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    NTNX   US67059N1081

NUTANIX, INC.

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

05/26/2021 | 04:02pm EDT

Delivers Record ACV Billings Aided by Strong Emerging Product Attach Rate

Drives Outperformance Across All Guided Metrics with Consistent Execution

Nutanix, Inc. (NASDAQ: NTNX), a leader in private, hybrid and multicloud computing, today announced financial results for its third quarter ended April 30, 2021.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210526005995/en/

“I am delighted with our strong quarterly results. For the third quarter in a row, we delivered outperformance across all guided metrics and demonstrated our ability to execute consistently,” said Rajiv Ramaswami, President and CEO of Nutanix. “We are also pleased with our progress on key priorities, including bolstering our ecosystem with our extended partnership with Lenovo, continued momentum with our core cloud software platform and an increased attach rate of our emerging products.”

“We saw record ACV billings, with growth accelerating to 18 percent year-over-year, while our disciplined spending delivered operating expenses below our guidance,” said Duston Williams, CFO of Nutanix. “Our growing renewals pipeline will help to drive future top line growth, offer substantial sales and marketing efficiencies, and increase the predictability in our business.”

Third Quarter Fiscal 2021 Financial Summary

 

Q3 FY’21

Q3 FY’20

Y/Y Change

Annual Contract Value (ACV)1 Billings

$159.9 million

$135.3 million

18%

Run-rate Annual Contract Value (ACV)2

$1.45 billion

$1.15 billion

25%

Average Contract Term3

3.3 years

3.8 years

(0.5) year

Revenue4

$344.5 million

$318.3 million

8%

GAAP Gross Margin

78.4%

77.3%

110 bps

Non-GAAP Gross Margin

81.7%

80.7%

100 bps

GAAP Operating Expenses

$450.6 million

$476.2 million

(5)%

Non-GAAP Operating Expenses

$361.5 million

$390.3 million

(7)%

Free Cash Flow

$(71.5) million

$(117.5) million

$46.0 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

  • Partnered with Lenovo to Deliver As-a-Service Solution for Hosted Desktops: Lenovo announced a new solution with Nutanix to help customers as they navigate their transitions to hybrid work environments. This as-a-service solution for hosted desktops includes a choice of Lenovo client devices, choice of Citrix VDI or Nutanix Frame, and ThinkAgile HX Series servers (powered by Nutanix), all managed as-a-service, with the convenience of a single monthly payment and single point of contact for support.
  • Extended Nutanix Cloud Platform to AWS GovCloud: Nutanix announced that its cloud platform now extends to AWS GovCloud, providing a unified hybrid cloud environment across Nutanix on-premises and bare metal Amazon Elastic Compute Cloud instances running on Amazon Web Services GovCloud. This new solution helps enable U.S. public sector organizations looking for the strengthened security posture offered by AWS GovCloud to adopt the same software stack across their private and public clouds.
  • Delivered Azure Arc Services to Nutanix-based Kubernetes Environments: Through a collaboration with Microsoft, Nutanix has enabled customers to manage and govern their on-premises Kubernetes clusters, deployed with Nutanix Karbon, alongside their Azure resources through the common control plane provided by Azure Arc. This provides customers with a consistent and reliable hybrid and multicloud solution, extending the Azure experience and Azure PaaS services to Nutanix Hyperconverged Infrastructure.
  • Received Product and Customer Service Awards: Nutanix was awarded the Top Rated Award by leading review site TrustRadius in the hyperconverged infrastructure, server virtualization, software defined storage and virtual desktop infrastructure categories, as well as the NorthFace ScoreBoard Service Award for achieving excellence in the area of Customer Service for eight years in a row.
  • Expanded Customer Base: Nutanix continued to add new customers, ending the third quarter of fiscal 2021 with a total of approximately 19,430 end-customers. Third quarter customers who invested in Nutanix as part of their multicloud journeys included the U.S. Air Force, as well as the following Global 2000 companies: Alimentation Couche-Tard (operator of the Circle K brand), ICICI Bank Limited, Sony Device Technology (Thailand) Co., Ltd., and NTT Communications Corporation.
  • Announced Details for Investor Day 2021: Nutanix announced it will host a virtual Investor Day on Tuesday, June 22nd at 8:00 a.m. Pacific Time. Nutanix leaders will provide updates on the company’s hybrid and multicloud strategy, solution portfolio, go-to-market initiatives and financial outlook. Please use this link to register.

