Nutanix, Inc. · NASDAQ:NTNX

Nutanix — Q4 FY2021 Earnings Presentation

25 slides from Nutanix's earnings presentation, Sep 1, 2021

  1. Slide 1: Q4 and Fiscal 2021 Earnings Presentation

    Q4 and Fiscal 2021 Earnings Presentation SEPTEMBER 1, 2021

  2. 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

  3. 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, strategies, vision, and objectives, including our go-to-market strategy (in

  4. Slide 4: Q4 Fiscal 2021 Company Highlights

    |4 Q4 Fiscal 2021 Company Highlights Delivered Record ACV Billings and Revenue Revenue of $391 million, up 19% year-over-year, the Company’s fastest growth in the last three years. ACV Billings of $176 million, up 26% year-over-year, marking the Company’s fastest growth rate in over two years. Outpe

  5. Slide 5: Management Commentary

    |5 Management Commentary Rajiv Ramaswami “Our fourth quarter was a strong end to an excellent fiscal year, which President & Chief was marked by consistent execution and solid progress across both Executive Officer financial and strategic objectives. We have entered our fiscal 2022 with good momentu

  6. Slide 6: Q4’21 Financial Summary

    Q4’21 Financial Summary |6 Q4’21 Results Y/Y Change Q4’21 Guidance ACV Billings $176.3M 26% $170 - $175M Annual Recurring Revenue $878.7M 83% N/A Run-rate ACV $1.54B 26% N/A Average Contract Term 3.4 Years (0.4) Year N/A Revenue $390.7M 19% N/A Non-GAAP Gross Margin 82.9% (10) bps ~81.5% to 82.0% No

  7. Slide 7: Q4’21 Subscription Highlights

    Q4’21 Subscription Highlights |7 $176.3M $1.54B ACV Billings Run-rate ACV +26% Y/Y +26% Y/Y $878.7M 3.4 Years Annual Recurring Revenue Average Contract Term +83% Y/Y (0.4) Year Y/Y Note: Data is as of July 31, 2021. See Appendix for definitions of ACV, ACV Billings, Annual Recurring Revenue, Average

  8. Slide 8: Run-rate ACV

    Run-rate ACV |8 +26% Y/Y $1,535 $1,447 $1,385 $ Millions $1,291 $1,220 $1,155 $1,081 $1,002 $944 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Note: See Appendix for definitions of ACV and Run-rate ACV. There is no GAAP measure that is comparable to Run-rate ACV, so the Company has not recon

  9. Slide 9: Annual Recurring Revenue

    Annual Recurring Revenue |9 +83% Y/Y $879 $762 $673 $ Millions $570 $481 $409 $343 $271 $218 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Note: See Appendix for definition of Annual Recurring Revenue. There is no GAAP measure that is comparable to Annual Recurring Revenue, so the Company ha

  10. Slide 10: ACV Billings

    ACV Billings | 10 +26% Y/Y $176 $159 $160 Millions $Millions $140 $140 $138 $135 $124 $126 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Note: ACV Billings exclude amounts related to professional services and hardware. See Appendix for definitions of ACV and ACV Billings. There is no GAAP m

  11. Slide 11: Q4’21 ACV Billings to Total Billings Conversion

    Q4’21 ACV Billings to Total Billings Conversion | 11 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

  12. Slide 12: ACV % and Historical Contract Terms

    ACV % and Historical Contract Terms | 12 ACV Billings % by Term 5% 9% 14% Other (1) 15% 5-year 29% 28% 3-year 1-year 52% 48% Q3'21 Q4'21 Average Contract Term (Years) Q4’19 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 3.9 3.9 3.9 3.8 3.8 3.5 3.4 3.3 3.4 Note: See previous page for calculation of

  13. Slide 13: Gross Margin

    Gross Margin | 13 By Quarter By Fiscal Year 83% 82% 83% 82% 83% 81% 82% 78% 68% Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 FY'18 FY'19 FY'20 FY'21 Note: Margins shown on a Non-GAAP basis. See Appendix for a reconciliation of GAAP to Non-GAAP measures.

