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Nutanix Reports Fourth Quarter and Fiscal 2021 Financial Results

September 1, 2021 GMT
Q4 and Fiscal 2021 Earnings Infographic (Graphic: Business Wire)
Q4 and Fiscal 2021 Earnings Infographic (Graphic: Business Wire)
Q4 and Fiscal 2021 Earnings Infographic (Graphic: Business Wire)

SAN JOSE, Calif.--(BUSINESS WIRE)--Sep 1, 2021--

Nutanix, Inc. (NASDAQ: NTNX ), a leader in hybrid multicloud computing, today announced financial results for its fourth quarter and fiscal year ended July 31, 2021.

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This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210901005856/en/

Q4 and Fiscal 2021 Earnings Infographic (Graphic: Business Wire)

“Our fourth quarter was a strong end to an excellent fiscal year, which was marked by consistent execution and solid progress across both financial and strategic objectives,” said Rajiv Ramaswami, President and CEO of Nutanix. “We have entered our fiscal 2022 with good momentum and a solid plan for growth, executing on the model we laid out at Investor Day and delivering on our vision of making clouds invisible.”

“We achieved records across a number of key metrics in the fourth quarter, including ACV billings and revenue, which grew 26 and 19 percent year over year, respectively,” said Duston Williams, CFO of Nutanix. “In fiscal 2022, we expect our growing base of low-cost renewals will drive further improvements in top and bottom line performance.”

Fourth Quarter Fiscal 2021 Financial Summary

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Q4 FY’21

 

Q4 FY’20

 

Y/Y Change

Annual Contract Value (ACV) 1 Billings

$176.3 million

 

$139.9 million

 

26%

Annual Recurring Revenue (ARR) 2

$878.7 million

 

$481.3 million

 

83%

Run-rate Annual Contract Value (ACV) 3

$1.54 billion

 

$1.22 billion

 

26%

Average Contract Term 4

3.4 years

 

3.8 years

 

(0.4) year

Revenue 5

$390.7 million

 

$327.9 million

 

19%

GAAP Gross Margin

79.9%

 

79.6%

 

30 bps

Non-GAAP Gross Margin

82.9%

 

83.0%

 

(10) bps

GAAP Operating Expenses

$454.1 million

 

$432.3 million

 

5%

Non-GAAP Operating Expenses

$372.5 million

 

$345.8 million

 

8%

Free Cash Flow

$(42.2) million

 

$(13.8) million

 

$(28.4) million

Fiscal 2021 Financial Summary

 

FY’21

FY’20

Y/Y Change

Annual Contract Value (ACV) 1 Billings

$594.3 million

 

$505.2 million

 

18%

Annual Recurring Revenue (ARR) 2

$878.7 million

 

$481.3 million

 

83%

Run-rate Annual Contract Value (ACV) 3

$1.54 billion

 

$1.22 billion

 

26%

Average Contract Term 4

3.4 years

 

3.8 years

 

(0.4) year

Revenue 5

$1.39 billion

 

$1.31 billion

 

7%

GAAP Gross Margin

79.1%

 

78.1%

 

100 bps

Non-GAAP Gross Margin

82.3%

 

81.3%

 

100 bps

GAAP Operating Expenses

$1.76 billion

 

$1.85 billion

 

(5)%

Non-GAAP Operating Expenses

$1.43 billion

 

$1.52 billion

 

(6)%

Free Cash Flow

$(158.5) million

 

$(249.4) million

 

$90.9 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

First Quarter Fiscal 2022 Outlook

 

 

ACV Billings

$172 - $177 million

Non-GAAP Gross Margin

Approximately 81.5%

Non-GAAP Operating Expenses

$365 - $370 million

Weighted Average Shares Outstanding

Approximately 216 million

Supplementary materials to this press release, including our fourth quarter and 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 fourth quarter and fiscal year 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 3574479. 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 3574479.

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. ACV Billings is the sum of New ACV Billings and Renewals ACV Billings.

2Annual Recurring Revenue, or ARR, for any given period, is defined as the sum of ACV for all non life-of-device contracts in effect as of the end of a specific period. For the purposes of this calculation, we assume that the contract term begins on the date a contract is booked, unless the terms of such contract prevent us from fulfilling our obligations until a later period, and irrespective of the periods in which we would recognize revenue for such contract.

3Run-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, the Company 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.

