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8-K - FORM 8-K - Tintri, Inc.d506630d8k.htm

Exhibit 99.1

 

LOGO

Tintri Reports Fourth Quarter and Fiscal Year 2018 Financial Results

Delivered Quarterly Revenue and EPS Above Guidance

Took Actions to Strengthen Financial Position; Plan to Reduce FY19 Operating Expenses by More Than $70 Million

Announced CEO Transition

MOUNTAIN VIEW, Calif., March 5, 2018 Tintri, Inc. (NASDAQ: TNTR), a leading enabler of enterprise cloud, today reported results for its fourth quarter and fiscal year 2018 which ended on January 31, 2018.

“We are pleased with financial results that exceeded our revenue and EPS outlook, indicating the company has improved visibility into customer purchasing dynamics. We have taken a number of important actions to strengthen our balance sheet, improve our operating model, and reduce our cash burn,” said Ken Klein, Chairman and CEO at Tintri. “We also expanded our differentiated product portfolio and increased our footprint with existing customers.”

Business and Financial Highlights

 

    Q4 revenue of $28.9 million, better than the company’s guidance.

 

    Q4 net loss per share: ($1.19) per share GAAP and ($0.72) per share non-GAAP, better than the company’s guidance.

 

    Ken Klein, Chairman and CEO, will transition from his CEO role after a successor is found.

 

    Implemented work force reduction and lowered facilities footprint, as part of a plan to reduce FY19 operating expense by more than $70 million.

 

    Strengthened balance sheet by drawing on a $25 million note facility with certain existing stockholders.

 

    Tom Cashman promoted to Executive Vice President, Worldwide Sales and Alliances.

CEO and Sales Management Change    

The company announced that its Chairman and CEO, Ken Klein, will transition from his CEO role after a successor is found. Mr. Klein expects to continue to serve as CEO and as a Board member until the new CEO is appointed and an orderly transition has occurred. The Board of Directors has initiated a search for a successor to lead the company in its next stage of evolution and has established a search process and engaged an executive search firm.

“On behalf of the Board, I would like to thank Ken for his 4 years of leadership and many contributions to Tintri,” said Harvey Jones, Tintri Board member. “Ken transformed the company and expanded Tintri’s technology differentiation in the market. The Board of Directors is grateful to Ken for his continued involvement as we conduct a comprehensive search for the company’s next CEO.”

“We made progress on our financial initiatives this quarter, by reporting a strong Q4, reducing our operating expenses, and strengthening our balance sheet. I am proud of the transformation the company has made and I believe the company is on the right trajectory,” said Ken Klein, CEO and Chairman. “I am ready to transition leadership to the right successor to propel the company forward.”

Tintri also announced that Tom Cashman has been promoted to Executive Vice President, Worldwide Sales and Alliances. Mr. Cashman joined Tintri in 2015, and had served most recently as Senior Vice President, International Sales and Global Alliances. Prior to joining the company, Mr. Cashman served in senior sales leadership capacities with Informix, Tivoli Systems, IBM, and CA Technologies.


Promissory Notes Financing

On Mar 2, 2018, the company announced the issuance of Promissory Notes to certain existing stockholders for aggregate gross proceeds of $25 million. The Promissory Notes will have an interest rate of 8.0% per annum and are scheduled to mature 18 months from the date of issuance.

Work Force and Facilities Restructuring

The company has implemented a restructuring and reduction in force plan of approximately 20% of the company’s global workforce. On February 21, 2018, the company also announced an early termination of a facility lease. The restructuring, which consisted of a reduction in force and a termination of a facility lease, is part of an overall plan to optimize the company’s operating model.

The company expects to substantially complete the restructuring in its first quarter of fiscal year 2019, which ends on April 30, 2018. The company estimates it will incur approximately $4.8 million to $5.8 million of cash expenditures in connection with the restructuring, substantially all of which relate to severance costs and contract termination costs. Total restructuring expenses are estimated at $6.2 million to $7.2 million, substantially all of which related to severance costs, write-off of net leasehold costs, and contract termination costs. The company expects to recognize most of these charges in the first quarter of fiscal year 2019.

