Early contract renewals and better hardware availability pushed Nutanix to a nice 19 percent growth.
Does the above title read weird? Nutanix doesn’t do hardware, does it? That’s right, the company stepped away from hardware years ago to focus purely on software. Partners such as HPE, Dell or Lenovo provide the HCI installation, Nutanix is the software layer. As it turns out, when there is a hardware shortage, fewer licenses are needed. Smoother deliveries boost that number. Thanks to the latter, Nutanix had an excellent quarter.
“We are seeing a few customers pulling forward licensing orders to get hardware up and running earlier than planned,” CEO Rajiv Ramaswami said in his quarterly earnings call.
Another key driver for the strong numbers is an unexpected boost in early renewals of subscriptions. The CEO told The Register that potential price increases and inflation did not increase the push for early renewals. “Also from Nutanix, we have not implemented a special push to close early deals,” he said.
“Some customers did subscribe earlier than expected to consolidate multiple contracts.”
Nutanix clocked in at $413.1 million in revenue last quarter, a growth year-over-year of 19 percent. Free cash flow landed at $17 million, the first positive quarter in three years. The company did still post a net loss of $115 million.
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