4Average Contract Term represents the dollar-weighted term, calculated on a billings basis, across all subscription and life-of-device contracts, using an assumed term of five years for life-of-device licenses, executed in the period.

5 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.

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), Annual Recurring Revenue (or ARR), and Run-rate Annual Contract Value (or Run-rate ACV). 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, the change in fair value of the derivative liability, the amortization of the 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 provided by (used in) operating activities less purchases of property and equipment. Subscription revenue and subscription 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. ARR is a performance measure that we believe provides useful information to our management and investors as it allows us to better track the topline growth of our subscription business because it takes into account variability in term lengths. We use these non-GAAP financial and key performance measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. However, these non-GAAP financial and key performance measures have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. 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 provided by (used in) operating activities, respectively; subscription revenue is not a substitute for total revenue; and subscription billings is not a substitute for subscription revenue. There is no GAAP measure that is comparable to ACV Billings, ARR, or Run-rate ACV, so we have not reconciled the ACV Billings, ARR, or 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 Provided By (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, vision, objectives, and outlook, including our growth plan and vision of making clouds invisible, as well as our ability to execute thereon successfully and in a timely manner and the benefits and impact thereof on our business, operations, and financial results, including our expectation that in our fiscal year ending July 31, 2022 our growing base of low-cost renewals will drive further improvements in top and bottom line performance; 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, vision, and objectives; our ability to achieve, sustain and/or manage future growth effectively; delays or unexpected accelerations in our current and future business model transitions; the rapid evolution of the markets in which we compete, including the introduction, or acceleration of adoption of, competing solutions, including public cloud infrastructure; failure to timely and successfully meet our customer needs; delays in or lack of customer or market acceptance of our new solutions, products, services, product features or technology; 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 and availability 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 Reports on Form 10-Q for the fiscal quarters ended January 31, 2021 and April 30, 2021, filed with the SEC on March 4, 2021 and June 3, 2021, respectively. Additional information will also be set forth in our Annual Report on Form 10-K for the fiscal year ended July 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 our website at ir.nutanix.com and on the SEC’s website at www.sec.gov. These forward-looking statements speak only as of the date of this press release and, except as required by law, we assume no obligation, and expressly disclaim any obligation, to update, alter or otherwise revise any of these forward-looking statements to reflect actual results or subsequent events or circumstances.

About Nutanix

Nutanix is a global leader in cloud software and a pioneer in hyperconverged infrastructure solutions, making clouds invisible, freeing customers to focus on their business outcomes. Organizations around the world use Nutanix software to leverage a single platform to manage any app at any location for their hybrid multicloud environments. Learn more at www.nutanix.com or follow us on social media @nutanix.

© 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.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

As of

 

 

July 31,
2020

 

July 31,
2021

 

 

(in thousands)

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

318,737

 

 

$

285,723

 

Short-term investments

 

 

401,041

 

 

 

928,006

 

Accounts receivable, net

 

 

242,516

 

 

 

180,781

 

Deferred commissions—current

 

 

68,694

 

 

 

110,935

 

Prepaid expenses and other current assets

 

 

63,032

 

 

 

56,816

 

Total current assets

 

 

1,094,020

 

 

 

1,562,261

 

Property and equipment, net

 

 

143,172

 

 

 

131,621

 

Operating lease right-of-use assets

 

 

127,326

 

 

 

105,903

 

Deferred commissions—non-current

 

 

146,834

 

 

 

232,485

 

Intangible assets, net

 

 

49,392

 

 

 

32,012

 

Goodwill

 

 

185,260

 

 

 

185,260

 

Other assets—non-current

 

 

22,543

 

 

 

27,954

 

Total assets

 

$

1,768,547

 

 

$

2,277,496

 

Liabilities and Stockholders’ Deficit

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

54,029

 

 

$

47,056

 

Accrued compensation and benefits

 

 

109,109

 

 

 

162,337

 

Accrued expenses and other current liabilities

 

 

25,924

 

 

 

39,404

 

Deferred revenue—current

 

 

534,572

 

 

 

636,421

 

Operating lease liabilities—current

 

 

36,569

 

 

 

42,670

 

Total current liabilities

 

 

760,203

 

 

 

927,888

 

Deferred revenue—non-current

 

 

648,869

 

 

 

676,502

 

Operating lease liabilities—non-current

 

 

