Nutanix, Inc.

Nutanix delivered a strong first quarter with an all-around beat. The company’s renewals continue to be strong, exceeding its projected metrics. Although supply chain issues with their server partners pose a considerable challenge, the situation appears to have improved since the previous quarter. During the first quarter, they also observed that businesses prioritized their platform-enabled activities for data center modernization and digital transformation. Besides, they unveiled Nutanix Cloud Clusters (NC2) on Microsoft Azure. After this launch, Nutanix made significant progress toward realizing its hybrid multi-cloud goal. They can now serve the cloud environments of AWS, Azure, and service providers and continue to deliver on their hybrid multi-cloud vision. Customers can now get Nutanix software on-demand through the Azure marketplace under the public cloud category, making it easier to purchase licenses and migrate workloads between private clouds and Azure. We remain neutral on the company and give it a ‘Hold’ rating with a revised target price.