Matthew Martino

Matthew Martino asked about what Nutanix has contemplated in its back-half guidance regarding extended lead times versus potentially lower initial deal sizes due to higher server costs. Matthew also inquired about which of Nutanix's workarounds (NC2, expanded server choices, external storage) are proving most effective for deals staying on track, and if Pure Storage significantly contributed to the strong new logo velocity.

Answer

Rukmini Sivaraman, Nutanix's CFO, stated that the forecast factors in server availability delays but noted no meaningful impact on software deal sizes or pricing so far, as customers seek to mitigate higher server prices. Rajiv Ramaswami, Nutanix's CEO, indicated that new logos primarily came from typical VMware migrations onto HCI, with Pure Storage still very early. He emphasized that a combination of factors—broader configuration support, choice of server vendors, and NC2 for public cloud migration—is helping mitigate the supply situation, rather than one single workaround.

Matthew Martino asked about what Nutanix has contemplated in its H2 guidance regarding server lead times versus potential lower deal sizes due to higher server costs, and which of Nutanix's workarounds (NC2, server choice, external storage) are proving most effective. He also asked about Pure Storage's contribution to new logo velocity.

Answer

CFO Rukmini Sivaraman stated that H2 guidance factors in server availability delays, but Nutanix has not seen a meaningful impact on software deal sizes or pricing. CEO Rajiv Ramaswami noted that a combination of factors, including server vendor choice and NC2, are helping mitigate supply issues. He added that external storage, including Pure Storage, is still early but growing, and not a major contributor to new logos this quarter.

Matthew Martino asked for a breakdown of the Q1 revenue slip, specifically how much was due to customer-requested future start dates versus OEM shipment timing or simple deal slippage, and what evidence supports that this is solely a timing issue rather than emerging demand softness. Martino also inquired about the implications of this delayed revenue recognition for fiscal year 2027 modeling, given unchanged bookings growth expectations.

Answer

Rukmini Sivaraman, Nutanix's CFO, clarified that the Q1 revenue performance was primarily due to a higher proportion of orders with future start dates, emphasizing that bookings were slightly ahead of expectations, indicating no demand softness. She stated that the full-year bookings growth expectations remain unchanged. Rajiv Ramaswami, Nutanix's CEO, reinforced that strong free cash flow, which is being modestly increased, further supports the timing-only nature of the revenue shift. For FY27, Sivaraman noted that revenue will depend on deferred business from FY26, new FY27 bookings, and future deferrals, with more details to be provided at the investor day.

Matthew Martino asked for a breakdown of the Q1 revenue slippage, distinguishing between customer-requested future start dates, OEM shipment timing, and simple deal slippage, and sought evidence that this is solely a timing issue rather than emerging demand softness. He also asked about the implications of delayed revenue recognition for fiscal year 2027 modeling.

Answer

CFO Rukmini Sivaraman stated that Q1 revenue performance was primarily related to the higher proportion of orders with future start dates, emphasizing that bookings were ahead of expectations, which supports the timing-only view. CEO Rajiv Ramaswami added that strong cash flow performance also indicates healthy demand. Ms. Sivaraman noted that FY27 revenue will depend on deferred business from FY26, new bookings in FY27, and deferrals from FY27, with more details to be provided at the investor day.

Matthew Martino inquired about the specific monetization strategy for Procore AI, such as new premium SKUs, platform-wide price uplifts, or a consumption model, and whether the business is sufficiently resourced from a go-to-market perspective for fiscal year 2026 given headcount growth and margin expansion goals.

Answer

Ajei Gopal (President and CEO, Procore Technologies) emphasized establishing a compelling ROI for AI, citing significant labor cost savings for customers through digital coworkers. He anticipates monetization through upcoming bundles, new packaging, and potentially consumption-based components, with an evolving approach. Howard Fu (CFO, Procore Technologies) confirmed sufficient capacity for fiscal 2026, noting that go-to-market capacity is largely in place with a focus on productivity. He added that new headcount is primarily in R&D in lower-cost geographies, and leverage is expected across all OpEx lines, with AI providing an additional tailwind for scale.

Matthew Martino inquired about the specific monetization strategy for Procore AI, asking if investors should expect new premium SKUs, a platform-wide price uplift, or a consumption model tied to ROI. He also asked CFO Howard Fu if the business is sufficiently resourced from a go-to-market perspective for fiscal year 2026, given the 5% headcount growth and 400 basis points of margin expansion guidance.

