Nutanix, Inc. · NASDAQ:NTNX
Nutanix — Q4 FY2017 Earnings Presentation
24 slides from Nutanix's earnings presentation, Sep 5, 2017
Slide 1: Q4 FY'17 Investor Presentation
Q4 FYʹ17 Investor Presentation September 5, 2017 * Financial results herein are reported under new revenue standard ASC 606
Slide 2: Safe Harbor
SAFE HARBOR Non-GAAP Financial Measures and Other Key Performance Measures To supplement our condensed 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 mar
Slide 3: Q4 FY2017 Key Highlights
Q4 FY2017 KEY HIGHLIGHTS MARKET CUSTOMERS BALANCE SHEET $100B+ TAM 7,051 total customers, up $349M in cash & ST inv. 87% YoY DSO of 73 days, weighted 559 Global 2000 customers average DSO of 27 days 313 customers with lifetime No inventory bookings of $1-3M 52 customers with lifetime bookings of $3-
Slide 4: Q4 Fiscal Year 2017 Financial Results
Q4 FISCAL YEAR 2017 FINANCIAL RESULTS Q4ʹ17 Q3ʹ17 Q/Q Change Q4ʹ16 Y/Y Change Revenue $252.5 $205.7 23% $160.5 57% Billings 1 $289.2 $234.1 24% $206.6 40% Gross Margin 1 62.6% 61.2% 1.4 66.3% -3.7 Operating Loss 1 -$23.9 -$43.8 45% -$22.0 -9% Net Loss Per Share 1, 2 -$0.17 -$0.32 $0.15 -$0.21 $0.04
Slide 5: Strong Revenue Growth
STRONG REVENUE GROWTH By Quarter By Fiscal Year $900 $846 $300 $252 $800 $250 $700 $206 $199 $200 $189 $600 $ Millions $161 $503 $ Millions $150 $500 $126 $116 $101 $400 $100 $300 $50 $200 $0 $100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 $0 FY16 FY17 FY16 FY17 YoY Growth % -- -- -- -- 88 71 63 57 YoY Growth % * 68 Q
Slide 6: Historical Billings Performance
HISTORICAL BILLINGS PERFORMANCE By Quarter By Fiscal Year $990 $1,000 $350 $900 $289 $300 $800 $240 $250 $227$234 $700 $638 $207 $ Millions $200 $600 $ Millions $160 $143 $500 $150 $128 $400 $95 $309 $100 $82 $71 $300 $61 $48 $38 $43 $50 $23 $23 $200 $151 $5 $7 $8 $0 $100 $42 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 7: Deferred Revenue Builds for the Future
DEFERRED REVENUE BUILDS FOR THE FUTURE $600 LT Deferred Revenue ST Deferred Revenue $500 $400 $369 $332 $ Millions $304 $300 $276 $218 $200 $172 $139 $112 $100 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY16 FY17 ST Deferred Revenue $56 $67 $80 $102 $128 $140 $155 $170 LT Deferred Revenue $56 $72 $93 $117 $148 $164
Slide 8: Strong Customer Growth Metrics
STRONG CUSTOMER GROWTH METRICS Fast Growing Customer Acquisition Cumulative End-Customers with Lifetime Cumulative Worldwide End-Customers Purchases >$1M* 8,000 500 7,051 7,000 6,172 404 5,382 400 341 6,000 4,473 295 5,000 300 256 3,768 4,000 3,111 208 2,638 3,000 1,799 2,144 200 136 154 108 2,000 9
Slide 9: Customer Cohort Booking Capacity Compounding
CUSTOMER COHORT BOOKING CAPACITY COMPOUNDING Cumulative Bookings by End-Customer Cohort* $2,200 $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $- FY12 FY13 FY14 FY15 FY16 FY17 FY12 FY13 FY14 FY15 FY16 FY17 * Classified according to the fiscal year in which an end-customer made its fir
Slide 10: Strong Growth in the Global 2000
STRONG GROWTH IN THE GLOBAL 2000 Cumulative Global 2000 Customers* Total Lifetime Purchase Multiples* ** 600 559 10 521 500 473 8.1x 8 424 400 372 318 6 300 281 242 214 4 200 177 159 127 109 82 2 100 66 1.0x 41 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Initial Buy Global 2000 >18 mos FY14
Slide 11: Software Only Bookings
SOFTWARE ONLY BOOKINGS By Quarter (4-qtr rolling average) 18% 17% 16% 16% 15% 15% 14% 14% 12% 12% 11% As a % of Bookings 10% 9% 8% 8% 6% 5% 4% 4% 3% 2% 2% 2% 2% 1% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY14 FY15 FY16 FY17 Note: Approximately 2/3 of OEM bookings are classified as softwar
Slide 12: Land and Expand (Strategy and Execution)
