Reports 27% YoY ACV Billings Growth and
Achieves Positive Non-GAAP Operating Income
Delivers Outperformance Across All Guided
Metrics
Nutanix, Inc. (NASDAQ: NTNX), a leader in hybrid multicloud
computing, today announced financial results for its first quarter
ended October 31, 2022.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20221130005395/en/
Nutanix Q1 Fiscal 2023 Earnings Summary
(Graphic: Business Wire)
“We delivered a solid first quarter financial performance
against an uncertain macro backdrop, reflecting the value our
customers see in the Nutanix Cloud Platform and the strength of our
subscription-based business model,” said Rajiv Ramaswami, President
and CEO of Nutanix. “We also made important progress towards
realizing our hybrid multicloud vision with the general
availability of Nutanix Cloud Clusters (NC2) on Microsoft Azure and
enhancements to our platform to accelerate the adoption of
Kubernetes at scale in the enterprise.”
“Our first quarter results reflect continued progress on our
subscription-based business model with 27% year-over-year ACV
billings growth and achievement of positive quarterly non-GAAP
operating income for the first time,” said Rukmini Sivaraman, CFO
of Nutanix. “We continue to see good execution on our building base
of subscription renewals and remain focused on driving towards
sustainable, profitable growth.”
First Quarter Fiscal 2023 Financial Summary
Q1 FY’23
Q1 FY’22
Y/Y Change
Annual Contract Value (ACV)1 Billings
$231.9 million
$183.3 million
27%
Annual Recurring Revenue (ARR)2
$1.28 billion
$952.6 million
34%
Average Contract Term3
3.0 years
3.1 years
(0.1) year
Revenue4
$433.6 million
$378.5 million
15%
GAAP Gross Margin
81.0%
78.5%
250 bps
Non-GAAP Gross Margin
83.4%
82.1%
130 bps
GAAP Operating Expenses
$431.4 million
$434.3 million
(1)%
Non-GAAP Operating Expenses
$351.1 million
$352.6 million
(0.4)%
GAAP Operating Loss
$(80.3) million
$(137.3) million
42%
Non-GAAP Operating Income (Loss)
$10.6 million
$(41.9) million
$52.5 million
GAAP Operating Margin
(18.5)%
(36.3)%
17.8 % pts
Non-GAAP Operating Margin
2.4%
(11.1)%
13.5 % pts
Free Cash Flow
$45.8 million
$(1.9) million
$47.7 million
Reconciliations between GAAP and non-GAAP financial measures and
key performance measures, to the extent available, are provided in
the tables of this press release.
Recent Company Highlights
- Launched Nutanix Cloud Clusters (NC2) on Microsoft
Azure: Nutanix announced the general availability of NC2 on
Microsoft Azure, extending its hybrid cloud environment to
Microsoft Azure dedicated bare metal nodes.
- Nutanix Named a Visionary in the 2022 Gartner® Magic
Quadrant™ for Distributed File Systems and Objects Storage for the
Second Year: Nutanix was named a Visionary in the
Gartner October 2022 Magic Quadrant for Distributed File Systems
and Objects Storage. This marks the second consecutive year that
the Company has been recognized in this report.
- Nutanix Accelerates Kubernetes Adoption in the
Enterprise: Nutanix announced broad support for leading
Kubernetes container platforms, built-in infrastructure as code
capabilities, and enhanced data services for modern applications.
These new features allow DevOps teams to accelerate application
delivery with the performance, governance, and flexibility of the
Nutanix Cloud Platform while allowing customers to maintain control
of their IT operating costs.
- Announced Corporate Governance Enhancements: In October
2022, the Board of Directors adopted majority voting in uncontested
director elections and eliminated the supermajority vote
requirement in the Company’s bylaws. The Company will seek
stockholder approval to declassify the board and remove the
supermajority voting requirements from its certificate of
incorporation at its 2022 annual meeting of stockholders. These
moves are expected to enhance the Company’s corporate governance
profile and position the Company to continue to drive stockholder
value.
