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Nutanix, Inc. (NTNX)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
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20.61+0.33 (+1.63%)
At close: 04:00PM EDT
20.02 -0.59 (-2.86%)
After hours: 05:56PM EDT
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  • R
    Raymond
    Press Release - September 26, 2022 - Dubai, UAE - Red Hat Inc., the world's leading provider of open source solutions, today announced a new iteration of Red Hat OpenShift Platform Plus, with new features and capabilities that go beyond the base Kubernetes platform to encompass storage, management and more. This further extends Red Hat OpenShift Platform Plus as a singular Kubernetes platform to span the breadth of enterprise IT scenarios, whether a traditional datacenter, distributed edge operations or multiple public cloud environments.

    In the Gartner report, The Innovation Leader’s Guide to Navigating the Cloud-Native Container Ecosystem, the research firm recommends that “organizations strive to standardize on a consistent platform, to the extent possible across use cases.” As organizations grow application landscapes to meet evolving needs, Kubernetes-powered cloud platforms need to not only span open hybrid cloud infrastructure footprints, but also the variety of workloads and applications running on this foundation.

    Red Hat OpenShift Platform Plus is engineered to provide a more consistent foundation for organizations to drive transformational IT standardization. The newest offering includes the necessary tools to more simply build, protect and manage applications throughout the software lifecycle and across Kubernetes clusters.

    The latest version of Red Hat OpenShift enables organizations to install OpenShift directly from major public cloud marketplaces, including AWS marketplace and Azure marketplace. This provides even greater flexibility in how an enterprise chooses to run OpenShift and enables IT teams to better meet dynamic technology requirements.

    New features and capabilities in Red Hat OpenShift 4.11 include:
    Installer provisioned infrastructure (IPI) support for Nutanix for users to employ the IPI process for fully automated, integrated, one-click installation of OpenShift on supported Nutanix virtualized environments.
    Bullish
  • R
    Raymond
    Brian Belski, the strategist at BMO, was on the Halftime Report on CNBC on Tuesday. He's talking to clients every day, and said that everyone is bearish and everyone is sitting in cash. Sentiment readings and cash levels right now are what you normally see at market bottoms. He pointed out that since 1945, whenever the stock market is down more than 20% in the first 9 months of the year, Q4 is usually up double digits, and this is what he expects in Q4 this year.

    Keep in mind that BMO has been getting more positive on NTNX. They owned around 100,000 shares on March 31, but then they came in during Q2 and bought around 400,000 shares.
    Bullish
  • R
    Raymond
    Cloud computing company Nutanix said its India business – which grew at over 60% in the past year - is outpacing other geographies.

    A surge in digital adoption that began during the Covid-19 pandemic continued in India, with the enterprise cloud computing firm continuing to add new customers in the country, according to Aaron White, recently appointed vice president and general manager - APJ sales at Nutanix.

    “We’ve had an annual contract value growth of 64% in the past year in India and 80% increase in our partner ecosystem in India,” White said.

    “As we’ve come out of the pandemic, I’ve seen this enormous surge in adoption of technology which is driving digital transformation. I’ve met a number of companies this week and there’s no slowdown in their business – in fact, quite the opposite,” he added.

    White, who was elevated to this role earlier this month, was in India to meet with customers last week.

    There is a change in how people want to consume services, and this is driving the transformation for banks and other service providers, he said.

    According to White, enterprises in the Asia Pacific region had been behind Western markets on public cloud adoption, giving them a ‘last mover advantage’.

    “Now, things are well understood, and companies know what applications and services they want to have on the cloud. We've understood the pitfalls, and we understand how to take advantage (of the public cloud) and advise our customers and partners on how to make it efficient,” he said.

    The shift by most providers to a consumption and subscription-driven model has also helped slash costs and drive adoption in this region.

    In India, Nutanix has been working with companies across financial services and insurance, IT and government.

    With an increase in government spending, there is an opportunity to double down on these verticals and drive new business in areas like app modernisation and cost optimisation, he added.
    Bullish
  • D
    Dan
    In 3-4years Nutanix will be worth 12-15Mds $
  • R
    Raymond
    Tech Check on CNBC on Monday had on Anne Hoecker, Bain's Head of Americas Tech Practice. Bain is a big investor in NTNX and has Board seats. Hoecker pointed out that recessions are often turning points for tech stocks, with companies with the right products and the right strategy seeing an accelerating path coming out of the downturn. She also said that larger companies are looking to do M&A right now in order to accelerate their growth coming out of the downturn. Adobe just paid 50x sales for Figma, a price that would value NTNX far above where the stock is now trading. NTNX has recently made some staff cuts, who knows, maybe they are dressing the company up to be bought out.
  • A
    Al
    This is a good stock to invest in a year from now but in a bear market it's not going anywhere.
  • R
    Raymond
    Morgan Stanley is recommending Nutanix as one of the companies that can benefit from the move to hybrid IT. "Enterprises are heading toward a hybrid IT future, leveraging multiple public clouds and on-premise or colocated footprint," according to Morgan Stanley.

