Exhibit 99.1
NUTANIX, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | |
| | Restated For New Revenue Standard | | Previously Reported | | Change |
| Year Ended July 31, | 2016 | | 2017 | | 2016 | | 2017 | | 2016 | | 2017 |
| Revenue: | | | | | | | | | | | |
| Product | $ | 413,910 |
| | $ | 673,297 |
| | $ | 350,798 |
| | $ | 583,011 |
| | $ | 63,112 |
|
| $ | 90,286 |
|
| Support and other services | 89,500 |
| | 172,606 |
| | 94,130 |
| | 183,858 |
| | (4,630 | ) |
| (11,252 | ) |
| Total revenue | 503,410 |
|
| 845,903 |
| | 444,928 |
| | 766,869 |
|
| 58,482 |
|
| 79,034 |
|
| Cost of revenue: | | | | | | | | | | | |
| Product | 133,541 |
| | 249,393 |
| | 133,541 |
| | 249,393 |
| | — |
|
| — |
|
| Support and other services | 37,246 |
| | 77,938 |
| | 37,246 |
| | 77,938 |
| | — |
|
| — |
|
| Total cost of revenue | 170,787 |
| | 327,331 |
| | 170,787 |
| | 327,331 |
|
| — |
|
| — |
|
| Gross profit | 332,623 |
|
| 518,572 |
| | 274,141 |
| | 439,538 |
|
| 58,482 |
|
| 79,034 |
|
| Operating expenses: | | | | | | | | | | | |
| Sales and marketing | 286,584 |
| | 501,021 |
| | 288,493 |
| | 500,529 |
| | (1,909 | ) |
| 492 |
|
| Research and development | 116,400 |
| | 288,619 |
| | 116,400 |
| | 288,619 |
| | — |
|
| — |
|
| General and administrative | 34,265 |
| | 77,341 |
| | 34,265 |
| | 77,341 |
| | — |
|
| — |
|
| Total operating expenses | 437,249 |
| | 866,981 |
| | 439,158 |
| | 866,489 |
|
| (1,909 | ) |
| 492 |
|
| Loss from operations | (104,626 | ) |
| (348,409 | ) | | (165,017 | ) | | (426,951 | ) |
| 60,391 |
|
| 78,542 |
|
| Other expense—net | (1,290 | ) | | (26,377 | ) | | (1,290 | ) | | (26,377 | ) | | — |
|
| — |
|
| Loss before provision for income taxes | (105,916 | ) |
| (374,786 | ) | | (166,307 | ) | | (453,328 | ) |
| 60,391 |
|
| 78,542 |
|
| Provision for income taxes | 2,317 |
| | 4,852 |
| | 2,192 |
| | 4,683 |
| | 125 |
|
| 169 |
|
| Net loss | $ | (108,233 | ) |
| $ | (379,638 | ) | | $ | (168,499 | ) | | $ | (458,011 | ) |
| $ | 60,266 |
|
| $ | 78,373 |
|
| Net loss per share —basic and diluted | $ | (2.46 | ) | | $ | (2.96 | ) | | $ | (3.83 | ) | | $ | (3.57 | ) | | $ | 1.37 |
|
| $ | 0.61 |
|
Restated results reflect the adoption of the new revenue recognition standard. Previously reported results for fiscal year 2016 were derived from audited financial statements included in our prospectus filed pursuant to Rule 424(b)(4), as amended, on September 28, 2016. Results for fiscal year 2017 were derived from financial statements that will be included in the Annual Report on Form 10-K for the year ended July 31, 2017.
