--Software and Support Billings Grow 50% YoY to
$351 Million
--Company Evolves Toward a Recurring Revenue
Model with 51% of Billings from Subscriptions--Up from 31% in the
Year-Ago Period
--Subscription Revenue Up 104% YoY to $127
Million
Nutanix, Inc. (NASDAQ: NTNX), a leader in enterprise cloud
computing, today announced financial results for its first quarter
of fiscal 2019, ended October 31, 2018.
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the full release here:
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Q1 Fiscal 2019 Financial Highlights
- Revenue: $313.3 million (at
78.6% non-GAAP gross margin), up from $275.6 million (at 61.9%
non-GAAP gross margin) in the first quarter of fiscal 2018. This
reflects the elimination of approximately $104 million in
pass-through hardware revenue in the first quarter of fiscal 2019,
up from $8 million in the first quarter of fiscal 2018, as the
company nears the completion of its shift toward increasing
software revenue1
- Billings: $383.6 million, up
from $315.3 million in the first quarter of fiscal 2018. This
reflects the elimination of approximately $104 million in
pass-through hardware revenue in the first quarter of fiscal 2019,
up from $8 million in the first quarter of fiscal 2018, as the
company nears the completion of its shift toward increasing
software revenue1
- Software and Support Revenue:
$280.7 million, growing 44% year-over-year from $194.7 million in
the first quarter of fiscal 2018
- Software and Support Billings:
$351.0 million, growing 50% year-over-year from $234.5 million in
the first quarter of fiscal 2018
- Gross Margin: GAAP gross margin
of 76.3%, up from 60.6% in the first quarter of fiscal 2018;
Non-GAAP gross margin of 78.6%, up from 61.9% in the first quarter
of fiscal 2018
- Net Loss: GAAP net loss of $94.3
million, compared to a GAAP net loss of $61.5 million in the first
quarter of fiscal 2018; Non-GAAP net loss of $23.7 million,
compared to a non-GAAP net loss of $24.7 million in the first
quarter of fiscal 2018
- Net Loss Per Share: GAAP net
loss per share of $0.54, compared to a GAAP net loss per share of
$0.39 in the first quarter of fiscal 2018; Non-GAAP net loss per
share of $0.13, compared to a non-GAAP net loss per share of $0.16
in the first quarter of fiscal 2018
- Cash and Short-term Investments:
$965.0 million, up 164% from the first quarter of fiscal 2018
- Deferred Revenue: $701.8
million, up 72% from the first quarter of fiscal 2018
- Operating Cash Flow: $49.8
million, compared to $10.1 million in the first quarter of fiscal
2018
- Free Cash Flow: $20.0 million,
compared to negative free cash flow of $7.9 million in the first
quarter of fiscal 2018
Reconciliations between GAAP and non-GAAP financial measures and
key performance measures are provided in the tables of this press
release.
“Our results this quarter prove that our core business continues
to grow strongly and put us on a solid path to meet our goal of at
least $3 billion in software and support billings by 2021,” said
Dheeraj Pandey, Chairman, Founder and CEO of Nutanix. “51% of our
billings in our first quarter were derived from subscriptions, up
from 31% in the same quarter last year, and our subscription
revenue grew 104% year-over-year. As we look ahead, we expect to
continue this shift towards subscription, driving a cloud-like,
pay-as-you-grow business model.”
Recent Company Highlights
- Announces General Availability for
Xi Leap Disaster Recovery Service: After successfully
completing its evaluation period with early access customers,
Nutanix has made its Xi Leap disaster recovery service generally
available to all customers, signing several customers in the first
few weeks of introduction.
- Expanded Customer Base: Nutanix
ended the first quarter of fiscal 2019 with 11,490 end-customers.
First quarter results included deals with ABN AMRO Clearing Bank,
AccorHotels, Airbus, Inchcape plc, JSE Limited, Shinsei Bank,
Limited, Wintrust Financial Corporation and more.
- Named a Leader in “The Forrester
Wave: Hyperconverged Infrastructure, Q3 2018”: Nutanix believes
that the designation as leader, combined with its history of high
rankings in analyst research, further solidifies its place as a
continued market leader across enterprise cloud and hyperconverged
infrastructure.
