Nutanix (NTNX) has continued to see steady billings growth in the last five quarters driven by higher demand for its products. During the period, the billings for the company grew at a CAGR (compound annual growth rate) of 10.7%. From the graph below, we can see the expansion of billings for Nutanix in the last five quarters. During the same time period, the book-to-bill ratio for the company remained above one, which indicates that the company’s top line may benefit in the upcoming quarters.
The company ended fiscal Q3 2018 with billings of $351 million, up 50% YoY (year-over-year), whereas in the same quarter, both software and entitlements and support billings grew 56% and 81%, respectively, on an annualized basis.
Large order size is driving billing growth
Nutanix continues to attract large orders through the launch of new products and services. In Q3 2018, the company launched three new products: Nutanix Flow, Nutanix Era, and Nutanix Beam. In the reported quarter, nearly 67 clients booked orders above $5 million, while 73% of the bookings came from its existing customers, which suggests that customers are satisfied with Nutanix service.