Thanks for the AYX responses

So here are my takeaways:

  1. AYX is growing really fast – not just 50%+ but more like 60%+. 605 allowed them to push the growth into the future, but with 606 we’ll see the growth more in real time. Lumpiness will probably ensue, as the billings jumps will mostly be in the Dec and Mar quarters. (Darth said: I think they said Q4 & Q1 were seasonally high for billings due to customer renewals which makes sense to me.)

  2. They’re adding a lot of customers, and since they charge a flat rate by the seat, all customers are significant (unlike Pivotal). Their ~130% expansion rate means previous customers are spending 30% more, so couple that with new customers added and 60%+ growth is easy to see.

  3. AYX had billings of 116m and ASC606 revenue of 90m in the Dec 2018 quarter. So revenue was 78% of billings. AYX had billings of 159m and ASC606 revenue of 115m in the Dec 2018 quarter. So revenue was 72% of billings. NTNX’s revenue was more like 89% for billings…so maybe they defer the least of the three? Whatever the case, AYX is close enough to OKTA that I’m not concerned.

Thanks esp to Erik, Niki, and Darth. Your posts helped me think through this a little more.