- The heightened focus on ACV has caused a bit of a billings headwind, however, the run-rate ACV growth of 29% during Q1 shows a positive sign of strength.
- Strong focus on billings and shifting towards software revenue, and away from license/hardware revenue, could drive additional upside to margins in Q2.
- The HCI market is forecasted to grow at a 21% CAGR through 2023, putting the company in great position to capture strong growth over the next several years.
- Valuation appears to be cheap at only 4.5x FY21 revenue, well below typical software companies trading in the double-digit multiple level.
For further details see:
Nutanix: Successive Beat-And-Raise Quarters Should Push Valuation Higher