Nutanix, Inc. · NASDAQ:NTNX
Nutanix — Q3 FY2017 Earnings Presentation
24 slides from Nutanix's earnings presentation, May 25, 2017
Slide 1: Q3 FY'17 Investor Presentation
Q3 FYʹ17 Investor Presentation May 25, 2017
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: Q3 FY2017 Key Highlights
Q3 FY2017 KEY HIGHLIGHTS MARKET CUSTOMERS BALANCE SHEET $100B+ TAM 6,172 total customers, up $350M in cash & ST inv. 98% YoY DSO of 79 days, weighted 521 Global 2000 customers average DSO of 23 days 269 customers with lifetime No inventory bookings of $1-3M 40 customers with lifetime bookings of $3-
Slide 4: Q3 Fiscal Year 2017 Financial Results
Q3 FISCAL YEAR 2017 FINANCIAL RESULTS Q3ʹ17 Q2ʹ17 Q/Q Change Q3ʹ16 Y/Y Change Revenue $191.8 $182.2 5% $114.7 67% Billings* $234.1 $227.4 3% $159.5 47% Gross Margin* 58.4% 59.8% -1.4 62.5% -4.1 Operating Loss* -$59.0 -$38.8 -52% -$39.7 -49% Net Loss Per Share* -$0.42 -$0.28 -50% -$0.33 -27% ** Cash
Slide 5: Strong Revenue Growth
STRONG REVENUE GROWTH By Quarter By Fiscal Year $600 $250 $541 $500 $192 $445 $200 $182 $167 $400 $ Millions $150 $140 $ Millions $115 $103 $300 $100 $88 $241 $74 $64 $57 $200 $46 $39 $127 $50 $32 $36 $20 $14 $100 $5 $6 $7 $0 $31 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 $0 FY13 FY14
Slide 6: Historical Billings Performance
HISTORICAL BILLINGS PERFORMANCE By Quarter By Fiscal Year $800 $300 $701 $700 $240 $638 $250 $234 $227 $207 $600 $200 $ Millions $500 $160 $ Millions $143 $150 $128 $400 $309 $95 $100 $82 $300 $71 $61 $38 $43 $48 $200 $50 $151 $23 $23 $5 $7 $8 $100 $0 $42 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 7: Deferred Revenue Builds for the Future
DEFERRED REVENUE BUILDS FOR THE FUTURE $500 $463 LT Deferred Revenue ST Deferred Revenue $421 $400 $375 $296 $ Millions $300 $230 $185 $200 $144 $104 $100 $83 $65 $51 $28 $36 $13 $15 $21 $2 $2 $3 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY13 FY14 FY15 FY16 FY17 ST Deferred Revenue
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** 7,000 6,172 400 341 6,000 5,382 295 4,473 300 256 5,000 3,768 208 4,000 3,111 2,638 200 154 3,000 2,144 136 1,799 108 2,000 1,168 1,412 80 583 7
Slide 9: Customer Cohort Booking Capacity Compounding
CUSTOMER COHORT BOOKING CAPACITY COMPOUNDING Cumulative Bookings by End-Customer Cohort* $1,200 $1,000 $800 $600 $400 $200 $- 2012 2013 2014 2015 2016 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 * Classified according to the fiscal year in which an end-customer made its first purchase. 9
Slide 10: Strong Growth in the Global 2000
STRONG GROWTH IN THE GLOBAL 2000 Cumulative Global 2000 Customers* Total Lifetime Purchase Multiples* ** 600 10 521 500 473 7.8x 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 Initial Buy Global 2000 >18 mos FY14 FY15 FY
Slide 11: 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 Customer 1 Customer 2 Customer 3 Customer 4 Customer 5 Customer 6 Customer 7 Customer 8 Customer 9 Customer 10
Slide 12: Software Content Trends
SOFTWARE CONTENT TRENDS By Quarter (4-qtr rolling average) 18% 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 FY14 FY15 FY16 FY17 Note: Approx. 2/3 of OEM bookings are classified as software, approxima
Slide 13: Steady AHV Adoption, as a % of Nodes
STEADY AHV ADOPTION, AS A % of NODES By Quarter (4-qtr rolling average) 25% 23% 21% 20% 17% As a % of Nodes 15% 13% 10% 9% 7% 6% 6% 5% 3% 1% 0% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY15 FY16 FY17 13
Slide 14: Operational Leverage
OPERATIONAL LEVERAGE Percentages Indicated as a % of Revenue Gross Margin* Operating Margin* FY14 FY15 FY16 FY17 65% 63% 62% 61% 61% 60% 60% 60% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 59% 59% 60% 58% -20% 57% 56% -21% -30% 55% -27% 52% -29% -31% -31% -40% -35% 50% 50% -36% -39% -40% 50% -50% -
Slide 15: Funding Headcount Resources for the Future
FUNDING HEADCOUNT RESOURCES FOR THE FUTURE 4,000 3,500 S&M R&D 2,672 3,000 2,559 Support & Service 2,357* 206 2,500 207 G&A 1,980 188 357 344 1,798 2,000 305 172 1,589 164 242 810 782 1,500 1,368 153 212 737 1,180 168 127 598 1,017 136 528 114 1,000 738 863 104 120 470 106 419 617 91 88 375 517 74 7
Slide 16: Balance Sheet Trends
BALANCE SHEET TRENDS Q3ʹ17 Q2ʹ17 Q/Q Q3ʹ16 Y/Y $ Millions Actual Actual Change Actual Change Cash and $350.3 $355.2 -1% $191.8 83% ST Investments Accounts $170.3 $151.2 13% $63.5 168% Receivable Days Sales 79 76 +3 days 51 +28 days Outstanding* Weighted Days 23 24 -1 days 30 -7 days Sales Outstandin
Slide 17: Target Financial Model
TARGET FINANCIAL MODEL YTD How We Get There Target Long- FY2014 FY2015 FY2016 FY2017 term Model Gross Margin Revenue mix shifts more toward 52% 59% 62% 60% software – ELAs, Term-based 63%-65% (non-GAAP)¹ Software upgrades, OEM R&D as % of Revenue Top line growth, optimize 28% 28% 25% 24% 13%-15% (no
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Slide 19: GAAP to Non-GAAP Reconciliations
GAAP to NON-GAAP RECONCILIATIONS
Slide 20: Reconciliation of Non-GAAP Financial 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 Reconciliation of GAAP to Non-GAAP Gross profit - G
Slide 21: Reconciliation of Non-GAAP Financial 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 Reconciliation of GAAP to Non-GAAP Gross profit
Slide 22: Reconciliation of Non-GAAP Financial Measures—2016
RECONCILATION OF NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE MEASURES—2016 Q1 Q2 Q3 Q4 Total Billings Revenue $ 87.8 $ 102.7 $ 114.6 $ 139.8 $ 444.9 Change in deferred revenue 40.5 40.7 44.9 66.8 192.9 Total billings $ 128.3 $ 143.4 $ 159.5 $ 206.6 $ 637.8 Reconciliation of GAAP to Non-GAAP Gros
Slide 23: Reconciliation of Non-GAAP Financial Measures—2017
RECONCILATION OF NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE MEASURES--2017 Q1 Q2 Q3 Q4 Total Billings Revenue $ 166.8 $ 182.2 $ 191.8 $ 540.8 Change in deferred revenue 73.0 45.2 42.4 160.6 Total billings $ 239.8 $ 227.4 $ 234.1 $ 701.3 Reconciliation of GAAP to Non-GAAP Gross profit - GAAP $ 9
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