116,794

 

 

 

86,599

 

Convertible senior notes, net

 

 

490,222

 

 

 

1,055,694

 

Derivative liability

 

 

 

 

 

500,175

 

Other liabilities—non-current

 

 

27,436

 

 

 

42,679

 

Total liabilities

 

 

2,043,524

 

 

 

3,289,537

 

Stockholders’ deficit:

 

 

 

 

 

 

Common stock

 

 

5

 

 

 

5

 

Additional paid-in capital

 

 

2,245,180

 

 

 

2,615,317

 

Accumulated other comprehensive income

 

 

2,030

 

 

 

(8

)

Accumulated deficit

 

 

(2,522,192

)

 

 

(3,627,355

)

Total stockholders’ deficit

 

 

(274,977

)

 

 

(1,012,041

)

Total liabilities and stockholders’ deficit

 

$

1,768,547

 

 

$

2,277,496

 

NUTANIX, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three Months Ended
July 31,

 

Fiscal Year Ended
July 31,

 

 

2020

 

2021

 

2020

 

2021

 

 

(in thousands, except per share data)

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

$

179,075

 

 

$

202,946

 

 

$

765,822

 

 

$

705,804

 

Support, entitlements and other services

 

 

148,799

 

 

 

187,774

 

 

 

541,860

 

 

 

688,560

 

Total revenue

 

 

327,874

 

 

 

390,720

 

 

 

1,307,682

 

 

 

1,394,364

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Product (1)(2)

 

 

13,413

 

 

 

15,793

 

 

 

71,312

 

 

 

55,287

 

Support, entitlements and other services (1)

 

 

53,558

 

 

 

62,726

 

 

 

215,377

 

 

 

236,619

 

Total cost of revenue

 

 

66,971

 

 

 

78,519

 

 

 

286,689

 

 

 

291,906

 

Gross profit

 

 

260,903

 

 

 

312,201

 

 

 

1,020,993

 

 

 

1,102,458

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing (1)(2)

 

 

264,453

 

 

 

270,789

 

 

 

1,160,389

 

 

 

1,052,508

 

Research and development (1)

 

 

135,338

 

 

 

140,658

 

 

 

553,978

 

 

 

556,950

 

General and administrative (1)

 

 

32,464

 

 

 

42,642

 

 

 

135,547

 

 

 

153,782

 

Total operating expenses

 

 

432,255

 

 

 

454,089

 

 

 

1,849,914

 

 

 

1,763,240

 

Loss from operations

 

 

(171,352

)

 

 

(141,888

)

 

 

(828,921

)

 

 

(660,782

)

Other expense, net

 

 

(9,757

)

 

 

(211,610

)

 

 

(26,300

)

 

 

(354,991

)

Loss before provision for income taxes

 

 

(181,109

)

 

 

(353,498

)

 

 

(855,221

)

 

 

(1,015,773

)

Provision for income taxes

 

 

4,239

 

 

 

4,684

 

 

 

17,662

 

 

 

18,487

 

Net loss

 

$

(185,348

)

 

$

(358,182

)

 

$

(872,883

)

 

$

(1,034,260

)

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

 

$

(0.93

)

 

$

(1.68

)

 

$

(4.48

)

 

$

(5.01

)

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

 

 

200,150

 

 

 

212,612

 

 

 

194,719

 

 

 

206,475

 

_________________________________________

(1)

Includes the following stock-based compensation expense:

 

 

Three Months Ended
July 31,

 

Fiscal Year Ended
July 31,

 

 

2020

 

2021

 

2020

 

2021

 

 

(in thousands)

Product cost of revenue

 

$

1,397

 

 

$

1,569

 

 

$

5,334

 

 

$

6,023

 

Support, entitlements and other services cost of revenue

 

 

6,164

 

 

 

6,598

 

 

 

22,014

 

 

 

24,460

 

Sales and marketing

 

 

33,878

 

 

 

29,814

 

 

 

126,015

 

 

 

122,815

 

Research and development

 

 

39,768

 

 

 

36,109

 

 

 

153,252

 

 

 

150,856

 

General and administrative

 

 

11,654

 

 

 

15,517

 

 

 

45,383

 

 

 

54,391

 

Total stock-based compensation expense

 

$

92,861

 

 

$

89,607

 

 

$

351,998

 

 

$

358,545

 

(2)