  14. Slide 14: FY’21 Retention Highlights

    FY’21 Retention Highlights | 14 96% >90% Customer Retention Rate Gross Retention Rate for LoD and Subscription (Excluding LoD) 124% 158% Net Dollar Retention Rate Net Dollar Retention Rate (Including LoD) (Excluding LoD) Note: Data is as of July 31, 2021. See Appendix for definitions of Customer Ret

  15. Slide 15: Renewals ACV and TCV Billings

    Renewals ACV and TCV Billings | 15 Renewals ACV Billings Renewals TCV Billings $161 $179 $117 $136 $ Millions FY'20 FY'21 FY'20 FY'21 Note: See Appendix for definitions of Renewals ACV Billings, ACV, and Renewals TCV Billings.

  16. Slide 16: Q4’21 Hybrid Multicloud Platform

    Q4’21 Hybrid Multicloud Platform | 16 53% 41% 100+% AHV Adoption as % of Deals Involving at Least Y/Y Growth of a % of NX Cores (1) One Emerging Product (1) New ACV Bookings +5pts Y/Y +8pts Y/Y from Emerging Products (1) Calculated on a rolling four-quarter average Note: See Appendix for definitions

  17. Slide 17: Customer Growth Momentum

    Customer Growth Momentum | 17 Q4’21 Highlights 20,130 16% Cumulative Customer Count (1) 19,430 Total Customers Y/Y Growth 18,770 980 (1) 18,040 17,360 G2K Customers 16.4x (2) 16,580 15,880 G2K Lifetime ACV Repeat Purchase Multiple 14,960 14,180 81 Forbes Global 100 Customers 90 NPS 7-Year Average Q4

  18. Slide 18: Over $1M Customer Growth

    Over $1M Customer Growth | 18 Q4’21 Highlights Cumulative End-customers 1,512 +24% 1,066 (1) 1,433 Y/Y Customers with Lifetime Bookings (LTB) > $1M $1-$3M in LTB 1,358 1,207 1,276 +27% 209 Y/Y Customers 1,122 $3-$5M in LTB 1,060 921 990 +20% 143 Y/Y Customers $5-$10M in LTB +42% 94 Y/Y Customers >$1

  19. Slide 19: Q1’22 Financial Guidance

    Q1’22 Financial Guidance | 19 Q1’22 Guidance ACV Billings $172 - $177M Non-GAAP Gross Margin Approximately 81.5% Non-GAAP Operating Expenses $365 - $370M Weighted Average Shares Outstanding Approximately 216M Modeling Assumptions: 1. The Company expects average contract term lengths to trend back do

  20. Slide 20: Appendix

    Appendix

  21. Slide 21: Nutanix Reporting Model

    Nutanix Reporting Model | 21 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

  22. Slide 22: Endnotes and Definitions

    Endnotes and Definitions | 22 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

  23. Slide 23: Endnotes and Definitions

    Endnotes and Definitions | 23 Definitions Net Dollar Retention Rate (Including LOD) is calculated on an annual basis by dividing the aggregate Retained ACV at the end of the period by the aggregate Retained ACV from the same group of customers at the end of the prior period on a dollar-weighted basi

  24. Slide 24: GAAP to Non-GAAP Reconciliations and Calculation of Billings

    GAAP to Non-GAAP Reconciliations and Calculation of Billings | 24 Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 FY’18 FY’19 FY’20 FY’21 Gross margin (GAAP) 79.6% 78.3% 79.5% 78.4% 79.9% 66.6% 75.4% 78.1% 79.1% Stock-based compensation expense 2.3 2.3 2.1 2.2 2.1 1.0 1.5 2.1 2.2 Amortization of intangible assets 1.1

  25. Slide 25: Disaggregation of Billings and Revenue

    Disaggregation of Billings and Revenue | 25 $ Millions FY’19 FY’20 FY’21 Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 Subscription revenue $648.4 $1,030.2 $1,243.6 $284.8 $278.2 $305.9 $307.3 $352.2 Change in subscription deferred revenue, net of acquisitions 267.6 246.2 110.5 55.9 15.7 33.2 23.5 38.1 Subscription

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