    "While the growth of public cloud workloads is often the headline within technology today, according to IDC, about 95% of enterprises expect to utilize a combination of on-premise / colocated / public cloud workloads, otherwise known as hybrid IT." Morgan Stanley was holding around 800,000 shares of NTNX as of June 30.
    Bullish
  • R
    Raymond
    The Nutanix CEO had a brief appearance on Tech Check on CNBC on Thursday. He was asked where NTNX is putting more of its sales resources now. He said that a lot of enterprises are still running on legacy infrastructure, and they can save a lot of money if they modernize their infrastructure and adopt a cloud model. If you need to do a refresh on your storage hardware, shifting to a hyperconverged cloud operating model can save you a lot of money. NTNX is focused on customers that are doing this.
    Bullish
  • t
    the real nick name
    10x with the next bull trend
  • S
    Slaphappy
    Got this from nutanix ir:

    Thank you for your message and interest in Nutanix. While we haven’t formally announced a date for our next Investor Day, we expect to hold it during the second half of our fiscal year 2023, which falls between February – July 2023.

     
  • R
    Raymond
    Goldman Sachs Technology Conference - highlights
    They're now moving into the company's next phase which will be profitable growth

    Their renewal rate is over 90%. Their customers are running many critical workloads on NTNX software so it's unlikely that they will stop renewing with NTNX.

    They have not seen any softening of demand due to macro factors

    They now have about half of the Global 2,000 as customers - they have a lot of expansion opportunity with these large customers - every customer has apps and data, they need a platform to run it on and NTNX delivers that platform.

    The Goldman Sachs analyst hosting the call says he sees hardware supply chain issues starting to be resolved

    For the foreseeable future NTNX sees customers running some apps on premise and some in the cloud, not everything is moving to the cloud

    Broadcom's acquisition of VMWare has created some uncertainty for customers, for example the potential for price increases. This may be causing some customers to take a closer look at NTNX and NTNX will probably see some increased business with these customers.

    They have a close working relationship with HPE. As Greenlake continues to grow, NTNX sales through the HPE channel will also grow. NTNX has gotten some large customers through Greenlake.

    Looking to the future for NTNX, investors should keep in mind that the market opportunity is huge. The product portfolio that they have now to sell into this market is good. It works well and customers like it.
    Bullish
  • R
    Raymond
    Piper Sandler Conference - highlights
    Piper Sandler analyst hosting the call says he thinks the valuation of the stock is "super compelling".

    So far in this economic slowdown NTNX is not seeing any lengthening of sales cycles or any change in demand for their products.

    Some VMware employees don't want to work for Broadcom and have been joining NTNX.

    The partnership with Microsoft is going well. The following information is from the NTNX web site:
    Nutanix and Microsoft have a strategic partnership to deliver a true hybrid multicloud experience to customers with solutions that offer seamless app mobility and unified management across Nutanix Private Cloud and Microsoft Azure public cloud services.

    “Société Générale has decided to adopt a hybrid cloud strategy. To implement such a strategy, companies need partners like Nutanix and Microsoft, who can help them build, operate, secure, and monitor a hybrid cloud environment.”
    Khaled Soudani, Group Deputy Chief Technology Officer, Société Générale
    Bullish
  • R
    Raymond
    Nutanix, a pioneer in enterprise cloud computing, announces a partnership with Trust Systems and Crown Hosting Data Centres, to deliver against Crown Hosting’s Shared Hybrid Initiative with a new service for public service customers wanting to migrate to the cloud on their own terms.

    As in the commercial sector, public service bodies are increasingly turning to the cloud as a means of delivering digital transformation, not only securely, but affordably and at least cost to the environment. To assist with this, the UK government sponsored the creation of Crown Hosting Data Centres Limited, a joint venture with Ark Data Centres, tasked with meeting the data center needs of public organizations regardless of size, level of expertise or starting point on their transformation journey.

    That brief, however, remains a work in progress and although Crown Hosting addresses many of the issues faced by customers through an established framework of platforms and services, some still face difficulties making cloud work for them.

