Nutanix, Inc.

Hello, and welcome to the Nutanix first quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising that your hand has been raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. It is now my pleasure to introduce Vice President of Investor Relations, Rich Valera.

Good afternoon, and welcome to today's conference call to discuss first quarter fiscal year 2025 financial results. Joining me today are Rajiv Ramaswamy, Nutanix's President and CEO, and Rukmini Sivaraman, Nutanix's CFO. After the market closed today, Nutanix issued a press release announcing first quarter fiscal year 2025 results. 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 financial guidance. 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 more detailed description of these and other risks and uncertainties, please refer to our SEC filings, including our most recent annual report on Form 10-K, 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 predictions of future events. Please note, unless otherwise specifically referenced, All financial measures we use on today's call, except for revenue, 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. Nutanix will be participating in the Raymond James TMT and Consumer Conference in New York on December 10th. and the Barclays Global Technology Conference in San Francisco on December 12th. We hope to see some of you at these events. Finally, our second quarter fiscal 2025 quiet period will begin on January 18th. And with that, I'll turn the call over to Rajiv. Rajiv?

Thank you, Rich, and good afternoon, everyone. We're happy to report first quarter results that came in ahead of our guidance. We continue to see steady demand for our solutions driven by businesses prioritizing their digital transformation and infrastructure modernization initiatives and looking to optimize their total cost of ownership, or TCO. Taking a closer look at the first quarter, we exceeded all our guided metrics. We delivered quarterly revenue of $591 million and grew our ARR 18% year-over-year to $1.966 billion. We also saw another quarter of strong year-over-year growth in new logos and solid free cash flow generation. Our largest wins in the quarter demonstrated the appeal of the Nutanix Cloud Platform to organizations that are looking to modernize their IT footprints, including adopting hybrid multi-cloud operating models and modern applications, while also managing through disruption from industry M&A. One of our largest wins of the quarter was a full stack expansion with a global provider of IT consulting services based in the APAC region. This existing Nutanix customer expanded with us by shifting more workloads to a cloud platform and adding additional components of our portfolio, enabling them to increase their automation and self-service capabilities while also reducing their exposure to their other incumbent infrastructure provider. This expansion was also aimed at strengthening their go-to-market practice with Nutanix in the areas of generative AI, modern applications, and competitive migration. Another notable win in Q1 was a significant expansion with a North American-based Fortune 100 provider of food services and products. This customer was looking to implement a hybrid multi-cloud environment with the intent of running more of their workloads in the public cloud and lowering their total cost of ownership while also reducing their exposure to our largest competitor. They chose the Nutanix Cloud Platform including our Nutanix Cloud Clusters, or NC2, running on AWS, along with Nutanix Cloud Management. This enables them to reduce their projected TCO by nearly 50%, while also consolidating their existing data center footprint. On the product front, we recently announced the general availability of GPT-in-a-box 2.0. are solutions for simplifying the deployment of generative AI applications. A key component of this offering is Nutanix Enterprise AI, or NAI, which helps streamline deployment, scaling, and running of inferencing endpoints for large language models. NAI can be deployed within GPT in a box on-prem or at the edge, or independently on native public cloud services such as AWS EKS and Azure EKS. These new capabilities help further our vision of becoming the leading platform for running all apps and managing data anywhere. A first quarter new logo with the government ministry in the EMEA region demonstrated early progress with the new generative AI and modern application capabilities of our platform. This customer was looking to modernize their infrastructure and chose a full-stack Nutanix solution to support development and deployment of their cloud-native and generative AI applications. They chose our GPT-in-a-Box 2.0 solution, including our Nutanix Kubernetes platform and Nutanix Cloud infrastructure, as well as our Nutanix unified storage and Nutanix database service offerings. Moving on, we also continue to make progress on the partnership front, signing an expanded strategic partnership with AWS that will simplify cloud migrations and offer access to AWS services for customers looking to migrate to NC2 on AWS. As part of this collaboration, customers will gain access to promotional credits from AWS to support customer migrations and proof of concept trials, as well as Nutanix licensing promotions. Customers can also gain access to promotional credits for migrating VMware Cloud on AWS workloads to NC2 on AWS through the AWS VMware Migration Accelerator program. Finally, we continue to receive industry recognition in Q1, being named a leader in the 2024 Gartner Magic Quadrant for distributed hybrid infrastructure, alongside some of the world's leading public cloud providers, improving from our challenging position in the 2023 Magic Quadrant. In closing, I am pleased with our solid first quarter results, our ongoing innovation on our cloud platform, particularly with respect to its support for generative AI and modern applications, and on the progress we continue to make on partnerships. We remain focused on delighting our customers while driving sustainable, profitable growth. And with that, I'll hand it over to Rukmini Sivaram. Rukmini?