Fourth Quarter and Fiscal Year 2018 Financial Highlights

The following tables summarize our consolidated financial results for the fiscal quarters and years ended January 31, 2017, and January 31, 2018 (unaudited):

 

GAAP Quarterly Financial Information

 
(in millions, except percentages and per share data)    Three
Months
Ended
January 31,
2017
    Three
Months
Ended
January 31,
2018
    Year-over-
Year
Change
    Year
Ended
January 31,
2017
    Year
Ended
January 31,
2018
    Year-over-
Year
Change
 

Revenue

   $ 40.8     $ 28.9       -29   $ 125.1     $ 125.9       1

Gross Profit

   $ 25.7     $ 16.0     $ (9.7   $ 80.9     $ 73.0     $ (7.9

Gross Margin

     63.0     55.3     -7.7 ppts       64.7     58.0     -6.7 ppts  

Operating Loss

   $ (24.3   $ (35.3   $ (11.0   $ (100.8   $ (149.5   $ (48.7

Operating Margin

     -59.6     -122.0     -62.4 ppts       -80.6     -118.7     -38.1 ppts  

Net Loss

   $ (25.5   $ (37.4   $ (11.9   $ (105.8   $ (157.7   $ (51.9

Net Loss Attributable to Common Stockholders

   $ (25.5   $ (37.4   $ (11.9   $ (105.8   $ (137.9   $ (32.1

Net Loss per Share Attributable to Common Stockholders

   $ (7.23   $ (1.19   $ 6.04     $ (30.73   $ (6.98   $ 23.75  

Weighted-Average Shares (Basic and Diluted)

     3.5       31.3       27.8       3.4       19.8       16.4  

 

Non-GAAP Quarterly Financial Information

 
(in millions, except percentages and per share data)    Three
Months
Ended
January 31,
2017
    Three
Months
Ended
January 31,
2018
    Year-over-
Year
Change
    Year
Ended
January 31,
2017
    Year
Ended
January 31,
2018
    Year-over-
Year
Change
 

Gross Margin

     63.4     59.1     -4.3 ppts       65.2     60.5     -4.7 ppts  

Operating Loss

   $ (21.2   $ (20.6   $ 0.6     $ (86.9   $ (93.9   $ (7.0

Operating Margin

     -52.0     -71.3     -19.3 ppts       -69.5     -74.6     -5.1 ppts  

Net Loss

   $ (22.5   $ (22.6   $ (0.1   $ (92.0   $ (101.9   $ (9.9

Net Loss per Share

   $ (1.05   $ (0.72   $ 0.33     $ (4.29   $ (3.56   $ 0.73  

Weighted-Average Shares (Basic and Diluted)

     21.5       31.3       9.8       21.4       28.7       7.3  

Free Cash Flow

   $ (13.1   $ (22.6   $ (9.5   $ (74.7   $ (98.3   $ (23.6

Free Cash Flow % of Revenue

     -32.1     -78.0     -45.9 ppts       -59.7     -78.1     -18.4 ppts  

A reconciliation between GAAP and non-GAAP information is provided at the end of this release.

First Quarter Fiscal Year 2019 Financial Outlook

As we look ahead, we are providing the following outlook for the quarter ending April 30, 2018. These guidance numbers are based on the existing revenue standard (ASC 605). We expect:

 

    Revenue in the range of $20.0 to $21.0 million;

 

    Non-GAAP loss per share in the range of ($0.64) to ($0.68), using 32.6 million weighted-average shares outstanding.


If appropriate, we may update our outlook after we have completed assessing the impact of the new revenue standard (ASC 606), adopted and effective beginning February 1, 2018.

All forward-looking non-GAAP financial measures contained in this section titled “First Quarter Fiscal 2019 Financial Outlook” exclude stock-based compensation expense, payroll tax expense related to stock-based activities, legal fees related to securities lawsuits, and, as applicable, other special items. We have not reconciled guidance for non-GAAP loss per share to its most directly comparable GAAP measure because the items that have been excluded are uncertain and cannot be reasonably predicted. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measures is not available without unreasonable effort.