Second Quarter Fiscal 2023
Outlook
ACV Billings
$245 - $250 million
Revenue
$460 - $470 million
Non-GAAP Gross Margin
82% to 83%
Non-GAAP Operating Margin
5% to 10%
Weighted Average Shares
Outstanding (Diluted)
Approximately 279 million
Fiscal 2023 Outlook
ACV Billings
$895 - $900 million
Revenue
$1.77 - $1.78 billion
Non-GAAP Gross Margin
82% to 83%
Non-GAAP Operating Margin
2% to 4%
Supplementary materials to this press release, including our
first quarter fiscal 2023 earnings presentation, can be found at
https://ir.nutanix.com/company/financial.
Webcast and Conference Call Information
Nutanix executives will discuss the Company’s first quarter
fiscal 2023 financial results on a conference call at 4:30 p.m.
Eastern Time/1:30 p.m. Pacific Time. Interested parties may access
the conference call by registering at this link to receive dial in
details and a unique PIN number. The conference call will also be
webcast live on the Nutanix Investor Relations website at
ir.nutanix.com. An archived replay of the webcast will be available
on the Nutanix Investor Relations website at ir.nutanix.com shortly
after the call.
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.
2Annual Recurring Revenue, or ARR, for any given
period, is defined as the sum of ACV for all non life-of-device
contracts in effect as of the end of a specific period. For the
purposes of this calculation, we assume that the contract term
begins on the date a contract is booked, unless the terms of such
contract prevent us from fulfilling our obligations until a later
period, and irrespective of the periods in which we would recognize
revenue for such contract.
3Average 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 period.
4Revenue 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.
Non-GAAP Financial Measures and Other Key Performance
Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with GAAP, this press release
includes the following non-GAAP financial and other key performance
measures: non-GAAP gross margin, non-GAAP operating expenses,
non-GAAP operating income (loss), non-GAAP operating margin, free
cash flow, Annual Contract Value Billings (or ACV Billings), Annual
Recurring Revenue (or ARR), and Average Contract Term. 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 and early exit of operating lease-related assets,
restructuring charges, the change in fair value of the derivative
liability, the amortization of the debt discount and issuance
costs, interest expense related to convertible senior notes, loss
on debt extinguishment, and other non-recurring transactions and
the related tax impact. Non-GAAP gross margin, non-GAAP operating
expenses, non-GAAP operating income (loss), and non-GAAP operating
margin 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 provided by (used in) operating activities less purchases of
property and equipment. ACV Billings is a performance measure that
we believe provides useful information to our management and
investors as it allows us to better track the topline growth of our
business during our transition to a subscription-based business
model because it takes into account variability in term lengths.
ARR is a performance measure that we believe provides useful
information to our management and investors as it allows us to
better track the topline growth of our subscription business
because it takes 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. Non-GAAP gross
margin, non-GAAP operating expenses, non-GAAP operating income
(loss), non-GAAP operating margin, and free cash flow are not
substitutes for gross margin, operating expenses, operating income
(loss), operating margin, or net cash provided by (used in)
operating activities, respectively. There is no GAAP measure that
is comparable to ACV Billings, ARR, or Average Contract Term, so we
have not reconciled the ACV Billings, ARR, or Average Contract Term
data 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 GAAP to Non-GAAP Profit
Measures” and “Reconciliation of GAAP Net Cash Provided By
Operating Activities to Non-GAAP Free Cash Flow,” and not to rely
on any single financial measure to evaluate our business. This
press release also includes the following forward-looking non-GAAP
financial measures as part of our second quarter fiscal 2023
outlook and/or our fiscal 2023 outlook: non-GAAP gross margin and
non-GAAP operating margin. We are unable to reconcile these
forward-looking non-GAAP financial measures to their most directly
comparable GAAP financial measures without unreasonable efforts, as
we are currently unable to predict with a reasonable degree of
certainty the type and extent of certain items that would be
expected to impact the GAAP financial measures for these periods
but would not impact the non-GAAP financial measures.
