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Nutanix Inches Closer to an IPO in 2016

Recently updated IPO filings with the SEC indicate the company is preparing to move forward with its plans

Stock Exchange 

It's been a pretty quiet tech initial public offering (IPO) season thus far in 2016, but it looks like Nutanix may be gearing up to change all of that based on the recent update they made to their IPO paperwork filed with the United States Securities and Exchange Commission (SEC) on Monday.

Nutanix, a popular startup in the hyperconverged infrastructure (HCI) market, filed for an IPO last year, but for one reason or another, delayed moving forward with those plans.  Perhaps the HCI vendor sees the current stock market as being more favorable to an IPO.

So what is HCI?  International Data Corporation (IDC) defined Hyperconverged Systems as the collapsing of core storage and compute functionality into a single, highly virtualized solution.  A key characteristic of hyperconverged systems that differentiate these solutions from other integrated systems is their ability to provide all compute and storage functions through the same server-based resources.

In its IPO paperwork, Nutanix describes its solution as being comprised of two comprehensive software product families: Acropolis and Prism, which are delivered on commodity x86 servers.  Acropolis delivers high performance distributed storage, application mobility capabilities, which we are continuing to expand, and a built-in hypervisor, software that allows multiple operating systems to share a single hardware host.  Prism delivers integrated virtualization and infrastructure management, robust operational analytics and one-click administration capabilities.  These solutions address a broad range of workloads, including enterprise applications, databases, virtual desktop infrastructure (VDI), unified communications and big data analytics.

The HCI market is definitely heating up.  According to IDC, Hyperconverged sales grew 170.5% year over year during the fourth quarter of 2015, generating more than $355.9 million worth of sales.

The Nutanix filing also goes into more detail around their own financial situation, showing a positive environment for would be investors.  Nutanix said it posted quarterly revenue of over $100 million for the first time, bringing total revenue up to $190.5 million, up 85 percent year over year.  To continue to show its growth pattern, the filing also reported 494 new customers acquired during the quarter ending January 31, 2016, an average total customer growth of approximately 23% on a quarterly basis over the last 6 fiscal quarters, which grew from 782 customers as of July 31, 2014 to 2,638 customers as of January 31, 2016.

The company said it intends to use the net proceeds they receive from the IPO primarily for capital expenditures and for general corporate purposes, including working capital, sales and marketing activities, research and development, and general and administrative matters.

Nutanix also recently announced a new release of its web-scale computing platform that delivers up to 4x performance improvement for any workload with no additional hardware or software license, freedom to choose hypervisors without lock-in, and built-in machine learning capabilities that increase operational efficiency.

Published Wednesday, April 06, 2016 3:28 PM by David Marshall
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