Co-founder, Chief Executive Officer and Chairman of Nutanix, Dheeraj Pandey has announced his retirement from the cloud computing giant. Pandey served the last 11 years at the San Jose company and will remain Chairman and Chief Executive as the company’s board looks for a replacement.
In 2009, Pandey founded Nutanix with the vision of “making IT infrastructure so simple that it becomes invisible.” He is credited with being one of the main innovators in hyper-converged infrastructure that integrates computer, storage, and networking components. In 2016, he took the company through its IPO, and in 2017, Pandey was one of the winners of the Silicon Valley Business Journal's inaugural C-Suite Award.
Ravi Mhatre, Lead Independent Director at Nutanix said about the departure, “On behalf of the entire Board, I thank Dheeraj for his vision and invaluable contributions, which have enabled Nutanix to grow from a simple idea to the market leader and successful company it is today. We support his decision to begin another chapter and deeply appreciate that he will continue to lead the management team until a successor has been appointed.”
The announcement arrives just as Nutanix unveiled a $750 million investment from Bain Capital Private Equity. The transaction should close in late September, with Bain getting two seats on the Nutanix board, which will increase from 9 to 11 members. Following the announcement, shares of Nutanix were traded at more than 17% higher after hours at $25.40 per share, up almost 30% over the last year.
Nutanix also reported 39% year-over-year subscription billings growth and 59% year-over-year subscription revenue growth. This shows progress toward its transition to a subscription model. Eighty-eight percent of the company’s billings came from subscriptions during the fourth quarter. This is addition to Nutanix’s $327.9 million in revenue for the fourth quarter, up 9% from the same quarter a year ago.
According to Pandey, the investment further validates the market need and affords Nutanix increased flexibility to scale and lead innovation in the industry. Pandey’s leadership has played a significant role in Nutanix’s success, and his insights will continue to guide the company as they look toward the next chapter.