Nutanix: Fiscal 4Q17 Financial Results

Nutanix, Inc. announced financial results for its fourth quarter and fiscal year ended July 31, 2017.

Fourth Quarter Fiscal Year 2017
• Revenue: $226.1 million, growing 62% year-over-year from $139.8 million in the fourth quarter of fiscal 2016
• Billings: $289.2 million, growing 40% year-over-year from $206.6 million in the fourth quarter of fiscal 2016
• Net Loss: GAAP net loss of $90.7 million, compared to a GAAP net loss of $49.9 million in the fourth quarter of fiscal 2016; Non-GAAP net loss of $50.6 million, compared to a non-GAAP net loss of $46.7 million in the fourth quarter of fiscal 2016
• Net Loss Per Share: GAAP net loss per share of $0.59, compared to a pro forma GAAP net loss per share of $0.41 in the fourth quarter of fiscal 2016; Non-GAAP net loss per share of $0.33, compared to a pro forma non-GAAP net loss per share of $0.39 in the fourth quarter of fiscal 2016
• Cash and Short-term Investments: $349.1 million, up 88% from the fourth quarter of fiscal 2016
• Deferred Revenue: $526.1 million, up 77% from the fourth quarter of fiscal 2016
• Operating Cash Flow: $5.9 million, compared to $2.4 million in the fourth quarter of fiscal 2016
• Free Cash Flow: $(6.5) million, compared to $(6.5) million in the fourth quarter of fiscal 2016

Fiscal 2017
• Revenue: $766.9 million, growing 72% year-over-year from $444.9 million in fiscal 2016
• Billings: $990.5 million, growing 55% year-over-year from $637.8 million in fiscal 2016
• Net Loss: GAAP net loss of $458.0 million, compared to a GAAP net loss of $168.5 million in fiscal 2016; Non-GAAP net loss of $199.1 million, compared to a non-GAAP net loss of $150.4 million in fiscal 2016
• Net Loss Per Share: GAAP net loss per share of $3.57, compared to a GAAP net loss per share of $3.83 in fiscal 2016; pro forma GAAP net loss per share of $3.23, compared to a pro forma GAAP net loss per share of $1.40 in fiscal 2016; pro forma Non-GAAP net loss per share of $1.40, compared to a pro forma non-GAAP net loss per share of $1.25 in fiscal 2016
• Operating Cash Flow: $13.8 million, compared to $3.6 million in fiscal 2016
• Free Cash Flow: $(36.4) million, compared to $(38.7) million in fiscal 2016

“The fourth quarter was another record quarter and an outstanding conclusion to the fiscal year. Our newly announced products, Nutanix Calm and Xi Cloud Services, extend our market opportunity by simplifying and harmonizing datacenter operations for the multi-cloud era,” said Dheeraj Pandey, CEO. “This quarter, marked by record revenues, continued adoption of AHV, increased software-only sales, strong growth from our OEM partners, and positive operating cash flow, was a great way to end our first year as a public company.“

Recent company Highlights
• Continued Customer Growth: Eended the fourth quarter of fiscal 2017 with 7,051 end-customers in 125 countries, adding over 875 new end-customers during the quarter. Fourth quarter customer wins included ABC Stores, Amgen, Bacardi, HCA Healthcare, Konica Minolta Business Solutions Europe GmbH, The Hershey company, The Home Depot, and Tokopedia.
• Increased Number of $1 Million+ Deals: 43 customers with deals over $1 million in the quarter, up 39% Y/Y.
• Innovating for the Multi-Cloud Era: Introduced Nutanix Calm and Xi Cloud Services, along with a strategic alliance with Google to blend the Nutanix environment with the Google Cloud Platform, providing new functionality to address the challenges of the multi-cloud era.
• Increased AHV Penetration: Saw a 75% Y/Y increase in adoption of AHV, built-in hypervisor, based on a four-quarter rolling average of nodes using AHV as a percentage of total nodes sold.
• Participation in 3rd Annual .NEXT Conference: 3,500+ attendees with 50+ customer speakers, over 60 partner sponsors, and keynote addresses from industry visionaries including Bill McDermott, CEO, SAP; Diane Greene, SVP, Google Cloud; Chad Sakac, president, VCE – Converged Platform Division, Dell EMC; and Kirk Skaugen, EVP and president, Lenovo Datacenter Group.

For the first quarter of fiscal 2018, Nutanix expects:
• Revenues between $240 and $250 million;
• Non-GAAP gross margin of approximately 58%;
• Non-GAAP operating expenses between $195 and $200 million;
• Non-GAAP net loss per share of $0.37, using 156 million weighted shares outstanding.