Includes the following amortization of intangible assets:

 

 

Three Months Ended
July 31,

 

Fiscal Year Ended
July 31,

 

 

2020

 

2021

 

2020

 

2021

 

 

(in thousands)

Product cost of revenue

 

$

3,695

 

 

$

3,694

 

 

$

14,777

 

 

$

14,776

 

Sales and marketing

 

 

650

 

 

 

651

 

 

 

2,603

 

 

 

2,604

 

Total amortization of intangible assets

 

$

4,345

 

 

$

4,345

 

 

$

17,380

 

 

$

17,380

 

NUTANIX, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Fiscal Year Ended July 31,

 

 

2020

 

2021

 

 

(in thousands)  

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(872,883

)

 

$

(1,034,260

)

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

 

 

 

 

 

 

Depreciation and amortization

 

 

93,773

 

 

 

94,373

 

Stock-based compensation

 

 

351,998

 

 

 

358,545

 

Change in fair value of derivative liability

 

 

 

 

 

269,265

 

Amortization of debt discount and issuance costs

 

 

31,313

 

 

 

63,859

 

Operating lease cost, net of accretion

 

 

30,374

 

 

 

34,757

 

Impairment of lease-related assets

 

 

3,002

 

 

 

1,420

 

Non-cash interest expense

 

 

 

 

 

16,074

 

Other

 

 

324

 

 

 

6,380

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable, net

 

 

4,334

 

 

 

64,483

 

Deferred commissions

 

 

(61,816

)

 

 

(127,891

)

Prepaid expenses and other assets

 

 

10,089

 

 

 

4,057

 

Accounts payable

 

 

(16,574

)

 

 

(5,762

)

Accrued compensation and benefits

 

 

18,765

 

 

 

50,916

 

Accrued expenses and other liabilities

 

 

3,400

 

 

 

14,824

 

Operating leases, net

 

 

(28,394

)

 

 

(37,582

)

Deferred revenue

 

 

272,410

 

 

 

126,732

 

Net cash used in operating activities

 

 

(159,885

)

 

 

(99,810

)

Cash flows from investing activities:

 

 

 

 

 

 

Maturities of investments

 

 

645,828

 

 

 

784,176

 

Purchases of investments

 

 

(607,194

)

 

 

(1,392,737

)

Sales of investments

 

 

75,413

 

 

 

70,055

 

Purchases of property and equipment

 

 

(89,488

)

 

 

(58,647

)

Net cash provided by (used in) investing activities

 

 

24,559

 

 

 

(597,153

)

Cash flows from financing activities:

 

 

 

 

 

 

Proceeds from sales of shares through employee equity incentive plans

 

 

57,797

 

 

 

65,766

 

Proceeds from the issuance of convertible notes, net of issuance costs

 

 

 

 

 

723,617

 

Repurchases of common stock

 

 

 

 

 

(125,079

)

Payment of finance lease obligations

 

 

 

 

 

(459

)

Net cash provided by financing activities

 

 

57,797

 

 

 

663,845

 

Net decrease in cash, cash equivalents and restricted cash

 

$

(77,529

)

 

$

(33,118

)

Cash, cash equivalents and restricted cash—beginning of period

 

 

399,520

 

 

 

321,991

 

Cash, cash equivalents and restricted cash—end of period

 

$

321,991

 

 

$

288,873

 

Restricted cash (1)

 

 

3,254

 

 

 

3,150

 

Cash and cash equivalents—end of period

 

$

318,737

 

 

$

285,723

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

Cash paid for income taxes

 

$

16,625

 

 

$

16,639

 

Supplemental disclosures of non-cash investing and financing information:

 

 

 

 

 

 

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

 

$

4,630

 

 

$

12,832

 

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

 

$

 

 

$

8,299

 

_________________________________________

(1)

Included within other assets—non-current in the consolidated balance sheets.

