Nutanix, Inc. (NASDAQ:NTNX) Q1 2023 Earnings Call Transcript

Ruplu Bhattacharya: Okay. Got it. And then can I just also ask a clarification. In the past, you said that the sum of the four quarter ACV billings is typically 6% to 7% higher than the annual reported number. Does that rule still hold for fiscal €˜23? And how should we think about that going forward?

Rukmini Sivaraman: So, generally, the concept still holds, Ruplu, because effectively what we do, just to remind folks on why we had that out there is that when we report the quarterly ACV numbers, we have some contracts that come in for less than a year duration, and we do annualize those to report ACV billings on a quarterly basis. Of course, on an annualized basis, we sort of normalize for that. And so that’s what Ruplu is referring to. And I would say that, that €“ it’s in the general ballpark, maybe 94%, 95%, I think what about 67%, as you said, maybe it’s 5% to 6%, but around that range is what I would expect to see this year as well.

Ruplu Bhattacharya: Okay. Thanks for the details there. And maybe, Rajiv, if I can ask a question, if you can talk about the demand trends by region, are the shutdowns in China impacting you either directly or indirectly? And if you can just touch on the business with your partnership with Red Hat, any progress or anything happening there? Thank you so much.

Rajiv Ramaswami: Yes. We didn’t see any significant difference in terms of performance across regions. As you know, our business in China is relatively small, so not a direct impact there. And then of course, the indirect impact, that’s really up to our customers. We haven’t seen €“ we haven’t really seen anything significant for us as a result of that directly. In terms of Red Hat, continuing to see good momentum with Red Hat this quarter as well. We continue to see a growing pipeline with some wins this first quarter. For example, we saw a Ministry in Asia-Pac combining the two, right. They had OpenShift and our cloud platform, so, from a three tier solution to our platform using our own hypervisor. So, this is an example of the kind of deal that we work on together with them. And we are seeing that continue to grow along nicely.

Ruplu Bhattacharya: Okay. Thank you for all the details.

Operator: I am showing no further questions in the queue. Ladies and gentlemen, this attending this conference call. Thank you for your participation. You may now disconnect.