Forward-Looking Statements
This press release contains express and implied forward-looking
statements, including, but not limited to, statements regarding:
our business plans, strategies, initiatives, vision, objectives,
and outlook (including our growth plan) as well as our ability to
execute thereon successfully and in a timely manner and the
benefits and impact thereof on our business, operations, and
financial results (including our second quarter fiscal 2023
outlook, our fiscal 2023 outlook, our expectations regarding our
focus on driving towards sustainable, profitable growth); our plans
for, and the timing of, any current and future business model
transitions, including our ongoing transition to a
subscription-based business model, our ability to manage, complete
or realize the benefits of such transitions successfully and in a
timely manner, and the short-term and long-term impacts of such
transitions on our business, operations and financial results; the
competitive market, including our competitive position and ability
to compete effectively, the competitive advantages of our products,
our projections about our market share and opportunity, and the
effects of increased competition in our market; our ability to
attract new end customers and retain and grow sales from our
existing end customers; our customer needs and our response to
those needs; our ability to form new, and maintain and strengthen
existing, strategic alliances and partnerships and address
macroeconomic supply chain shortages, including our relationships
with our channel partners and original equipment manufacturers, and
the impact of any changes to such relationships on our business,
operations and financial results; 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 solutions, products, services, product features and
technology, including those that are still under development or in
process; our plans regarding, and the timing and success of, our
customer, partner, industry, analyst, investor and employee events
and the impact thereof on our business, operations, and financial
results; 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 decision to use new or different metrics, or to
make adjustments to the metrics we use, to supplement our financial
reporting, and the impact thereof.
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, strategies,
initiatives, vision, and objectives; our ability to achieve,
sustain and/or manage future growth effectively; delays or
unexpected accelerations in our current and future business model
transitions; the rapid evolution of the markets in which we
compete, including the introduction, or acceleration of adoption
of, competing solutions, including public cloud infrastructure;
failure to timely and successfully meet our customer needs; delays
in or lack of customer or market acceptance of our new solutions,
products, services, product features or technology; macroeconomic
or geopolitical uncertainty, including supply chain issues; 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; 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,
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 and
availability of certain components of our solutions, and
fluctuations in demand and competitive pricing pressures for our
solutions, attrition among sales representatives or other
employees; and other risks detailed in our Annual Report on Form
10-K for the fiscal year ended July 31, 2022 filed with the U.S.
Securities and Exchange Commission, or the SEC, on September 21,
2022. Additional information will also be set forth in our
Quarterly Report on Form 10-Q for the fiscal quarter ended October
31, 2022, 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 our 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 clouds invisible,
freeing customers to focus on their business outcomes.
Organizations around the world use Nutanix software to leverage a
single platform to manage any app at any location for their hybrid
multicloud environments. Learn more at www.nutanix.com or follow us
on social media @nutanix.