- Released Results of Enterprise Cloud
Index, Validating Hybrid Cloud Strategy: Conducted a Global IT
Research Survey of 2,300 IT buyers that clearly shows that public
cloud only is not the preferred state for IT, with 91% of
respondents claiming that hybrid cloud is the ideal IT model. This
research found that cloud interoperability and app mobility were of
higher concern to IT professionals when considering hybrid cloud
benefits than cost and security.
- Introduces the Nutanix Customer
Journey: Nutanix today outlined new stages of the customer
journey to help customers determine what products and solutions are
best suited for their needs: beginning with Nutanix Core to
modernize and deliver a cloud-like experience within the walls of
their datacenters; Nutanix Essentials builds on the
company’s Core HCI offering to deliver even more automation and IT
efficiency; and culminating in Nutanix Enterprise to enable
customers to advance into hybrid and multicloud deployments with
offerings including Xi Cloud Services.
- Launched New Beam Functionality
Extending its Capabilities to the Private Cloud: Newly
introduced Beam features extend its cost visibility and
optimization capabilities into Nutanix on-prem deployments. With
this new update, Beam customers get full visibility and insight
into the entirety of their infrastructure environment, including
public and private clouds, so they can choose the right cloud for
every application.
- Achieved FedRAMP Ready Designation
for Nutanix Frame: Nutanix Frame was granted Federal Risk and
Authorization Management Program (FedRAMP) Ready designation for
the Nutanix Frame for Government platform to deliver secure
application workspaces on U.S. government approved clouds.
- Announces New Xi Cloud Services for
the Modern Multicloud Era at .NEXT London Conference:
Introduces the general availability of Xi Cloud Services, a new
suite of offerings designed to create a more unified fabric across
different cloud environments, giving IT teams the freedom to run
their applications on the optimal platform. Xi Cloud Services is
comprised of five distinct offerings at launch, including Xi Leap,
a native extension of the Nutanix Enterprise Cloud Platform
providing disaster recovery as a service, and Xi IoT, an
intelligent edge computing platform.
Q2 Fiscal 2019 Financial Outlook
For the second quarter of fiscal 2019, Nutanix expects:
- Revenue between $325 and $335
million;
- Billings between $410 and $420
million;
- Non-GAAP gross margin between 78% and
79%;
- Non-GAAP operating expenses between
$300 and $310 million; and
- Non-GAAP loss per share of
approximately $0.25, using approximately 180 million weighted
shares outstanding
1The elimination of hardware revenue is based on the estimated
cost of hardware in transactions where our customers purchase such
hardware directly from our contract manufacturers.
Supplementary materials to this earnings release, including the
company’s first quarter fiscal 2019 investor presentation, can be
found at https://ir.nutanix.com/company/financial.
All forward-looking non-GAAP financial measures contained in the
section titled "Q2 Fiscal 2019 Financial Outlook" exclude
stock-based compensation expense and amortization of intangible
assets and may also exclude, as applicable, other special items.
The company has not reconciled guidance for non-GAAP gross margin,
non-GAAP operating expenses and non-GAAP loss per share to their
most directly comparable GAAP measures because such items that
impact these measures are not within its control and are subject to
constant change. While the actual amounts of such items will have a
significant impact on the company’s non-GAAP gross margin, non-GAAP
operating expenses and non-GAAP loss per share, a reconciliation of
the non-GAAP financial measure guidance to the corresponding GAAP
measures is not available without unreasonable effort.
Webcast and Conference Call Information
Nutanix executives will discuss the company’s first quarter
fiscal 2019 financial results on a conference call at 4:30 p.m.
Eastern Time/1:30 p.m. Pacific Time today. To listen to the call
via telephone, dial 1-833-227-5841 in the United States or
1-647-689-4068 from outside the United States. The conference ID is
7496942. This call will be webcast live and available to all
interested parties on our Investor Relations website at
ir.nutanix.com. Shortly after the conclusion of the conference
call, a replay of the audio webcast will be available on the
Nutanix Investor Relations website. A telephonic replay will be
available for one week by calling 1-800-585-8367 or 1-416-621-4642,
and entering the conference ID 7496942.
