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    NTNX   US67059N1081

NUTANIX, INC.

(NTNX)
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Nutanix : Reports Second Quarter Fiscal 2021 Financial Results

02/24/2021 | 04:03pm EDT

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.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210224005922/en/

(Graphic: Business Wire)

(Graphic: Business Wire)

“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.
  • 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

)

 


© Business Wire 2021
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Analyst Recommendations on NUTANIX, INC.
More recommendations
Financials (USD)
Sales 2021 1 370 M - -
Net income 2021 -820 M - -
Net cash 2021 189 M - -
P/E ratio 2021 -10,2x
Yield 2021 -
Capitalization 8 712 M 8 712 M -
EV / Sales 2021 6,22x
EV / Sales 2022 5,41x
Nbr of Employees 6 170
Free-Float 96,3%
Chart NUTANIX, INC.
Duration : Period :
Nutanix, Inc. Technical Analysis Chart | NTNX | US67059N1081 | MarketScreener
Technical analysis trends NUTANIX, INC.
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 16
Last Close Price 41,18 $
Average target price 48,14 $
Spread / Average Target 16,9%
EPS Revisions
Managers and Directors
Rajiv Ramaswami President, Chief Executive Officer & Director
Duston M. Williams Chief Financial Officer
Virginia Gambale Chairman
Rajiv Mirani Chief Technology Officer-Cloud Platforms
Wendy M. Pfeiffer Chief Information Officer
Sector and Competitors
1st jan.Capi. (M$)
NUTANIX, INC.29.21%8 712
SALESFORCE.COM, INC.17.08%255 059
CLOUDFLARE, INC.72.93%41 056
DYNATRACE, INC.65.36%20 341
SINCH AB35.86%15 237
ANAPLAN, INC.-8.60%9 600