Delivers Record ACV Billings, Exceeds Guidance
Across all Metrics
Continues Momentum with Run-rate ACV up 28%
YoY, Bolstered by Over 100% YoY Growth in Emerging Product New ACV
5
Nutanix, Inc. (NASDAQ: NTNX), a leader in private cloud, hybrid
and multicloud computing, today announced financial results for its
second quarter ended January 31, 2021.
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“We delivered a strong quarter across the board, exceeding
guidance on all metrics and continuing our momentum with key
customer wins and solid execution,” said Rajiv Ramaswami, President
and CEO of Nutanix. “In my first two months as CEO of Nutanix, my
conviction that we have a talented employee base, loyal customers
who love the simplicity of our software, and a strong market
opportunity ahead of us has only been reinforced.”
“We delivered record ACV billings with growth of 14 percent
year-over-year, bolstered by the strength of our emerging
products,” said Duston Williams, CFO of Nutanix. “We continued to
make progress on our transition to subscription and maintained our
disciplined approach to managing operating expenses, which were
lower than expected this quarter. We look forward to continuing to
execute on our transformation and are confident Nutanix is well
positioned for long-term value creation.”
Second Quarter Fiscal 2021 Financial Summary
Q2 FY’21
Q2 FY’20
Y/Y Change
Annual Contract Value (ACV)1
Billings
$159.2 million
$139.5 million
14%
Run-rate Annual Contract Value
(ACV)2
$1.38 billion
$1.08 billion
28%
Total Average Contract Term3
3.4 years
3.9 years
(0.5) years
Total Revenue4
$346.4 million
$346.8 million
Flat
GAAP Gross Margin
79.5%
78.3%
120 bps
Non-GAAP Gross Margin
82.7%
81.4%
130 bps
GAAP Operating Expenses
$431.7 million
$478.6 million
(10)%
Non-GAAP Operating Expenses
$353.5 million
$396.3 million
(11)%
Free Cash Flow
$(28.5) million
$(73.7) million
$45.2 million
Reconciliations between GAAP and non-GAAP financial measures and
key performance measures are provided in the tables of this press
release.
Recent Company Highlights
- Appointed Rajiv Ramaswami as President and Chief Executive
Officer: Nutanix announced that it appointed Ramaswami to lead
the company in its second decade with a focus on driving sustained
growth, improving efficiency, and advancing leadership in the
hybrid and multicloud categories. Ramaswami has a 30+ year track
record of building and scaling businesses in cloud services,
software, and network infrastructure for industry leaders including
VMware, Broadcom, Cisco, and IBM.
- Promoted Chris Kaddaras to Chief Revenue Officer:
Nutanix promoted Kaddaras to Chief Revenue Officer to recognize his
significant contributions spearheading the company’s Sales team
transition to ACV and operationalizing the subscription
transformation. Since joining Nutanix in 2016, Kaddaras has built
and nurtured a talented and resilient Sales organization, while
continuing to drive ACV billings growth in the middle of a
significant business model shift.
- Named a Leader in Gartner Magic Quadrant for Hyperconverged
Infrastructure Software: For the fourth year in a row Nutanix
was named in the Gartner Magic Quadrant for Hyperconverged
Infrastructure Software. Nutanix was recognized for its
hyperconverged infrastructure software capabilities and was
positioned highest in execution of all vendors.
- Delivered Object and File Storage Solutions to Edge, Private
and Public Clouds: Nutanix released new hybrid cloud
capabilities for its unstructured data storage offerings, Objects
and Files, enabling customers to simplify data management and
effectively manage costs, moving IT teams even closer to true
hybrid and multicloud operating models. The new capabilities
include cloud tiering for object storage, hybrid cloud file
storage, and simplified disaster recovery for both objects and
files.
- Introduced Strengthened Ransomware Protection Features:
Nutanix added new features to its cloud platform to help protect
against ransomware attacks at a time when they’re becoming even
more common due to the rise in remote work. These new capabilities
build on Nutanix’s rich data services for network security, files
and objects storage, and business continuity to help enterprises
prevent, detect and recover against ransomware attacks across
multiple cloud environments.
