How Nutanix is profiting from VMware sale

Nutanix has finally turned a profit and says it’s seeing much activity in its pipeline, following the sale of VMware to Broadcom.

02 April 2024

Sammy Zoghlami, Nutanix

It has been a long road, but Nutanix finally reported its first profit-to date in its second quarter results at the end of January. The hybrid multicloud computing company, which turns 15 this year, saw a revenue bump of 16% to $565.2 million, from $486.5 million in its 2023 results. Profit was at $32.8 million, an improvement on the $70.9 million from the year before. It also added 1 750 new customers, bringing it to a grand total of 25 370.

I spoke to Sammy Zoghlami, SVP, EMEA, the day after the results announcement, and he said the company was pleased with its “general momentum”. He added that it’s 26% annual recurring revenue growth was a “pretty good number” for a company of its size, and which bought it to $1.74 billion. Other than its results, Nutanix has been in the news lately because of the $61 billion sale of VMware to Broadcom, which finally closed in November last year. The deal created some turbulence in the market, as Broadcom set about reorganising its new subsidiary. This has been good for Nutanix, and, as CEO Rajiv Ramaswami said on the earnings call, there are “significant concerns” from VMware customers about the acquisition. He added that he saw this as a multi-year opportunity for it to win new customers and gain market share, but that the opportunity would build “gradually” because many customers had signed agreements with VMware of between three and five years.

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