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Nimble Storage Files for IPO

Hoping to get up to $150 million

Nimble Storage, Inc. announced has filed a registration statement on Form S-1 with the SEC relating to the proposed initial public offering of its common stock.

The number of shares to be sold and the price range for the proposed offering have not yet been determined.

Goldman, Sachs & Co. and Morgan Stanley & Co. LLC will act as lead joint book-running managers for the offering. Pacific Crest Securities LLC, William Blair & Company, LLC, Stifel, Nicolaus & Company, Incorporated, Oppenheimer & Co. Inc., and Needham & Company, LLC will act as co-managers for the offering.

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Rather than reading the 183 pages of the document published by Nimble Storage for its filing submission for an IPO, here are the most significant facts and figures. Headquartered in San Jose, CA, the company, incorporated in 2007, shipped its first products in August 2010. It has also now offices in Durham, NC, North Sidney, Australia, Hamburg, Germany, London and Windsor, UK. Frédéric Saldes started the business of Nimble Storage in France this year. The designer of a storage, backup and DR in all-in-one device with SSDs and HDDs with inline variable-block compression, cloning, and integrated snapshots, got a total of $98.7 million in financial funding, including $16 million in 2010, $25 million in 2011 and $40.7 million in 2012 from investors including Accel Partners, Lightspeed Venture Partners and Sequoia Capital. Cumulative customers since July 2011 reached 1,750 cloud-based service providers, education, financial services, healthcare, manufacturing, state and local government and technology. Systems are sold worldwide by a network of 600 VARS that accounted for 82% and 89% of total revenue in the years ended January 31, 2012 and 2013. For the same two periods, top ten channel partners accounted for 43% and 37% of total revenue, respectively. In particular, Advanced Media Services, which buys the products for resale by CDW Corporation, accounted for more than 10% of revenue in the year ended January 31, 2013 and the six months ended July 31, 2013. The start-up totally outsources the manufacturing to third-party manufacturers (Flextronics and Synnex.) From January 31, 2011 to July 31, 2013, headcount increased from 47 to 464 employees, including 242 in sales and marketing, 13 in operations, 137 in R&D, 33 in support and 39 in general and administrative roles. Fiscal results in $ million
Year ended January 31

YearRevenueY/Y Growth Loss
2011    1,7       NA (6.8)
2012   14.0     724%(16.8)
2013   53,8     284%(27.9)
Six months ended July 31
YearRevenueY/Y Growth Loss
2012   19.1      NA(10.6)
2013   50.6   165%(19.7)
Nimble Storage never was profitable and has an accumulated deficit of $77.8 million. Gross margin has improved from 55% for the year ended January 31, 2012 to 62% for the year ended January 31, 2013 and to 63% for the six months ended July 31, 2013. As a percentage of total revenue, operating expenses have declined from 175% to 114% and to 101% for the same periods, respectively. At July 31, 2013, cash and cash equivalents were $36.7 million. Total compensation paid to executive officers during the year ended January 31, 2013
Name Amount
Suresh Vasudevan, CEO$463,586
Anup Singh, CFO$391,033
Michael Muñoz, VP sales$838,419
Principal stockholders before IPO
Name  %
Accel Partners20.9%
Sequoia Capital20.9%
Lightspeed Venture Partners15.8%
James J. Goetz, director20.9%
Ping Li, director20.9%
Varun Mehta, founder, VP engineering, director11.9%
Umesh Maheshwari, founder, CTO11.2%
(All executive officers and directors as a group, 11 persons, 70.1%) Our conclusion Nimble Storage could get more money if the IPO was launched later. $150 million is not a lot. Violin Memory got recently $368 million following an IPO. Nimble's innovative products and growing sales can attract investors but the company has currently huge losses. Waiting several months, it could show better profitability and then be more attractive, but with the problem of being in a market already saturated with HDD/SSD subsystems currently offered by big names (Dell, EMC, IBM, NetApp, etc.) and many other start-ups. Other storage start-up Box also plans for an IPO in 2014, as well as Tintri in 2015 and Pure Storage soon. In most recent IPOs of storage firms, Fusion-io got $269 million in 2011 and Carbonite entered on the stock exchange in 2011.

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