Fourth Quarter Fiscal 2021 Outlook

 

 

ACV Billings

$170 - $175 million

Non-GAAP Gross Margin

Approximately 81.5% to 82.0%

Non-GAAP Operating Expenses

$380 - $385 million

Weighted Average Shares Outstanding

Approximately 212 million

Supplementary materials to this press release, including our third 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 third 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 4881354. 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 4881354.

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.

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 quarter.

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, 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), 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 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 or Run-rate ACV, so we have not reconciled the ACV Billings 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, strategies, initiatives, objectives and outlook; our ability to execute on our business plans, strategies, initiatives and objectives successfully and in a timely manner and the benefits and impact thereof on our business, operations, and financial results, including our ability to continue growing our renewals pipeline and the benefits thereof on our top line growth, our sales and marketing efficiencies and the predictability of our business; 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, 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; 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; 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, strategies, initiatives and objectives; our ability to achieve, sustain and/or manage future growth effectively; delays or unexpected accelerations in the transition to a subscription-based business model; 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; 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, 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; 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, and our Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2021, filed with the SEC on March 4, 2021. Additional information will also be set forth in our Quarterly Report on Form 10-Q that will be filed for the fiscal quarter ended April 30, 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

 

April 30,
2021

 

 

(in thousands)

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

318,737

 

 

$

274,676

 

Short-term investments

 

 

401,041

 

 

 

980,145

 

Accounts receivable, net

 

 

242,516

 

 

 

143,116

 

Deferred commissions—current

 

 

68,694

 

 

 

102,728

 

Prepaid expenses and other current assets

 

 

63,032

 

 

 

65,918

 

Total current assets

 

 

1,094,020

 

 

 

1,566,583

 

Property and equipment, net

 

 

143,172

 

 

 

133,392

 

Operating lease right-of-use assets

 

 

127,326

 

 

 

112,207

 

Deferred commissions—non-current

 

 

146,834

 

 

 

206,834

 

Intangible assets, net

 

 

49,392

 

 

 

36,357

 

Goodwill

 

 

185,260

 

 

 

185,260

 

Other assets—non-current

 

 

22,543

 

 

 

24,918

 

Total assets

 

$

1,768,547

 

 

$

2,265,551

 

Liabilities and Stockholders’ Deficit

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

54,029

 

 

$

56,638

 

Accrued compensation and benefits

 

 

109,109

 

 

 

128,944

 

Accrued expenses and other current liabilities

 

 

25,924

 

 

 

28,070

 

Deferred revenue—current

 

 

534,572

 

 

 

605,031

 

Operating lease liabilities—current

 

 

36,569

 

 

 

42,411

 

Total current liabilities

 

 

760,203

 

 

 

861,094

 

Deferred revenue—non-current

 

 

648,869

 

 

 

669,005

 

Operating lease liabilities—non-current

 

 

116,794

 

 

 

96,342

 

Convertible senior notes, net

 

 

490,222

 

 

 

1,038,013

 

Derivative liability

 

 

 

 

 

312,263

 

Other liabilities—non-current

 

 

27,436

 

 

 

35,608

 

Total liabilities

 

 

2,043,524

 

 

 

3,012,325

 

Stockholders’ deficit:

 

 

 

 

 

 

Common stock

 

 

5

 

 

 

5

 

Additional paid-in capital

 

 

2,245,180

 

 

 

2,522,302

 

Accumulated other comprehensive income

 

 

2,030

 

 

 

92

 

Accumulated deficit

 

 

(2,522,192

)

 

 

(3,269,173

)