Reconciliation of Revenue to Billings

(Unaudited)

 

 

 

Three Months Ended
July 31,

 

Fiscal Year Ended
July 31,

 

 

2020

 

2021

 

2020

 

2021

 

 

(in thousands)

Total revenue

 

$

327,874

 

 

$

390,720

 

 

$

1,307,682

 

 

$

1,394,364

 

Change in deferred revenue

 

 

60,636

 

 

 

38,768

 

 

 

272,410

 

 

 

126,732

 

Total billings

 

$

388,510

 

 

$

429,488

 

 

$

1,580,092

 

 

$

1,521,096

 

Disaggregation of Revenue and Billings

(Unaudited)

 

 

 

Three Months Ended
July 31,

 

Fiscal Year Ended
July 31,

 

 

2020

 

2021

 

2020

 

2021

 

 

(in thousands)

Disaggregation of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Subscription revenue

 

$

284,777

 

 

$

352,178

 

 

$

1,030,180

 

 

$

1,243,621

 

Non-portable software revenue

 

 

29,539

 

 

 

12,945

 

 

 

208,158

 

 

 

71,390

 

Hardware revenue

 

 

1,403

 

 

 

3,234

 

 

 

23,455

 

 

 

6,259

 

Professional services revenue

 

 

12,155

 

 

 

22,363

 

 

 

45,889

 

 

 

73,094

 

Total revenue

 

$

327,874

 

 

$

390,720

 

 

$

1,307,682

 

 

$

1,394,364

 

Disaggregation of billings:

 

 

 

 

 

 

 

 

 

 

 

 

Subscription billings

 

$

340,633

 

 

$

390,290

 

 

$

1,276,413

 

 

$

1,354,155

 

Non-portable software billings

 

 

29,539

 

 

 

12,945

 

 

 

208,158

 

 

 

71,390

 

Hardware billings

 

 

1,403

 

 

 

3,234

 

 

 

23,455

 

 

 

6,259

 

Professional services billings

 

 

16,935

 

 

 

23,019

 

 

 

72,066

 

 

 

89,292

 

Total billings

 

$

388,510

 

 

$

429,488

 

 

$

1,580,092

 

 

$

1,521,096

 

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, Annual Recurring Revenue and Run-rate Annual Contract Value

(Unaudited)

 

 

 

Three Months Ended
July 31,

 

Fiscal Year Ended
July 31,

 

 

2020

 

2021

 

2020

 

2021

 

 

(in thousands)

 

Annual Contract Value Billings (ACV Billings)

 

$

139,942

 

 

$

176,251

 

 

$

505,179

 

 

$

594,292

 

Annual Recurring Revenue (ARR)

 

$

481,250

 

 

$

878,733

 

 

$

481,250

 

 

$

878,733

 

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

 

$

1,219,965

 

 

$

1,535,360

 

 

$

1,219,965

 

 

$

1,535,360

 

Reconciliation of Subscription and Professional Services Revenue to Subscription and Professional

Services Billings

(Unaudited)

 

 

 

Three Months Ended
July 31,

 

Fiscal Year Ended
July 31,

 

 

2020

 

2021

 

2020

 

2021

 

 

(in thousands)

Subscription revenue

 

$

284,777

 

 

$

352,178

 

 

$

1,030,180

 

 

$

1,243,621

 

Change in subscription deferred revenue

 

 

55,856

 

 

 

38,112

 

 

 

246,233

 

 

 

110,534

 

Subscription billings

 

$

340,633

 

 

$

390,290

 

 

$

1,276,413

 

 

$

1,354,155

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Professional services revenue

 

$

12,155

 

 

$

22,363

 

 

$

45,889

 

 

$

73,094

 

Change in professional services deferred revenue

 

 

4,780

 

 

 

656

 

 

 

26,177

 

 

 

16,198

 

Professional services billings

 

$

16,935

 

 

$

23,019

 

 

$

72,066

 

 

$

89,292

 

Reconciliation of GAAP to Non-GAAP Profit Measures

(Unaudited)

 

 

 

GAAP

 

Non-GAAP Adjustments

 

Non-GAAP

 

 

Three
Months
Ended
July 31,
2021

 

(1)

 

(2)

 

(3)

 

(4)

 

(5)

 

(6)

 

(7)

 

Three

Months
Ended
July 31,
2021

 

 

(in thousands, except percentages and per share data)

Gross profit

 

$

312,201

 

 

$

8,167

 

 

$

3,694

 

 

$

(274

)

 

$

 

 

$

 

 

$

 

 

$

 

 

$

323,788

 

Gross margin

 

 

79.9

%

 

 

2.1

%

 

 

1.0

%

 

 

(0.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

82.9

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

270,789

 

 

 

(29,814

)

 

 

(651

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

240,324

 

Research and development

 

 

140,658

 