© 2022 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix
logo, and all Nutanix product and service names mentioned herein
are registered trademarks or unregistered trademarks of Nutanix,
Inc. in the United States and other countries. Other brand names
and marks 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, 2022
October 31, 2022
(in thousands)
Assets
Current assets:
Cash and cash equivalents
$
402,850
$
480,617
Short-term investments
921,429
907,441
Accounts receivable, net
124,559
83,638
Deferred commissions—current
115,356
109,871
Prepaid expenses and other current
assets
93,787
90,528
Total current assets
1,657,981
1,672,095
Property and equipment, net
113,440
111,361
Operating lease right-of-use assets
118,740
111,522
Deferred commissions—non-current
252,234
242,506
Intangible assets, net
15,829
12,670
Goodwill
185,260
185,260
Other assets—non-current
22,265
22,008
Total assets
$
2,365,749
$
2,357,422
Liabilities and Stockholders’
Deficit
Current liabilities:
Accounts payable
$
44,931
$
30,838
Accrued compensation and benefits
149,811
119,991
Accrued expenses and other current
liabilities
49,232
46,151
Deferred revenue—current
720,993
768,918
Operating lease liabilities—current
39,801
36,296
Convertible senior notes, net—current
145,456
145,605
Total current liabilities
1,150,224
1,147,799
Deferred revenue—non-current
724,545
712,658
Operating lease
liabilities—non-current
89,782
81,820
Convertible senior notes, net
1,156,205
1,176,259
Other liabilities—non-current
35,161
29,935
Total liabilities
3,155,917
3,148,471
Stockholders’ deficit:
Common stock
6
6
Additional paid-in capital
3,583,928
3,685,805
Accumulated other comprehensive income
(6,076
)
(9,718
)
Accumulated deficit
(4,368,026
)
(4,467,142
)
Total stockholders’ deficit
(790,168
)
(791,049
)
Total liabilities and stockholders’
deficit
$
2,365,749
$
2,357,422
NUTANIX, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended October
31,
2021
2022
(in thousands, except per
share data)
Revenue:
Product
$
180,105
$
208,574
Support, entitlements and other
services
198,412
225,035
Total revenue
378,517
433,609
Cost of revenue:
Product (1)(2)
14,221
12,516
Support, entitlements and other services
(1)
67,225
69,979
Total cost of revenue
81,446
82,495
Gross profit
297,071
351,114
Operating expenses:
Sales and marketing (1)(2)
250,033
236,072
Research and development (1)
144,266
149,195
General and administrative (1)
40,028
46,104
Total operating expenses
434,327
431,371
Loss from operations
(137,256
)
(80,257
)
Other expense, net
(278,549
)
(13,416
)
Loss before provision for income taxes
(415,805
)
(93,673
)
Provision for income taxes
4,047
5,443
Net loss
$
(419,852
)
$
(99,116
)
Net loss per share attributable to Class A
and Class B common stockholders—basic and diluted (3)
$
(1.95
)
$
(0.43
)
Weighted average shares used in computing
net loss per share attributable to Class A and Class B common
stockholders—basic and diluted (3)
215,499
228,544
____________________
(1) Includes the following
stock-based compensation expense:
Three Months Ended October
31,
2021
2022
(in thousands)
Product cost of revenue
$
1,751
$
2,159
Support, entitlements and other services
cost of revenue
8,451
5,346
Sales and marketing
29,132
20,472
Research and development
38,479
38,622
General and administrative
12,734
14,356
Total stock-based compensation expense
$
90,547
$
80,955
(2) Includes the following
amortization of intangible assets:
Three Months Ended October
31,
2021
2022
(in thousands)
Product cost of revenue
$
3,476
$
2,810
Sales and marketing
651
349
Total amortization of intangible
assets
$
4,127
$
3,159
(3)
Effective January 3, 2022, all of
the then outstanding shares of Nutanix, Inc. Class B common stock
were automatically converted into the same number of shares of
Nutanix, Inc. Class A common stock.
