Nutanix, Inc. (NASDAQ:NTNX) Q1 2019 Earnings Conference Call Transcript
Nov 27, 2018 • 04:30 pm ET
Good afternoon. My name is Sheryl and I will be your conference operator today. At this time, I would like to welcome everyone to the Nutanix First Quarter Fiscal 2019 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions)
Tonya Chin, VP of IR and Corporate Communications, you may begin your conference.
Thank you. Welcome to today's conference call to discuss the results of our first quarter of fiscal 2019 live from London. This call is also being broadcast over the web and can be accessed in the Investor Relations section of the Nutanix website. Joining me today are Dheeraj Pandey, Nutanix's CEO and Duston Williams, Nutanix's CFO.
After the market closed today, Nutanix issued a press release announcing the financial results for its first quarter of fiscal 2019. If you'd like a copy of the release, you can find it in the Press Releases section of the Company's website.
(Forward-Looking Cautionary Statements)
Also, please note that otherwise -- unless otherwise specifically referenced, all financial measures we use in the call today are expressed on a non-GAAP basis, and have been adjusted to exclude certain charges. We've provided reconciliations to these non-GAAP financial measures to the GAAP measures in our Investor Relations section of our website and in our earnings press release.
Lastly, Nutanix will be at the Wells Fargo Tech Summit in Deer Valley on December 4, the Raymond James Conference, also in December 4 in New York City, the Barclays TMT Conference in San Francisco on December 6, and the Needham Technology Conference in New York City on January 15 and we hope to see many of you there. Please mark your calendars for the Nutanix Investor Day in New York City on Wednesday, March 20.
Now I'll turn the call over to Dheeraj. Dheeraj?
Thank you, Tonya. Good afternoon everyone. I'm excited to be joining you today from London where we're hosting our third .NEXT Europe, Middle East and Africa User Conference this week. We're (ph) excited to share our latest updates with more than 3,500 customers, partners and prospects we expect at the show. Those attendees will get to see firsthand as we announce the general availability of Xi Leap here at .NEXT.
Leap is a disaster recovery service offering I've mentioned to you in the past. This launch is a watershed moment for our Company, delivering our services across the entire customer journey from infrastructure modernization to the multicloud, which I'll provide more detail on shortly.
Now onto our Q1 results, we had a great start to fiscal 2019, delivering another strong quarter growing software and support billings by 50% year-over-year to $351 million and software and support revenue by 44% to $281 million. Notably, subscription revenue increased 104% year-over-year as we shift our business to an increasingly subscription based consumption.
The combination of higher than guided revenue, better gross margins and lower operating expenses drove our net