NTNX

Thought this might be of interest to anyone in NTNX, Apparently NTNX turned done offers from HPE and CSCO pre IPO.

https://seekingalpha.com/news/3298247-information-nutanix-ce…

Rob

4 Likes

Apparently NTNX turned done offers from HPE and CSCO pre IPO.

Here’s what the CEO had to say:

Pandey on turning down the offers: “I think the fact that we had happy customers, a great Net Promoter score, and good growth was telling us that the best was ahead. We thought, 'Why not try to build a larger company?’”

Well, the company has grown significantly since then and it continues to grow rapidly…so the company should be worth more today than it was a year ago.

Also, we now know that both Cisco and HP were interested in buying NTNX. If they were interested then why would they not still be interested today?

Chris

2 Likes

Expenses are growing at more than twice the rate of revenue. My recollection is that the growth in expenses is from sales and marketing. A firm like Cisco, with a well established and competent sales force, could absorb the products without such a substantial increase in expense. Cisco is well entrenched in the data center space.

Long NTNX

5 Likes

Also, we now know that both Cisco and HP were interested in buying NTNX. If they were interested then why would they not still be interested today?

Look at the companies HPE and CSCO have purchased in the last 2 years and see whether their internal offering is giving them the competitive edge.

Remember the multiples a company can get at its infancy may not be same as they grow.