 

 

(36,109

)

 

 

 

 

 

1,128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

105,677

 

General and administrative

 

 

42,642

 

 

 

(15,517

)

 

 

 

 

 

 

 

 

(622

)

 

 

 

 

 

 

 

 

 

 

 

26,503

 

Total operating expenses

 

 

454,089

 

 

 

(81,440

)

 

 

(651

)

 

 

1,128

 

 

 

(622

)

 

 

 

 

 

 

 

 

 

 

 

372,504

 

Loss from operations

 

 

(141,888

)

 

 

89,607

 

 

 

4,345

 

 

 

(1,402

)

 

 

622

 

 

 

 

 

 

 

 

 

 

 

 

(48,716

)

Net loss

 

$

(358,182

)

 

$

89,607

 

 

$

4,345

 

 

$

(1,402

)

 

$

622

 

 

$

187,912

 

 

$

22,424

 

 

$

(756

)

 

$

(55,430

)

Weighted shares outstanding,
basic and diluted

 

 

212,612

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

212,612

 

Net loss per share, basic and
diluted

 

$

(1.68

)

 

$

0.42

 

 

$

0.02

 

 

$

(0.01

)

 

$

-

 

 

$

0.88

 

 

$

0.11

 

 

$

-

 

 

$

(0.26

)

_________________________________________

(1)

Stock-based compensation expense

(2)

Amortization of intangible assets

(3)

Recovery of lease-related asset impairment charges

(4)

Other

(5)

Change in fair value of derivative liability

(6)

Amortization of debt discount and issuance costs and non-cash interest expense

(7)

Income tax effect primarily related to stock-based compensation expense

 

 

GAAP

 

Non-GAAP Adjustments

 

Non-GAAP

 

 

Fiscal Year
Ended July
31, 2021

 

(1)

 

(2)

 

(3)

 

(4)

 

(5)

 

(6)

 

(7)

 

Fiscal Year
Ended July
31, 2021

 

 

(in thousands, except percentages and per share data)

Gross profit

 

$

1,102,458

 

 

$

30,483

 

 

$

14,776

 

 

$

13

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

1,147,730

 

Gross margin

 

 

79.1

%

 

 

2.2

%

 

 

1.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

82.3

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

1,052,508

 

 

 

(122,815

)

 

 

(2,604

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

927,089

 

Research and development

 

 

556,950

 

 

 

(150,856

)

 

 

 

 

 

(1,407

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

404,687

 

General and administrative

 

 

153,782

 

 

 

(54,391

)

 

 

 

 

 

 

 

 

(2,407

)

 

 

 

 

 

 

 

 

 

 

 

96,984

 

Total operating expenses

 

 

1,763,240

 

 

 

(328,062

)

 

 

(2,604

)

 

 

(1,407

)

 

 

(2,407

)

 

 

 

 

 

 

 

 

 

 

 

1,428,760

 

Loss from operations

 

 

(660,782

)

 

 

358,545

 

 

 

17,380

 

 

 

1,420

 

 

 

2,407

 

 

 

 

 

 

 

 

 

 

 

 

(281,030

)

Net loss

 

$

(1,034,260

)

 

$

358,545

 

 

$

17,380

 

 

$

1,420

 

 

$

2,407

 

 

$

269,265

 

 

$

79,933

 

 

$

743

 

 

$

(304,567

)

Weighted shares outstanding,
basic and diluted

 

 

206,475

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

206,475

 

Net loss per share, basic and
diluted

 

$

(5.01

)

 

$

1.74

 

 

$

0.08

 

 

$

0.01

 

 

$

0.01

 

 

$

1.30

 

 

$

0.39

 

 

$

-

 

 

$

(1.48

)

_________________________________________

(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 July
31, 2020

 

(1)

 

(2)

 

(3)

 

(4)

 

(5)

 

Three Months
Ended July
31, 2020

 

 

(in thousands, except percentages and per share data)

Gross profit

 

$

260,903

 

 

$

7,561

 

 

$

3,695

 

 

$

 

 

$

 

 

$

 

 

$

272,159

 

Gross margin

 

 

79.6

%

 

 

2.3

%

 

 

1.1

%

 

 

 

 

 

 

 

 

 

 

 

83.0

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

264,453

 

 

 

(33,878

)

 

 

(650

)

 

 

 

 

 

 

 