Total stockholders’ deficit

 

 

(274,977

)

 

 

(746,774

)

Total liabilities and stockholders’ deficit

 

$

1,768,547

 

 

$

2,265,551

 

NUTANIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three Months Ended
April 30,

 

Nine Months Ended
April 30,

 

 

2020

 

2021

 

2020

 

2021

 

 

(in thousands, except per share data)

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

$

180,756

 

 

$

172,308

 

 

$

586,747

 

 

$

502,858

 

Support, entitlements and other services

 

 

137,517

 

 

 

172,200

 

 

 

393,061

 

 

 

500,786

 

Total revenue

 

 

318,273

 

 

 

344,508

 

 

 

979,808

 

 

 

1,003,644

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Product (1)(2)

 

 

15,990

 

 

 

12,896

 

 

 

57,899

 

 

 

39,494

 

Support, entitlements and other services (1)

 

 

56,304

 

 

 

61,578

 

 

 

161,819

 

 

 

173,893

 

Total cost of revenue

 

 

72,294

 

 

 

74,474

 

 

 

219,718

 

 

 

213,387

 

Gross profit

 

 

245,979

 

 

 

270,034

 

 

 

760,090

 

 

 

790,257

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing (1)(2)

 

 

299,162

 

 

 

263,358

 

 

 

895,936

 

 

 

781,719

 

Research and development (1)

 

 

141,346

 

 

 

144,917

 

 

 

418,640

 

 

 

416,292

 

General and administrative (1)

 

 

35,644

 

 

 

42,332

 

 

 

103,083

 

 

 

111,140

 

Total operating expenses

 

 

476,152

 

 

 

450,607

 

 

 

1,417,659

 

 

 

1,309,151

 

Loss from operations

 

 

(230,173

)

 

 

(180,573

)

 

 

(657,569

)

 

 

(518,894

)

Other (expense) income, net

 

 

(5,640

)

 

 

61,352

 

 

 

(16,543

)

 

 

(143,381

)

Loss before provision for income taxes

 

 

(235,813

)

 

 

(119,221

)

 

 

(674,112

)

 

 

(662,275

)

Provision for income taxes

 

 

4,858

 

 

 

4,419

 

 

 

13,423

 

 

 

13,803

 

Net loss

 

$

(240,671

)

 

$

(123,640

)

 

$

(687,535

)

 

$

(676,078

)

Net loss per share attributable to Class A and Class B
common stockholders—basic and diluted

 

$

(1.23

)

 

$

(0.60

)

 

$

(3.56

)

 

$

(3.31

)

Weighted average shares used in computing net loss
per share attributable to Class A and Class B
common stockholders—basic and diluted

 

 

196,366

 

 

 

207,715

 

 

 

192,896

 

 

 

204,407

 

(1) Includes the following stock-based compensation expense:

 

 

 

Three Months Ended
April 30,

 

Nine Months Ended
April 30,

 

 

2020

 

2021

 

2020

 

2021

 

 

(in thousands)

Product cost of revenue

 

$

1,367

 

 

$

1,291

 

 

$

3,937

 

 

$

4,454

 

Support, entitlements and other services cost of revenue

 

 

5,959

 

 

 

6,337

 

 

 

15,850

 

 

 

17,862

 

Sales and marketing

 

 

33,177

 

 

 

30,743

 

 

 

92,137

 

 

 

93,001

 

Research and development

 

 

39,462

 

 

 

40,802

 

 

 

113,484

 

 

 

114,747

 

General and administrative

 

 

12,131

 

 

 

16,113

 

 

 

33,729

 

 

 

38,874

 

Total stock-based compensation expense

 

$

92,096

 

 

$

95,286

 

 

$

259,137

 

 

$

268,938

 

(2) Includes the following amortization of intangible assets:

 

 

 

Three Months Ended
April 30,

 

Nine Months Ended
April 30,

 

 

2020

 

2021

 

2020

 

2021

 

 

(in thousands)

Product cost of revenue

 

$

3,694

 

