Really, it was impossible for Coldplay to be anything other than superstars. Their single-minded devotion to connection on record and in person. The phenomenal energy of their live performances. The simplicity yet enormity of the melodies and sentiments in their songs. And sure, if all you’d ever seen of them was a normal-looking guy in a waterproof jacket running around a beach and singing about yellow stars, it’s easy to see how you might come to that conclusion.īut all the above misses the point of Coldplay entirely. Moreover, the high-margin nature of the company's subscription-based business should allow it to deliver improved earnings performance in the long run.You’ll often hear Coldplay referred to as “unassuming” or “unlikely superstars”. The relevant experience that Ramaswami brings should be a tailwind for Nutanix and may help the company switch into a higher gear, especially considering that he comes over from a close competitor.Īnalyst estimates compiled by Yahoo! Finance indicate that Nutanix could soon return to top-line growth, and that wouldn't be surprising considering the tailwinds discussed above. Ramaswami was the COO at VMware for four years before joining Nutanix, and he has also held positions at Cisco and Broadcom. So Nutanix still has a lot of room to grow its business thanks to the market it operates in.Īdditionally, the company has finally finished its search for a new CEO, appointing former VMware executive Rajiv Ramaswami to the post as current CEO and co-founder Dheeraj Pandey retires after 11 years in the role. Nutanix's presence on two major cloud service providers, which together account for 51% of the global cloud market according to third-party estimates, bodes well for the company's long-term prospects, as the HCI market is expected to clock a compound annual growth rate of 30.7% through 2026, according to Allied Market Research. Similarly, Nutanix is also offering its hyper-converged infrastructure (HCI) on Amazon Web Services. Such impressive growth is not surprising, as the company has partnered with leading cloud service provider Microsoft, which will allow the two companies to bring hybrid cloud solutions on the latter's Azure platform. ![]() The company now anticipates 25% year-over-year growth in the run-rate ACV this quarter, indicating that Nutanix is all set to carry its momentum into the New Year. The company has nearly eliminated its reliance on legacy sources of revenue such as non-portable software and hardware. That's a huge improvement over the non-GAAP gross margin of 61.9% in the same quarter three years ago. ![]() In the first quarter of fiscal 2021, Nutanix's non- GAAP gross margin increased 180 basis points year over year to 81.9% despite a flat top-line performance. Nutanix started transitioning to a subscription-based business model (as opposed to a product-driven model) nearly three years ago, and that switch has turned out to be a boon for the company's margin profile and bottom line. NTNX data by YCharts Nutanix's transition is paying off Let's take a closer look at why that might be the case. ![]() In fact, it wouldn't be surprising to see Nutanix turn out to be a top cloud play in 2021. Shares of the cloud-based hyper-convergence specialist have recovered a lot of ground, however, and they seem capable of delivering more upside given the pace at which the company's subscription business is growing. Nutanix ( NTNX 0.25%) seems all set to close out 2020 on a high after a disastrous start that saw the company slash its full-year guidance in March on account of the novel coronavirus pandemic and a shift in its business model.
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