Nutanix sees ‘record’ revenue, ACV billings

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Nutanix sees ‘record’ revenue, ACV billings

Nutanix CEO Rajiv Ramaswami was bullish about his company’s record-breaking sales and high growth rates during its fourth fiscal quarter as Nutanix hasn’t been affected by any supply chain issues, while emerging product bookings rose over 100 percent year over year.

“We reported record revenue up 19 percent year over year – the best growth we’ve delivered in the last three years. We saw record ACV billings, which grew 26 percent year over the year – our highest growth rate in over two years,” said Ramaswami during Nutanix's fourth fiscal quarter 2021 financial earnings call with media and analyst Wednesday night.

“Our go-to-market market operations have continuously improved over the last several quarters and we’re benefiting from that,” Ramaswami said. “So that combination of good products plus our strong and improving our go-to-market is what’s leading to increased win rates [against competitors].”

Nutanix’s stock is up 5 percent in after-hours trading at US$38.55 per share. Nutanix shares are up 40 percent over the past 12 months.

Ramaswami said the global supply chain issues affecting many technology companies have yet to hinder Nutanix in any meaningful way.

“The supply chain impact on our business so far has been relatively modest. We‘ve seen some customers pulling forward some orders to try and ensure that they have access to hardware. We’ve also seen other customers that delayed placement a little bit, but the results so far have been pretty minimal for us,” Nutanix CEO said.

The California, US-based hyperconverged software company generated a record US$391 million in revenue during its fourth quarter, up 19 percent year over year. However, Nutanix reported a net loss of US$358 million, or US$1.68 per share, for its fourth quarter compared to US$185 million, or US$0.93 per share year over year.

Nutanix’s annual contact value (ACV) bookings hit a record US$176 million, representing a 26 percent increase year over year. Nutanix defines ACV billings as “total annualized value of a contract, excluding amounts related to professional services and hardware.” Nutanix had an ACV run rate US$1.54 billion as of the fourth quarter compared to US$1.22 billion in fourth quarter 2020.

One key revenue growth area for Nutanix was around its new and emerging products. The company reported over 100 percent year over year growth rate in new ACV booking from emerging products, with 41 percent of deals in the quarter involving at least one emerging product.

“Our emerging products are all unlocking great opportunities for us. Database management and Database as a Service is a huge big market opportunity. It’s relatively small, but growing rapidly,” said Ramaswami. “Unified storage for us is growing into a larger existing market where our presence is relatively small. So these new or emerging products are all in sizeable markets where [we] have relatively small share and opportunity to grow, and also attached to our core platform.”

Nutanix added 700 net new customers during the fourth quarter, which ended July 31, with now a total 20,130 clients.

“The underlying momentum in the business gives us confidence in providing strong guidance for the first quarter of our fiscal 2022,” said Ramaswami.

For its current first fiscal quarter 2022, Nutanix expects ACV billings of between $172 million to $177 million.

This article originally appeared at crn.com

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