 

$

3,694

 

 

$

11,082

 

 

$

11,082

 

Sales and marketing

 

 

651

 

 

 

651

 

 

 

1,953

 

 

 

1,953

 

Total amortization of intangible assets

 

$

4,345

 

 

$

4,345

 

 

$

13,035

 

 

$

13,035

 

NUTANIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Nine Months Ended
April 30,

 

 

2020

 

2021

 

 

(in thousands)

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(687,535

)

 

$

(676,078

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

69,715

 

 

 

70,609

 

Stock-based compensation

 

 

259,137

 

 

 

268,938

 

Change in fair value of derivative liability

 

 

 

 

 

81,353

 

Amortization of debt discount and issuance costs

 

 

23,290

 

 

 

46,178

 

Operating lease cost, net of accretion

 

 

22,340

 

 

 

25,818

 

Impairment of lease-related assets

 

 

3,002

 

 

 

2,822

 

Non-cash interest expense

 

 

 

 

 

11,331

 

Other

 

 

(33

)

 

 

7,025

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable, net

 

 

9,027

 

 

 

102,029

 

Deferred commissions

 

 

(47,063

)

 

 

(94,034

)

Prepaid expenses and other assets

 

 

12,371

 

 

 

(4,375

)

Accounts payable

 

 

(5,675

)

 

 

542

 

Accrued compensation and benefits

 

 

(11,456

)

 

 

17,523

 

Accrued expenses and other liabilities

 

 

(1,333

)

 

 

4,039

 

Operating leases, net

 

 

(21,076

)

 

 

(26,864

)

Deferred revenue

 

 

211,774

 

 

 

87,964

 

Net cash used in operating activities

 

 

(163,515

)

 

 

(75,180

)

Cash flows from investing activities:

 

 

 

 

 

 

Maturities of investments

 

 

498,611

 

 

 

486,640

 

Purchases of investments

 

 

(524,568

)

 

 

(1,145,335

)

Sales of investments

 

 

70,878

 

 

 

70,055

 

Purchases of property and equipment

 

 

(72,073

)

 

 

(41,111

)

Net cash used in investing activities

 

 

(27,152

)

 

 

(629,751

)

Cash flows from financing activities:

 

 

 

 

 

 

Proceeds from sales of shares through employee equity incentive plans

 

 

56,515

 

 

 

62,343

 

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

 

 

56,515

 

 

 

660,881

 

Net decrease in cash, cash equivalents and restricted cash

 

$

(134,152

)

 

$

(44,050

)

Cash, cash equivalents and restricted cash—beginning of period

 

 

399,520

 

 

 

321,991

 

Cash, cash equivalents and restricted cash—end of period

 

$

265,368

 

 

$

277,941

 

Restricted cash (1)

 

 

3,037

 

 

 

3,265

 

Cash and cash equivalents—end of period

 

$

262,331

 

 

$

274,676

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

Cash paid for income taxes

 

$

14,658

 

 

$

13,220

 

Supplemental disclosures of non-cash investing and financing
information:

 

 

 

 

 

 

Purchases of property and equipment included in accounts payable and
accrued and other liabilities

 

$

7,934

 

 

$

12,583

 

Finance lease liabilities arising from obtaining right-of-use assets

 

$

 

 

$

5,769

 

 
(1) Included within other assets—non-current in the condensed consolidated balance sheets.

Reconciliation of Revenue to Billings

(Unaudited)

 

 

 

Three Months Ended
April 30,

 

Nine Months Ended
April 30,

 

 

2020

 

2021

 

2020

 

2021

 

 

(in thousands)

Total revenue

 

$

318,273

 

 

$

344,508

 

 

$

979,808

 

 

$

1,003,644

 

Change in deferred revenue

 

 

65,234

 

 

 

26,639

 

 

 

211,774

 

 

 

87,964

 

Total billings

 

$

383,507

 

 

$

371,147

 

 

$

1,191,582

 

 

$

1,091,608

 

Disaggregation of Revenue and Billings

(Unaudited)