Answer

President and CEO Ajei Gopal stated that the initial focus is on establishing a compelling ROI for customers, particularly given significant labor costs. He anticipates AI will drive incremental upside, likely through upcoming bundles, new packaging, and some consumption-based components, noting an experimental and evolving approach. CFO Howard Fu confirmed sufficient capacity for fiscal 2026, with fiscal 2025 being an investment year for go-to-market and fiscal 2026 focusing on productivity. He added that R&D resources are being added in lower-cost geographies, and AI will provide an additional tailwind for scale and leverage across OpEx.

Matthew Martino inquired about the impact of the data center opportunity on Procore's business and asked for insights into CRPO trends, specifically regarding renewal health and ACV commitments.

Answer

Tooey Courtemanche, Founder, CEO, and President, Procore Technologies, clarified that while data centers are exciting and a strong area for Procore, they represent a small portion (2-3%) of the overall construction economy. Matt Puljiz, Senior Vice President of Finance, Procore Technologies, explained that CRPO performance was driven by strong underlying business health, including healthy renewals and increased contract duration, describing the trend as stable to positive. Tooey Courtemanche added that surpassing $1 trillion in annual construction volume on the platform reflects strong customer acquisition and expansion.

Matthew Martino (Goldman Sachs) asked about the evolving impact of the data center buildout on Procore's business and sought details on CRPO trends, including renewal health and ACV commitments.

Answer

Tooey Courtemanche, Founder, CEO, and President, clarified that while Procore performs well in the data center sector, it remains a small part of the overall construction market. Matt Puljiz, SVP of Finance, indicated healthy renewals and longer contract durations are driving CRPO, with Tooey adding that annual construction volume on the platform now exceeds $1 trillion.

Matt Martino of Goldman Sachs inquired about the drivers behind the accelerated bookings from legacy replacements, specifically whether it's due to modernization for AI or increased recognition of growing cyber threat factors.

Answer

CEO Bipul Sinha confirmed it's a combination of both: preparing for AI and modernizing infrastructure, alongside the inevitable nature of cyber attacks, where Rubrik's unique platform for cyber recovery and speed of recovery are critical decision factors for CIOs and CISOs.

Matthew Martino asked how Rubrik's go-to-market and sales motion are evolving to effectively sell a broader, more complex multi-product platform vision to the C-suite, given the slew of new innovations across identity, AI, and data security.

Answer

CEO Bipul Sinha outlined Rubrik's three-stage multi-product go-to-market strategy: RubrikX for incubation, Product Line Sales (PLS) for scaling early majority products, and then transfer to the core sales team. He emphasized that all products are built on the single Rubrik Security Cloud platform, which gets smarter with more adopted solutions, providing customers with a complete, integrated picture of their data security and cyber resilience.

Matt Martino asked CEO Bipul Sinha about the evolution of Rubrik's go-to-market and sales motion to effectively sell a broader, more complex multi-product platform vision, encompassing new innovations in identity, AI, and data security.

Answer

CEO Bipul Sinha described Rubrik's three-stage multi-product go-to-market strategy: RubrikX (incubation), PLS (Product Line Sales team scaling early majority products), and then transfer to the core sales team. He emphasized that all products are built on the single Rubrik Security Cloud platform, which gets smarter with more adopted solutions, providing customers with a complete picture of data security and cyber resilience rather than fragmented insights.

Matt Martino asked about the evolution of Rubrik's go-to-market and sales motion to effectively sell a broader, multi-product platform encompassing identity, AI, and data security.

Answer

Rubrik CEO Bipul Sinha outlined a three-stage pipeline for product scaling: Rubrik X for incubation, Product Line Sales (PLS) for early majority, and then transfer to the core sales team. He emphasized the single Rubrik Security Cloud platform's role in integrating solutions and delivering enhanced value.

Matt Martino asked CEO Sridhar Ramaswamy about the rapid acceleration of customers leveraging Snowflake AI and the early achievement of the $100 million AI revenue run rate. He inquired what aspects of the Snowflake platform enable customers to accelerate their AI journeys and whether the market is standardizing around fewer platforms for data requirements.

Answer

CEO Sridhar Ramaswamy attributed the rapid AI adoption to Snowflake making it easy to use, integrating AI capabilities without requiring new systems or re-solving governance issues, and offering a risk-free consumption model. He noted that investments like OpenFlow and Postgres support expand Snowflake's capabilities, allowing customers to do more with a single platform. He also suggested that the complexity in the data space is driving a need for more consolidated, comprehensive data strategies.

