Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Nimble Storage Inc | d314176d8k.htm |
Exhibit 99.1
Nimble Storage Announces Financial Results for Fourth
Quarter and Fiscal Year 2017
| • | Q4FY2017 Revenue growth accelerates; up 30% year-over-year |
| • | Continued strong All Flash array momentum; AFA total bookings increase 67% sequentially from Q3FY2017 to an annualized run-rate of over $160M |
| • | Over 750 new customers added in Q4; installed base now exceeds 10,200 customers |
| • | Nimble Cloud Volumes, announced in February as the only enterprise-grade multicloud block storage service for Amazon Web Services (AWS) and Microsoft Azure |
San Jose, Calif. – March 7, 2017 – Nimble Storage (NYSE: NMBL), the leader in predictive cloud infrastructure, today reported financial results for the fiscal fourth quarter and fiscal year 2017.
Recent Acquisition Announcement
In light of the recently announced pending acquisition by Hewlett Packard Enterprise, Nimble Storage will not hold a conference call to discuss these financial results and will not provide Q1FY18 guidance.
Fourth Quarter Fiscal 2017 Key Financial Results:
| • | Total revenue increased 30% to $117.0 million, up from $90.1 million in the fourth quarter of fiscal 2016. Excluding fluctuations in foreign currency, revenue would have been $118.7 million representing a 32% increase over the fourth quarter of fiscal 2016. |
| • | GAAP gross margin was 63.5% compared to 64.4% in the fourth quarter of fiscal 2016. Non-GAAP gross margin was 65.8% compared to 66.4% in the fourth quarter of fiscal 2016. |
| • | GAAP operating loss was $36.1 million, compared to a loss of $31.9 million in the fourth quarter of fiscal 2016. Non-GAAP operating loss was $10.6 million, compared to a loss of $9.4 million in the fourth quarter of fiscal 2016. |
| • | GAAP operating margin was negative 31%, compared to negative 35% in the fourth quarter of fiscal 2016. Non-GAAP operating margin was negative 9%, compared to negative 10% in the fourth quarter of fiscal 2016. |
| • | GAAP net loss was $36.4 million, or $0.41 per basic and diluted share, compared with a net loss in the fourth quarter of fiscal 2016 of $32.4 million, or $0.40 per basic and diluted share. Non-GAAP net loss was $10.9 million, or $0.12 per basic and diluted share, compared with a net loss of $9.9 million in the fourth quarter of fiscal 2016, or $0.12 per basic and diluted share. |
Fiscal Year 2017 Key Financial Results:
| • | Total revenue was $402.6 million, compared to $322.2 million in fiscal 2016, representing growth of 25% year-over-year. GAAP gross margin was 63.8% compared to 65.0% in fiscal 2016. Non-GAAP gross margin was 66.1% compared to 67.1% in fiscal 2016. |
| • | GAAP operating loss was $156.6 million, compared to a loss of $118.6 million in fiscal 2016. Non-GAAP operating loss was $61.1 million compared to a loss of $35.3 million in fiscal 2016. |
| • | GAAP operating margin was negative 39% compared to negative 37% in fiscal 2016. Non-GAAP operating margin was negative 15% compared to negative 11% in fiscal 2016. |
| • | GAAP net loss was $158.3 million, or $1.85 per basic and diluted share, compared with a net loss in fiscal 2016 of $120.1 million, or $1.52 per basic and diluted share. Non-GAAP net loss was $62.8 million, or $0.73 per basic and diluted share, compared with a net loss of $36.8 million in fiscal 2016, or $0.47 per basic and diluted share. |
In computing non-GAAP financial measures, the effects of stock-based compensation, which is a recurring non-cash expense for the company, are excluded. The company has provided a reconciliation below of non-GAAP financial measures to the most directly comparable GAAP financial measures.
