Annual Recurring Revenue of Nasuni increased 44% Y/Y From 2018

Nasuni Corp. announced record results for its fiscal year ended December 31, 2019.

Annual recurring revenue (ARR) increased 44% Y/Y from 2018, marking the 23rd consecutive quarter of growth, driven by rising enterprise cloud adoption and frustration with legacy file storage infrastructure.

Nasuni now supports approximately 500 enterprise customers, protecting and providing global access to more than 79PB of data across billions of files in 8,000 locations across 70 countries. It’s is a testament to the demand for a new approach, free of legacy hardware, to deliver file services across global locations.

As enterprises look to modernize data centers, the cloud is seen as a way to quickly drive innovation. According to Gartner, Inc. (1), 80% of enterprises will migrate entirely away and close their on-premises data centers by 2025 and 99% of all files will be stored in cloud environments. Employees will create, collaborate on and store files from any device, without knowing if the files are stored locally or in the cloud.

To support this rapid growth, Nasuni has grown its headcount by 60% since January 2018, and last year, opened and expanded office space in Marlborough, MA. This office complements the engineering and customer support teams at the company’s Boston HQs and a new office in North Carolina’s Research Triangle Park.

The company also added new members to its board of directors in 2019, with Joel Reich, former EVP of products at NetApp, and Peter McKay, CEO of Snyk and former co-CEO of Veeam. Their experience and domain expertise in storage and cloud computing will support the company’s vision as the company continues to achieve record growth through increased demand for its cloud-native, file services platform.

Highlights of Nasuni’s achievements in 2019 include:
• New capabilities: It launched enhancements to its file services platform for modernizing enterprise storage infrastructure. This new version gives enterprises access to AI and search analytics for unstructured data, as well as cloud migration capabilities. Companies gain a springboard for agile, intelligent migrations and cloud-first approaches, as well as multi-cloud flexibility with new support for Google Cloud.
• New patents: The team was awarded 3 US patents; the company now has over a dozen patents covering its platform and enabling technologies, as well as numerous patents pending.  
• It covers the cloud leaders: It made progress in delivering its software via major cloud partners. In FY19, approximately 75% of deployments were in conjunction with customers using AWS and Microsoft Azure for cloud storage. It continued its focus on channel partners by increasing channel workforce by 35% to support over 80% the company’s revenue fulfilled through the channel.
• New funding: It raised $25 million in new funding in early 2019. Led by Telstra Ventures, the round also included participation from existing investors Goldman Sachs, Sigma Prime Ventures, North Bridge Venture Partners, and Flybridge Capital Partners.
• Enhanced customer experience: A new consumption pricing model was introduced delivering a flexible subscription-based model. Expansion rates of existing customers exceeded 115% in 2019 for the fifth consecutive year and gross customer ARR churn was less than 5% both indicators of customer success.
• Customers with ARR greater than $100,000: Grew by 42% in 2019.
• Executive team expansion: In addition to expanding its engineering team, Nasuni made hires to its executive team, including David Grant, CMO; Will Hornkohl, VP, alliances; and Krischel Crawley, VP, sales West.
• Awards: The company was ranked among the fastest growing companies in North America in Deloitte’s 2019 Technology Fast 500, and was the only file services vendor included on the list. Cheryle Cushion, VP, marketing was named to CRN’s Women of the Channel list. 

The global volume of file data continues to explode and is difficult to manage with legacy file infrastructure silos. Nasuni enables enterprises to modernize their file storage infrastructure with a cloud-based approach, seamlessly navigating their entire journey from NAS silo consolidation through protection vs. ransomware and other cyber threats, enabling global file sharing and increasing workforce productivity. The platform is trusted by many of organizations including Meredith Corporation, Western Digital and AECOM to empower users to share and collaborate on files across multiple sites and geographies with maximum performance and reliability. 

Meredith Corporation cut CapEx costs, eliminating traditional backup and reducing its on-premises NAS infrastructure by 80% with Nasuni and AWS. The ≠1 magazine operator in the US and owner of brands such as PEOPLE, Better Homes & Gardens, InStyle, REAL SIMPLE and Parents, moved to Nasuni to deliver a file services platform on Amazon Web Services. 

Dave Coffman, Meredith’s director of enterprise infrastructure, said: “We tried all different types of technology approaches, but we could never catch our white whale, a global file system. We used to robocopy from a file server in Iowa to New York, but that was slow and difficult. Now we robocopy to Nasuni and let the magic happen. It’s faster and much more reliable, so there’s a lot less stress before the deadline.”

“Files are the fastest growing segment of enterprise data, and enterprises are simply unable to protect and provide fast global access to them using legacy technologies,” said Paul Flanagan, president and CEO, Nasuni. “We had strong new customer bookings growth at 63%, which will lead to accelerated revenue increases in 2020. At Nasuni, we’ve built a file services platform for the cloud that is not only modernizing primary and secondary storage, but we also cut the TCO in half compared to traditional file infrastructure. This ability to solve an immense data challenge while saving our customers a substantial amount of money is, not surprisingly, driving demand for our solution.”

(1) Gartner Research How to Escape Network and Local File Storage, January 7, 2020 (registration required)