 

 

 

Three Months Ended
April 30,

 

Nine Months Ended
April 30,

 

 

2020

 

2021

 

2020

 

2021

 

 

(in thousands)

Disaggregation of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Subscription revenue

 

$

260,963

 

 

$

307,332

 

 

$

745,403

 

 

$

891,443

 

Non-portable software revenue

 

 

41,917

 

 

 

16,741

 

 

 

178,619

 

 

 

58,445

 

Hardware revenue

 

 

3,786

 

 

 

975

 

 

 

22,052

 

 

 

3,025

 

Professional services revenue

 

 

11,607

 

 

 

19,460

 

 

 

33,734

 

 

 

50,731

 

Total revenue

 

$

318,273

 

 

$

344,508

 

 

$

979,808

 

 

$

1,003,644

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disaggregation of billings:

 

 

 

 

 

 

 

 

 

 

 

 

Subscription billings

 

$

321,100

 

 

$

330,774

 

 

$

935,780

 

 

$

963,865

 

Non-portable software billings

 

 

41,917

 

 

 

16,741

 

 

 

178,619

 

 

 

58,445

 

Hardware billings

 

 

3,786

 

 

 

975

 

 

 

22,052

 

 

 

3,025

 

Professional services billings

 

 

16,704

 

 

 

22,657

 

 

 

55,131

 

 

 

66,273

 

Total billings

 

$

383,507

 

 

$

371,147

 

 

$

1,191,582

 

 

$

1,091,608

 

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
April 30,

 

Nine Months Ended
April 30,

 

 

2020

 

2021

 

2020

 

2021

 

 

(in thousands)

Annual Contract Value Billings (ACV Billings)

 

$

135,267

 

 

$

159,919

 

 

$

382,375

 

 

$

430,747

 

Run-rate Annual Contract Value (Run-rate ACV)

 

$

1,154,888

 

 

$

1,447,274

 

 

$

1,154,888

 

 

$

1,447,274

 

Reconciliation of Subscription and Professional Services Revenue to Subscription and Professional

Services Billings

(Unaudited)

 

 

 

Three Months Ended
April 30,

 

Nine Months Ended
April 30,

 

 

2020

 

2021

 

2020

 

2021

 

 

(in thousands)

 

Subscription revenue

 

$

260,963

 

 

$

307,332

 

 

$

745,403

 

 

$

891,443

 

Change in subscription deferred revenue

 

 

60,137

 

 

 

23,442

 

 

 

190,377

 

 

 

72,422

 

Subscription billings

 

$

321,100

 

 

$

330,774

 

 

$

935,780

 

 

$

963,865

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Professional services revenue

 

$

11,607

 

 

$

19,460

 

 

$

33,734

 

 

$

50,731

 

Change in professional services deferred revenue

 

 

5,097

 

 

 

3,197

 

 

 

21,397

 

 

 

15,542

 

Professional services billings

 

$

16,704

 

 

$

22,657

 

 

$

55,131

 

 

$

66,273

 

Reconciliation of GAAP to Non-GAAP Profit Measures

(Unaudited)

 

 

 

GAAP

 

Non-GAAP Adjustments

 

Non-
GAAP

 

 

Three
Months
Ended
April 30,
2021

 

(1)

 

(2)

 

(3)

 

(4)

 

(5)

 

(6)

 

Three
Months
Ended
April 30,
2021

 

 

(in thousands, except percentages and per share data)

Gross profit

 

$

270,034

 

 

$

7,628

 

 

$

3,694

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

281,356

 

Gross margin

 

 

78.4

%

 

 

2.2

%

 

 

1.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

81.7

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

263,358

 

 

 

(30,743

)

 

 

(651

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

231,964

 

Research and development

 

 

144,917

 

 

 

(40,802

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

104,115

 

General and administrative

 

 

42,332

 

 

 

(16,113

)

 

 

 

 

 

(812

)

 

 

 

 

 

 

 

 

 

 

 

25,407

 

Total operating expenses

 

