Nutanix, Inc.

Good day. Thank you for standing by. Welcome to the Nutanix Q4 Fiscal 2021 Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I'd now like to hand the conference over to your speaker today, Richard Valera, BP Investor Relations. Please go ahead.

Good afternoon and welcome to today's conference call to discuss the results of our fourth quarter in fiscal year 2021. Joining me today are Rajiv Ramaswamy, Nutanix's president and CEO, and Dustin Williams, Nutanix's CFO. After the market closed today, Nutanix issued a press release announcing financial results for its fourth quarter in fiscal year 2021. If you'd like to read the release, please visit the press releases section of our IR website. During today's call, management will make forward-looking statements, including statements regarding our business plans, strategies, initiatives, vision, objectives, and outlook, as well as our ability to execute thereon successfully and in a timely manner, and the benefits and impact thereof on our business, operations, and financial results. Our financial performance and targets, and use of new or different performance metrics in future periods, our competitive position and market opportunity, the timing and impact of our current and future business model transitions, the factors driving our growth, macroeconomic and industry trends, and the current and anticipated impact of the COVID-19 pandemic. These forward-looking statements involve risks and uncertainties, some of which are beyond our control, which could cause actual results to differ materially and adversely from those anticipated by these statements. For a detailed description of these risks and uncertainties, please refer to our FEC filings, including our most recent annual report on Form 10-K and quarterly reports on Form 10-Q, as well as our earnings press release issued today. These forward-looking statements apply as of today, and we undertake no obligation to revise these statements after this call. As a result, you should not rely on them as representing our views in the future. Please note, unless otherwise specifically referenced, all financial measures we use on today's call are expressed on a non-GAAP basis and have been adjusted to exclude certain charges. We have provided to the extent available reconciliations of these non-GAAP financial measures to GAAP financial measures on our IR website and in our earnings press release. Lastly, Nutanix Management will be participating in the Deutsche Bank Technology Conference on September 10th. the Piper Sandler Global Technology Conference on September 13th, and the Jefferies Software Conference on September 14th. We hope to see many of you at these upcoming events. And with that, I'll turn the call over to Rajiv. Rajiv?

