Nutanix, Inc.

Good day and thank you for standing by. Welcome to the Nutanix second quarter 2025 earnings 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 will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your questions, please press star 11 again. please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Rich Valera, Vice President of Investor Relations. Please go ahead.

Good afternoon, and welcome to today's conference call to discuss second 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 second quarter fiscal year 2025 financial 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 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 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 KeyBank Emerging Technology Summit in San Francisco on March 4th and the Morgan Stanley TMT Conference in San Francisco on March 6th. We hope to see some of you at these events. Finally, our third quarter fiscal 2025 quiet period will begin on April 17th. And with that, I'll turn the call over to Rajiv. Rajiv?

Thank you, Rich. And good afternoon, everyone. We're happy to report second quarter results that came in ahead of our guidance. Against a dynamic backdrop, our results benefited from the strength of the Nutanix Cloud Platform, demand from businesses looking for a trusted long-term partner committed to innovation and customer care, and go-to-market leverage from our partnerships and programs. Taking a closer look at the second quarter, we once again exceeded all of our guided metrics. We grew our ARR 19% year-over-year to $2.06 billion and delivered strong free cash flow. We also saw our second quarter in a row of year-over-year new logo growth exceeding 50%, with strength seen across all of our customer segments, including the global 2,000. Finally, we strengthened our balance sheet and increased our financial flexibility by issuing convertible notes at attractive terms and putting in place a revolving credit facility. Nutanix recently published the results of our seventh annual Enterprise Cloud Index Survey. The report shows that implementing GenAI is top of mind for enterprises, with over 80% of those surveyed having started implementing their GenAI strategies. Respondents view infrastructure modernization as key to deploying GenAI. Challenges with respect to data security, compliance and performance remain priorities. We believe the Nutanix Cloud Platform, including Nutanix Kubernetes Platform and Nutanix Enterprise AI or NAI is well suited to helping enterprises quickly and efficiently deploy and run their GenAI applications on real-life use cases, wherever their data resides. As one example, in Q2, a financial services provider in the EMEA region adopted our Nutanix Enterprise AI platform to deploy their internal GenAI applications, which include multilingual translation and a multilingual chatbot. NAI will enable them to deploy their GenAI apps on their existing Nutanix Cloud Platform while benefiting from the automation NAI provides in scaling and running of inferencing endpoints for large language models. Our largest wins in the quarter demonstrated our ability to land and expand within some of the largest and most demanding organizations in the world as they look to modernize their IT footprints while also managing through disruption from industry M&A. One of these wins was a new logo with a North American-based Global 2000 energy technology company, which was motivated to seek alternatives due to a 200% price increase from their incumbent vendor. They were looking for an alternative solution that could also beat their cybersecurity requirements and desire for improved operational efficiency. They chose the Nutanix Cloud Platform, including Nutanix Cloud Manager, which will enable them to streamline their operations through increased automation and reduce their existing ID footprint by over 30%. Another significant win in the quarter was an expansion with a global 2000 provider of IT consulting services based in the AP data region. And happy with the changes they had experienced with their other incumbent infrastructure vendor, this customer decided to transition the portion of their estate served by this other vendor to the Nutanix cloud platform, enabling them to improve their total cost of ownership while also addressing their concerns about pricing and support. They also designated Nutanix as their preferred partner for future expansion opportunities. Finally, I'd like to highlight a significant new logo win with the National Health Ministry in the EMEA region that highlights our progress in supporting modern applications natively on our platform, as well as our support for hybrid multi-cloud environments. This customer was looking to deploy a national telemedicine platform using container-based applications in a multi-cloud environment, including both private and public clouds. They chose the Nutanix Cloud Platform, including Nutanix Cloud Clusters or NC2 running on AWS. They also chose Nutanix Kubernetes Platform, or NKP, and Nutanix Cloud Manager for deploying and managing their container-based applications in a standardized self-service manner, while also enabling centralized observability and policy management. In closing, I am pleased that the strength of our cloud platform and the solid execution of our team produced strong second quarter results and enable us to raise our outlook for our fiscal 2025 year. We remain focused on delivering on our vision of becoming the leading platform for running apps and managing data anywhere and capturing the multi-year growth opportunity in front of us. And with that, I'll hand it over to Rukmini Sivaraman. Rukmini?