    Crown Hosting addresses many of the issues faced by customers through an established framework of platforms

    “Mandated to take a ‘cloud first’ approach to IT, it’s easy for organizations to fall into the trap of thinking of Cloud as a place rather than a model and that they have, necessarily, to move everything out of the datacentre to one of the hyperscaler cloud platforms, like AWS or Azure,” said Andrew Puddephatt, Sr. Sales Director, Public Sector at Nutanix.

    Andrew Puddephatt adds, “But that’s not the case, moreover it can be highly disruptive as well as costly with no guarantee that any of the anticipated savings will be realized. This kind of ‘big bang’ cloud migration can also be a real shock to support teams needing to learn new skills and ways of working, on top of which there are technological, cost and support risks from locking into a single platform no matter who the provider.”

    Faced with this reality, customers across the board are increasingly looking to take a ‘cloud appropriate’ approach to transformation. An approach where individual workloads are hosted by different platforms to meet their specific needs across a mix of legacy platforms plus both public cloud services and private clouds either on premise or in a colocation datacentre. By partnering with Nutanix we’re able to offer those customers the same immediate benefits"

    Indeed, some 83% of respondents to the latest Nutanix Enterprise Cloud Index survey identified this kind of hybrid multicloud approach as their preferred model. Moreover, with Nutanix widely recognized as a champion and market leader in this approach, Nutanix technology is what Trust Systems will be offering as a core component of its new Trust Cloud service for Crown Hosting customers.

    “Experience has shown that public organizations are likely to have legacy applications and platforms that can’t be easily migrated to the cloud,” said Chris Boyes, Chief Operating Officer at Trust Systems, adding “By partnering with Nutanix we’re able to offer those customers the same immediate benefits by migrating those workloads to scalable, highly available and easy to manage hyperconverged Nutanix infrastructure, fully compliant with the DDAT playbook and other government security standards.”

    Chris Boyes continues, “Beyond that, Trust Cloud customers can also host their own fully segmented private cloud as well as access tools to build, run and manage applications on any cloud, balance workloads across clouds and focus on business outcomes rather than having to manage multiple platforms and technologies. It’s a solution in its own right and a real stepping stone from legacy on-premise platforms to the cloud with less hassle, cost and risk.”

    The new Trust Cloud Hosting Service is an IaaS (Infrastructure as a Service) solution offering customers access to dedicated, per customer, Hyperconverged Infrastructure ensuring complete data separation. Hardware consists of Tier 1 servers running the Nutanix Enterprise Cloud software and a choice of virtualization hypervisor.

    Connectivity is also included using high performance COTS switching technologies with a dedicated high security perimeter firewall, shared edge landing network, and intermediate Core LAN based on a dual resilient and redundant platform.

    As well as both central and local government, the new Crown Hosting service is available now on a subscription basis to NHS and other publicly funded organizations. It is made available with a tiered menu of support packages and access to additional services including encryption and both backup and disaster recovery as a service products.
    Bullish
  • j
    joe
    "These days, Nutanix has a much more comprehensible set of offerings that are easier for users and its own salesforce to understand and to buy. And the ROI of replacing prior generations of datacenter architecture with HCI is stunning, and perhaps more so now given the improvements that are possible in terms of form factor, power consumption, redundancy and raw performance. It is probably the very discrete savings that are available to users from deploying Nutanix that has sustained its demand despite macro headwinds and this should be the case in spite of continued turbulence in the economic outlook.

    The company’s multiple transitions are in their last innings and this is starting to show in reported financials. The company is still projecting constrained growth this year because of supply chain issues, particularly in the first half of the period. But demand for the software that Nutanix sells continues unabated, and as supply chain constraints diminish, revenue growth is most likely to readily surpass 20% again, and could possibly ascend further than that. The company is no longer burning cash, although it has a long way to go before it achieves respectable free cash flow margins. It will need to constrain opex growth for several years, and that will, in turn, require significant improvements in salesforce productivity.

    Nutanix shares, despite their recent upside, are still painfully cheap. Analyst opinion is still relatively mixed with one sell and 4 hold recommendations out of the 19 analysts reporting their data to 1st call. The EV/S ratio is still just around 3X, and my DPV shows a valuation almost 2X the current share price. About the only metric that I don’t like is the minimal short interest which was just greater than 3% as of the mid-August reporting date.