Non-GAAP Financial Measures and Other Key Performance
Measures
To supplement our condensed consolidated financial statements,
which are prepared and presented in accordance with GAAP, we use
the following non-GAAP financial and other key performance
measures: billings, non-GAAP gross margin, non-GAAP operating
expenses, non-GAAP net loss, pro forma non-GAAP net loss per share,
free cash flow, software and support revenue, software and support
billings, and subscription and professional services billings. In
computing these non-GAAP financial measures and key performance
measures, we exclude certain items such as stock-based compensation
and the related income tax impact, costs associated with our
acquisitions (such as amortization of acquired intangible assets,
revaluation of contingent consideration, income tax-related impact,
and other acquisition-related costs), amortization of debt discount
and issuance costs, other non-recurring transactions and the
related tax impact and the revenue and billings associated with
pass-through hardware sales. Billings is a performance measure
which our management believes provides useful information to
investors because it represents the amounts under binding purchase
orders received by us during a given period that have been billed,
and we calculate billings by adding the change in deferred revenue
between the start and end of the period to total revenue recognized
in the same period. Free cash flow is a performance measure that
our management believes provides useful information to management
and investors about the amount of cash generated by the business
after necessary capital expenditures, and we define free cash flow
as net cash (used in) provided by operating activities less
purchases of property and equipment. Non-GAAP gross margin,
non-GAAP operating expenses, non-GAAP net loss, and pro forma
non-GAAP net loss per share are financial measures which our
management believes provide useful information to investors because
they provide meaningful supplemental information regarding our
performance and liquidity by excluding certain expenses and
expenditures such as stock-based compensation expense that may not
be indicative of our ongoing core business operating results.
Software and support revenue and software and support billings are
performance measures that our management believes provide useful
information to our management and investors as it allows us to
better track the true growth of our software business by excluding
the amounts attributable to the pass-through hardware sales that we
use to deliver our solutions. Subscription and professional
services billings are performance measures that our management
believes provide useful information to our management and investors
as it allows us to better track the growth of the
subscription-based portion of our business, which is a critical
part of our business plan. We use these non-GAAP financial and key
performance measures for financial and operational decision-making
and as a means to evaluate period-to-period comparisons. However,
these non-GAAP financial and key performance measures have
limitations as analytical tools and you should not consider them in
isolation or as substitutes for analysis of our results as reported
under GAAP. Billings, non-GAAP gross margin, non-GAAP operating
expenses, non-GAAP net loss, pro forma non-GAAP net loss per share,
and free cash flow are not substitutes for total revenue, gross
margin, operating expenses, net loss, net loss per share, or net
cash (used in) provided by operating activities, respectively,
software and support revenue and software and support billings are
not substitutes for total revenue, and subscription and
professional services billings are not a substitute for
subscription and professional services revenue. In addition, other
companies, including companies in our industry, may calculate
non-GAAP financial measures and key performance measures
differently or may use other measures to evaluate their
performance, all of which could reduce the usefulness of our
non-GAAP financial measures and key performance measures as tools
for comparison. We urge you to review the reconciliation of our
non-GAAP financial measures and key performance measures to the
most directly comparable GAAP financial measures included below in
the tables captioned “Reconciliation of Revenue to Billings,”
“Disaggregation of Revenue and Billings,” “Reconciliation of
Subscription and Professional Services Revenue to Subscription and
Professional Services Billings,” “Reconciliation of Software and
Support Revenue to Software and Support Billings,” “Reconciliation
of GAAP to Non-GAAP Profit Measures,” and “Reconciliation of GAAP
Net Cash (Used In) Provided By Operating Activities to Non-GAAP
Free Cash Flow,” and not to rely on any single financial measure to
evaluate our business.