- Expanded New Customer Base and New Business with Existing
Customers: Nutanix continued to add new customers, ending the
second quarter of fiscal 2021 with a total of approximately 18,770
end-customers, including about 950 of the Global 2000 after adding
about 20 in the quarter. Second quarter customers who continued to
invest in Nutanix as part of their transformation journeys included
the following Global 2000 companies: Hitachi Systems Power
Services, Ltd., Mercedes-Benz do Brasil Ltda., Roche, Saint-Gobain,
Total Gas & Power.
Third Quarter Fiscal 2021 Outlook
ACV Billings
$150 - $155 million
Non-GAAP Gross Margin
Approximately 81%
Non-GAAP Operating Expenses
$365 - $370 million
Weighted Average Shares
Outstanding
Approximately 207 million
Supplementary materials to this press release, including our
second quarter fiscal year 2021 earnings presentation, can be found
at https://ir.nutanix.com/company/financial.
Webcast and Conference Call Information
Nutanix executives will discuss the company’s second quarter
fiscal 2021 financial results on a conference call at 4:30 p.m.
Eastern Time/1:30 p.m. Pacific Time. To listen to the call via
telephone, dial 1-833-227-5841 from within the United States or
1-647-689-4068 from outside the United States. The conference ID is
4194788. 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 our
Investor Relations website. A telephonic replay will be available
for one week and can be accessed by calling 1-800-585-8367 or
1-416-621-4642, and entering the conference ID 4194788.
Definitions and Total Revenue Impact
1Annual Contract Value, or ACV, is defined as the
total annualized value of a contract, excluding amounts related to
professional services and hardware. The total annualized value for
a contract is calculated by dividing the total value of the
contract by the number of years in the term of such contract,
using, where applicable, an assumed term of five years for
contracts that do not have a specified term. ACV Billings
for any given period is defined as the sum of the ACV for all
contracts billed during the given period.
2Run-rate ACV at the end of any period is the sum of ACV
for all contracts that are in effect as of the end of that period.
For the purposes of this calculation, Nutanix assumes that the
contract term begins on the date a contract is booked, irrespective
of the periods in which the company would recognize revenue for
such contract.
3Total Average Contract Term represents the
dollar-weighted term, calculated on a billings basis, across all
subscription and life-of-device contracts, using an assumed term of
five years for life-of-device licenses, executed in the
quarter.
4Total Revenue was negatively impacted by a
year-over-year decline in the average contract term associated with
Nutanix's ongoing transition to a subscription-based business
model.
5New ACV with respect to any given contract is defined as
(i) if the contract is (A) with a new customer, the aggregate value
of such contract excluding professional services, or (B) with an
existing customer, the aggregate value of any upsell / expansion
under such contract excluding professional services, in each case
divided by (ii) the number of years in the term of such contract,
using an assumed term of five years for life-of-device
licenses.
Non-GAAP Financial Measures and Other Key Performance
Measures
To supplement our 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, non-GAAP net loss per share, free cash flow,
subscription revenue, subscription billings, Annual Contract Value
Billings (or ACV Billings), New Annual Contract Value (or New ACV),
Run-rate Annual Contract Value (or Run-rate ACV), 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, income tax-related impact, and other
acquisition-related costs), impairment of operating lease-related
assets, change in fair value of derivative liability, amortization
of debt discount and issuance costs, non-cash interest expense,
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 we believe 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. Non-GAAP gross
margin, non-GAAP operating expenses, non-GAAP net loss, and
non-GAAP net loss per share are financial measures which we believe
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. Free cash flow is a
performance measure that we believe provides useful information to
our 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 operating activities less
purchases of property and equipment. Subscription revenue,
subscription billings, and professional services billings are
performance measures that we believe provide useful information to
our management and investors as they allow us to better track the
growth of the subscription-based portion of our business, which is
a critical part of our business plan. ACV Billings, New ACV, and
Run-rate ACV are performance measures that we believe provide
useful information to our management and investors as they allow us
to better track the topline growth of our business during our
transition to a subscription-based business model because they take
into account variability in term lengths. 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,
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; subscription revenue is not a substitute
for total revenue; and subscription and professional services