    The company’s guidance implies a significant ramp in terms of sales growth, starting at just 8% in Q1 and Q2, before rising to over 20% by the end of the year. The potential for either increased purchases by activist investors or an outright sale of the company can’t be disregarded. There have been recent rumors of activist interest in the shares, and of course Bain remains a significant stakeholder. I think Nutanix shares have the potential for significant positive alpha over the coming year."
  • R
    Raymond
    GigaOm is out with a report that ranks ransomware protection by file storage vendors. Seventeen suppliers are examined in GigaOm’s Sonar Report for File-Based Primary Storage Ransomware Protection. This document looks at these suppliers and includes a forward-looking analysis of their products in terms of ransomware protection. Each vendor is assessed on its innovation and architecture approach, and where it sits in terms of enabling rapid time to value (Feature Play) versus delivering a complex and robust system (Platform Play). Nutanix ranked in the top 3 in the report and is considered a "Leader" by GigaOm.

    NAS systems are prone to ransomware attacks because they present all the characteristics that facilitate a ransomware attack, including:
    Primary point of storage for collaboration use cases broadly used by human operators within the organization
    Primary storage target for many data asset types, regardless of their criticality
    Shared storage, usually accessible by numerous individuals across many geographic locations
    Broad range of types and large numbers of files accessible by many individuals, therefore accessible by any malicious process running on their endpoints
    Lax or nonexistent permissions on certain shares and folders

    Without proper controls (for example, segmentation of data, least-privilege access, and stringent permissions), file storage repositories become easy targets for the uncontrolled spread of ransomware.
    Bullish
  • S
    Superboeren
    Management’s revenue guidance for FY2023 leaves an unexplained gap when taking into account the jump in renewables. It either implies a large upside to guidance or an anticipated breakdown in execution in the sales organization. Billings for FY2023 are about $2 billion (applying the historical 1.1x revenue) and compares with $1.7b for FY2022, or 18% growth. The portion of this that represents Renewals was 20%-25% in FY2022 by my calculation (though management does not yet disclose this number despite repeated questions on the earnings call and touting the renewals flywheel.)

    A couple of weeks ago, I laid out the calculation for the 5-yr, 3yr, 1-yr rollovers in an earlier post. That renewals portion increases to >50% of billings for FY2023. Subtracting the renewals portion (low-effort sales) from total billings leaves us with the billings that need to be earned by the sales force by getting new customers or footprint expansion of existing ones (including Solutions selling). That leaves us with $1.3b that was sold in FY2022 ($1.7b – 25% renewals) and just $1b that needs to be sold to meet guidance for FY2023. In other words, the sales force can sell almost 25% less in FY2023 to still make billings guidance. (I’m ignoring term compression for now which amounts to 10%). So is management with its current guidance overly conservative or do they anticipate a breakdown in sales execution? Management cited solid demand and I did not get the impression that recent attrition was a structural impediment. The ~300 employees that were laid-off recently were no quota carrying support roles. So on top of some 20% backlog by my calculation they set the billings bar very, very low.

    Let’s argue the reverse; if the sales force matches the sales performance of FY2022 in terms of non-renewals selling than that would contribute $1.3b to FY2023 instead of the currently implied $1.0 billion. That extra $300 million would imply almost 15% upside to current consensus and implied billings guidance. That 15% upside would increase when one considers end-market growth and execution improvements for FY2023. If one pencils in a conservative combined 10% growth for demand growth and execution improvement then upside increases to $425m, or between 20%-25% above current guidance for FY2023.

    The larger point is simply that if 50% of billings is low-effort renewals (handled by the small renewals team), that would leave a lot of room for the sales force to outperform current guidance. Being overly conservative helps management achieve large beats going forward, it does severely understate the running-rate of the business in FY2023. If one applies a forward revenue multiple for valuation it understates the value of the business at the expense of shareholders. Let me know where I’m wrong in diving into the detail.
  • m
    mark
    $30 Soon
    Bullish
  • S
    Slaphappy
    See the Nutanix Investors Facebook group for a new story from NTNX Japan that won't stay when I post it here.
  • S
    Slaphappy
    Well that was a nice recovery after the mess 2 days ago.
  • J
    Jim
    Nutanix: The Rebound Is Here
    Sep. 06, 2022 1:33 PM ETNutanix, Inc. (NTNX)1 Like
    Summary
    • Shares of Nutanix have rallied sharply after posting very strong fiscal fourth-quarter results, despite impacts from ongoing supply-chain challenges.
    • The company noted specific strength in large expansion deals in the fourth quarter.
    • Nutanix initiated guidance far above consensus expectations for FY23.
    • In choosing to reduce its headcount by 4%, the company is also committing to hitting positive operating profits and free cash flow in FY23.
    • Nutanix is still cheaply valued at <3x forward revenue.
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