Conference Call and Webcast

Tintri is hosting a conference call for analysts and investors to discuss its fourth quarter and fiscal year 2018 results and outlook for its first quarter fiscal year 2019 at 1:30 p.m. Pacific Time today, March 5, 2018. Participants can listen in via webcast by visiting the Investor Relations section of Tintri’s website at ir.tintri.com . Please go to the website at least 15 minutes early to register, download, and install any necessary audio software. A replay of the webcast will be available for 7 days after the call. The conference call can also be accessed by dialing 1-844-379-5957 or +1-209-905-5964 and using the conference ID 7669576. Following the call, an audio replay will also be available by calling 1-855-859-2056 or +1-404-537-3406 and entering the conference ID 7669576. The audio replay will be available through 5:30 p.m. Pacific Time on March 12, 2018.

Forward-Looking Statements

This press release contains forward-looking statements, including but not limited to statements relating to our search for a new CEO; estimates of the magnitude of workforce reductions; cash expenditures that may be made by the company and non-cash charges that may be incurred by the company in connection with the restructuring plan, and the changes in our senior management team, and Mr. Klein’s continued service as interim Chief Executive Officer and a member of our Board; anticipated changes to the company’s operating model and cash flows; customer purchasing trends; estimated revenues and non-GAAP loss per share for future fiscal periods; planned reductions in operating expenses in FY2019; our competitive position and environment; sales trends; and product releases. These forward-looking statements are not historical facts, and instead are based on our current expectations, estimates, opinions, and beliefs. Consequently, you should not rely on these forward-looking statements. The accuracy of such forward-looking statements depends upon future events, and involves risks, uncertainties, and other factors beyond our control that may cause these statements to be inaccurate and cause our actual results, performance, or achievements to differ materially and adversely from those anticipated or implied by such statements, including, among others: our ability to hire a new CEO and the timing of such hiring; our ability to reduce operating expenses in future periods; our ability to comply with and/or modify terms of our outstanding debt; the impact of the new revenue standard (ASC 606) on our revenues for the quarter ending April 30, 2018 and future periods; our ability to attract and retain employees; the rapid evolution of the markets in which we compete; our ability to sustain or manage future growth effectively; factors that could result in the significant fluctuation of our future quarterly operating results, including, among other things, our revenue mix, the timing and magnitude of orders, shipments, and acceptance of our solutions in any given quarter, our ability to attract new and retain existing end-customers, changes in the pricing of certain components of our solutions, and fluctuations in demand and competitive pricing pressures for our solutions; the introduction or acceleration of adoption of competing solutions; failure to develop, or unexpected difficulties or delays in developing, new product features or technology on a timely or cost-effective basis; and other risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our reports on file with the U.S. Securities and Exchange Commission (“SEC”), which are available on our investor relations website at https://ir.tintri.com and on the SEC website at www.sec.gov , or that we may file with the SEC following the date of this press release, including our Quarterly Report on Form 10-Q for the quarter ended October 31, 2017. All statements provided in this release speak only as of the date of this press release and, except as required by law, we assume no obligation to update any forward-looking statements to reflect actual results or subsequent events or circumstances.

Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures and other key performance measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss, non-GAAP net loss per share, pro forma non-GAAP net loss per share, free cash flow, and free cash flow as a percentage of revenue. In computing these non-GAAP financial measures, we exclude the effects of certain items such as stock-based compensation expense, restructuring charges, legal fees related to securities lawsuits and other one-off activities, IPO-related expenses not netted against IPO proceeds, deemed dividend to Series E and E-1 Convertible Preferred Stock, adjustment to Series E, E-1, and F Convertible Preferred Stock related to our IPO, and income tax-related impact. Free cash flow is a performance measure that our management believes provides useful information to management and investors about the amount of cash generated by the business after necessary capital expenditures, and we define free cash flow as net cash used in operating activities less purchases of property and


