Nutanix, Inc. · NASDAQ:NTNX
Nutanix — Q2 FY2021 Earnings Presentation
21 slides from Nutanix's earnings presentation, Feb 24, 2021
Slide 1: Q2 Fiscal 2021 Earnings Presentation
Q2 Fiscal 2021 Earnings Presentation FEBRUARY 24, 2021
Slide 2: Safe Harbor: Non-GAAP Financial Measures
Safe Harbor 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-G
Slide 3: Safe Harbor: Forward Looking Statements
Safe Harbor Forward Looking Statements This presentation and the accompanying oral commentary contain express and implied forward-looking statements, including, but not limited to, statements relating to: our business plans, goals, strategies, initiatives, objectives and outlook, including our plans
Slide 4: Q2'21 Company Highlights
|4 Q2’21 Company Highlights Strong Quarter Across the Board 14% YoY growth in ACV Billings, 28% YoY growth in Run-rate ACV, and exceeded guidance across all other key financial metrics Hired New President and CEO Rajiv Ramaswami joined Nutanix in December as President and Chief Executive Officer. He
Slide 5: Management Commentary
|5 Management Commentary Rajiv Ramaswami “We delivered a strong quarter across the board, exceeding guidance President & Chief on all metrics and continuing our momentum with key customer wins Executive Officer and solid execution. In my first two months as CEO of Nutanix, my conviction that we have
Slide 6: Q2'21 Financial Summary
Q2’21 Financial Summary |6 Q2’21 Results YoY Change Q2’21 Guidance ACV Billings $159.2M 14% $145-$148M Run-rate ACV $1.38B 28% approx. 25% Total Average Contract Term 3.4 Years (0.5) Year N/A (1) Total Revenue $346.4M Flat N/A Non-GAAP Gross Margin 82.7% 130 bps 81.5% Non-GAAP Operating Expenses $35
Slide 7: Q2'21 Subscription Highlights
Q2’21 Subscription Highlights |7 $159M $1.38B ACV Billings Run-rate ACV +14% YoY +28% YoY 82.7% 3.4 Years Non-GAAP Gross Margin Total Average Contract Term +130 bps YoY (0.5) Year YoY Note: Data is as of January 31, 2021. See Appendix for definitions of ACV Billings, Run-rate ACV, ACV and Total Aver
Slide 8: Run-rate ACV
Run-rate ACV |8 +28% YoY $1,385 $1,291 $1,220 $ Millions $1,155 $1,081 $1,002 $944 $860 $797 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Note: See Appendix for definition of Run-rate ACV. There is no GAAP measure that is comparable to Run-rate ACV, so the Company has not reconciled the Run
Slide 9: ACV Billings
ACV Billings |9 +14% YoY $159 $140 $140 $138 $135 Millions $$Millions $124 $126 $117 $108 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Note: ACV Billings exclude amounts related to professional services and hardware. See Appendix for definition of ACV Billings. There is no GAAP measure that
Slide 10: Q2'21 ACV Billings to Total Billings Conversion
Q2’21 ACV Billings to Total Billings Conversion | 10 ACV Billings to Total Billings Conversion 1 Start with forecasting ACV Billings and compare your estimate with Nutanix’s ACV Billings guidance and seasonality commentary. 2 Estimate ACV Billings % by Term to get to ACV Billings $ by Term. Multiply
Slide 11: ACV % and Historical Contract Terms
ACV % and Historical Contract Terms | 11 ACV Billings % by Term 6% 7% Other (1) 17% 18% 5-year 25% 26% 3-year 1-year 52% 49% Q1'21 Q2'21 Total Average Contract Term (Years) Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 4.1 4.1 3.9 3.9 3.9 3.8 3.8 3.5 3.4 Note: See previous page for calculati
Slide 12: Gross Margin
Gross Margin | 12 By Quarter By Fiscal Year 83% 82% 83% 81% 81% 81% 78% 68% 63% Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 FY'17 FY'18 FY'19 FY'20 Note: Margins shown on a non-GAAP basis. See Appendix for a reconciliation of GAAP to non-GAAP measures.
Slide 13: Q2'21 Hybrid and Multicloud Platform
Q2’21 Hybrid and Multicloud Platform | 13 52% 37% 100+% AHV Adoption as % of Deals Involving at Least YoY Growth of a % of Total Nodes(1) One Emerging Product (1) New ACV +6pts YoY +6pts YoY from Emerging Products (1) Calculated on a rolling four-quarter average Note: See Appendix for definitions of
Slide 14: Customer Growth Momentum
Customer Growth Momentum | 14 Q2’21 Highlights 18,770 (1) 18,040 18% Cumulative Customer Count Total Customers 17,360 YoY Growth 16,580 950 (1) 15,880 G2K Customers 14,960 15.7x (2) 14,180 G2K Lifetime ACV 13,190 Repeat Purchase Multiple 12,410 80 Forbes Global 100 Customers 90 NPS 7-Year Average Q2
Slide 15: Over $1M Customer Growth
Over $1M Customer Growth | 15 Q2’21 Highlights Cumulative End-customers 1,358 +26% 955 (1) YoY Customers with Lifetime Bookings (LTB) > $1M 1,276 $1-$3M in LTB 1,207 1,060 1,122 +29% 190 YoY Customers 990 $3-$5M in LTB 921 848 779 +35% 136 YoY Customers $5-$10M in LTB +31% 77 YoY Customers >$10M in
Slide 16: Q3'21 Financial Guidance
Q3’21 Financial Guidance | 16 Q3’21 Guidance ACV Billings $150-$155M Non-GAAP Gross Margin Approximately 81% Non-GAAP Operating Expenses $365-$370M Weighted Average Shares Outstanding Approximately 207M Modeling Assumptions: 1. Q3’21 guidance anticipates a slight seasonal decrease in ACV Billings in
Slide 17: Appendix
Appendix
Slide 18: Nutanix Reporting Model
Nutanix Reporting Model | 18 Revenue Product Type Product Mix Term Recognized Term-based Subscription 1, 3, or 5 Years Upfront Subscription SaaS Subscription Monthly Up to 5 Years Ratable Support and Entitlements 1, 3, or 5 Years Ratable Software License Non-portable Software Life of the Device (LoD
Slide 19: Endnotes and Definitions
Endnotes and Definitions | 19 Endnotes 1. Global 2000 (G2K) and Forbes 100 customer counts reflect yearly update to the members of both lists as reported by Forbes. Cumulative worldwide end-customer and G2K customer counts reflect standard adjustments to certain customer accounts within our system o
Slide 20: GAAP to Non-GAAP Reconciliations and Calculation of Billings
GAAP to Non-GAAP Reconciliations and Calculation | 20 of Billings Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 FY’17 FY’18 FY’19 FY’20 Gross margin (GAAP) 78.3% 77.3% 79.6% 78.3% 79.5% 61.3% 66.6% 75.4% 78.1% Stock-based compensation expense 1.8 2.3 2.3 2.3 2.1 1.6 1.0 1.5 2.1 Amortization of intangible assets 1.1
Slide 21: Disaggregation of Billings and Revenue
Disaggregation of Billings and Revenue | 21 $ Millions FY’18 FY’19 FY’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Subscription revenue $330.7 $648.4 $1,030.2 $266.5 $261.0 $284.8 $278.2 $305.9 Change in subscription deferred revenue, net of acquisitions 251.3 267.6 246.2 72.6 60.1 55.9 15.7 33.2 Subscription b