Nutanix, Inc. · NASDAQ:NTNX
Nutanix — Q3 FY2021 Earnings Presentation
21 slides from Nutanix's earnings presentation, May 26, 2021
Slide 1: Q3 Fiscal 2021 Earnings Presentation
Q3 Fiscal 2021 Earnings Presentation M AY 2 6 , 2 0 2 1
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, objectives and outlook, including our plans to focus on
Slide 4: Q3'21 Company Highlights
|4 Q3’21 Company Highlights Delivered Upside Across All Guided Metrics Driven by Consistent Execution Record ACV Billings with 18% YoY growth and 25% YoY growth in Run-rate ACV Extended Partnership with Lenovo to Deliver a Complete Hosted Desktop Environment Lenovo and Nutanix announced a new as-a-s
Slide 5: Management Commentary
|5 Management Commentary Rajiv Ramaswami “I am delighted with our strong quarterly results. For the third quarter in President & Chief a row, we delivered outperformance across all guided metrics and Executive Officer demonstrated our ability to execute consistently,” said Rajiv Ramaswami, President
Slide 6: Q3'21 Financial Summary
Q3’21 Financial Summary |6 Q3’21 Results YoY Change Q3’21 Guidance ACV Billings $159.9M 18% $150 - $155M Run-rate ACV $1.45B 25% N/A Average Contract Term 3.3 Years (0.5) Year N/A Revenue $344.5M 8% N/A Non-GAAP Gross Margin 81.7% 100 bps Approximately 81% Non-GAAP Operating Expenses $361.5M (7)% $3
Slide 7: Q3'21 Subscription Highlights
Q3’21 Subscription Highlights |7 $159.9M $1.45B ACV Billings Run-rate ACV +18% YoY +25% YoY 81.7% 3.3 Years Non-GAAP Gross Margin Average Contract Term +100 bps YoY (0.5) Year YoY Note: Data is as of April 30, 2021. See Appendix for definitions of ACV Billings, Run-rate ACV, ACV and Average Contract
Slide 8: Run-rate ACV
Run-rate ACV |8 +25% YoY $1,447 $1,385 $1,291 $1,220 $ Millions $1,155 $1,081 $1,002 $944 $860 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Note: See Appendix for definition of Run-rate ACV and ACV. There is no GAAP measure that is comparable to Run-rate ACV, so the Company has not reconcil
Slide 9: ACV Billings
ACV Billings |9 +18% YoY $159 $160 $140 $140 $138 Millions $135 $$Millions $124 $126 $108 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Note: ACV Billings exclude amounts related to professional services and hardware. See Appendix for definition of ACV Billings and ACV There is no GAAP measu
Slide 10: Q3'21 ACV Billings to Total Billings Conversion
Q3’21 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 A
Slide 11: ACV % and Historical Contract Terms
ACV % and Historical Contract Terms | 11 ACV Billings % by Term 7% 5% 14% Other (1) 18% 5-year 29% 26% 3-year 1-year 49% 52% Q2'21 Q3'21 Average Contract Term (Years) Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 4.1 3.9 3.9 3.9 3.8 3.8 3.5 3.4 3.3 Note: See previous page for calculation of
Slide 12: Gross Margin
Gross Margin | 12 By Quarter By Fiscal Year 83% 82% 83% 82% 81% 81% 78% 68% 63% Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 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: Q3'21 Hybrid and Multicloud Platform
Q3’21 Hybrid and Multicloud Platform | 13 52% 39% 80+% AHV Adoption as % of Deals Involving at Least YoY Growth of a % of Total Nodes(1) One Emerging Product (1) New ACV +4pts YoY +7pts 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 Q3’21 Highlights (1) 18,770 19,430 17% Cumulative Customer Count Total Customers 18,040 YoY Growth 17,360 960 (1) 16,580 G2K Customers 15,880 16.2x (2) 14,960 14,180 G2K Lifetime ACV Repeat Purchase Multiple 13,190 80 Forbes Global 100 Customers 90 NPS 7-Year Average Q3
Slide 15: Over $1M Customer Growth
Over $1M Customer Growth | 15 Q3’21 Highlights Cumulative End-customers 1,433 +26% 1,002 YoY Customers with Lifetime Bookings (LTB) > $1M (1) 1,358 $1-$3M in LTB 1,276 1,207 1,122 +29% 206 1,060 YoY Customers $3-$5M in LTB 990 921 848 +36% 144 YoY Customers $5-$10M in LTB +27% 81 YoY Customers >$10M
Slide 16: Q4'21 Financial Guidance
Q4’21 Financial Guidance | 16 Q4’21 Guidance ACV Billings $170 - $175M Non-GAAP Gross Margin Approximately 81.5% to 82.0% Non-GAAP Operating Expenses $380 - $385M Weighted Average Shares Outstanding Approximately 212M Modeling Assumptions: 1. Based on the Q4’21 ACV Billings guidance, Run-rate ACV is
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 total customer and G2K customer counts reflect standard adjustments/consolidation to certain customer accounts within our sy
Slide 20: GAAP to Non-GAAP Reconciliations and Calculation of Billings
GAAP to Non-GAAP Reconciliations and Calculation of Billings | 20 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 FY’17 FY’18 FY’19 FY’20 Gross margin (GAAP) 77.3% 79.6% 78.3% 79.5% 78.4% 61.3% 66.6% 75.4% 78.1% Stock-based compensation expense 2.3 2.3 2.3 2.1 2.2 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 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 Subscription revenue $330.7 $648.4 $1,030.2 $261.0 $284.8 $278.2 $305.9 $307.3 Change in subscription deferred revenue, net of acquisitions 251.3 267.6 246.2 60.1 55.9 15.7 33.2 23.5 Subscription b