equipment. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We use these non-GAAP financial measures and key performance measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures and key performance measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures such as stock-based compensation expense that may not be indicative of our ongoing core business operating results. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity, and planning, forecasting, and analyzing future periods. However, these non-GAAP financial and key performance measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss, non-GAAP net loss per share, pro forma non-GAAP net loss per share, and free cash flow are not substitutes for gross profit, gross margin, operating expenses, loss from operations, operating margin, net loss or net loss attributable to common stockholders, net loss per share or net loss per share attributable to common stockholders, net loss per share or net loss per share attributable to common stockholders, or net cash used in operating activities, respectively. In addition, other companies, including companies in our industry, may calculate non-GAAP financial measures and key performance measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures and key performance measures as tools for comparison. We urge you to review the reconciliation of our non-GAAP financial measures and key performance measures to the most directly comparable GAAP financial measures included below in the tables captioned “Reconciliation of GAAP to Non-GAAP Profit Measures,” and “Reconciliation of GAAP Net Cash Used In Operating Activities to Non-GAAP Free Cash Flow,” and not to rely on any single financial measure to evaluate our business.

About Tintri

Tintri (NASDAQ: TNTR) offers an enterprise cloud infrastructure built on a public cloud-like web services architecture and RESTful APIs. Organizations use Tintri all-flash storage with scale-out and automation as a foundation for their own clouds—to build agile development environments for cloud native applications and to run mission critical enterprise applications. Tintri enables users to guarantee the performance of their applications, automate common IT tasks to reduce operating expenses, troubleshoot across their infrastructure, and predict an organization’s needs to scale—the underpinnings of a modern data center. That’s why leading cloud service providers and enterprises, including Comcast, Chevron, NASA, Toyota, United Healthcare, and 20% of the Fortune 100 companies, trust Tintri with enterprise cloud. For more information, visit www.tintri.com and follow us on Twitter: @Tintri. Tintri has used, and intends to continue to use, its Investor Relations website and the Twitter account of @Tintri as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

© 2018 Tintri, Inc. All rights reserved. Tintri and the Tintri logo are registered trademarks or trademarks of Tintri, Inc. in the United States and other countries. Other brand names mentioned herein are for identification purposes only and may be trademarks of their respective holder(s).

AT TINTRI:

Investor Relations Contact: David Jew, 650.772.3838, ir@tintri.com


TINTRI, INC.

Condensed Consolidated Balance Sheets

(in thousands, unaudited)

 

     As of January 31,  
     2017     2018  

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 48,048     $ 32,281  

Accounts receivable, net

     30,749       17,722  

Inventories, net

     6,509       7,494  

Prepaid and other current assets

     6,202       3,633  
  

 

 

   

 

 

 

Total current assets

     91,508       61,130  

Property and equipment, net

     10,410       12,246  

Other long-term assets

     2,984       2,871  
  

 

 

   

 

 

 

Total assets

   $ 104,902     $ 76,247  
  

 

 

   

 

 

 

Liabilities, Convertible Preferred Stock and Stockholders’ Deficit

    

Current liabilities:

    

Accounts payable

   $ 15,674     $ 11,908  

Accrued and other current liabilities

     20,668       20,257  

Deferred revenue, current

     28,056       31,679  

Long-term debt, current portion

     —         18,962  
  

 

 

   

 

 

 

Total current liabilities

     64,398       82,806  

Deferred revenue, non-current

     28,389       29,982  

Long-term debt

     48,914       49,676  

Other long-term liabilities

     5,041       5,493  
  

 

 

   

 

 

 

Total liabilities

     146,742       167,957  
  

 

 

   

 

 

 

Commitments and contingencies

    

Convertible preferred stock

     257,141       —    

Stockholders’ deficit:

    

Common stock

     1       2  

Additional paid-in capital

     41,745       387,232  

Notes receivables from stockholders

     (1,544     (750

Accumulated other comprehensive loss

     (466     (355

Accumulated deficit

     (338,717     (476,628

Treasury stock

     —         (1,211
  

 

 

   

 

 

 

Total stockholders’ deficit

     (298,981     (91,710
  

 

 

   

 

 

 

Total liabilities, convertible preferred stock and stockholders’ deficit

   $ 104,902     $ 76,247  
  

 