Forward-Looking Statements
This press release contains express and implied forward-looking
statements, including, but not limited to, statements regarding our
business plans and objectives, long-term financial model targets
and our plans to achieve those targets, product features, services
and technology that are under development or in process and
capabilities of such product features, services and technology, our
total addressable market, our continued investment in talent and
technology, plans and timing for, and the impact of, our transition
to a software-defined and subscription-based business model, and
anticipated future financial results, including but not limited to
our guidance on estimated revenues, billings, non-GAAP gross
margin, non-GAAP operating expenses and non-GAAP net loss per share
for future fiscal periods. These forward-looking statements are not
historical facts and instead are based on our current expectations,
estimates, opinions, and beliefs. Consequently, you should not rely
on these forward-looking statements. The accuracy of such
forward-looking statements depends upon future events and involves
risks, uncertainties, and other factors beyond our control that may
cause these statements to be inaccurate and cause our actual
results, performance or achievements to differ materially and
adversely from those anticipated or implied by such statements,
including, among others: failure to develop, or unexpected
difficulties or delays in developing, new products, services,
product features or technology in a timely or cost-effective basis;
delays in or lack of customer or market acceptance of our new
products, services, product features or technology; delays in the
transition to focus primarily on software-only transactions and a
subscription-based business model; the rapid evolution of the
markets in which we compete; our ability to sustain or manage
future growth effectively; factors that could result in the
significant fluctuation of our future quarterly operating results,
including, among other things, anticipated changes to our revenue
and product mix which will slow revenue growth during such
transition and make forecasting future performance more difficult,
unanticipated challenges in the integration of recently acquired
companies, the timing and magnitude of orders, shipments and
acceptance of our solutions in any given quarter, our ability to
attract new and retain existing end-customers, changes in the
pricing of certain components of our solutions, and fluctuations in
demand and competitive pricing pressures for our solutions; the
introduction, or acceleration of adoption of, competing solutions,
including public cloud infrastructure; and other risks detailed in
our annual report on Form 10-K for the fiscal year ended July 31,
2018, filed with the SEC on September 24, 2018. Additional
information will also be set forth in our Form 10-Q that will be
filed for the quarter ended October 31, 2018, which should be read
in conjunction with these financial results. Our SEC filings are
available on the Investor Relations section of the company’s
website at ir.nutanix.com and on the SEC's website at www.sec.gov.
These forward-looking statements speak only as of the date of this
press release and, except as required by law, we assume no
obligation to update forward-looking statements to reflect actual
results or subsequent events or circumstances.
About Nutanix
Nutanix is a global leader in cloud software and hyperconverged
infrastructure solutions, making infrastructure invisible so that
IT can focus on the applications and services that power their
business. Companies around the world use Nutanix Enterprise Cloud
OS platform to bring one-click application management and mobility
across public, private and distributed edge clouds so they can run
any application at any scale with a dramatically lower total cost
of ownership. The result is organizations that can rapidly deliver
a high-performance IT environment on demand, giving application
owners a true cloud-like experience. Learn more at www.nutanix.com
or follow us on Twitter @nutanix.
© 2018 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix
logo, Xi, and all product and service names mentioned herein are
registered trademarks or trademarks of Nutanix, Inc. in the United
States and other countries. All other brand names mentioned herein
are for identification purposes only and may be the trademarks of
their respective holder(s).