Business Highlights
| • | Introduced Nimble Cloud Volumes, the First Multicloud Storage Service. Nimble Cloud Volumes is the only enterprise-grade multicloud block storage service for running applications in Amazon Web Services (AWS) and Microsoft Azure. This service, announced in February, will enable the next wave of applications – traditional transactional workloads – to be moved to the cloud with enterprise-grade availability and data services. |
| • | Achieved Six-Nines Availability Powered by InfoSight Predictive Analytics. This is a new standard for uptime in the infrastructure industry. This level of availability translates to an impact of fewer than 25 seconds annually, empowering IT staff to focus on business priorities instead of routine maintenance with an infrastructure that gets smarter every single day. |
| • | Nimble All Flash Arrays Awarded the 2016 Product of the Year Award by Storage Magazine/ SearchStorage.com. The AF-Series All Flash arrays won the Gold award and were named as the All-Flash Systems Product of the Year. The CS-Series Adaptive Flash arrays were also recognized with the Silver award in the Disk and Hybrid Systems category. |
| • | InfoSight Wins 2016 Technology Leadership Award from Ventana Research in IT Analytics. Nimble Storage end user Flexi-Van Leasing was recognized for its use of InfoSight. The Ventana Research award identifies businesses and IT leaders who are using technologies and applying best practices to create the best possible outcomes in productivity, performance and support of an organization’s goals and objectives. |
| • | Bob Kelly Appointed to Nimble Storage Board of Directors. Mr. Kelly serves as a member of the nominating and corporate governance committee. Mr. Kelly is a General Partner at Ignition Partners. He most recently served as the Corporate Vice President of Merger & Acquisition Strategy and Business Development for the Cloud and Enterprise Division at Microsoft Corporation. |
| • | Vice President of Worldwide Channels Named a 2017 CRN Channel Chief. Leonard Iventosch was recognized on this annual list that represents top leaders in the IT channel who excel at driving growth and revenue in their organizations through channel partners. |
Non-GAAP Financial Measures
To provide investors with additional information regarding our financial results, Nimble Storage has disclosed in this release and the accompanying tables 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 operating loss, non-GAAP operating margin, non-GAAP net loss, and non-GAAP net loss per share. In computing these non-GAAP financial measures, the company excludes the effects of stock-based compensation, which is a recurring non-cash 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:
| • | Non-GAAP financial measures do not consider the potentially dilutive impact of equity-based compensation, which is an ongoing expense for the company; and |
| • | Other companies, including companies in our industry, may calculate non-GAAP financial measures differently, which reduces their usefulness as comparative measures. |
Nimble Storage Resources
| • | Nimble Storage Website |
| • | Case Studies and Videos |
| • | Follow Nimble Storage on Twitter: @NimbleStorage |
| • | Follow Nimble Storage on LinkedIn |
| • | Visit Nimble Storage on Facebook |
| • | Visit the NimbleConnect Community |
About Nimble Storage
Nimble Storage (NYSE: NMBL) is the leader in predictive cloud infrastructure. Its Predictive Cloud Platform gives users fast, reliable access to data. By combining predictive analytics with flash storage, IT teams radically simplify operations in their data center and in the cloud. Over 10,000 customers rely on Nimble to power their businesses. Find out more at www.nimblestorage.com (NYSE:NMBL) and follow us on Twitter: @NimbleStorage.
Nimble Storage, the Nimble Storage logo, Nimble Cloud Volumes, Predictive Cloud Platform, CASL, InfoSight, SmartStack and NimbleConnect are trademarks or registered trademarks of Nimble Storage. 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:
John Nunziati
408-514-3399
IR@nimblestorage.com
SOURCE: Nimble Storage
Nimble Storage, Inc.
Preliminary Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended January 31, |
Year Ended January 31, |
|||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Revenue: |
||||||||||||||||
| Product |
$ | 94,814 | $ | 73,083 | $ | 322,114 | $ | 265,602 | ||||||||
| Support and service |
22,214 | 17,008 | 80,483 | 56,613 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenue |
117,028 | 90,091 | 402,597 | 322,215 | ||||||||||||
| Cost of revenue: |
||||||||||||||||
| Product (1) |
32,870 | 24,866 | 110,651 | 86,506 | ||||||||||||
| Support and service (1) |
9,832 | 7,175 | 35,002 | 26,129 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total cost of revenue |
42,702 | 32,041 | 145,653 | 112,635 | ||||||||||||
| Total gross profit |
74,326 | 58,050 | 256,944 | 209,580 | ||||||||||||
| Operating expenses: |
||||||||||||||||
| Research and development (1) |
31,744 | 24,806 | 116,222 | 93,990 | ||||||||||||
| Sales and marketing (1) |
67,853 | 55,823 | 254,919 | 197,979 | ||||||||||||
| General and administrative (1) |
10,813 | 9,288 | 42,420 | 36,247 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total operating expenses |
110,410 | 89,917 | 413,561 | 328,216 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Loss from operations |
(36,084 | ) | (31,867 | ) | (156,617 | ) | (118,636 | ) | ||||||||
| Interest income, net |
78 | 45 | 274 | 240 | ||||||||||||
| Other expense, net |
(30 | ) | (312 | ) | (629 | ) | (656 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Loss before provision for income taxes |
(36,036 | ) | (32,134 | ) | (156,972 | ) | (119,052 | ) | ||||||||
| Provision for income taxes |
375 | 266 | 1,343 | 1,017 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net loss |
$ | (36,411 | ) | $ | (32,400 | ) | $ | (158,315 | ) | $ | (120,069 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net loss per share, basic and diluted |
$ | (0.41 | ) | $ | (0.40 | ) | $ | (1.85 | ) | $ | (1.52 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted-average shares used to compute net loss per share, basic and diluted |
88,145 | 81,175 | 85,541 | 78,932 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (1) Includes stock-based compensation expense as follows: |
||||||||||||||||
| Cost of product revenue |
$ | 813 | $ | 502 | $ | 2,860 | $ | 1,972 | ||||||||
| Cost of support and service revenue |
1,843 | 1,256 | 6,394 | 4,743 | ||||||||||||
| Research and development |
8,807 | 6,302 | 30,027 | 23,259 | ||||||||||||
| Sales and marketing |
9,672 | 11,016 | 39,636 | 39,648 | ||||||||||||
| General and administrative |
4,398 | 3,392 | 16,625 | 13,682 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total stock-based compensation expense |
$ | 25,533 | $ | 22,468 | $ | 95,542 | $ | 83,304 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
Nimble Storage, Inc.