NUTANIX, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended October
31,
2021
2022
(in thousands)
Cash flows from operating
activities:
Net loss
$
(419,852
)
$
(99,116
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
23,291
19,839
Stock-based compensation
90,547
80,955
Change in fair value of derivative
liability
198,038
—
Loss on debt extinguishment
64,910
—
Amortization of debt discount and issuance
costs
9,831
10,477
Operating lease cost, net of accretion
9,189
8,722
Early exit of lease-related assets
—
(304
)
Non-cash interest expense
4,773
4,894
Other
3,072
(776
)
Changes in operating assets and
liabilities:
Accounts receivable, net
64,740
40,838
Deferred commissions
(6,225
)
15,213
Prepaid expenses and other assets
6,751
958
Accounts payable
(3,139
)
(7,104
)
Accrued compensation and benefits
(39,965
)
(29,820
)
Accrued expenses and other liabilities
(6,207
)
(3,474
)
Operating leases, net
(12,323
)
(11,910
)
Deferred revenue
19,508
36,121
Net cash provided by operating
activities
6,939
65,513
Cash flows from investing
activities:
Maturities of investments
272,024
267,667
Purchases of investments
(290,050
)
(256,202
)
Sales of investments
17,999
—
Purchases of property and equipment
(8,844
)
(19,702
)
Net cash used in investing activities
(8,871
)
(8,237
)
Cash flows from financing
activities:
Proceeds from sales of shares through
employee equity incentive plans
30,139
22,186
Payments of debt extinguishment costs
(14,709
)
—
Proceeds from unwinding of convertible
note hedges
39,880
—
Payments for unwinding of warrants
(18,390
)
—
Proceeds from the issuance of convertible
notes, net of issuance costs
89,128
—
Repurchases of common stock
(58,570
)
—
Payment of finance lease obligations
(219
)
(1,856
)
Net cash provided by financing
activities
67,259
20,330
Net increase in cash, cash equivalents and
restricted cash
$
65,327
$
77,606
Cash, cash equivalents and restricted
cash—beginning of period
288,873
405,862
Cash, cash equivalents and restricted
cash—end of period
$
354,200
$
483,468
Restricted cash (1)
3,215
2,851
Cash and cash equivalents—end of
period
$
350,985
$
480,617
Supplemental disclosures of cash flow
information:
Cash paid for income taxes
$
6,181
$
7,635
Supplemental disclosures of non-cash
investing and financing information:
Purchases of property and equipment
included in accounts payable and accrued and other liabilities
$
12,099
$
10,748
Finance lease liabilities arising from
obtaining right-of-use assets
$
7,857
$
9,822
Convertible senior notes offering costs
included in accrued liabilities
$
700
$
—
____________________
(1)
Included within other
assets—non-current in the condensed consolidated balance
sheets.
Reconciliation of Revenue to Billings
(Unaudited)
Three Months Ended October
31,
2021
2022
(in thousands)
Total revenue
$
378,517
$
433,609
Change in deferred revenue
19,508
36,121
Total billings
$
398,025
$
469,730
Disaggregation of Revenue and
Billings
(Unaudited)
Three Months Ended October
31,
2021
2022
(in thousands)
Disaggregation of revenue:
Subscription revenue
$
337,901
$
402,924
Non-portable software revenue
14,337
7,783
Hardware revenue
2,163
624
Professional services revenue
24,116
22,278
Total revenue
$
378,517
$
433,609
Disaggregation of billings:
Subscription billings
$
359,323
$
441,430
Non-portable software billings
14,337
7,783
Hardware billings
2,163
624
Professional services billings
22,202
19,893
Total billings
$
398,025
$
469,730
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 Annual Recurring Revenue
(Unaudited)
Three Months Ended October
31,
2021
2022
(in thousands)
Annual Contract Value Billings (ACV
Billings)
$
183,334
$
231,928
Annual Recurring Revenue (ARR)
$
952,638
$
1,280,574
Reconciliation of Subscription
and Professional Services Revenue to Subscription and Professional
Services Billings
(Unaudited)
Three Months Ended October
31,
2021
2022
(in thousands)
Subscription revenue