Thank you, Rich, and good afternoon, everyone. I hope you and your loved ones are healthy and safe as we continue to navigate through the COVID pandemic. Our Q4 was a strong end to an excellent fiscal year, which was marked by consistent execution and good progress across both financial and strategic objectives. Nutanix delivered a strong fiscal 21 across a number of areas. We exceeded our guidance every quarter of the year as our team consistently overachieved. We saw good linearity within each quarter as we benefited from ongoing operational improvements in our go-to-market engine. We also saw improved deal economics and the continued build-out of our renewals business, which will help drive acceleration of our top line as we approach the completion of our subscription journey. Importantly, we drove these top line improvements while carefully managing expenses, leading to a substantially improved bottom line performance compared to our prior fiscal year. On the strategic front, we received a $750 million investment from Bain Capital in Q1, which provided additional financial flexibility to fund our growth. And we made good progress on our alliance partnerships, extending our relationships with HPE, Lenovo, and most recently, signing a new agreement with Red Hat. Looking deeper at Q4, we outperformed on all our key metrics, seeing all time or recent records in a number of areas. We reported record revenue. up 19% year-over-year, the best growth we've delivered in the last three years. We saw record ACV billings, which grew 26% year-over-year, our highest growth rate in over two years. We again saw good linearity in Q4, which contributed to better-than-expected cash flows. The underlying momentum in the business gives us confidence in providing strong guidance for the first quarter of our fiscal 22. And we believe positions us well to achieve our plan for the balance of the year. Overall, we were pleased with our fourth quarter and fiscal 2021 financial results, which were delivered against the continued challenging backdrop of COVID-19. We saw strong momentum across our entire hybrid multi-cloud portfolio during the quarter, including both core and emerging products. Our emerging products' new ACV bookings grew over 100% year over year and saw a record rolling four-quarter attach rate of 41%. One example of a complete portfolio solution was our largest deal of the quarter, a multimillion-dollar ACV deal with a Fortune 100 financial services company that expanded their use of our core HCI software to run their mission-critical applications, along with a large expansion of their ERA footprint to automate and simplify their database management. Nutanix clusters, a key component of our hybrid multicloud platform, continued to see solid momentum during the quarter. One example was a global 2000 real estate e-commerce company that purchased clusters on AWS to expand their Nutanix footprint and enable their lift and shift data center consolidation. In Europe, a large government ministry chose our cloud platform along with a unified storage solution, including files and objects, as their primary cloud platform. I'd now like to take a moment to highlight some key takeaways from our investor day in June. We highlighted our leadership position in the large and growing hyper-converged infrastructure market and the substantial additional opportunity we see in our adjacent markets. Specifically, we noted a combined total available market opportunity in our core and adjacent markets that we expect to exceed $60 billion by 2025. We shared our plan to focus on delivering a single platform that takes Nutanix's hallmark simplicity and performance into the hybrid multi-cloud market. We laid out a roadmap for our solution strategy and how we are streamlining our portfolio, focusing on fewer big events in the areas of database as a service, unified storage, and desktop as a service. We also explain how we are expecting to see go-to-market leverage by executing on low-cost renewals, benefiting from solution selling and from increasing our focus on partnerships. And finally, we provided a model targeting free cash flow breakeven in the second half of calendar 2022 and 25% annualized ACV billings growth through fiscal year 25. And we're tracking well on both metrics. Next, I'd like to also provide an update on some of our previously discussed priorities. First, on deepening our partnerships to provide more impact on how we go to market. Our recently announced partnership with Red Hat, the world's leading provider of commercial open-source solutions, brings together Red Hat's industry-leading Red Hat Enterprise Linux, or RHEL, and its open-chip container platform with the simplicity, flexibility, and resilience of our cloud platform. Nutanix is now the preferred choice for HCI on Red Hat's platform, and our AHP hypervisor is certified to support RHEL and OpenShift on the Nutanix platform. Likewise, OpenShift is now the preferred choice for enterprise full stack Kubernetes on the Nutanix platform. Finally, The two companies also have a mutual support agreement and a research and development roadmap focused on ensuring customer success and enhanced integration, respectively. This partnership provides customers with a full-stack platform to build, scale, and manage containerized and virtualized cloud-native applications in a hybrid multi-cloud environment. We see it as an important proof point in our strategy of furthering customer choice and enhancing our platform by partnering with other best-in-class providers. During the quarter, we also announced an expanded partnership with HPE, in which we are offering Nutanix ERA, our multi-database operations and management solution, bundled with HPE ProLiant servers as a service to HPE GreenLake, in addition to our core platform, which is already a part of the GreenLake offering. Now I'd like to turn to another of our priorities, diversity and inclusion. We released our first environmental, social, and governance, or ESG, report during the quarter. detailing our initiatives in these areas and establishing a baseline we can measure ourselves against. This is an important first step in our journey towards having greater diversity and inclusion in our workforce and enabling more sustainable businesses for both Nutanix and our customers. We also held our first Global Women's Conference in July, where Nutanix leaders and outside experts spoke to our entire employee base about how we can redefine leadership to include diverse backgrounds and perspectives. In closing, I'm pleased with the execution across the board in our fourth quarter, as well as our full fiscal year, especially given the challenging backdrop created by the pandemic and the fact that it was the first year of our ACV model. We are entering our fiscal 22 with a strong position. Finally, I'm looking forward to connecting with many of you at our upcoming .next user conference being held September 20 through the 23rd, where we look forward to welcoming tens of thousands of our customers and partners. Please see our earnings press release or website for registration details. And with that, I will hand it over to Dustin Williams. Dustin?