Tintri: Fiscal 2Q18 Financial Results

(in $ million)	2Q17	2Q18	6 mo. 17	6 mo. 18
Revenue	27.6	34.9	50.4	65.2
*Growth*		27%		*29%*
Net income (loss)	(25.7)	(51.7)	(56.5)	(82.3)

Tintri, Inc. reported results for its second quarter fiscal 2018 ended July 31, 2017.

“While the company’s revenue came in at the low end of our expectations, we delivered stronger than projected profitability and cash flow improvements,” said Ken Klein, chairman and CEO. “We remain confident in our competitive position and in the strength of our value proposition. In the quarter we received the largest order in the company’s history and added new enterprise logos. Additionally, we experienced continued momentum in our land-and-expand strategy with more purchases from current customers. We enter the second half of our fiscal year having just announced a new all-flash platform and additional software offerings-these further enhance our differentiation and better enable our customers to transition to the enterprise cloud.”

Q2 Key Quarterly Business and Financial Highlights
• Quarterly revenue: $34.9 million, up 27% Y/Y.
• Net loss per share attributable to common stockholders: ($2.05) per share GAAP, improved from ($7.53) per share in the year-ago quarter; and ($0.91) per share non-GAAP, improved from ($1.03) per share in the year-ago quarter.
• Cash and cash equivalents, and short-term investments: $80.6 million as of July 31, 2017, compared to $48.0 million as of January 31, 2017.
• New customers: added new enterprise and CSP customers, increasing total customer count to over 1,400.
• Launched new enterprise cloud offerings: EC6000 all-flash storage platform, Cloud Connector for integration to Amazon Web Services and IBM Cloud Object Storage, and advancements to machine learning-powered Tintri Analytics.
• Announced integration with Cisco UCS Director.

Third Quarter Fiscal 2018 Financial Outlook
• Revenue in the range of $36 to $37 million
• Non-GAAP loss per share in the range of ($0.77) to ($0.81), using 31.2 million weighted-average shares outstanding

Comments

Tintri continues to be a small actor in the fast growing all-flash subsystems but in intense competition in technology as well as in prices with a total of 112 companies in the world involved in this recent business, including new entrants and all storage giants.

The company filed an IPO last June but it was not a real success as it intended to raise $109 million and got only $60 million after receiving as much as $260 million in financial funding.

Furthermore, the firm never was profitable since inception in 2008 with an accumulated deficit of more than $400 million.

Revenue is up 15% with loss increasing 68% from the former financial quarter. Respective figures are 27% and 101% Y/Y.

Tintri will have difficulties to survive as sales are not growing sufficiently to hope to be profitable in next quarters. For coming tree-month period, revenue is expected to increase a mere 3% to 6% sequentially.

Maybe the ultimate solution could be to be acquired as its specifically designed from the ground hybrid or all-flash enterprise cloud platform has good specs compared to the competition, with a four new EC6000 series with 3D NAND SSDs to scale from 19TB up to 40PB and supporting up to 480,000 VMs.