Exhibit 99.1

Nimble Storage Inc. Q4FY16 Shareholder Letter

Executive Summary

The storage industry is going through a period of unprecedented change with modern architectures upending legacy storage architectures. Large incumbent vendors have experienced consistent revenue declines and market-share losses over the last two years because their legacy architectures are no longer competitive.

We were founded on the belief that we could emerge as a long-term leader in storage by leveraging the very same technology catalysts that are disrupting the large incumbents. Organizations rely on applications to drive core business processes and business applications in turn rely on rapid, uninterrupted access to data. When something disrupts the delivery of data to applications, this app-data gap impacts business outcomes negatively. Our founding thesis was to leverage flash and cloud-based predictive analytics to eliminate the app-data gap. We built our Predictive Flash Platform to deliver data velocity.

The Nimble Storage Predictive Flash Platform is comprised of three key components:

Our long-term goal is to leverage the Predictive Flash Platform to emerge as the leader in storage. We executed well against our vision in Q4FY16.

Unified Flash Fabric: A Single Architecture Across All Flash and Adaptive Flash Arrays

We are proud of the pace at which we have delivered innovation over the last several years. In just the last two years, we have delivered a broad range of innovations that include: Scale-out Clustering, Adaptive Flash functionality, Triple Parity RAID, Fibre Channel support, application granular encryption, and Flash Service Levels among many others.

We took another major step forward in February 2016 as we introduced our next generation All Flash arrays that we believe leapfrog the current all flash arrays in the market. Further, our Unified Flash Fabric combines All Flash and Adaptive Flash arrays into a single consolidation architecture that democratizes the use of flash to accelerate every application across the enterprise in a manner that we believe is unmatched in our industry. During Q4FY16, we recruited dozens of customers and prospects as part of the All Flash array beta program, and the feedback has been very positive.

CASL, our flash optimized file system, has been the architectural foundation of our market leading Adaptive Flash arrays. The ground-up design of CASL was motivated by the ability to leverage flash efficiently, and that same design objective has allowed us to build an All Flash array that we believe delivers a substantially better value proposition than other all flash arrays in the market:

Driving Growth by Building a Large, Diversified and Global Community of Satisfied Customers

Our strategy for growth focuses on four main themes. The first is new customer acquisition. The second is to drive larger deals within our customers. The third is to diversify our customer base and increase the mix of revenue from international customers, large global enterprises and CSPs. The fourth theme is to drive repeat business from existing customers through an unwavering commitment to customer success.

Driving Growth In The Converged Infrastructure Market With SmartStack

Building a Healthy Business Model While Capitalizing on Industry Consolidation

Change is accelerating across the $40B storage market with incumbent vendors consistently losing share because we believe their legacy architectures are no longer competitive. We believe the impending merger of EMC and Dell may lead to additional industry consolidation, including consolidation of product lines. At the same time, of the dozens of startups that had been funded over the last five years, fewer than a handful of storage startups have reached critical mass in terms of customer base or revenues as we believe they lack the breadth of functionality to displace the large incumbent vendors. If popular sentiment about easy access to private capital becoming scarce in calendar 2016 proves true, these startups’ ability to fund future growth may rapidly diminish.

Given these forces, we believe the storage industry will consolidate to a few large systems vendors and a handful of next generation storage specialists. This consolidation creates an opportunity for Nimble to solidify its position as a long-term leader in the redefined storage market. This conviction guides our investments.

During Q3FY16, we recognized the need to increase investments in our commercial business, which has a quicker payback since our commercial sales teams typically achieve breakeven levels of productivity during their second year. We plan to increase investments in demand generation, channel programs and commercial sales capacity during 1HFY17 to drive growth in 2HFY17.

A second area of investment is in entering the All Flash array market. We started R&D investments about two years ago, and accelerated our investments during the last several months of FY16 culminating in a very successful beta program in Q4FY16 and a planned market entry in Q1FY17. We believe that All Flash arrays will increase productivity of our commercial and enterprise sales teams, given the rapid growth in the all flash array market and the differentiation of our All Flash arrays.   As we look ahead at FY17, we believe that the investments we are making in accelerating our commercial business, and in entering the all flash array

market will lead to higher operating losses in the 1HFY17, but will reaccelerate growth and improve operating leverage in 2HFY17. More significantly, we are well positioned to leverage the current disruption in the storage industry as we aspire to emerge as a next generation storage leader.

Financial Performance

Q4FY16 and FY16 Financial Results

As a reminder, all results presented in this letter are on a non-GAAP basis except for revenue and the balance sheet. Non-GAAP results exclude the impact of stock-based compensation.

Q4FY16 Highlights

•    Non-GAAP Gross Margin was 66.4%, a decrease of 80 bps vs. Q4FY15. Excluding fluctuations in foreign currency, gross margin would have been flat to Q4FY15 at 67.2%.   •    Non-GAAP Operating Loss increased to $9.4 million compared to $8.5 million in Q4FY15. Excluding fluctuations in foreign currency, operating loss would have been $8.0 million, or $1.4 million better than our Q4FY16 reported operating loss.   •    Non-GAAP Operating Margin improved by 200 bps to negative 10% of revenue from negative 12% of revenue in Q4FY15. Excluding fluctuations in foreign currency, operating margin would have been negative 9% of revenue.