 

   

 

 

 


TINTRI, INC.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share data, unaudited)

 

     Year Ended January 31,  
     2016     2017     2018  

Revenue:

      

Product

   $ 68,652     $ 97,330     $ 90,793  

Support and maintenance

     17,360       27,775       35,111  
  

 

 

   

 

 

   

 

 

 

Total revenue

     86,012       125,105       125,904  
  

 

 

   

 

 

   

 

 

 

Cost of revenue:

      

Product

     25,138       34,738       38,959  

Support and maintenance

     7,110       9,437       13,907  
  

 

 

   

 

 

   

 

 

 

Total cost of revenue

     32,248       44,175       52,866  
  

 

 

   

 

 

   

 

 

 

Gross profit:

      

Product

     43,514       62,592       51,834  

Support and maintenance

     10,250       18,338       21,204  
  

 

 

   

 

 

   

 

 

 

Total gross profit

     53,764       80,930       73,038  
  

 

 

   

 

 

   

 

 

 

Operating expenses:

      

Research and development

     43,179       53,445       74,120  

Sales and marketing

     87,993       108,903       112,685  

General and administrative

     18,773       19,364       34,800  

Restructuring charges

     —         —         899  
  

 

 

   

 

 

   

 

 

 

Total operating expenses

     149,945       181,712       222,504  
  

 

 

   

 

 

   

 

 

 

Loss from operations

     (96,181     (100,782     (149,466

Other expense, net:

      

Interest expense

     (4,407     (5,231     (8,448

Other income, net

     254       677       733  
  

 

 

   

 

 

   

 

 

 

Total other expense, net

     (4,153     (4,554     (7,715
  

 

 

   

 

 

   

 

 

 

Loss before provision for income taxes

     (100,334     (105,336     (157,181

Provision for income taxes

     634       465       478  
  

 

 

   

 

 

   

 

 

 

Net loss

   $ (100,968   $ (105,801   $ (157,659
  

 

 

   

 

 

   

 

 

 

Deemed dividend to Series E and E-1 Convertible Preferred Stock

   $ —       $ —       $ (6,588

Impact of adjustment to Series E, E-1 and F Convertible Preferred Stock

   $ —       $ —       $ 26,336  
  

 

 

   

 

 

   

 

 

 

Net loss attributable to common stockholders

   $ (100,968   $ (105,801   $ (137,911
  

 

 

   

 

 

   

 

 

 

Net loss per share attributable to common stockholders—basic and diluted

   $ (32.15   $ (30.73   $ (6.98
  

 

 

   

 

 

   

 

 

 

Weighted-average shares used in computing net loss per share attributable to common stockholders—basic and diluted

     3,140,947       3,442,549       19,763,684  
  

 

 

   

 

 

   

 

 

 


TINTRI, INC.

Condensed Consolidated Statements of Cash Flows

(in thousands, unaudited)

 

     Year Ended January 31,  
     2016     2017     2018  

Cash flows from operating activities:

      

Net loss

   $ (100,968   $ (105,801   $ (157,659

Adjustments to reconcile net loss to net cash used in operating activities:

      

Depreciation and amortization

     7,753       9,270       7,105  

Stock-based compensation expense

     9,755       13,834       51,818  

Excess tax benefit from stock-based compensation

     —         71       —    

Accretion of balloon payment

     947       603       1,709  

Amortization of debt issuance cost, credit facility fees and debt discounts

     670       239       241  

Restructuring charges

     —         —         (974

Other

     (39     (36     (16

Changes in operating assets and liabilities:

      

Accounts receivable

     (4,083     (10,036     13,027  

Inventories

     1,821       (3,134     (1,024

Prepaid expenses and other assets

     (645     (1,383     550  

Payment of offering costs

     —         (2,348     (4,253

Accounts payable

     (1,095     7,291       (6,354

Deferred revenue

     18,842       14,581       5,216  

Accrued and other liabilities

     4,933       6,483       (1,246
  

 

 

   

 

 

   

 

 

 

Net cash used in operating activities

     (62,109     (70,366     (91,860
  

 