 

450,607

 

 

 

(87,658

)

 

 

(651

)

 

 

(812

)

 

 

 

 

 

 

 

 

 

 

 

361,486

 

Loss from operations

 

 

(180,573

)

 

 

95,286

 

 

 

4,345

 

 

 

812

 

 

 

 

 

 

 

 

 

 

 

 

(80,130

)

Net loss

 

$

(123,640

)

 

$

95,286

 

 

$

4,345

 

 

$

812

 

 

$

(85,027

)

 

$

22,098

 

 

$

497

 

 

$

(85,629

)

Weighted shares outstanding,
basic and diluted

 

 

207,715

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

207,715

 

Net loss per share, basic and
diluted

 

$

(0.60

)

 

$

0.46

 

 

$

0.02

 

 

$

0.01

 

 

$

(0.41

)

 

$

0.11

 

 

$

-

 

 

$

(0.41

)
_______________________________________________

(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 non-cash interest expense

(6)

Income tax effect primarily related to stock-based compensation expense

 

 

GAAP

 

Non-GAAP Adjustments

 

 

Non-GAAP

 

 

Nine
Months
Ended
April 30,
2021

 

(1)

 

(2)

 

(3)

 

(4)

 

(5)

 

(6)

 

(7)

 

Nine
Months
Ended
April 30,
2021

 

 

(in thousands, except percentages and per share data)

Gross profit

 

$

790,257

 

 

$

22,316

 

 

$

11,082

 

 

$

287

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

823,942

 

Gross margin

 

 

78.7

%

 

 

2.2

%

 

 

1.1

%

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

82.1

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

781,719

 

 

 

(93,001

)

 

 

(1,953

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

686,765

 

Research and development

 

 

416,292

 

 

 

(114,747

)

 

 

 

 

 

(2,535

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

299,010

 

General and administrative

 

 

111,140

 

 

 

(38,874

)

 

 

 

 

 

 

 

 

(1,785

)

 

 

 

 

 

 

 

 

 

 

 

70,481

 

Total operating expenses

 

 

1,309,151

 

 

 

(246,622

)

 

 

(1,953

)

 

 

(2,535

)

 

 

(1,785

)

 

 

 

 

 

 

 

 

 

 

 

1,056,256

 

Loss from operations

 

 

(518,894

)

 

 

268,938

 

 

 

13,035

 

 

 

2,822

 

 

 

1,785

 

 

 

 

 

 

 

 

 

 

 

 

(232,314

)

Net loss

 

$

(676,078

)

 

$

268,938

 

 

$

13,035

 

 

$

2,822

 

 

$

1,785

 

 

$

81,353

 

 

$

57,509

 

 

$

1,499

 

 

$

(249,137

)

Weighted shares outstanding,
basic and diluted

 

 

204,407

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

204,407

 

Net loss per share, basic and
diluted

 

$

(3.31

)

 

$

1.32

 

 

$

0.06

 

 

$

0.01

 

 

$

0.01

 

 

$

0.40

 

 

$

0.28

 

 

$

0.01

 

 

$

(1.22

)

_______________________________________________

(1)

 

Stock-based compensation expense

(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
April 30,
2020

 

(1)

 

(2)

 

(3)

 

(4)

 

(5)

 

Three
Months
Ended
April 30,
2020

 

 

(in thousands, except percentages and per share data)

Gross profit

 

$

245,979

 

 

$

7,326

 

 

$

3,694

 

 

$

 

 

$

 

 

$

 

 

$

256,999

 

Gross margin

 

 

77.3

%

 

 

2.3

%

 

 

1.1

%

 

 

 

 

 

 

 

 

 

 

 

80.7

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

299,162

 

 

 

(33,177

)

 

 

(651

)

 

 

 

 

 

 

 

 

 

 

 

265,334

 

Research and development

 

 

141,346

 

 

 

(39,462

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

101,884

 

General and administrative

 

 

35,644

 

 

 

(12,131

)

 

 

 

 

 

(472

)