FY2016 Highlights   •    Revenue of $322.2 million, up 42% from $227.7 million in FY15   •    Non-GAAP Gross Margin of 67.1%, an improvement of 10 bps from 67.0% in FY15   •    Non-GAAP Operating Loss of $35.3 million compared to a loss of $39.0 million in FY15   •    Non-GAAP Operating Margin of negative 11% compared to negative 17% in FY15   •    Adjusted EBITDA of negative $20.4 million or negative 6% of revenue compared to negative $32.3 million or negative 14% of revenue in FY15.   •    Non-GAAP EPS was a loss of $0.47 per share compared to a loss of $0.58 per share in FY15.

Q4FY16 Financial Results

During Q4, we achieved revenue of $90.1 million, at the top end of our guidance range of $87 million to $90 million. We had an operating loss of $9.4 million, and our non-GAAP EPS was a loss of $0.12 per share, in line with our projected operating loss of $8.0 million to $10.0 million, and non-GAAP EPS loss of $0.11 to $0.13 per share.   Product revenue for Q4 was $73.1 million, representing 81% of total revenue and an increase of 25% from Q4FY15. Q4 support and service revenue, which includes our maintenance and InfoSight cloud-based predictive analytics service, was $17.0 million, representing 19% of total revenue and an increase of 77% from Q4FY15.   Our international business contributed 25% of total revenue during Q4 and grew by 66% from Q4FY15. Revenue from our EMEA operations increased by 68% and revenue from APJ increased by 61% from a year ago. Excluding fluctuations in foreign currency, international revenues would have been 26% of total revenue, with growth of 80% compared to Q4FY15.
At the end of Q4, our total deferred revenue was $114.8 million, an increase of $40.4 million or 54% from Q4FY15. Our deferred revenue consists primarily of payments received for support and service agreements including InfoSight, which have an average life of approximately three years.
Non-GAAP gross margin was 66.4% in Q4, a decrease of 50 bps from Q3FY16 and a decrease of 80 bps from Q4FY15. Our reported gross margin would have been 80 bps higher or flat to Q4FY15 at constant exchange rates. Product gross margin in Q4 was 66.7%, 110 bps lower than Q3FY16. Support and service gross margin in Q4 was 65.2%, 240 bps higher than Q3FY16. Our industry leading overall gross margin remains above our long-term target model of 63% to 65%.

Q4FY16 total operating expenses were $69.2 million or 77% of revenue compared to Q4 last year operating expenses of $54.4 million or 80% of revenue. We ended FY16 with 1,104 employees, an increase of 55 employees in Q4.

FY16 Financial Results

During FY16, we achieved revenue of $322.2 million, an increase of 42% from FY15. Product revenue was $265.6 million, representing 82% of total revenue and an increase of 34% from the prior year. Support and service revenue was $56.6 million, representing 18% of total revenue and an increase of 92% from prior year. Our international business contributed 21% of total revenue during FY16, up from 18% in FY15, and grew by 66% from the prior year. During FY16, our EMEA revenue grew by 63% and APJ revenue grew by 72% over FY15.

In FY16, our gross margin increased by 10 bps to 67.1%. Our product margin was 68.2%, a decrease of 90 bps from FY15. Our support and service margin increased by 890 bps to 62.2% from 53.3%. Total operating expenses were 78% of revenue compared to 84% in FY15, an improvement of 600 bps. Our operating margin in FY16 was negative 11% compared to negative 17% in FY15, an improvement of 600 bps. Adjusted EBITDA margin in FY16 was negative 6% compared to negative 14% in FY15, an improvement of 800 bps.

Our total cash balance increased by $2.8 million during the year to end at $211.2 million. This was the second consecutive year that our overall cash balance has been flat to slightly up. CFFO was positive $5.8 million in FY16, up from positive $5.4 million in FY15. Our FCF decreased to negative $23.7 million compared to negative $15.4 million in FY15 as capex spending increased to $29.4 million in FY16 from $20.8 million in FY15.

Q1FY17 Financial Outlook and FY17 Perspectives

As we enter FY17, we are very excited about the prospects and traction of our Predictive Flash Platform and its key components: our Unified Flash Fabric, Infosight cloud-based Predictive Analytics and Timeless Storage. As we discussed during our last earnings call, we expect the first half of FY17 to be a rebuilding period. During this period we will increase our investments to expand our market share, which we believe will lead to re-accelerating revenue growth and improving operating leverage in the second half of FY17.

We remain committed to achieving our long-term target operating model as we continually assess the appropriate balance of revenue growth, market share expansion, and profitability.

The guidance for Q1 takes into account the following factors:

Given that context, our guidance for Q1 is as follows:

While our practice is not to provide full year guidance, it is helpful to share some perspectives on FY17 as a whole:

We thank our partners and customers once again for embracing us, our investors for their confidence in us, and our employees for their dedication and flawless execution.