billings are not substitutes for subscription and professional
services revenue, respectively. There is no GAAP measure that is
comparable to ACV Billings, New ACV or Run-rate ACV, so we have not
reconciled the ACV Billings, New ACV and Run-rate ACV numbers
included in this press release to any GAAP measure. 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 GAAP to
Non-GAAP Profit Measures,” and “Reconciliation of GAAP Net Cash
Used In 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, initiatives, objectives and outlook, including
the actions we have taken to manage operating expenses and changes
to the Company’s leadership structure and composition; our ability
to execute such plans, initiatives and objectives successfully and
in a timely manner, and the benefits and impact of such plans,
initiatives and objectives, including our ability to continue
executing on our business model transformation, manage our Chief
Executive Officer transition, manage our expenses and decrease our
cash usage in future periods, drive long-term value creation and
sustained growth, and improve efficiency; the competitive market,
including our competitive position and our projections about our
market share and opportunity; our customer needs and our response
to those needs; the benefits and capabilities of our platform,
solutions, products, services and technology, including the
interoperability and availability of our solutions with and on
third-party platforms; our plans and expectations regarding new
products, services, product features and technology, including
those that are still under development or in process; our plans and
timing for, and the success and impact of, our transition to a
subscription-based business model and any changes in our guidance
metrics; the timing and potential impact of the COVID-19 pandemic
on the global market environment and the IT industry, as well as on
our business, operations and financial results, including the
changes we have made or anticipate making in response to the
COVID-19 pandemic, our ability to manage our business during the
pandemic, and the position we anticipate being in following the
pandemic; and our guidance on estimated ACV Billings, non-GAAP
gross margin, non-GAAP operating expenses and weighted average
shares outstanding for any 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 these forward-looking statements
depends upon future events and involves risks, uncertainties, and
other factors, including factors that may be 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 successfully implement or
realize the full benefits of, or unexpected difficulties or delays
in successfully implementing or realizing the full benefits of, our
business plans, initiatives and objectives; the timing, breadth,
and impact of the COVID-19 pandemic on our business, operations,
and financial results, as well as the impact on our customers,
partners, and end markets; failure to successfully manage or
realize the benefits of our Chief Executive Officer succession;
failure to timely and successfully meet our customer needs; delays
in or lack of customer or market acceptance of our new products,
services, product features or technology; delays or unexpected
accelerations in the transition to a subscription-based business
model; the rapid evolution of the markets in which we compete; our
ability to achieve, sustain and/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, including changes as a result of our transition to a
subscription-based business model, which will slow revenue growth
during such transition and make forecasting future performance more
difficult, 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,
2020, filed with the U.S. Securities and Exchange Commission, or
the SEC, on September 23, 2020. Additional information will also be
set forth in our Quarterly Report on Form 10-Q that will be filed
for the fiscal quarter ended January 31, 2021 which should be read
in conjunction with this press release and the financial results
included herein. 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, and expressly disclaim
any obligation, to update, alter or otherwise revise any of these
forward-looking statements to reflect actual results or subsequent
events or circumstances.
About Nutanix
Nutanix is a global leader in cloud software and a pioneer in
hyperconverged infrastructure solutions, making computing invisible
anywhere. Organizations around the world use Nutanix software to
leverage a single platform to manage any app at any location for
their private, hybrid and multicloud environments. Learn more at
www.nutanix.com or follow us on Twitter @nutanix.
© 2021 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix
logo, and all Nutanix product and service names mentioned herein
are registered trademarks or trademarks of Nutanix, Inc. in the
United States and other countries. Other brand names mentioned
herein are for identification purposes only and may be the
trademarks of their respective holder(s). This press release
contains links to external websites that are not part of
Nutanix.com. Nutanix does not control these sites and disclaims all
responsibility for the content or accuracy of any external site.
Our decision to link to an external site should not be considered
an endorsement of any content on such a site.
