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Nutanix: Region-Wise Business Contribution

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Regional analysis

Nutanix (NTNX) has maintained strong US revenue growth in the last five quarters, driven by huge demand for cloud services across different enterprises. The US division dominates the company’s business, contributing more than 50% of its total revenue.

The United States forms a major IT (information technology) hub for prominent software and hardware companies such as Dell (DVMT), IBM (IBM), and Cisco (CSCO). Strategic partnerships with these companies, such as integrating cloud computing software with their hardware or software platforms, continue to deliver better results for Nutanix in the region.

As shown in the graph above, in the last five quarters, US business has grown at a compound annual rate of 1.3%, fueled by increased penetration and new contract wins. In the last five years, US revenue has grown at a compound annual rate of 12%.

In fiscal 2Q18, US revenue came in at ~$166 million, marking a 58% YoY (year-over-year) increase. In fiscal 1H18, the company generated total US revenue of $352.8 million, compared with $211 million in 1H17.

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Performance in other markets

The EMEA (Europe, the Middle East, Africa) market has also shown strong growth momentum driven by the digital transition trend. In fiscal 2Q18, the company generated $52 million in EMEA revenue, marking a 49% rise YoY. In the last five quarters, EMEA revenue has grown at a compound annual rate of 11%. Similarly, in fiscal 2Q18, Asia-Pacific and rest-of-America revenue grew 19% and 3% YoY, respectively.

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