Many tech companies presented their quarterly results this week. In this round-up: Salesforce, Nutanix, Okta, HP, Splunk and Pure Storage.
Salesforce managed to present better quarterly figures than analysts had predicted. Still, expected revenue for the coming year was below expectations. The revenue in fiscal Q4 2024 was $9.29 billion, up 10.8 percent from the same quarter a year earlier. Net profit was $1.45 billion, a stark contrast to the 98 million it recorded as a loss in Q4 2023. Professional services are still not in very high demand according to Salesforce, although internal AI adoption for Salesforce should already reduce its operational costs. After laying off 10 percent of its own workforce, the company has now hired 1,800 new employees.
Nutanix
Nutanix posted a quarterly profit of $32.8 million, comparing favourably with a $70.8 million loss in the same period last year. CEO Rajiv Ramaswami stresses the importance of long-term stability for customers. The company may already be reaping the benefits from the uncertainty surrounding rival VMware, now that Broadcom has acquired it. Still, the growth is not primarily due to a VMware exodus; NAND Research analyst Steve McDowell pointed out in conversation with SiliconANGLE that Nuatanix has shown consistent growth for 12 quarters in a row now. He sees that performance as evidence of a successful transition to a subscription model, something that VMware under Broadcom has also chosen to do, as it happens. Nutanix expects to generate $2.12 billion in revenue in the coming quarter, but that figure could be outperformed if more VMware customers indeed make the switch.
Okta
Okta also did better than expected financially last quarter. It is also positive about projected results for 2024. Demand for identity management solutions is said to be above expectations, with 120 new customers signing contracts worth over $100,000 in the past three months. Okta predicts 603 million dollar will come in during the coming quarter, which should exceed the 584 million predicted by analysts. Revenue continues to increase from large companies among Okta’s customer base, while the company sees stability from smaller customers.
HP
While Lenovo finally saw revenue growth again a week ago, HP’s figures fell 4 percent on a quarterly basis. The PC market has been a concern for some time, with demand lagging. The rise of the “AI PC” should bring a revival; whether it will come (or if so, when) is still uncertain. HP quarterly revenue of $13.2 billion was lower than analysts had predicted. However, CEO Enrique Lores does state that improvement is on the way as the market appears to be slowly recovering. At any rate, many will hope for Windows 11 24H2 to bring a sales bump later this year.
Splunk
Splunk is still awaiting EU approval before it will fall under Cisco’s wing. The acquisition looks set to get the green light on March 13, which is the deadline for any objections. Meanwhile, Splunk’s revenue of $1.49 billion was higher than the expected $1.29 billion. The company signed contracts with 109 new customers in the past three months with more than $1 million annual sales.
Pure Storage
Pure Storage achieved 3 percent less revenue this quarter compared to Q4 2022, but did post slightly higher figures ($789 million) than had been expected ($784 million). Overall, there was a profit of 65.4 million, down from the previous year. Last year, Pure Storage pulled in $74.4 million over the same period. Interestingly, Pure’s subscription services generated 24 percent more revenue than the year before: this segment accounted for $328.9 million.
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