 

 

 

 

 

 

 

 

23,041

 

Total operating expenses

 

 

476,152

 

 

 

(84,770

)

 

 

(651

)

 

 

(472

)

 

 

 

 

 

 

 

 

390,259

 

Loss from operations

 

 

(230,173

)

 

 

92,096

 

 

 

4,345

 

 

 

472

 

 

 

 

 

 

 

 

 

(133,260

)

Net loss

 

$

(240,671

)

 

$

92,096

 

 

$

4,345

 

 

$

472

 

 

$

7,892

 

 

$

622

 

 

$

(135,244

)

Weighted shares outstanding,
basic and diluted

 

 

196,366

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

196,366

 

Net loss per share, basic and
diluted

 

$

(1.23

)

 

$

0.48

 

 

$

0.02

 

 

$

-

 

 

$

0.04

 

 

$

-

 

 

$

(0.69

)

_______________________________________________

(1)

Stock-based compensation expense

(2)

Amortization of intangible assets

(3)

Other

(4)

Amortization of debt discount and debt issuance costs

(5)

Income tax effect primarily related to stock-based compensation expense

 

 

GAAP

 

Non-GAAP Adjustments

 

 

Non-GAAP

 

 

Nine
Months
Ended
April 30,
2020

 

(1)

 

(2)

 

(3)

 

(4)

 

(5)

 

(6)

 

Nine
Months
Ended
April 30,
2020

 

 

(in thousands, except share and per share data)

Gross profit

 

$

760,090

 

 

$

19,787

 

 

$

11,082

 

 

$

537

 

 

$

 

 

$

 

 

$

 

 

$

791,496

 

Gross margin

 

 

77.6

%

 

 

2.0

%

 

 

1.1

%

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

80.8

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

895,936

 

 

 

(92,137

)

 

 

(1,953

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

801,846

 

Research and development

 

 

418,640

 

 

 

(113,484

)

 

 

 

 

 

(2,465

)

 

 

 

 

 

 

 

 

 

 

 

302,691

 

General and administrative

 

 

103,083

 

 

 

(33,729

)

 

 

 

 

 

 

 

 

(979

)

 

 

 

 

 

 

 

 

68,375

 

Total operating expenses

 

 

1,417,659

 

 

 

(239,350

)

 

 

(1,953

)

 

 

(2,465

)

 

 

(979

)

 

 

 

 

 

 

 

 

1,172,912

 

Loss from operations

 

 

(657,569

)

 

 

259,137

 

 

 

13,035

 

 

 

3,002

 

 

 

979

 

 

 

 

 

 

 

 

 

(381,416

)

Net loss

 

$

(687,535

)

 

$

259,137

 

 

$

13,035

 

 

$

3,002

 

 

$

979

 

 

$

23,290

 

 

$

1,240

 

 

$

(386,852

)

Weighted shares outstanding,
basic and diluted

 

 

192,896

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

192,896

 

Net loss per share, basic and
diluted

 

$

(3.56

)

 

$

1.33

 

 

$

0.06

 

 

$

0.02

 

 

$

0.01

 

 

$

0.12

 

 

$

0.01

 

 

$

(2.01

)

_______________________________________________

(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
April 30,

 

Nine Months Ended
April 30,

 

 

2020

 

2021

 

2020

 

2021

 

 

(in thousands)

 

Net cash used in operating activities

 

$

(84,861

)

 

$

(55,551

)

 

$

(163,515

)

 

$

(75,180

)

Purchases of property and equipment

 

 

(32,622

)

 

 

(15,943

)

 

 

(72,073

)

 

 

(41,111

)

Free cash flow

 

$

(117,483

)

 

$

(71,494

)

 

$

(235,588

)

 

$

(116,291

)

 


© 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 -10,5x
Yield 2021 -
Capitalization 8 896 M 8 896 M -
EV / Sales 2021 6,35x
EV / Sales 2022 5,52x
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 42,05 $
Average target price 48,14 $
Spread / Average Target 14,5%
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
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