Suresh Vasudevan, CEO		Anup Singh, CFO

Conference Call Information:

As previously announced, Nimble Storage will host a live question & answer conference call and webcast today at 5:00 p.m. ET (2:00 p.m. PT) to discuss its financial results for the fiscal fourth quarter 2016. Interested parties may access the call by dialing 877-604-9673 in the U.S. or 719-325-4773 from international locations. In addition, a live audio webcast of the conference call will be available on the Nimble Storage Investor Relations website at http://investors.nimblestorage.com. The live webcast will be archived and available on this site for 45 days. A replay of the conference call will be available for 45 days. To access the replay, dial 888-203-1112 and enter pass code 757294. Callers outside the U.S. and Canada should dial 719-457-0820 and enter pass code 757294.

Non-GAAP Financial Measures

To provide investors with additional information regarding our financial results, Nimble Storage has disclosed in this release non-GAAP financial measures that are not calculated in accordance with generally accepted accounting principles in the United States, or GAAP. The Company provides non-GAAP gross margin, non-GAAP product margin, non-GAAP service and support margin, non-GAAP operating margin, non-GAAP net loss, non-GAAP net loss per basic and diluted share, free cash flow and adjusted EBITDA. In computing many of these non-GAAP financial measures, the Company excludes the effects of stock-based compensation, which is a recurring expense for the Company. The Company has provided reconciliation below of non-GAAP financial measures to the most directly comparable GAAP financial measures.

The Company discloses these non-GAAP financial measures because they are key measures used by the Company’s management and board of directors to understand and evaluate operating performance and trends, to prepare and approve the annual budget and to develop short-term and long-term operational and compensation plans. In particular, the exclusion of certain expenses in calculating non-GAAP financial measures can provide a useful measure for period-to-period comparisons of the Company’s business. Accordingly, the Company believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating the Company’s operating results in the same manner as the Company’s management and board of directors.

Non-GAAP financial measures have limitations as analytical tools and, as such, should not be considered in isolation or as substitutes for analysis of the Company’s results as reported under GAAP. Some of these limitations are:

Nimble Storage, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share amounts)

(Unaudited)

Forward-Looking Statements

This press release contains “forward-looking” statements that are based on our management’s beliefs and assumptions and on information currently available to management. We intend for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements other than statements of historical fact contained in this letter, including our current beliefs and expectations concerning our future financial results, product releases, product performance and benefits, business plans, strategy and objectives, potential growth drivers and opportunities, competitive position, industry trends and environment and potential market opportunities.

Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors including, but not limited to, those related to our future financial performance, which is inherently uncertain, unforeseen delays in product development or introduction, uncertainty around market acceptance of our solutions, our ability to increase sales of our solutions, our ability to attract and retain customers and to selling additional solutions to our existing customers, our ability to develop new solutions and bring them to market in a timely manner, pricing pressure (as a result of competition or otherwise), introduction of new technologies and products by other companies, changes in the storage industry, our ability to maintain, protect and enhance our brand and intellectual property, the effectiveness of our channel partners and sales team, our ability to recruit new or keep our existing key talent, global economic conditions, fluctuations in foreign currency rates, and our ability to continue to expand our business and manage our growth. Moreover, we operate in very competitive and rapidly changing environments, and new risks may emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Further information on these and other factors that could affect our financial results are included in our filings with the Securities and Exchange Commission, and may cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by our forward-looking statements.

You should not rely upon forward-looking statements as predictions of future events. Although our management believes that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances described in the forward-looking statements will be achieved or occur. Moreover, neither the Company, nor any other person, assumes responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to publicly update any forward-looking statements for any reason after the date of this presentation to conform these statements to actual results or to changes in our expectations, except as required by law.

Any unreleased services, features or functions whether referenced in this document, Nimble Storage’s website or other press releases or public statements that are not currently available are subject to change at Nimble Storage’s discretion and may not be delivered as planned or at all. Customers who purchase Nimble Storage’s products and services should make their purchase decisions based upon services, features and functions that are currently available.

“Customer” or “Customers” referenced above are Nimble Storage’s end-customers. It is Nimble Storage’s practice to identify an end-customer from our channel partners prior to shipment and before any support and services are provided. Products are typically shipped directly to the end-customers of our channel partners. Assuming all other revenue recognition criteria have been met, Nimble Storage generally recognizes product revenue on sales upon shipment, as title and risk of loss are transferred at that time. Nimble Storage recognizes revenue from support and service contracts over the contractual service period.

Nimble Storage, the Nimble Storage logo, CASL, InfoSight, SmartStack, Timeless Storage, Data Velocity Delivered, Unified Flash Fabric and NimbleConnect are trademarks or registered trademarks of Nimble Storage, Inc. Other trade names or words used in this document are the properties of their respective owners.

Press Contact:

Kristalle Cooks

408-514-3313

kristalle@nimblestorage.com

Investor Relations Contact:

Edelita Tichepco

408-514-3379

IR@nimblestorage.com