Matt Martino asked Sridhar Ramaswamy what aspects of the Snowflake platform enable customers to accelerate their AI journeys so rapidly, leading to the early achievement of the $100 million AI revenue run rate. He also inquired if the market is increasingly standardizing around a smaller number of platforms for all data requirements, given Snowflake's central role in the AI opportunity.

Answer

Sridhar Ramaswamy, CEO, addressed the second question first, acknowledging the complexity in the data space but asserting that Snowflake, with products like Intelligence, Streamlit, OpenFlow, and Postgres, empowers customers to 'do more with Snowflake,' thereby expanding its scope as a comprehensive data platform. He implicitly linked this breadth and ease of use to the rapid acceleration of customer AI journeys.

Matt Martino of Goldman Sachs asked CJ Desai about the top-of-mind themes from customer conversations, taking a fresh perspective on the business. He also asked Mike Berry about the philosophy for reinvestment and margin expansion considerations for fiscal 2027.

Answer

CJ Desai, President and CEO, highlighted ongoing modernization efforts (cloud/multi-cloud transformation) as a core driver, expected to continue for 5-7 years. He noted enterprise experimentation with AI applications (embeddings, vector database) and AI-native companies choosing MongoDB over relational alternatives due to scaling issues. Mike Berry, CFO, stated that investments in engineering, marketing, and sales capacity will continue, with some planned investments shifting to Q4 and fiscal 2027. He reiterated commitment to 100-200 basis points of margin expansion and 80-100% free cash flow conversion for the long-term model.

Matt Martino asked CJ Desai about the top-of-mind themes customers are discussing regarding MongoDB, given his fresh perspective. He also asked Mike Berry about the company's philosophy on reinvestment and the ability to expand margins, particularly for non-Atlas business, looking into fiscal 2027.

Answer

CJ Desai, President and CEO, identified three key customer themes: ongoing modernization efforts (cloud/multi-cloud transformation), early-stage enterprise AI applications, and AI-native companies adopting MongoDB due to relational database scaling limitations. Mike Berry, CFO, stated that the company will continue strategic investments in engineering, marketing, and sales capacity, with some planned investments shifting to Q4 and fiscal 2027, while still targeting 100-200 basis points of margin expansion on average, primarily driven by revenue growth.

Matthew Martino asked for more details on an AI-native win highlighted by Rick McConnell, specifically what attracted the customer to Dynatrace and if more opportunities are emerging in the AI space.

Answer

CEO Rick McConnell explained that Dynatrace serves typical customers deploying AI workloads (hundreds already) and increasingly AI-native companies. He noted deep embedding with hyperscaler AI services (AWS Bedrock, Azure OpenAI, Google Vertex, NVIDIA) and an expanding interest in Dynatrace's third-gen platform developer capabilities. The key attraction is deterministic answers enabling agentic action, which is foundational for autonomous operations.

Matthew Martino inquired about a specific AI-native win highlighted in the prepared remarks, asking what attracted this customer to the Dynatrace platform and if more potential opportunities are emerging within the AI space.

Answer

Jim Benson, Chief Financial Officer, clarified that hundreds of existing customers are already deploying AI workloads with Dynatrace, and AI-native companies represent a rapidly evolving segment. He noted Dynatrace's deep embedding with hyperscaler AI services like AWS Bedrock, Azure OpenAI, Google Vertex, and NVIDIA. He explained that AI-native companies are increasingly attracted to Dynatrace's ability to provide deterministic answers that enable agentic action, which is foundational for operating autonomously.

Matthew Martino of Goldman Sachs asked for a characterization of consumption trends between enterprise and SMB customers and how Q2's outperformance informed the second-half guide.

Answer

CFO David Obstler clarified that usage trends across customer segments were broadly consistent with previous quarters. He noted that while enterprise consumption stabilized, SMB and mid-market usage saw gradual improvement, excluding the AI-native cohort. This steady environment informed the updated guidance.

Matt Martino asked about the impact of new AI-powered features, like those in OpenSite Plus, on renewal activity and the broader strategy for monetizing the company's growing AI portfolio.

Answer

CEO Nicholas Cumins clarified that the revenue impact from OpenSite Plus would be marginal in the current year as it is still in early access. He stated that the primary traction for AI monetization is currently coming from Bentley Asset Analytics. He sees significant long-term potential for AI to not only sustain but potentially accelerate growth, both in asset operations and project design.