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Subject:  Re: Let's Refine the P/S Discussion Date:  12/8/2018  1:35 PM
Author:  Darthtaco Number:  106429 of 115954

Revenues by Zs are not the same as by most other companies. Why? Higher switching costs, but more than this, after year 1 the revenue stream has very little marginal cost. Compare this to a Nutanix that has to go out and earn its sales every year and pay commissions on it every year

I don’t think that Nutanix is the best opposite to ZS here. The average subscription to Nutanix software is 3.6 years and we’ve already discussed the 72% and accelerating growth in deferred revenue. 6.3x in 3 years to $700M+. I compared to AYX and AYX increased just under 3x over same period, but will see how ZS does in this department. They looked good in the call. I think it likely that in long term analysis ZS is not any better than NTNX in this particular comparison.

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