NUTANIX, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | |
| | Restated For New Revenue Standard | | Previously Reported | | Change |
| As of July 31, | 2016 | | 2017 | | 2016 | | 2017 | | 2016 | | 2017 |
| | | | | | | | | | | | |
| Assets | | | | | | | | | | | |
| Current assets: | | | | | | | | | | | |
| Cash and cash equivalents | $ | 99,209 |
| | $ | 138,359 |
| | $ | 99,209 |
| | $ | 138,359 |
| | $ | — |
|
| $ | — |
|
| Short-term investments | 85,991 |
| | 210,694 |
| | 85,991 |
| | 210,694 |
| | — |
|
| — |
|
| Accounts receivable—net | 110,659 |
| | 178,876 |
| | 110,659 |
| | 178,876 |
| | — |
|
| — |
|
| Deferred commissions—current | 14,216 |
| | 23,843 |
| | 17,864 |
| | 27,679 |
| | (3,648 | ) | | (3,836 | ) |
| Prepaid expenses and other current assets | 16,138 |
| | 28,362 |
| | 16,138 |
| | 28,362 |
| | — |
|
| — |
|
| Total current assets | 326,213 |
| | 580,134 |
|
| 329,861 |
|
| 583,970 |
|
| (3,648 | ) |
| (3,836 | ) |
| Property and equipment—net | 42,218 |
| | 58,072 |
| | 42,218 |
| | 58,072 |
| | — |
|
| — |
|
| Deferred commissions—non-current | 35,306 |
| | 49,684 |
| | 19,029 |
| | 33,709 |
| | 16,277 |
| | 15,975 |
|
| Intangible assets-net | — |
| | 26,001 |
| | — |
| | 26,001 |
| | — |
|
| — |
|
| Goodwill | — |
| | 16,672 |
| | — |
| | 16,672 |
| | — |
|
| — |
|
| Other assets—non-current | 7,978 |
| | 7,649 |
| | 7,978 |
| | 7,649 |
| | — |
|
| — |
|
| Total assets | $ | 411,715 |
| | $ | 738,212 |
|
| $ | 399,086 |
|
| $ | 726,073 |
|
| $ | 12,629 |
|
| $ | 12,139 |
|
| Liabilities, Convertible Preferred Stock and Stockholders’ (Deficit) Equity | | | | | | | | | | | |
| Current liabilities: | | | | | | | | | | | |
| Accounts payable | $ | 52,111 |
| | $ | 73,725 |
| | $ | 52,111 |
| | $ | 73,725 |
| | $ | — |
|
| $ | — |
|
| Accrued compensation and benefits | 24,547 |
| | 57,521 |
| | 24,547 |
| | 57,521 |
| | — |
|
| — |
|
| Accrued expenses and current other liabilities | 5,662 |
| | 9,707 |
| | 5,537 |
| | 9,414 |
| | 125 |
| | 293 |
|
| Deferred revenue—current | 101,607 |
| | 170,123 |
| | 130,569 |
| | 233,498 |
| | (28,962 | ) | | (63,375 | ) |
| Total current liabilities | 183,927 |
| | 311,076 |
|
| 212,764 |
|
| 374,158 |
|
| (28,837 | ) |
| (63,082 | ) |
| Deferred revenue—non-current | 116,874 |
| | 198,933 |
| | 165,896 |
| | 292,573 |
| | (49,022 | ) | | (93,640 | ) |
| Senior notes | 73,260 |
| | — |
| | 73,260 |
| | — |
| | — |
|
| — |
|
| Convertible preferred stock warrant liability | 9,679 |
| | — |
| | 9,679 |
| | — |
| | — |
|
| — |
|
| Early exercised stock options liability | 2,320 |
| | 851 |
| | 2,320 |
| | 851 |
| | — |
|
| — |
|
| Other liabilities—non-current | 1,103 |
| | 10,289 |
| | 1,103 |
| | 10,289 |
| | — |
|
| — |
|
| Total liabilities | 387,163 |
| | 521,149 |
|
| 465,022 |
|
| 677,871 |
|