$
337,901
$
402,924
Change in subscription deferred
revenue
21,422
38,506
Subscription billings
$
359,323
$
441,430
Professional services revenue
$
24,116
$
22,278
Change in professional services deferred
revenue
(1,914
)
(2,385
)
Professional services billings
$
22,202
$
19,893
Reconciliation of GAAP to Non-GAAP Profit Measures
(Unaudited)
GAAP
Non-GAAP Adjustments
Non-GAAP
Three Months Ended October 31,
2022
(1)
(2)
(3)
(4)
(5)
(6)
Three Months Ended October 31,
2022
(in thousands, except
percentages and per share data)
Gross profit
$
351,114
$
7,505
$
2,810
$
—
$
265
$
—
$
—
$
361,694
Gross margin
81.0
%
1.7
%
0.6
%
—
0.1
%
—
—
83.4
%
Operating expenses:
Sales and marketing
236,072
(20,472
)
(349
)
—
(3,816
)
—
—
211,435
Research and development
149,195
(38,622
)
—
—
(1,616
)
—
—
108,957
General and administrative
46,104
(14,356
)
—
(920
)
(120
)
—
—
30,708
Total operating expenses
431,371
(73,450
)
(349
)
(920
)
(5,552
)
—
—
351,100
(Loss) income from operations
(80,257
)
80,955
3,159
920
5,817
—
—
10,594
Operating margin
(18.5
)%
18.7
%
0.7
%
0.2
%
1.3
%
—
—
2.4
%
Net (loss) income
$
(99,116
)
$
80,955
$
3,159
$
920
$
5,817
$
15,731
$
504
$
7,970
Weighted shares outstanding, basic
228,544
228,544
Weighted shares outstanding, diluted
(7)
228,544
275,200
Net (loss) income per share, basic
$
(0.43
)
$
0.35
$
0.01
$
-
$
0.03
$
0.07
$
-
$
0.03
Net (loss) income per share, diluted
$
(0.43
)
$
0.03
____________________
(1)
Stock-based compensation
expense
(2)
Amortization of intangible
assets
(3)
Costs related to early exit of
existing leases
(4)
Restructuring charges
(5)
Amortization of debt discount and
issuance costs and interest expense related to convertible senior
notes
(6)
Income tax effect primarily
related to stock-based compensation expense
(7)
Includes 46,656 potentially
dilutive shares related to convertible senior notes and the
issuance of shares under employee equity incentive plans
GAAP
Non-GAAP Adjustments
Non-GAAP
Three Months Ended October 31,
2021
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Three Months Ended October 31,
2021
(in thousands, except
percentages and per share data)
Gross profit
$
297,071
$
10,202
$
3,476
$
—
$
—
$
—
$
—
$
—
$
310,749
Gross margin
78.5
%
2.7
%
0.9
%
—
—
—
—
—
82.1
%
Operating expenses:
Sales and marketing
250,033
(29,132
)
(651
)
—
—
—
—
—
220,250
Research and development
144,266
(38,479
)
—
—
—
—
—
—
105,787
General and administrative
40,028
(12,734
)
—
(705
)
—
—
—
—
26,589
Total operating expenses
434,327
(80,345
)
(651
)
(705
)
—
—
—
—
352,626
Loss from operations
(137,256
)
90,547
4,127
705
—
—
—
—
(41,877
)
Operating margin
(36.3
)%
23.9
%
1.1
%
0.2
%
—
—
—
—
(11.1
)%
Net loss
$
(419,852
)
$
90,547
$
4,127
$
705
$
198,038
$
14,756
$
64,911
$
261
$
(46,507
)
Weighted shares outstanding, basic and
diluted
215,499
215,499
Net loss per share, basic and diluted
$
(1.95
)
$
0.42
$
0.02
$
-
$
0.92
$
0.07
$
0.30
$
-
$
(0.22
)
____________________
(1)
Stock-based compensation
expense
(2)
Amortization of intangible
assets
(3)
Other
(4)
Change in fair value of
derivative liability
(5)
Amortization of debt discount and
issuance costs and interest expense related to convertible senior
notes
(6)
Loss on debt extinguishment
(7)
Income tax effect primarily
related to stock-based compensation expense
Reconciliation of GAAP Net Cash Provided by Operating
Activities to Non-GAAP Free Cash Flow
(Unaudited)
Three Months Ended October
31,
2021
2022
(in thousands)
Net cash provided by operating
activities
$
6,939
$
65,513
Purchases of property and equipment
(8,844
)
(19,702
)
Free cash flow
$
(1,905
)
$
45,811
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221130005395/en/
Investor Contact: Richard Valera ir@nutanix.com Media
Contact: Jennifer Massaro pr@nutanix.com
Nutanix (NASDAQ:NTNX)
Historical Stock Chart
From Sep 2024 to Oct 2024
Nutanix (NASDAQ:NTNX)
Historical Stock Chart
From Oct 2023 to Oct 2024