NUTANIX, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
As of
July 31, 2020
January 31, 2021
(in thousands, except per
share data)
Assets
Current assets:
Cash and cash equivalents
$
318,737
$
298,701
Short-term investments
401,041
990,138
Accounts receivable, net
242,516
164,868
Deferred commissions—current
68,694
92,025
Prepaid expenses and other current
assets
63,032
69,994
Total current assets
1,094,020
1,615,726
Property and equipment, net
143,172
131,971
Operating lease right-of-use assets
127,326
121,066
Deferred commissions—non-current
146,834
191,180
Intangible assets, net
49,392
40,702
Goodwill
185,260
185,260
Other assets—non-current
22,543
25,547
Total assets
$
1,768,547
$
2,311,452
Liabilities and Stockholders’
Deficit
Current liabilities:
Accounts payable
$
54,029
$
52,459
Accrued compensation and benefits
109,109
151,014
Accrued expenses and other current
liabilities
25,924
26,130
Deferred revenue—current
534,572
578,664
Operating lease liabilities—current
36,569
41,309
Total current liabilities
760,203
849,576
Deferred revenue—non-current
648,869
667,627
Operating lease
liabilities—non-current
116,794
107,784
Convertible senior notes, net
490,222
1,011,725
Derivative liability
—
397,290
Other liabilities—non-current
27,436
35,842
Total liabilities
2,043,524
3,069,844
Stockholders’ deficit:
Common stock
5
5
Additional paid-in capital
2,245,180
2,386,579
Accumulated other comprehensive income
2,030
557
Accumulated deficit
(2,522,192
)
(3,145,533
)
Total stockholders’ deficit
(274,977
)
(758,392
)
Total liabilities and stockholders’
deficit
$
1,768,547
$
2,311,452
NUTANIX, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended January
31,
Six Months Ended January
31,
2020
2021
2020
2021
(in thousands)
Revenue:
Product
$
213,547
$
174,798
$
405,991
$
330,550
Support, entitlements and other
services
133,220
171,584
255,544
328,586
Total revenue
346,767
346,382
661,535
659,136
Cost of revenue:
Product (1)(2)
20,676
13,784
41,909
26,598
Support, entitlements and other services
(1)
54,547
57,170
105,515
112,315
Total cost of revenue
75,223
70,954
147,424
138,913
Gross profit
271,544
275,428
514,111
520,223
Operating expenses:
Sales and marketing (1)(2)
304,936
261,071
596,774
518,361
Research and development (1)
139,088
135,571
277,294
271,375
General and administrative (1)
34,579
35,034
67,439
68,808
Total operating expenses
478,603
431,676
941,507
858,544
Loss from operations
(207,059
)
(156,248
)
(427,396
)
(338,321
)
Other expense, net
(5,863
)
(126,001
)
(10,903
)
(204,733
)
Loss before provision for income taxes
(212,922
)
(282,249
)
(438,299
)
(543,054
)
Provision for income taxes
4,642
5,141
8,565
9,384
Net loss
$
(217,564
)
$
(287,390
)
$
(446,864
)
$
(552,438
)
Net loss per share attributable to Class A
and Class B common stockholders—basic and diluted
$
(1.13
)
$
(1.42
)
$
(2.34
)
$
(2.72
)
Weighted average shares used in computing
net loss per share attributable to Class A and Class B common
stockholders—basic and diluted
192,727
202,520
191,199
202,798
_________________________________________________
(1)
Includes the following
stock-based compensation expense:
Three Months Ended January
31,
Six Months Ended January
31,
2020
2021
2020
2021
(in thousands)
Product cost of revenue
$
1,458
$
1,659
$
2,570
$
3,163
Support, entitlements and other services
cost of revenue
5,140
5,764
9,891
11,525
Sales and marketing
31,185
30,031
58,960
62,258
Research and development
36,459
36,058
74,022
73,945
General and administrative
11,373
10,942
21,598
22,761
Total stock-based compensation expense
$
85,615
$
84,454
$
167,041
$
173,652
(2)
Includes the following
amortization of intangible assets:
Three Months Ended January
31,
Six Months Ended January
31,
2020
2021
2020
2021
(in thousands)
Product cost of revenue
$
3,694
$
3,694
$
7,388
$
7,388
Sales and marketing
651
651
1,302
1,302
Total amortization of intangible
assets
$
4,345
$
4,345
$
8,690
$
8,690
NUTANIX, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended January
31,
2020
2021
(in thousands)
Cash flows from operating
activities:
Net loss
$
(446,864
)
$
(552,438
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
45,540
47,087
Stock-based compensation
167,041
173,652
Change in fair value of derivative
