Nutanix Inc at Bank of America Global Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Wamsi Mohan - BofA Global Research - Analyst : Well, there is a lot to talk about -- but I think the number one thing that people have been kind of focused on is the change in the marketplace because of what has happened with the acquisition of VMware by Broadcom. And you spend a lot of time -- we and our audience know you have some real perspective here. So would love to hear sort of what has been going on in the marketplace. Because I think people have obviously warmed up to the opportunity that this presents Nutanix and would love to -- like, hear your characterization of the opportunity. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 04, 2024 / 9:40PM, NTNX.OQ - Nutanix Inc at Bank of America Global Technology Conference

Question: Wamsi Mohan - BofA Global Research - Analyst : How should we dimension the size of this? And when you think about the opportunity ahead of you, how would you segment that by -- I mean, I think VMware, or rather Broadcom, historically had a focus on like top 500 customers after doing a deal, right? So how would you characterize sort of the TAM at those top 500 and then beyond the top 500?

Question: Wamsi Mohan - BofA Global Research - Analyst : And when you think about -- I don't know if we're reading too much into this, right? But as you look at the last several quarters, you've spoken about some of the macro impacts that have been a headwind for the business. I think last quarter, you definitely pointed out that there was some dynamic pricing that was taking place in the marketplace. Would you say that the competitive environment has changed or is evolving in some way different than maybe what you thought like six, nine months ago? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 04, 2024 / 9:40PM, NTNX.OQ - Nutanix Inc at Bank of America Global Technology Conference

Question: Wamsi Mohan - BofA Global Research - Analyst : But would you say that as part of that change, are you're thinking that either the TAM or your pipeline has changed in some way?

Question: Wamsi Mohan - BofA Global Research - Analyst : Okay. Okay, that's helpful.

Question: Wamsi Mohan - BofA Global Research - Analyst : Okay. I think, Rukmini, you've mentioned that your new and expansion ACV was tracking a little bit lower than what you expected maybe at the start of the year. In totality, your ACV buildings have been very good. You've been overachieving in totality. So I guess to reconcile those things, your renewals are obviously doing quite well. Last year, you had a lot of co-terming that kind of drove this uplift in renewals. So how should we think about this year, next year, in terms of progression relative to maybe what you had laid out at Investor Day, how these renewals are tracking? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 04, 2024 / 9:40PM, NTNX.OQ - Nutanix Inc at Bank of America Global Technology Conference

Question: Wamsi Mohan - BofA Global Research - Analyst : If I could follow up on one of the things that came up in the quarter was that, you got this OpEx benefit from a partner payment. Can you elaborate on what that was specifically and maybe provide some color on that?

Question: Wamsi Mohan - BofA Global Research - Analyst : That's a pretty unique arrangement of sorts, right? Like, I mean, you must love that kind of arrangement. But you're getting to get this nice like investment --

Question: Wamsi Mohan - BofA Global Research - Analyst : Yeah.

Question: Wamsi Mohan - BofA Global Research - Analyst : Yeah. When you think about the opportunity here, right, like in some ways, when you look at the Cisco opportunity for as an example, right, like that is interesting. But in the scheme of like your TAM, it's actually not that big in some ways, right? How -- would you agree with that statement? And where would you say sort of the partner opportunity can be a lot larger? And I have a name in mind too, but like --

Question: Wamsi Mohan - BofA Global Research - Analyst : Yeah. Okay.

Question: Wamsi Mohan - BofA Global Research - Analyst : Yes.

Question: Wamsi Mohan - BofA Global Research - Analyst : Sure.

Question: Wamsi Mohan - BofA Global Research - Analyst : Sure.

Question: Wamsi Mohan - BofA Global Research - Analyst : Sure.

Question: Wamsi Mohan - BofA Global Research - Analyst : But on the HCI opportunity with Dell, that's actually a fairly large opportunity given sort of their market share. But I mean, you have obviously a significant market share there, too.

Question: Wamsi Mohan - BofA Global Research - Analyst : So a full 18 minutes have passed, and we haven't mentioned the word AI yet. So we got to get there. Maybe talk a little bit about what your

Question: Wamsi Mohan - BofA Global Research - Analyst : We had a closer earlier session with Red Hat CEO, Matt Hicks.

Question: Wamsi Mohan - BofA Global Research - Analyst : Yes.

Question: Wamsi Mohan - BofA Global Research - Analyst : Yes. And he was very complimentary of the Nutanix partnership.

Question: Wamsi Mohan - BofA Global Research - Analyst : What would you say the opportunity there is for Nutanix? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 04, 2024 / 9:40PM, NTNX.OQ - Nutanix Inc at Bank of America Global Technology Conference

Question: Wamsi Mohan - BofA Global Research - Analyst : Yeah, absolutely. Maybe just switching a little bit to free cash flow, Rukmini, I think you alluded to some one-time set of -- being a benefit to free cash flow in this fiscal year. How should investors think about the quantification of that? And what is the implication of that in next year's free cash flow?

Question: Wamsi Mohan - BofA Global Research - Analyst : I know you haven't guided fiscal '25. But as we think about this kind of OpEx step-up, I mean, if I was to -- if I'm interpreting what you're saying, right, you're also saying that some of this investment doesn't really pay off necessarily in '25. It's going to take a lot -- it's a longer-term investment that takes a longer term to pay off from a top-line or growth perspective, whereas the investment has to be done earlier in time.

Question: Wamsi Mohan - BofA Global Research - Analyst : Where is the investment specifically directed to this sort of, let's say, incremental sort of investment?

Question: Wamsi Mohan - BofA Global Research - Analyst : Yeah. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 04, 2024 / 9:40PM, NTNX.OQ - Nutanix Inc at Bank of America Global Technology Conference

Question: Wamsi Mohan - BofA Global Research - Analyst : Is there -- what else needs to be done, Rajiv, to -- maybe think about the largest of VMware customers? These are fairly complex environments, fairly large-scale environments. And a lot of these customers have never thought of dual sourcing in some ways. So is there -- what else does Nutanix need to do to really say, we are -- we can credibly migrate you off of VMware at like scale, at a larger scale, maybe?

Question: Wamsi Mohan - BofA Global Research - Analyst : Yeah, no, that's excellent. Unfortunately, we're out of time. 30 minutes is just too short to cover so much. But Rajiv, Rukmini, thank you so much for joining us here today.