 

 

 

 

229,925

 

Research and development

 

 

135,338

 

 

 

(39,768

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

95,570

 

General and administrative

 

 

32,464

 

 

 

(11,654

)

 

 

 

 

 

(520

)

 

 

 

 

 

 

 

 

20,290

 

Total operating expenses

 

 

432,255

 

 

 

(85,300

)

 

 

(650

)

 

 

(520

)

 

 

 

 

 

 

 

 

345,785

 

Loss from operations

 

 

(171,352

)

 

 

92,861

 

 

 

4,345

 

 

 

520

 

 

 

 

 

 

 

 

 

(73,626

)

Net loss

 

$

(185,348

)

 

$

92,861

 

 

$

4,345

 

 

$

520

 

 

$

8,023

 

 

$

605

 

 

$

(78,994

)

Weighted shares outstanding,
basic and diluted

 

 

200,150

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

200,150

 

Net loss per share, basic and
diluted

 

$

(0.93

)

 

$

0.47

 

 

$

0.02

 

 

$

-

 

 

$

0.04

 

 

$

0.01

 

 

$

(0.39

)

_________________________________________

(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

 

 

Fiscal Year
Ended July
31, 2020

 

(1)

 

(2)

 

(3)

 

(4)

 

(5)

 

(6)

 

Fiscal Year
Ended July
31, 2020

 

 

(in thousands, except share and per share data)

Gross profit

 

$

1,020,993

 

 

$

27,348

 

 

$

14,777

 

 

$

537

 

 

$

 

 

$

 

 

$

 

 

$

1,063,655

 

Gross margin

 

 

78.1

%

 

 

2.1

%

 

 

1.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

81.3

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

1,160,389

 

 

 

(126,015

)

 

 

(2,603

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,031,771

 

Research and development

 

 

553,978

 

 

 

(153,252

)

 

 

 

 

 

(2,465

)

 

 

 

 

 

 

 

 

 

 

 

398,261

 

General and administrative

 

 

135,547

 

 

 

(45,383

)

 

 

 

 

 

 

 

 

(1,499

)

 

 

 

 

 

 

 

 

88,665

 

Total operating expenses

 

 

1,849,914

 

 

 

(324,650

)

 

 

(2,603

)

 

 

(2,465

)

 

 

(1,499

)

 

 

 

 

 

 

 

 

1,518,697

 

Loss from operations

 

 

(828,921

)

 

 

351,998

 

 

 

17,380

 

 

 

3,002

 

 

 

1,499

 

 

 

 

 

 

 

 

 

(455,042

)

Net loss

 

$

(872,883

)

 

$

351,998

 

 

$

17,380

 

 

$

3,002

 

 

$

1,499

 

 

$

31,313

 

 

$

1,845

 

 

$

(465,846

)

Weighted shares outstanding,
basic and diluted

 

 

194,719

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

194,719

 

Net loss per share, basic and
diluted

 

$

(4.48

)

 

$

1.80

 

 

$

0.09

 

 

$

0.02

 

 

$

0.01

 

 

$

0.16

 

 

$

0.01

 

 

$

(2.39

)

_________________________________________

(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 Provided By (Used In) Operating Activities to Non-GAAP Free Cash Flow

(Unaudited)

 

 

 

Three Months Ended
July 31,

 

Fiscal Year Ended
July 31,

 

 

2020

 

2021

 

2020

 

2021

 

 

(in thousands)

 

Net cash provided by (used in) operating activities

 

$

3,630

 

 

$

(24,630

)

 

$

(159,885

)

 

$

(99,810

)

Purchases of property and equipment

 

 

(17,415

)

 

 

(17,536

)

 

 

(89,488

)

 

 

(58,647

)

Free cash flow

 

$

(13,785

)

 

$

(42,166

)

 

$

(249,373

)

 

$

(158,457

)

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20210901005856/en/

CONTACT: Investor Contact:

Richard Valera

ir@nutanix.comMedia Contact:

Jennifer Massaro

pr@nutanix.com

KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: NETWORKS INTERNET DATA MANAGEMENT TECHNOLOGY SOFTWARE

SOURCE: Nutanix, Inc.

Copyright Business Wire 2021.

PUB: 09/01/2021 04:02 PM/DISC: 09/01/2021 04:02 PM

http://www.businesswire.com/news/home/20210901005856/en