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2018 Press Releases

March 05, 2018

Nutanix Reports Second Quarter Fiscal 2018 Financial Results

Nutanix, Inc. announced financial results for its second quarter of fiscal year 2018, ended January 31, 2018.

Second Quarter Fiscal Year 2018 Financial Highlights

  • Revenue: $286.7 million, growing 44% year-over-year from $199.2 million in the second quarter of fiscal 2017, reflecting the elimination of approximately $14 million in hardware revenue in the quarter as the company executes its shift toward increasing software revenue

  • Billings: $355.9 million, growing 57% year-over-year from $227.4 million in the second quarter of fiscal 2017

  • Gross Profit: GAAP gross profit of $178.2 million, up 46% year-over-year from $122.4 million in the second quarter of fiscal 2017; Non-GAAP gross profit of $182.2 million, up 45% year-over-year from $126.0 million in the second quarter of fiscal 2017

  • Net Loss: GAAP net loss of $62.6 million, compared to a GAAP net loss of $76.4 million in the second quarter of fiscal 2017; Non-GAAP net loss of $23.2 million, compared to a non-GAAP net loss of $23.0 million in the second quarter of fiscal 2017

  • Net Loss Per Share: GAAP net loss per share of $0.39, compared to a GAAP net loss per share of $0.54 in the second quarter of fiscal 2017; Non-GAAP net loss per share of $0.14, compared to a non-GAAP net loss per share of $0.16 in the second quarter of fiscal 2017

  • Cash and Short-term Investments: $918.3 million, up 159% from the second quarter of fiscal 2017 primarily as a result of $509 million in net proceeds from its 0% 5-year Convertible Senior Notes issued in the quarter

  • Deferred Revenue: $478.0 million, up 57% from the second quarter of fiscal 2017

  • Operating Cash Flow: $46.4 million, compared to $19.8 million in the second quarter of fiscal 2017

  • Free Cash Flow: $32.4 million, compared to $7.1 million in the second quarter of fiscal 2017

“We had an outstanding quarter that demonstrated our strong execution across many business initiatives. Our shift toward a software-centric strategy is on track and we aligned our sales compensation in February to support this transition,” said Dheeraj Pandey, Chairman, Founder and CEO of Nutanix. “Our continued success with Global 2000 customers, the strength of our large deal execution and record number of new customers prove that we are reducing friction for our customers and providing them with a consumer-grade experience that is unmatched.”

“We are proud of our performance in Q2. During the quarter, we saw record results across all geographies, with particularly strong performances from our EMEA and APJ regions. Our 57% billings growth year-over-year and our 45% increase in non-GAAP gross profit year-over-year drove a better than expected bottom line,” said Duston Williams, CFO of Nutanix. “Our software and support billings also rose significantly during the quarter, demonstrating our progress as we transition to a software-centric business model. Our strong execution on our strategic initiatives, together with our successful convertible debt offering, put us in a strong position for the future.”

Recent Company Highlights

  • Continued Customer Growth: Nutanix ended the second quarter of fiscal 2018 with 8,870 end-customers, adding a record 1,057 new end-customers during the quarter. Second quarter customer wins included Arca Continental, DB Systel, JetBlue Airways, Multi Commodity Exchange of India Limited (MCX), Nexen (a CNOOC Limited Company), and Schroders

  • Accelerated Number of $1 Million+ Deals: 57 customers with deals over $1 million in the quarter, up 104% year-over-year

  • Signed 5 Software and Support Deals Greater than $3 Million: Nutanix signed five software and support deals worth more than $3 million, of which three were worth more than $5 million during the quarter, all with Global 2000 customers

  • Named a Leader in the Gartner Magic Quadrant for Hyperconverged Infrastructure: Nutanix believes its placement in the Leaders quadrant is a strong validation of its leadership in the market it pioneered and of its vision to become the next-generation operating system for the enterprise cloud

  • Released Version 5.5: Featuring Calm automation and orchestration, Nutanix released its version 5.5, the largest and most comprehensive release in its history, with new features and enhancements to the Nutanix Enterprise Cloud OS software

  • Issued $575 million Zero Coupon Convertible Senior Notes: The company fortified its balance sheet with the issuance of $575 million zero coupon convertible senior notes due in 2023, adding $509 million in net proceeds to its cash and short-term investments during the quarter

  • Signed Definitive Agreement to Acquire Minjar: Announced in a separate release issued today that the company had signed a definitive agreement to acquire Minjar and its Botmetric service, a cloud technology solutions company helping enterprises embrace the cloud effectively and optimize their multi-cloud environments for performance and cost

  • Hired Industry Leaders in Key Roles: Further augmented the leadership team with the addition of Aaron Bean, Chief Human Resources Officer; Rodney Foreman, VP, Global Channel Sales; Ben Gibson, Chief Marketing Officer; Ricardo Jenez, SVP, Development; and Chris Kozup, SVP, Global Marketing

  • Plans Inaugural Investor Day: Nutanix will hold its first investor day for analysts and institutional investors on Monday, March 12th at the Nasdaq Marketsite

Q3 Fiscal 2018 Financial Outlook

For the third quarter of fiscal 2018, Nutanix expects:

  • Revenues between $275 and $280 million; assuming the elimination of approximately $45 million in pass-through hardware revenue*;

  • Non-GAAP gross margin between 67% and 68%;

  • Non-GAAP operating expenses between $218 and $220 million;

  • Non-GAAP net loss per share between $0.19 and $0.21, using 167 million weighted shares outstanding.