liability
—
166,380
Amortization of debt discount and issuance
costs
15,398
28,796
Operating lease cost, net of accretion
14,539
16,930
Impairment of lease-related assets
3,002
2,822
Non-cash interest expense
—
6,615
Other
(236
)
4,354
Changes in operating assets and
liabilities:
Accounts receivable, net
(1,848
)
79,173
Deferred commissions
(35,422
)
(67,677
)
Prepaid expenses and other assets
9,064
(9,217
)
Accounts payable
(3,428
)
(2,602
)
Accrued compensation and benefits
20,085
39,593
Accrued expenses and other liabilities
974
2,100
Operating leases, net
(13,039
)
(16,523
)
Deferred revenue
146,540
61,325
Net cash used in operating activities
(78,654
)
(19,630
)
Cash flows from investing
activities:
Maturities of investments
299,380
260,852
Purchases of investments
(416,636
)
(859,576
)
Sales of investments
24,147
2,999
Purchases of property and equipment
(39,451
)
(25,168
)
Net cash used in investing activities
(132,560
)
(620,893
)
Cash flows from financing
activities:
Proceeds from sales of shares through
employee equity incentive plans
26,486
21,904
Proceeds from the issuance of convertible
notes, net of issuance costs
—
723,617
Repurchases of common stock
—
(125,079
)
Net cash provided by financing
activities
26,486
620,442
Net decrease in cash, cash equivalents and
restricted cash
$
(184,728
)
$
(20,080
)
Cash, cash equivalents and restricted
cash—beginning of period
399,520
321,991
Cash, cash equivalents and restricted
cash—end of period
$
214,792
$
301,911
Restricted cash (1)
3,099
3,210
Cash and cash equivalents—end of
period
$
211,693
$
298,701
Supplemental disclosures of cash flow
information:
Cash paid for income taxes
$
11,195
$
8,999
Supplemental disclosures of non-cash
investing and financing
information:
Purchases of property and equipment
included in accounts payable and
accrued and other liabilities
$
13,997
$
7,621
Finance lease liabilities arising from
obtaining right-of-use assets
$
—
$
1,960
_________________________________________________
(1)
Included within other
assets—non-current in the condensed consolidated balance
sheets.
Reconciliation of Revenue to
Billings
(Unaudited)
Three Months Ended January
31,
Six Months Ended January
31,
2020
2021
2020
2021
(in thousands)
Total revenue
$
346,767
$
346,382
$
661,535
$
659,136
Change in deferred revenue
81,310
39,131
146,540
61,325
Total billings
$
428,077
$
385,513
$
808,075
$
720,461
Disaggregation of Revenue and
Billings
(Unaudited)
Three Months Ended January
31,
Six Months Ended January
31,
2020
2021
2020
2021
(in thousands)
Disaggregation of revenue:
Subscription revenue
$
266,544
$
305,946
$
484,440
$
584,111
Non-portable software revenue
59,131
21,661
136,702
41,704
Hardware revenue
8,542
1,321
18,266
2,050
Professional services revenue
12,550
17,454
22,127
31,271
Total revenue
$
346,767
$
346,382
$
661,535
$
659,136
Disaggregation of billings:
Subscription billings
$
339,142
$
339,168
$
614,680
$
633,091
Non-portable software billings
59,131
21,661
136,702
41,704
Hardware billings
8,542
1,321
18,266
2,050
Professional services billings
21,262
23,363
38,427
43,616
Total billings
$
428,077
$
385,513
$
808,075
$
720,461
Subscription — Subscription revenue includes any performance
obligation which has a defined term, and is generated from the
sales of software entitlement and support subscriptions,
subscription software licenses and cloud-based Software as a
Service, or SaaS offerings.
- Ratable — We recognize revenue from software entitlement and
support subscriptions and SaaS offerings ratably over the
contractual service period, the substantial majority of which
relate to software entitlement and support subscriptions.
- Upfront — Revenue from our subscription software licenses is
generally recognized upfront upon transfer of control to the
customer, which happens when we make the software available to the
customer.
Non-portable software — Non-portable software revenue includes
sales of our enterprise cloud platform 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 on
which the software is delivered. Revenue from our non-portable
software products is generally recognized upon transfer of control
to the customer.
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.
