conference call today at 4:30 p.m. Eastern Time/1:30 p.m. Pacific Time. Interested parties may access the conference call by registering at this link to receive dial in details and a unique PIN number. The conference call will also be webcast live on the Nutanix Investor Relations website at ir.nutanix.com. An archived replay of the webcast will be available on the Nutanix Investor Relations website at ir.nutanix.com shortly after the call.


Footnotes


1Annual Contract Value, or ACV, is defined as the total annualized value of a contract, excluding amounts related to professional services and hardware. The total annualized value for a contract is calculated by dividing the total value of the contract by the number of years in the term of such contract, using, where applicable, an assumed term of five years for contracts that do not have a specified term. ACV Billings, for any given period, is defined as the sum of the ACV for all contracts billed during the given period.


2Annual Recurring Revenue, or ARR, for any given period, is defined as the sum of ACV for all non life-of-device contracts in effect as of the end of a specific period. For the purposes of this calculation, we assume that the contract term begins on the date a contract is booked, unless the terms of such contract prevent us from fulfilling our obligations until a later period, and irrespective of the periods in which we would recognize revenue for such contract.


3Average Contract Duration represents the dollar-weighted term, calculated on a billings basis, across all subscription and life-of-device contracts, using an assumed term of five years for life-of-device licenses, executed in the period.


4Revenue was negatively impacted by a year-over-year decline in the average contract duration, including as a result of Nutanix’s transition to a subscription-based business model.


5Weighted average share count used in computing diluted non-GAAP net income per share.


Non-GAAP Financial Measures and Other Key Performance Measures


To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, this press release includes the following non-GAAP financial and other key performance measures: non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, free cash flow, Annual Contract Value Billings (or ACV Billings), Annual Recurring Revenue (or ARR), and Average Contract Duration. In computing non-GAAP financial measures, we exclude certain items such as stock-based compensation and the related income tax impact, costs associated with our acquisitions (such as amortization of acquired intangible assets, income tax-related impact, and other acquisition-related costs), costs related to the impairment and early exit of operating lease-related assets, restructuring charges, litigation settlement accruals and legal fees related to certain litigation matters, the amortization of the debt discount and issuance costs, interest expense related to convertible senior notes, gains on divestitures, and other non-recurring transactions and the related tax impact. Non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, and non-GAAP operating margin are financial measures which we believe provide useful information to investors because they provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures such as stock-based compensation expense that may not be indicative of our ongoing core business operating results. Free cash flow is a performance measure that we believe provides useful information to our management and investors about the amount of cash generated by the business after necessary capital expenditures, and we define free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment. ACV Billings is a performance measure that we believe provides useful information to our management and investors as it allows us to better track the topline growth of our business during our transition to a subscription-based business model because it takes into account variability in term lengths. ARR is a performance measure that we believe provides useful information to our management and investors as it allows us to better track the topline growth of our subscription business because it takes into account variability in term lengths. We use these non-GAAP financial and key performance measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. However, these non-GAAP financial and key performance measures have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, and free cash flow are not substitutes for gross margin, operating expenses, operating income (loss), operating margin, or net cash provided by (used in) operating activities, respectively. There is no GAAP measure that is comparable to ACV Billings, ARR, or Average Contract Duration, so we have not reconciled the ACV Billings, ARR, or Average Contract Duration data included in this press release to any GAAP measure. In addition, other companies, including companies in our industry, may calculate non-GAAP financial measures and key performance measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures and key performance measures as tools for comparison. We urge you to review the reconciliation of our non-GAAP financial measures and key performance measures to the most directly comparable GAAP financial measures included below in the tables captioned “Reconciliation of GAAP to Non-GAAP Profit Measures” and “Reconciliation of GAAP Net Cash Provided By Operating Activities to Non-GAAP Free Cash Flow,” and not to rely on any single financial measure to evaluate our business. This press release also includes the following forward-looking non-GAAP financial measures as part of our third quarter fiscal 2024 outlook and/or our fiscal 2024 outlook: non-GAAP gross margin, non-GAAP operating margin, and free cash flow. We are unable to reconcile these forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures without unreasonable efforts, as we are currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact the GAAP financial measures for these periods but would not impact the non-GAAP financial measures.


Forward-Looking Statements


This press release contains express and implied forward-looking statements, including, but not limited to, statements regarding: our business momentum and prospects, our third quarter fiscal 2024 outlook, and our fiscal 2024 outlook.


