NIMBLE STORAGE INC SAN JOSE, Calif., March 7, 2017 /PRNewswire/ --
-- 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
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
Nimble Storage, Inc.
Preliminary Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Year Ended
January 31, 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, January 31,
2017 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 Year Ended
January 31, 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
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SOURCE Nimble Storage
