Yahoo Finance

Shares of Nutanix, the infrastructure software company moving today on the heels of its results. You're looking at gains right now of nearly 10%. The company boosted its revenue guidance for the full year after beating the streets just and earnings expectations for its fiscal second quarter. We want to bring in Rajiv Ramaswami, his CEO of Nutanix joining us now. Rajiv, it's great to have you back here on Yahoo Finance. Talk to us about the quarter. Clearly, you are seeing a lot of momentum that's reflected in the guidance just in terms of some of that carried over momentum that you're expected to see in the quarters to come. Talk to us about the biggest driving factor here of that.

Great to be with you all today. Uh, three factors are driving uh our results and our guide as well. The first is that companies or organizations around the world are choosing Nutanix uh because we deliver a platform that can help them run all their modern applications in a very efficient way, while also enabling them to do things in the future with AI, uh generative AI and other new workloads that might come up. The second is that there's a number of customers and organizations around the world looking to reduce their dependence on one of our competitors, VMware now owned by Broadcom. And Nutanix is the best platform and the easiest platform for them to migrate those VMware application over. The third is we've been working on our go-to market efforts for quite a while now and we're seeing the fruition of some of that now across our customers, across our partners, across our own uh sales go to market engine and we're seeing some increased contributions from some of our OEM strategic partners as well. So all of this has contributed to these results that you saw in Q2 for us and also uh contributed to our ability to raise the guide for the full fiscal year.

For B2B companies, Rajiv, for a few of the past quarters, we've heard about these elongated deal cycles. Where does that stand right now as you've been working with both net new customers and existing customers and trying to drive renewals there?

Yes, uh and that's a great one. I mean we've been talking for several quarters about this as well. The fact is that these cycles have been somewhat elongated. They need more approvals. Uh people are more careful about making sure they get the return on whatever investments they're making. And again as a platform we deliver significant total cost of ownership benefits. Now you can see the results of some of this coming our new logo count has been up growing up about 50% year over year. Uh this quarter as well as in the past quarters. So we continue to see more and more customers embracing our platform. Uh and that's again a testament to the fact that we are able to deliver those benefits to them.

Rajiv, are you seeing any signs of tighter budgets there from your customers?

Well the macro piece of this has continued to remain fairly stable. Uh it's still uncertain, it's dynamic, lots of potential changes, but we've seen a fair amount of stability. There's still a lot of scrutiny into uh what they spend their money on, but uh we feel good about the pipeline that we have in front of us and that's really what has enabled us to raise our guide for the full year despite what's going on around us.