These forward-looking statements are not historical facts and instead are based on our current expectations, estimates, opinions, and beliefs. Consequently, you should not rely on these forward-looking statements. The accuracy of these forward-looking statements depends upon future events and involves risks, uncertainties, and other factors, including factors that may be beyond our control, that may cause these statements to be inaccurate and cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by such statements, including, among others: the inherent uncertainty or assumptions and estimates underlying our projections and guidance, which are necessarily speculative in nature; any failure to successfully implement or realize the full benefits of, or unexpected difficulties or delays in successfully implementing or realizing the full benefits of, our business plans, strategies, initiatives, vision, and objectives; our ability to achieve, sustain and/or manage future growth effectively; the rapid evolution of the markets in which we compete, including the introduction, or acceleration of adoption of, competing solutions, including public cloud infrastructure; failure to timely and successfully meet our customer needs; delays in or lack of customer or market acceptance of our new solutions, products, services, product features or technology; macroeconomic or geopolitical uncertainty, including supply chain issues; our ability to attract, recruit, train, retain, and, where applicable, ramp to full productivity, qualified employees and key personnel; factors that could result in the significant fluctuation of our future quarterly operating results (including anticipated changes to our revenue and product mix, the timing and magnitude of orders, shipments and acceptance of our solutions in any given quarter, our ability to attract new and retain existing end-customers, changes in the pricing and availability of certain components of our solutions, and fluctuations in demand and competitive pricing pressures for our solutions); our ability to form new or maintain and strengthen existing strategic alliances and partnerships, as well as our ability to manage any changes thereto; the impact of a pandemic or major public health concern; our ability to make share repurchases; and other risks detailed in our Annual Report on Form 10-K for the fiscal year ended July 31, 2023 filed with the U.S. Securities and Exchange Commission, or the SEC, on September 21, 2023 and our subsequent Quarterly Reports on Form 10-Q filed with the SEC. Additional information will be set forth in our Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2024, which should be read in conjunction with this press release and the financial results included herein. Our SEC filings are available on the Investor Relations section of our website at ir.nutanix.com and on the SEC's website at www.sec.gov. These forward-looking statements speak only as of the date of this press release and, except as required by law, we assume no obligation, and expressly disclaim any obligation, to update, alter or otherwise revise any of these forward-looking statements to reflect actual results or subsequent events or circumstances.

Nutanix and EDB Partner to Deliver a Modern Data Platform

Friday, May 24, 2024

BARCELONA, Spain .NEXT Conference – Nutanix (NASDAQ: NTNX), a leader in hybrid multicloud computing, and EnterpriseDB (“EDB”), a leader in accelerating PostgreSQL in the enterprise, announced an expanded partnership that aims to enable customers to harness the power of PostgreSQL to support their most data-intensive and highly secure applications and workloads.

The combined solution brings together Nutanix Database Service’s (NDB) powerful developer self-service and database automation with EDB’s performance and high availability, enterprise security, and Oracle compatibility capabilities. The solution aims to empower joint customers to accelerate their adoption of PostgreSQL to support both new cloud-native applications and existing enterprise applications at scale in on-premises datacenters and public clouds alike. EDB can also help expand functionality beyond transactional workloads to support analytics and AI-infused applications in the future.

“Nutanix Database Service automates provisioning, patching, cloning, and data protection to accelerate deployment, support day two operations, maintain compliance, and manage databases at scale,” said Tarkan Maner, Chief Commercial Officer at Nutanix. "Our collaboration with EDB allows customers to deploy PostgreSQL in the most demanding enterprise environments while simultaneously increasing productivity for developers building applications on PostgreSQL.”

“The expanded partnership between Nutanix and EDB promises a seamless path to migration from legacy systems and provides a competitive edge for the AI generation of applications with support for transactional, analytical and AI workloads,” said Kevin Dallas, Chief Executive Officer at EDB. “EDB’s future data and AI platform will catapult PostgreSQL into the world of data analytics and AI, providing businesses with a PostgreSQL-enabled, comprehensive data ecosystem.”

Enterprises are increasingly turning to PostgreSQL, the world’s most popular open-source relational database, to jumpstart innovation, reduce their reliance on expensive proprietary databases, and improve business agility. Developers love PostgreSQL's extensibility, customizability, and strong community ecosystem, while IT and operations teams praise its performance, scalability, and security capabilities.

With this expanded partnership, EDB becomes an officially supported database of Nutanix Database Service. EDB’s performance enhancements, advanced security capabilities, and Oracle compatibility features coupled with NDB’s API-driven developer integrations and database management capabilities will provide customers with more reliable database operations, more productive developers, and faster time-to-market.

Additional benefits for Nutanix and EDB joint customers include:

• Consistent Operations: Nutanix Database Service uses automation to simplify database provisioning and administration tasks like cloning, patching, and backups, allowing DBAs to manage an ever-growing number of databases while ensuring best practices are applied consistently across the entire fleet.

• Database-as-Code: NDB enables operations and platform engineering teams to seamlessly integrate EDB solutions into developer platforms, allowing developers to self-service deploy databases in minutes to hours instead of logging tickets and waiting days to weeks.

• Simplified Migration: With EDB’s compatibility features and related migration tools, customers can run many applications written for commercial databases with minimal to no changes, helping to speed up and de-risk migrations and get developers up and running quickly on Postgres.

• Multicloud Infrastructure: IT and operations teams can run EDB solutions across private and public clouds on Nutanix hybrid multicloud infrastructure with centralized and coordinated support at the data layer.

• Enhanced Performance and Reliability: EDB includes advanced performance and security capabilities, such as parallel query processing, while Nutanix’s modern infrastructure further optimizes database performance, scalability, and availability, making PostgreSQL suitable for a wider range of business-critical applications and workloads.

• End-to-End Customer Support: Customers get seamless, end-to-end enterprise support - from the hardware to the database software and extensions - including best practice advice, performance troubleshooting advice, and database engine bug fixes from both Nutanix and EDB.