Nutanix is already seeing a positive impact from its revamped product portfolio and new core-base pricing model as the hyperconverged infrastructure software superstar reported a 19 percent spike in sales growth during its second fiscal quarter.
“We’ve seen customers already taking advantage of this new packaging to quickly purchase more complete solutions to better meet their needs,” said Rajiv Ramaswami, CEO of Nutanix, during the company’s second quarter financial earnings report with media and analysts on Wednesday. “We’ve seen a more rapid closure for some deals utilizing the new simplified pricing and packaging. In general, we expect to see more high velocity transactions for both our own sales reps, as well as with our partners.”
In February, the San Jose, Calif.-based company completely revamped its entire portfolio— simplifying 15 products and brands into just five new offerings, while also enabling core-based pricing and metering.
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The new simplified portfolio brings together Nutanix’s product capabilities across on-premises and public clouds to deliver consistent infrastructure, data services, management and operations for applications in virtual machines and containers. Nutanix’s portfolio now consists of Nutanix Cloud Infrastructure, Nutanix Cloud Manager, Nutanix Unified Storage, Nutanix Database Service and the new Nutanix End User Computing Solutions.
“Now it’s still early, but the initial response from the rollout is actually quite encouraging from customers, from partners, from our own sellers, and the industry analysts,” said Ramaswami.https://6c0ea9785a49fc54a12e7c499e83c439.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html
Nutanix Sales Climb To $413 Million
For its second fiscal quarter, which ended Jan. 31, 2022, Nutanix generated a total of $413 million in sales, up 19 percent year over year compared to $346 million.
Nutanix beat Wall Street expectations of $407 million in revenue and a negative $0.17 per share, by reporting $413 million in sales with a net loss of $0.03 per share.
“Against the backdrop of an evolving COVID-19 pandemic, we delivered another solid quarter exceeding all of our guidance metrics, and saw building momentum in our renewals business,” said Ramaswami. “And generated positive free cash flow for the first time since the beginning of our transition to a subscription model.”
Nutanix posted a positive free cash flow of $17 million, marking the first time in over three years Nutanix reported a positive free cash flow. The $17 million is up $46 million compared to a negative free cash flow of $28.5 million in second quarter 2021.
The company captured record annual contract value (ACV) billings of $218 million, representing a 37 percent increase year over year compared to $159 million.
Similar to the past several years, Nutanix reported a second quarter net loss. However, Nutanix $115 million net loss in the second quarter was much better than the company’s $287 million net loss it reported in second quarter 2021. The company was able to cut its overall net loss thanks to Nutanix’s gross profit hitting $333 million in the second quarter 2022, up from $275 million year over year.
Nutanix added 700 net new customers in its second quarter, bringing its customer base to 21,400.
Nutanix is projecting total revenue for its current fiscal third quarter of between $395 million to $400 million as well as ACV billings of around $200 million. For the full fiscal year 2022, Nutanix is expecting sales of upwards of $1.63 billion.RELATED TOPICS:
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