 

   

 

 

   

 

 

 

Cash flows from investing activities:

      

Purchase of property and equipment

     (10,914     (4,337     (6,415

Purchase of investments

     (70,419     (13,807     (11,513

Proceeds from maturities of investments

     6,350       76,478       11,513  

Proceeds from disposition of investments

     18,574       —         —    
  

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     (56,409     58,334       (6,415
  

 

 

   

 

 

   

 

 

 

Cash flows from financing activities:

      

Payment on capital lease financing

     (300     (240     (234

Proceeds from issuance of convertible preferred stock, net of issuance costs

     122,770       —         —    

Proceeds from revolving line of credit

     7,000       6,962       5,000  

Proceeds from term loan

     35,000       —         15,000  

Repayment of revolving line of credit

     (6,000     —         —    

Proceeds from initial public offering, net of underwriting discounts and commissions

     —         —         62,314  

Proceeds from repayment of employee notes receivable

     —         411       —    

Proceeds from exercise of stock options

     3,132       2,292       470  

Repurchase of common stock

     (5     —         —    
  

 

 

   

 

 

   

 

 

 

Net cash provided by financing activities

     161,597       9,425       82,550  

Foreign exchange impact on cash and cash equivalents

     (2     (61     (42
  

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     43,077       (2,668     (15,767

Cash and cash equivalents, beginning of period

     7,639       50,716       48,048  
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 50,716     $ 48,048     $ 32,281  
  

 

 

   

 

 

   

 

 

 


Reconciliation of GAAP to Non-GAAP Profit Measures

(in thousands, except share and per share data)

 

 

 

     GAAP     Non-GAAP Adjustments     Non-GAAP  
     Three Months
Ended
January 31,
2017
    Stock-based
compensation
    Income tax
effect on
non-GAAP
adjustments
    Three Months
Ended
January 31,
2017
 

Gross profit

     25,694       147         25,841  

Gross margin

     63.0         63.4

Operating expenses

        

Research and development

     13,570       (1,137       12,433  

Sales and marketing

     31,579       (906       30,673  

General and administrative

     4,823       (902       3,921  

Total operating expenses

     49,972       (2,945       47,027  

Loss from operations

     (24,278     3,092         (21,186

Operating margin

     -59.6         -52.0

Net loss attributable to common stockholders

     (25,548     3,092       (81     (22,537

Net loss per share attributable to common stockholders, basic and diluted

     (7.23      

Pro forma net loss per share, basic and diluted

     (1.19     0.14       —         (1.05

Weighted-shares outstanding, basic and diluted

     3,532,145           3,532,145  

Pro forma adjustment (1)

     17,992,973           17,992,973  

Pro forma weighted-shares outstanding, basic and diluted

     21,525,118           21,525,118  

 

(1) To reflect assumed conversion of convertible preferred stock as of the beginning of the period

Reconciliation of GAAP to Non-GAAP Profit Measures

(in thousands, except share and per share data)

 

 

 

     GAAP     Non-GAAP Adjustments            Non-GAAP  
     Three Months
Ended
January 31,
2018
    Stock-based
compensation
    Other
non-GAAP
adjustments (1)
    Income tax
effect on
non-GAAP
adjustments
     Three Months
Ended
January 31,
2018
 

Gross profit

     15,997       1,085            17,082  

Gross margin

     55.3            59.1

Operating expenses

           

Research and development

     18,830       (6,836          11,994  

Sales and marketing

     24,201       (2,282          21,919  

General and administrative

     8,236       (3,845     (607        3,784  

Restructuring charges

     9         (9        —    

Total operating expenses

     51,276       (12,963     (616        37,697  

Loss from operations

     (35,279     14,048       616          (20,615

Operating margin

     -122.0            -71.3

Net loss attributable to common stockholders

     (37,387     14,048       616       143        (22,580

Net loss per share attributable to common stockholders, basic and diluted

     (1.19     0.45       0.02       —          (0.72

Weighted-shares outstanding, basic and diluted

     31,323,004              31,323,004  

 

(1) Restructuring charges and legal fees related to securities lawsuits and other one-off activities.