Annual Contract Value Billings
and Run-rate Annual Contract Value
(Unaudited)
Three Months Ended January
31,
Six Months Ended January
31,
2020
2021
2020
2021
(in thousands)
Annual Contract Value Billings (ACV
Billings)
$
139,529
$
159,208
$
256,965
$
285,956
Run-rate Annual Contract Value (Run-rate
ACV)
$
1,080,931
$
1,384,823
$
1,080,931
$
1,384,823
Reconciliation of Subscription
and Professional Services Revenue to Subscription and Professional
Services Billings
(Unaudited)
Three Months Ended January
31,
Six Months Ended January
31,
2020
2021
2020
2021
(in thousands)
Subscription revenue
$
266,544
$
305,946
$
484,440
$
584,111
Change in subscription deferred
revenue
72,598
33,222
130,240
48,980
Subscription billings
$
339,142
$
339,168
$
614,680
$
633,091
Professional services revenue
$
12,550
$
17,454
$
22,127
$
31,271
Change in professional services deferred
revenue
8,712
5,909
16,300
12,345
Professional services billings
$
21,262
$
23,363
$
38,427
$
43,616
Reconciliation of GAAP to
Non-GAAP Profit Measures
(Unaudited)
GAAP
Non-GAAP Adjustments
Non-GAAP
Three Months Ended January 31,
2021
(1)
(2)
(3)
(4)
(5)
(6)
Three Months Ended January 31,
2021
(in thousands, except
percentages and per share data)
Gross profit
$
275,428
$
7,423
$
3,694
$
—
$
—
$
—
$
—
$
286,545
Gross margin
79.5
%
2.1
%
1.1
%
—
—
—
—
82.7
%
Operating expenses:
Sales and marketing
261,071
(30,031
)
(651
)
—
—
—
—
230,389
Research and development
135,571
(36,058
)
—
—
—
—
—
99,513
General and administrative
35,034
(10,942
)
—
(467
)
—
—
—
23,625
Total operating expenses
431,676
(77,031
)
(651
)
(467
)
—
—
—
353,527
Loss from operations
(156,248
)
84,454
4,345
467
—
—
—
(66,982
)
Net loss
$
(287,390
)
$
84,454
$
4,345
$
467
$
101,640
$
21,751
$
609
$
(74,124
)
Weighted shares outstanding, basic and
diluted
202,520
202,520
Net loss per share, basic and diluted
$
(1.42
)
$
0.42
$
0.02
$
—
$
0.50
$
0.11
$
—
$
(0.37
)
_________________________________________________
(1)
Stock-based compensation
(2)
Amortization of intangible
assets
(3)
Other
(4)
Change in fair value of
derivative liability
(5)
Amortization of debt discount and
issuance costs and non-cash interest expense
(6)
Income tax effect primarily
related to stock-based compensation expense
GAAP
Non-GAAP Adjustments
Non-GAAP
Six Months Ended January 31,
2021
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Six Months Ended January 31,
2021
(in thousands, except
percentages and per share data)
Gross profit
$
520,223
$
14,688
$
7,388
$
287
$
—
$
—
$
—
$
—
$
542,586
Gross margin
78.9
%
2.2
%
1.1
%
0.1
%
—
—
—
—
82.3
%
Operating expenses:
Sales and marketing
518,361
(62,258
)
(1,302
)
—
—
—
—
—
454,801
Research and development
271,375
(73,945
)
—
(2,535
)
—
—
—
—
194,895
General and administrative
68,808
(22,761
)
—
—
(973
)
—
—
—
45,074
Total operating expenses
858,544
(158,964
)
(1,302
)
(2,535
)
(973
)
—
—
—
694,770
Loss from operations
(338,321
)
173,652
8,690
2,822
973
—
—
—
(152,184
)
Net loss
$
(552,438
)
$
173,652
$
8,690
$
2,822
$
973
$
166,380
$
35,411
$
1,002
$
(163,508
)
Weighted shares outstanding, basic and
diluted
202,798
202,798
Net loss per share, basic and diluted
$
(2.72
)
$
0.86
$
0.04
$
0.01
$
—
$
0.82
$
0.18
$
—
$
(0.81
)
_________________________________________________
(1)
Stock-based compensation