Preliminary Consolidated Balance Sheets
(In thousands)
(Unaudited)
| As of | ||||||||
| January 31, 2017 |
January 31, 2016 |
|||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 184,814 | $ | 211,160 | ||||
| Restricted cash, current |
409 | 793 | ||||||
| Accounts receivable, net |
64,336 | 50,432 | ||||||
| Inventories |
21,944 | 15,994 | ||||||
| Prepaid expenses and other current assets |
8,540 | 5,212 | ||||||
|
|
|
|
|
|||||
| Total current assets |
280,043 | 283,591 | ||||||
| Property and equipment, net |
51,258 | 47,404 | ||||||
| Intangible assets, net |
1,007 | — | ||||||
| Other long-term assets |
712 | 754 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 333,020 | $ | 331,749 | ||||
|
|
|
|
|
|||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ | 33,008 | $ | 24,330 | ||||
| Accrued compensation and benefits |
28,914 | 19,325 | ||||||
| Deferred revenue, current portion |
71,121 | 54,580 | ||||||
| Other current liabilities |
12,724 | 8,933 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
145,767 | 107,168 | ||||||
| Deferred revenue, non-current portion |
72,943 | 60,265 | ||||||
| Other long-term liabilities |
7,280 | 8,708 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
225,990 | 176,141 | ||||||
|
|
|
|
|
|||||
| Commitments and contingencies |
||||||||
| Stockholders’ equity: |
||||||||
| Common stock |
79 | 75 | ||||||
| Additional paid-in capital |
586,111 | 476,271 | ||||||
| Accumulated other comprehensive loss |
(838 | ) | (731 | ) | ||||
| Accumulated deficit |
(478,322 | ) | (320,007 | ) | ||||
|
|
|
|
|
|||||
| Total stockholders’ equity |
107,030 | 155,608 | ||||||
|
|
|
|
|
|||||
| Total liabilities and stockholders’ equity |
$ | 333,020 | $ | 331,749 | ||||
Nimble Storage, Inc.