LAND AND EXPAND (STRATEGY AND EXECUTION) Fiscal Quarters Top 25 Customers* Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1’17 Q2’17 Q3’17 Q4’17 Customer 1 Customer 2 Customer 3 Customer 4 Customer 5 Customer 6 Customer 7 Customer 8 Customer 9 Custom
Slide 13: Steady AHV Adoption, as a % of All Nodes
STEADY AHV ADOPTION, AS A % of ALL NODES By Quarter (4-qtr rolling average) 30% 25% 24% 23% 21% 20% As a % of Nodes 17% 15% 13% 10% 9% 7% 6% 6% 5% 3% 1% 0% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY15 FY16 FY17 13
Slide 14: Operational Leverage
OPERATIONAL LEVERAGE Percentages Indicated as a % of Revenue Gross Margin* Operating Margin* 70% 66% FY16 FY17 65% 63% -10% 60% -15% -13% 55% -17% -20% 50% FY16 FY17 -25% Operating Cash Flow Free Cash Flow* FY16 FY17 FY16 FY17 10% 0% -5% -4% 5% -8% -10% 2% 1% 0% -15% * Non-GAAP metrics shown. See ap
Slide 15: Funding Headcount Resources for the Future
FUNDING HEADCOUNT RESOURCES FOR THE FUTURE 3,000 2,813 2,672 214 2,559 S&M 206 2,500 2,357* 207 387 R&D 188 357 344 Support & Service 1,980 305 2,000 1,798 172 850 G&A 164 810 1,589 242 782 212 1,500 1,368 153 737 168 1,180 127 598 136 528 1,017 114 470 1,000 863 104 120 419 106 738 91 88 375 617 74
Slide 16: Balance Sheet Trends
BALANCE SHEET TRENDS Q4ʹ17 Q3ʹ17 Q/Q Q4ʹ16 Y/Y $ Millions Actual Actual Change Actual Change Cash and $349.1 $350.3 - $185.2 88% ST Investments Accounts $178.9 $170.3 5% $110.7 62% Receivable Days Sales 73 79 - 6 days 73 - Outstanding* Weighted Days 27 23 + 4 days 31 - 4 days Sales Outstanding Total
Slide 17: Target Financial Model
TARGET FINANCIAL MODEL Target Long- FY2016 FY2017 How We Get There term Model Gross Margin Revenue mix shifts more toward 66% 63% software – ELAs, Term-based 63-65% (non-GAAP)¹ Software upgrades, OEM R&D as % of Revenue Top line growth, optimize 22% 21% 13%-15% (non-GAAP)¹ engineering cost structure
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Slide 19: GAAP to Non-GAAP Reconciliations
GAAP to NON-GAAP RECONCILIATIONS
Slide 20: Reconciliation of Non-GAAP Measures—2017
RECONCILATION OF NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE MEASURES--2017 Q1 Q2 Q3 Q4 FY 2017 Billings Revenue $ 188.6 $ 199.2 $ 205.7 $ 252.5 $ 845.9 Change in deferred revenue 51.3 28.2 28.4 36.7 144.6 Total billings $ 239.8 $ 227.4 $ 234.1 $ 289.2 $ 990.5 Reconciliation of GAAP to Non-GAAP
Slide 21: Reconciliation of Non-GAAP Measures—2016
RECONCILATION OF NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE MEASURES—2016 Q1 Q2 Q3 Q4 FY 2016 Billings Revenue $ 100.5 $ 116.4 $ 126.0 $ 160.5 $ 503.4 Change in deferred revenue 27.7 27.0 33.5 46.1 134.4 Total billings $ 128.3 $ 143.4 $ 159.5 $ 206.6 $ 637.8 Reconciliation of GAAP to Non-GAAP G
Slide 22: Reconciliation of Non-GAAP Measures—2015
RECONCILATION OF NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE MEASURES—2015 Q1 Q2 Q3 Q4 Total Billings Revenue $ 46.0 $ 56.8 $ 64.5 $ 74.1 $ 241.4 Change in deferred revenue 14.7 14.2 17.6 20.6 67.1 Total billings $ 60.7 $ 71.0 $ 82.1 $ 94.7 $ 308.5 Net cash (used in) provided by operating activi
Slide 23: Reconciliation of Non-GAAP Measures—2014
RECONCILATION OF NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE MEASURES—2014 Q1 Q2 Q3 Q4 Total Billings Revenue $ 19.8 $ 32.2 $ 36.0 $ 39.1 $ 127.1 Change in deferred revenue 3.0 5.4 6.8 8.8 24.0 Total billings $ 22.8 $ 37.6 $ 42.8 $ 47.9 $ 151.1 Net cash (used in) provided by operating activities
Slide 24: Thank You!
Thank You! © 2017 Nutanix, Inc. All rights reserved. Nutanix and the Nutanix logo are trademarks of Nutanix, Inc., registered in the United States and other countries. 24