(2)
Amortization of intangible
assets
(3)
Impairment of lease-related
assets
(4)
Other
(5)
Change in fair value of
derivative liability
(6)
Amortization of debt discount and
issuance costs
(7)
Income tax effect primarily
related to stock-based compensation expense
GAAP
Non-GAAP Adjustments
Non-GAAP
Three Months Ended January 31,
2020
(1)
(2)
(3)
(4)
(5)
(6)
Three Months Ended January 31,
2020
(in thousands, except
percentages and per share data)
Gross profit
$
271,544
$
6,598
$
3,694
$
537
$
—
$
—
$
—
$
282,373
Gross margin
78.3
%
1.8
%
1.1
%
0.2
%
—
—
—
81.4
%
Operating expenses:
Sales and marketing
304,936
(31,185
)
(651
)
—
—
—
—
273,100
Research and development
139,088
(36,459
)
—
(2,465
)
—
—
—
100,164
General and administrative
34,579
(11,373
)
—
—
(154
)
—
—
23,052
Total operating expenses
478,603
(79,017
)
(651
)
(2,465
)
(154
)
—
—
396,316
Loss from operations
(207,059
)
85,615
4,345
3,002
154
—
—
(113,943
)
Net loss
$
(217,564
)
$
85,615
$
4,345
$
3,002
$
154
$
7,763
$
405
$
(116,280
)
Weighted shares outstanding, basic and
diluted
192,727
192,727
Net loss per share, basic and diluted
$
(1.13
)
$
0.44
$
0.03
$
0.02
$
—
$
0.04
$
—
$
(0.60
)
_________________________________________________
(1)
Stock-based compensation
(2)
Amortization of intangible
assets
(3)
Impairment of lease-related
assets
(4)
Other
(5)
Amortization of debt discount and
debt issuance costs
(6)
Income tax effect primarily
related to stock-based compensation expense
GAAP
Non-GAAP Adjustments
Non-GAAP
Six Months Ended January 31,
2020
(1)
(2)
(3)
(4)
(5)
(6)
Six Months Ended January 31,
2020
(in thousands, except share
and per share data)
Gross profit
$
514,111
$
12,461
$
7,388
$
537
$
—
$
—
$
—
$
534,497
Gross margin
77.7
%
1.9
%
1.1
%
0.1
%
—
—
—
80.8
%
Operating expenses:
Sales and marketing
596,774
(58,960
)
(1,302
)
—
—
—
—
536,512
Research and development
277,294
(74,022
)
—
(2,465
)
—
—
—
200,807
General and administrative
67,439
(21,598
)
—
—
(507
)
—
—
45,334
Total operating expenses
941,507
(154,580
)
(1,302
)
(2,465
)
(507
)
—
—
782,653
Loss from operations
(427,396
)
167,041
8,690
3,002
507
—
—
(248,156
)
Net loss
$
(446,864
)
$
167,041
$
8,690
$
3,002
$
507
$
15,398
$
618
$
(251,608
)
Weighted shares outstanding, basic and
diluted
191,199
191,199
Net loss per share, basic and diluted
$
(2.34
)
$
0.87
$
0.05
$
0.02
$
—
$
0.08
$
—
$
(1.32
)
_________________________________________________
(1)
Stock-based compensation
expense
(2)
Amortization of intangible
assets
(3)
Impairment of lease-related
assets
(4)
Other
(5)
Amortization of debt discount and
issuance costs
(6)
Income tax effect primarily
related to stock-based compensation expense
Reconciliation of GAAP Net
Cash Used In Operating Activities to Non-GAAP Free Cash
Flow
(Unaudited)
Three Months Ended
January 31,
Six Months Ended
January 31,
2020
2021
2020
2021
(in thousands)
Net cash used in operating activities
$
(52,491
)
$
(15,557
)
$
(78,654
)
$
(19,630
)
Purchases of property and equipment
(21,248
)
(12,916
)
(39,451
)
(25,168
)
Free cash flow
$
(73,739
)
$
(28,473
)
$
(118,105
)
$
(44,798
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210224005922/en/
Investor Contact: Tonya Chin ir@nutanix.com
Media Contact: Jennifer Massaro pr@nutanix.com
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