NUTANIX, INC. CONDENSED CONSOLIDATED
BALANCE SHEETS (Unaudited) As of July
31, October 31, 2018 2018
(in thousands) Assets Current assets: Cash and cash
equivalents $ 305,975 $ 399,786 Short-term investments 628,328
565,189 Accounts receivable, net 258,289 237,682 Deferred
commissions—current 33,691 34,742 Prepaid expenses and other
current assets 36,818 39,621 Total current assets
1,263,101 1,277,020 Property and equipment, net 85,111 104,750
Deferred commissions—non-current 80,688 87,365 Intangible assets,
net 45,366 79,830 Goodwill 87,759 184,994 Other assets—non-current
37,855 39,127 Total assets $ 1,599,880 $
1,773,086
Liabilities and Stockholders’ Equity
Current liabilities: Accounts payable $ 65,503 $ 69,474 Accrued
compensation and benefits 85,398 65,709 Accrued expenses and other
current liabilities 31,682 28,552 Deferred revenue—current 275,648
307,195 Total current liabilities 458,231 470,930
Deferred revenue—non-current 355,559 394,605 Convertible senior
notes, net 429,598 436,745 Other liabilities—non-current 29,713
39,487 Total liabilities 1,273,101 1,341,767
Stockholders’ equity: Common stock 4 4 Additional paid-in
capital 1,355,907 1,554,878 Accumulated other comprehensive loss
(1,002 ) (1,168 ) Accumulated deficit (1,028,130 ) (1,122,395 )
Total stockholders’ equity 326,779 431,319 Total
liabilities and stockholders’ equity $ 1,599,880 $ 1,773,086
NUTANIX, INC. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended October 31, 2017
2018 (in thousands, except share and per share
data) Revenue: Product $ 219,052 $ 224,346 Support,
entitlements and other services 56,500 88,937 Total
revenue 275,552 313,283 Cost of revenue: Product
(1)(2) 85,162 39,261 Support, entitlements and other services (1)
23,460 34,845 Total cost of revenue 108,622
74,106 Gross profit 166,930 239,177 Operating
expenses: Sales and marketing (1)(2) 145,405 196,497 Research and
development (1) 64,512 110,531 General and administrative (1)
16,052 27,339 Total operating expenses 225,969
334,367 Loss from operations (59,039 ) (95,190 ) Other
expense, net (189 ) (2,703 ) Loss before provision for (benefit
from) income taxes (59,228 ) (97,893 ) Provision for (benefit from)
income taxes 2,259 (3,628 ) Net loss $ (61,487 ) $ (94,265 )
Net loss per share attributable to Class A and Class B common
stockholders—basic and diluted $ (0.39 ) $ (0.54 ) Weighted average
shares used in computing net loss per share attributable to Class A
and Class B common stockholders—basic and diluted 156,780,631
175,445,969
_____________________
(1) Includes the following stock-based compensation
expense:
Three Months Ended October 31,
2017 2018 (in thousands) Product
cost of revenue $ 570 $ 698 Support, entitlements and other
services cost of revenue 2,072 3,157 Sales and marketing 13,766
22,606 Research and development 15,542 31,009 General and
administrative 3,565 8,455 Total stock-based compensation
expense $ 35,515 $ 65,925
_____________________
(2)
Includes the following amortization of
intangible assets:
Three Months Ended October 31,
2017 2018 (in thousands) Product
cost of sales $ 895 $ 3,168 Sales and marketing 211 550
Total amortization of intangible assets $ 1,106 $ 3,718
NUTANIX, INC. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited) Three
Months Ended October 31, 2017
2018 (in thousands) Cash flows from operating
activities: Net loss $ (61,487 ) $ (94,265 ) Adjustments to
reconcile net loss to net cash provided by operating activities:
Depreciation and amortization
11,333 16,183 Stock-based compensation 35,515 65,925 Amortization
of debt discount and debt issuance costs — 7,148 Change in fair
value of contingent consideration 282 (799 ) Other 131 (759 )
Changes in operating assets and liabilities: Accounts receivable,
net 7,326 23,497 Deferred commissions (8,457 ) (7,728 ) Prepaid
expenses and other assets (1) (316 ) (3,812 ) Accounts payable
(6,504 ) 1,292 Accrued compensation and benefits (7,220 ) (19,689 )
Accrued expenses and other liabilities (293 ) (7,442 ) Deferred
revenue 39,788 70,273 Net cash provided by operating
activities (1) 10,098 49,824
Cash flows from
investing activities: Maturities of investments 35,920 143,409
Purchases of investments (59,108 ) (79,766 ) Purchases of property
and equipment (17,965 ) (29,832 )
Payment for a business combination, net of
cash and restricted cash acquired
— (18,662 ) Net cash (used in) provided by investing
activities (41,153 ) 15,149
Cash flows from financing
activities: Proceeds from sales of shares through employee
equity incentive plans, net of repurchases 25,231 29,890 Payment of
debt in conjunction with a business combination — (991 ) Payment of
convertible notes issuance cost — (75 ) Payment of offering cost
(85 ) — Net cash provided by financing activities 25,146
28,824 Net (decrease) increase in cash, cash
equivalents and restricted cash (1) $ (5,909 ) $ 93,797 Cash, cash
equivalents and restricted cash—beginning of period (1) 139,497
307,098 Cash, cash equivalents and restricted
cash—end of period (1) $ 133,588 $ 400,895 Restricted
cash (1) (2) 1,129 1,109 Cash and cash
equivalents—end of period $ 132,459 $ 399,786
Supplemental disclosures of cash flow information: Cash paid
for income taxes $ 2,066 $ 3,910
Supplemental disclosures of
non-cash investing and financing information: Issuance of
common stock for business combinations $ — $ 102,978 Purchases of
property and equipment included in accounts payable and accrued
liabilities $ 7,084 $ 15,717 Vesting of early exercised stock
options $ 249 $ 70
_____________________
(1) During the first quarter of fiscal 2019, we
adopted Accounting Standards Update (ASU) No. 2016-18, which
requires that the statement of cash flows explain the change during
the period in the total of cash, cash equivalents and restricted
cash. We adopted the standard retrospectively for the prior period
presented. Our adoption of ASU 2016-18 did not have any significant
impact on our consolidated statement of cash flows. (2) Included
within other assets—non-current in the condensed consolidated
balance sheets.