| (77,859 | ) |
| (156,722 | ) |
| Commitments and contingencies | | | | | | | | | — |
|
| — |
|
| Convertible preferred stock | 310,379 |
| | — |
| | 310,379 |
| | — |
| | — |
|
| — |
|
| Stockholders’ (deficit) equity: | | | | | | | | | — |
|
| — |
|
| Common stock | 1 |
| | 4 |
| | 1 |
| | 4 |
| | — |
|
| — |
|
| Additional paid-in capital | 65,629 |
| | 948,134 |
| | 65,629 |
| | 948,134 |
| | — |
|
| — |
|
| Accumulated other comprehensive loss | (12 | ) | | (106 | ) | | (12 | ) | | (106 | ) | | — |
|
| — |
|
| Accumulated deficit | (351,445 | ) | | (730,969 | ) | | (441,933 | ) | | (899,830 | ) | | 90,488 |
|
| 168,861 |
|
| Total stockholders’ (deficit) equity | (285,827 | ) | | 217,063 |
|
| (376,315 | ) |
| 48,202 |
|
| 90,488 |
|
| 168,861 |
|
| Total liabilities, convertible preferred stock and stockholders’ (deficit) equity | $ | 411,715 |
| | $ | 738,212 |
|
| $ | 399,086 |
|
| $ | 726,073 |
|
| $ | 12,629 |
|
| $ | 12,139 |
|
Restated results reflect the adoption of the new revenue recognition standard. Previously reported results for fiscal year 2016 were derived from audited financial statements included in our prospectus filed pursuant to Rule 424(b)(4), as amended, on September 28, 2016. Results for fiscal year 2017 were derived from financial statements that will be included in the Annual Report on Form 10-K for the year ended July 31, 2017.
NUTANIX, INC.
QUARTERLY FINANCIAL INFORMATION
(In thousands, except per share data, unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fiscal Year 2016 | Q1 2016 | | Q2 2016 | | Q3 2016 | | Q4 2016 |
| | As Reported | | Impact of Adoption | | As Adjusted | | As Reported | | Impact of Adoption | | As Adjusted | | As Reported | | Impact of Adoption | | As Adjusted | | As Reported | | Impact of Adoption | | As Adjusted |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Product revenue | $ | 70,396 |
| | $ | 13,693 |
| | $ | 84,089 |
| | $ | 81,229 |
| | $ | 14,652 |
| | $ | 95,881 |
| | $ | 89,957 |
| | $ | 12,434 |
| | $ | 102,391 |
| | $ | 109,216 |
| | $ | 22,333 |
| | $ | 131,549 |
|
| Support and other services | 17,360 |
| | (904 | ) | | 16,456 |
| | 21,468 |
| | (957 | ) | | 20,511 |
| | 24,733 |
| | (1,156 | ) | | 23,577 |
| | 30,569 |
| | (1,613 | ) | | 28,956 |
|
| Total revenue | $ | 87,756 |
| | $ | 12,789 |
| | $ | 100,545 |
| | $ | 102,697 |
| | $ | 13,695 |
| | $ | 116,392 |
| | $ | 114,690 |
| | $ | 11,278 |
| | $ | 125,968 |
| | $ | 139,785 |
| | $ | 20,720 |
| | $ | 160,505 |
|
| Gross profit | $ | 52,677 |
| | $ | 12,789 |
| | $ | 65,466 |
| | $ | 64,761 |
| | $ | 13,695 |
| | $ | 78,456 |
| | $ | 71,297 |
| | $ | 11,278 |
| | $ | 82,575 |
| | $ | 85,406 |
| | $ | 20,720 |
| | $ | 106,126 |
|
| Gross margin | 60.0 | % | | 5.1 | % | | 65.1 | % | | 63.1 | % | | 4.3 | % | | 67.4 | % | | 62.2 | % | | 3.4 | % | | 65.6 | % | | 61.1 | % | | 5.0 | % | | 66.1 | % |