Preliminary Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
| Three Months Ended January 31, |
Year Ended January 31, |
|||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Cash flows from operating activities: | ||||||||||||||||
| Net loss |
$ | (36,411 | ) | $ | (32,400 | ) | $ | (158,315 | ) | $ | (120,069 | ) | ||||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
||||||||||||||||
| Depreciation and amortization |
6,121 | 4,613 | 22,596 | 15,598 | ||||||||||||
| Stock-based compensation expense |
25,533 | 22,468 | 95,542 | 83,304 | ||||||||||||
| Loss on disposal of property and equipment |
55 | 22 | 145 | 182 | ||||||||||||
| Provision (recoveries) for allowance for doubtful accounts |
6 | (56 | ) | 3 | 25 | |||||||||||
| Provision for excess and obsolete inventories |
226 | 77 | 635 | 157 | ||||||||||||
| Changes in operating assets and liabilities: |
||||||||||||||||
| Accounts receivable |
(5,085 | ) | (5,858 | ) | (13,907 | ) | (15,186 | ) | ||||||||
| Inventories |
(2,364 | ) | (1,350 | ) | (9,018 | ) | (3,930 | ) | ||||||||
| Prepaid expenses and other assets |
(756 | ) | 392 | (3,611 | ) | (663 | ) | |||||||||
| Short term restricted cash |
(329 | ) | (793 | ) | 464 | (793 | ) | |||||||||
| Accounts payable |
(82 | ) | 1,537 | 8,890 | 7,661 | |||||||||||
| Deferred revenue |
10,336 | 9,396 | 29,219 | 40,399 | ||||||||||||
| Accrued and other liabilities |
10,831 | 4,242 | 11,761 | (930 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net cash provided by (used in) operating activities |
8,081 | 2,290 | (15,596 | ) | 5,755 | |||||||||||
| Cash flows from investing activities: | ||||||||||||||||
| Purchase of property and equipment |
(5,461 | ) | (6,392 | ) | (23,928 | ) | (29,423 | ) | ||||||||
| Purchase of intangible asset |
— | — | (938 | ) | — | |||||||||||
| Change in restricted cash |
— | 3,904 | (6 | ) | 3,909 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net cash used in investing activities |
(5,461 | ) | (2,488 | ) | (24,872 | ) | (25,514 | ) | ||||||||
| Cash flows from financing activities: | ||||||||||||||||
| Proceeds from exercise of stock options, net of repurchases |
1,372 | 1,658 | 4,097 | 8,146 | ||||||||||||
| Proceeds from issuance of stock under employee stock purchase plan |
— | — | 10,131 | 14,321 | ||||||||||||
| Excess tax benefit from employee stock plans |
— | 325 | — | 551 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net cash provided by financing activities |
1,372 | 1,983 | 14,228 | 23,018 | ||||||||||||
| Foreign exchange impact on cash and cash equivalents |
83 | (337 | ) | (106 | ) | (493 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) in cash and cash equivalents |
4,075 | 1,448 | (26,346 | ) | 2,766 | |||||||||||
| Cash and cash equivalents, beginning of period |
180,739 | 209,712 | 211,160 | 208,394 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Cash and cash equivalents, end of period |
$ | 184,814 | $ | 211,160 | $ | 184,814 | $ | 211,160 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
Nimble Storage, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except percentages and per share amounts)
(Unaudited)
| Three Months Ended | Year Ended | |||||||||||||||
| January 31, 2017 |
January 31, 2016 |
January 31, 2017 |
January 31, 2016 |
|||||||||||||
| Revenue |
$ | 117,028 | $ | 90,091 | $ | 402,597 | $ | 322,215 | ||||||||
| GAAP gross margin |
$ | 74,326 | $ | 58,050 | $ | 256,944 | $ | 209,580 | ||||||||
| Stock-based compensation |
2,656 | 1,758 | 9,254 | 6,715 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Non-GAAP gross margin |
$ | 76,982 | $ | 59,808 | $ | 266,198 | $ | 216,295 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| GAAP gross margin % |
63.5 | % | 64.4 | % | 63.8 | % | 65.0 | % | ||||||||
| Stock-based compensation % |
2.3 | % | 2.0 | % | 2.3 | % | 2.1 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Non-GAAP gross margin % |
65.8 | % | 66.4 | % | 66.1 | % | 67.1 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| GAAP operating margin |
$ | (36,084 | ) | $ | (31,867 | ) | $ | (156,617 | ) | $ | (118,636 | ) | ||||
| Stock-based compensation |
25,533 | 22,468 | 95,542 | 83,304 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Non-GAAP operating margin |
$ | (10,551 | ) | $ | (9,399 | ) | $ | (61,075 | ) | $ | (35,332 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
| GAAP operating margin % |
-31 | % | -35 | % | -39 | % | -37 | % | ||||||||
| Stock-based compensation % |
22 | % | 25 | % | 24 | % | 26 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Non-GAAP operating margin % |
-9 | % | -10 | % | -15 | % | -11 | % | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| GAAP net loss |
$ | (36,411 | ) | $ | (32,400 | ) | $ | (158,315 | ) | $ | (120,069 | ) | ||||
| Stock-based compensation |
25,533 | 22,468 | 95,542 | 83,304 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Non-GAAP net loss |
$ | (10,878 | ) | $ | (9,932 | ) | $ | (62,773 | ) | $ | (36,765 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
| GAAP net loss per share, basic and diluted |
$ | (0.41 | ) | $ | (0.40 | ) | $ | (1.85 | ) | $ | (1.52 | ) | ||||
| Stock-based compensation |
0.29 | 0.28 | 1.12 | 1.05 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Non-GAAP net loss per share |
$ | (0.12 | ) | $ | (0.12 | ) | $ | (0.73 | ) | $ | (0.47 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
| Shares used to compute GAAP and Non-GAAP net loss per share |
88,145 | 81,175 | 85,541 | 78,932 | ||||||||||||