Reconciliation of GAAP to Non-GAAP Profit Measures

(in thousands, except share and per share data)

 

 

 

     GAAP     Non-GAAP Adjustments      Non-GAAP  
     Year
Ended
January 31,
2017
    Stock-based
compensation
    Income tax
effect on
non-GAAP
adjustments
     Year
Ended
January 31,
2017
 

Gross profit

     80,930       587          81,517  

Gross margin

     64.7          65.2

Operating expenses

         

Research and development

     53,445       (5,227        48,218  

Sales and marketing

     108,903       (4,115        104,788  

General and administrative

     19,364       (3,905        15,459  

Total operating expenses

     181,712       (13,247        168,465  

Loss from operations

     (100,782     13,834          (86,948

Operating margin

     -80.6          -69.5

Net loss attributable to common stockholders

     (105,801     13,834       —          (91,967

Net loss per share attributable to common stockholders, basic and diluted

     (30.73       

Pro forma net loss per share, basic and diluted

     (4.94     0.65       —          (4.29

Weighted-shares outstanding, basic and diluted

     3,442,549            3,442,549  

Pro forma adjustment (1)

     17,992,973            17,992,973  

Pro forma weighted-shares outstanding, basic and diluted

     21,435,522            21,435,522  

 

(1) To reflect assumed conversion of convertible preferred stock as of the beginning of the period

Reconciliation of GAAP to Non-GAAP Profit Measures

(in thousands, except share and per share data)

 

 

 

     GAAP     Non-GAAP Adjustments      Non-GAAP  
     Year
Ended
January 31,
2018
    Stock-based
compensation
    Other
non-GAAP
adjustments (1)
    Income tax
effect on
non-GAAP
adjustments
     Year
Ended
January 31,
2018
 

Gross profit

     73,038       3,191            76,229  

Gross margin

     58.0            60.5

Operating expenses

           

Research and development

     74,120       (21,608     (20        52,492  

Sales and marketing

     112,685       (10,432     (984        101,269  

General and administrative

     34,800       (16,587     (1,875        16,338  

Restructuring charges

     899         (899        —    

Total operating expenses

     222,504       (48,627     (3,778        170,099  

Loss from operations

     (149,466     51,818       3,778          (93,870

Operating margin

     -118.7            -74.6

Net loss

     (157,659     51,818       3,778       170        (101,893

Deemed dividend

     (6,588       6,588          —    

Net loss adjustment (2)

     26,336         (26,336        —    

Net loss attributable to common stockholders

     (137,911     51,818       (15,970     170        (101,893

Net loss per share attributable to common stockholders, basic and diluted

     (6.98         

Pro forma net loss per share attributable to common stockholders, basic and diluted

     (4.81     1.81       (0.56     —          (3.56

Weighted-shares outstanding, basic and diluted

     19,763,684              19,763,684  

Pro forma adjustment (3)

     8,895,083              8,895,083  

Pro forma weighted-shares outstanding, basic and diluted

     28,658,767              28,658,767  

 

(1) Restructuring charges, legal fees related to securities lawsuits and other one-off activities, IPO-related expenses not netted against IPO proceeds, and deemed dividend to Series E and E-1 Convertible Preferred Stock.
(2) Adjustment to Series E, E-1, and F Convertible Preferred Stock related to IPO.
(3) To reflect assumed conversion of convertible preferred stock as of beginning of the year, and IPO shares as of the beginning of Q2.


Reconciliation of GAAP Net Cash Used In Operating Activities to Non-GAAP Free Cash Flow

(in thousands)

 

 

 

     Three Months Ended
January 31, 2017
    Three Months Ended
January 31, 2018
    Year Ended
January 31,
2017
    Year Ended
January 31,
2018
 

Net cash used in operating activities

     (12,162     (20,249     (70,366     (91,860

Less: Purchase of property and equipment

     (906     (2,315     (4,337     (6,415

Free cash flow

     (13,068     (22,564     (74,703     (98,275

Free cash flow % revenue

     -32.1     -78.0     -59.7     -78.1

Source: Tintri