NUTANIX, INC.
Reconciliation of Revenue to Total Billings
(Unaudited) Three Months Ended October
31, 2017 2018 (in thousands)
Total revenue $ 275,552 $ 313,283 Change in deferred revenue, net
of acquisitions (1) 39,788 70,273 Total billings $ 315,340
$ 383,556
_____________________
(1) Amount for the three months ended October 31,
2018 excludes approximately $0.3 million of deferred revenue
assumed in the Frame acquisition.
Disaggregation
of Revenue and Billings (Unaudited) Three
Months Ended October 31, 2017
2018 (in thousands) Disaggregation of Revenue:
Non-portable software $ 126,897 $ 146,570 Subscription 62,376
126,976 Hardware 80,838 32,547 Professional services 5,441
7,190 Total revenue $ 275,552 $ 313,283
Disaggregation of Billings: Non-portable software $ 126,897
$ 146,570 Subscription 98,902 194,764 Hardware 80,838 32,547
Professional services 8,703 9,675 Total billings $ 315,340
$ 383,556
Non-portable software — Non-portable software revenue includes
sales of our software operating system when delivered on a
configured to order appliance by us, or one of our OEM partners.
The software licenses associated with these sales are typically
non-portable and have a term equal to the life of the appliance it
is delivered on. Revenue from our non-portable software products is
generally recognized upon transfer of control to the customer.
Subscription — Subscription revenue is generated from the sales
of software entitlement and support subscriptions, separately
purchased software term-based licenses and cloud-based Software as
a Service, or SaaS offerings. We recognize revenue from software
entitlement and support subscriptions and SaaS offerings ratably
over the contractual service period, while revenue from our
separately purchased software term-based licenses is generally
recognized upon transfer of control to the customer, which is when
we make the software available to our customers.
Hardware — In transactions where we deliver the hardware
appliance, we consider ourselves to be the principal in the
transaction and we record revenue and costs of goods sold on a
gross basis. We consider the amount allocated to hardware revenue
to be equivalent to the cost of the hardware procured. Hardware
revenue is generally recognized upon transfer of control to the
customer.
Professional services — We also sell professional services with
our products. We recognize revenue related to professional services
as they are performed.
NUTANIX, INC. Reconciliation of
Subscription and Professional Services Revenue to Subscription and
Professional Services Billings (Unaudited)
Three Months Ended October 31, 2017
2018 (in thousands) Subscription revenue $
62,376 $ 126,976 Change in subscription deferred revenue, net of
acquisitions (1) 36,526 67,788 Subscription billings $
98,902 $ 194,764 Professional services revenue $
5,441 $ 7,190 Change in professional services deferred revenue
3,262 2,485 Professional services billings $ 8,703 $
9,675
_____________________
(1) Amount for the three months ended October 31,
2018 excludes approximately $0.3 million of deferred revenue
assumed in the Frame acquisition.
Reconciliation
of Software and Support Revenue to Software and Support
Billings (Unaudited) Three Months Ended
October 31, 2017 2018 (in
thousands) Software revenue $ 138,214 $ 191,799 Hardware
revenue 80,838 32,547 Product revenue 219,052 224,346
Support, entitlements and other services revenue 56,500
88,937 Total revenue $ 275,552 $ 313,283 Total
software and support revenue (2) $ 194,714 $ 280,736 Change in
software and support deferred revenue, net of acquisitions (1)
39,788 70,273 Software and support billings (2) $ 234,502
$ 351,009
_____________________
(1) Amount for the three months ended October 31,
2018 excludes approximately $0.3 million of deferred revenue
assumed in the Frame acquisition. (2) Software and support revenue
and billings include software and support, entitlements and other
services revenue and billings.
NUTANIX, INC. Reconciliation of GAAP to Non-GAAP
Profit Measures (Unaudited) GAAP
Non-GAAP Adjustments Non-GAAP Three Months
Three Months Ended
October Ended October 31, 2018 (1)
(2) (3) (4) (5)
(6) 31, 2018 (in thousands, except share
and per share data) Gross profit $ 239,177 $ 3,855 $ 3,168 $ —
$ — $ — $ — $ 246,200 Gross margin 76.3 % 1.2 % 1.1 % — — — — 78.6
% Operating expenses: Sales and marketing 196,497 (22,606 ) (550 )
— — — — 173,341 Research and development 110,531 (31,009 ) — — — —
— 79,522 General and administrative 27,339 (8,455 ) —
799 (481 ) — —
19,202 Total operating expenses 334,367 (62,070 ) (550 ) 799
(481 ) — — 272,065 Loss from operations (95,190 ) 65,925 3,718 (799
) 481 — — (25,865 ) Net loss $ (94,265 ) $ 65,925 $ 3,718 $ (799 )
$ 481 $ 7,148 $ (5,860 ) $ (23,652 ) Weighted shares outstanding,
basic and diluted 175,445,969 175,445,969 Net loss per share, basic
and diluted $ (0.54 ) $ 0.38 $ 0.02 $ — $ — $ 0.04 $ (0.03 ) $
(0.13 )
_____________________
(1) Stock-based compensation expense (2) Amortization
of intangible assets (3) Change in fair value of contingent
consideration assumed in the PernixData acquisition (4)
Acquisition-related costs (5) Amortization of debt discount and
issuance costs (6) Partial release of valuation allowance from
acquisition
GAAP
Non-GAAP Adjustments Non-GAAP Three Months
Three Months Ended October
Ended October 31, 2017 (1) (2)
(3) (4) 31, 2017 (in
thousands, except share and per share data) Gross profit $
166,930 $ 2,642 $ 895 $ — $ — $ 170,467 Gross margin 60.6 % 1.0 %
0.3 % — — 61.9 % Operating expenses: Sales and marketing 145,405
(13,766 ) (211 ) — — 131,428 Research and development 64,512
(15,542 ) — — — 48,970 General and administrative 16,052
(3,565 ) — (282 ) —
12,205 Total operating expenses 225,969 (32,873 ) (211 )
(282 ) — 192,603 Loss from operations (59,039 ) 35,515 1,106 282 —
(22,136 ) Net loss $ (61,487 ) $ 35,515 $ 1,106 $ 282 $ (132 ) $
(24,716 ) Weighted shares outstanding, basic and diluted
156,780,631 156,780,631 Net loss per share, basic and diluted $
(0.39 ) $ 0.23 $ — $ — $ — $ (0.16 )
_____________________
(1) Stock-based compensation expense (2) Amortization
of intangible assets (3) Change in fair value of contingent
consideration assumed in the PernixData acquisition (4) Income tax
effect primarily related to stock-based compensation expense
NUTANIX, INC. Reconciliation of GAAP Net Cash
Provided by Operating Activities to Non-GAAP Free Cash Flow
(Unaudited) Three Months Ended October
31, 2017 2018 (in thousands)
Net cash provided by operating activities $ 10,098 $ 49,824
Purchases of property and equipment (17,965 ) (29,832 ) Free cash
flow $ (7,867 ) $ 19,992
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181127005687/en/
Investor Contact:Tonya
Chin408-560-2675tonya@nutanix.com
Media Contact:Kate Reed973-534-9292kreed@nutanix.com
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