| Operating expenses | $ | 89,831 |
| | $ | (455 | ) | | $ | 89,376 |
| | $ | 99,992 |
| | $ | (900 | ) | | $ | 99,092 |
| | $ | 116,000 |
| | $ | (71 | ) | | $ | 115,929 |
| | $ | 133,335 |
| | $ | (483 | ) | | $ | 132,852 |
|
| Loss from operations | $ | (37,154 | ) | | $ | 13,244 |
| | $ | (23,910 | ) | | $ | (35,231 | ) | | $ | 14,595 |
| | $ | (20,636 | ) | | $ | (44,703 | ) | | $ | 11,349 |
| | $ | (33,354 | ) | | $ | (47,929 | ) | | $ | 21,203 |
| | $ | (26,726 | ) |
| Net Loss | $ | (38,545 | ) | | $ | 13,228 |
| | $ | (25,317 | ) | | $ | (33,205 | ) | | $ | 14,565 |
| | $ | (18,640 | ) | | $ | (46,820 | ) | | $ | 11,317 |
| | $ | (35,503 | ) | | $ | (49,929 | ) | | $ | 21,157 |
| | $ | (28,772 | ) |
| Basic and diluted net loss per share | $ | (0.90 | ) | | $ | 0.31 |
| | $ | (0.59 | ) | | $ | (0.76 | ) | | $ | 0.33 |
| | $ | (0.43 | ) | | $ | (1.05 | ) | | $ | 0.25 |
| | $ | (0.80 | ) | | $ | (1.11 | ) | | $ | 0.47 |
| | $ | (0.64 | ) |
| Pro forma net loss per share -basic and diluted | $ | (0.32 | ) | | $ | 0.11 |
| | $ | (0.21 | ) | | $ | (0.28 | ) | | $ | 0.12 |
| | $ | (0.16 | ) | | $ | (0.39 | ) | | $ | 0.10 |
| | $ | (0.29 | ) | | $ | (0.41 | ) | | $ | 0.17 |
| | $ | (0.24 | ) |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fiscal Year 2017 | Q1 2017 | | Q2 2017 | | Q3 2017 | | Q4 2017 |
| | As Reported | | Impact of Adoption | | As Adjusted | | As Reported | | Impact of Adoption | | As Adjusted | | As Reported | | Impact of Adoption | | As Adjusted | | As Reported | | Impact of Adoption | | As Adjusted |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Product revenue | $ | 129,657 |
| | $ | 23,879 |
| | $ | 153,536 |
| | $ | 138,508 |
| | $ | 19,705 |
| | $ | 158,213 |
| | $ | 143,142 |
| | $ | 16,934 |
| | $ | 160,076 |
| | $ | 171,704 |
| | $ | 29,768 |
| | $ | 201,472 |
|
| Support and other services | 37,152 |
| | $ | (2,127 | ) | | 35,025 |
| | 43,687 |
| | (2,686 | ) | | 41,001 |
| | 48,621 |
| | (3,027 | ) | | 45,594 |
| | 54,398 |
| | (3,412 | ) | | 50,986 |
|
| Total revenue | $ | 166,809 |
| | $ | 21,752 |
| | $ | 188,561 |
| | $ | 182,195 |
| | $ | 17,019 |
| | $ | 199,214 |
| | $ | 191,763 |
| | $ | 13,907 |
| | $ | 205,670 |
| | $ | 226,102 |
| | $ | 26,356 |
| | $ | 252,458 |
|
| Gross profit | $ | 97,047 |
| | $ | 21,752 |
| | $ | 118,799 |
| | $ | 105,349 |
| | $ | 17,019 |
| | $ | 122,368 |
| | $ | 108,557 |
| | $ | 13,907 |
| | $ | 122,464 |
| | $ | 128,585 |
| | $ | 26,356 |
| | $ | 154,941 |
|
| Gross margin | 58.2 | % | | 4.8 | % | | 63.0 | % | | 57.8 | % | | 3.6 | % | | 61.4 | % | | 56.6 | % | | 2.9 | % | | 59.5 | % | | 56.9 | % | | 4.5 | % | | 61.4 | % |
| Operating expenses | $ | 233,428 |
| | $ | (150 | ) | | $ | 233,278 |
| | $ | 197,639 |
| | $ | 130 |
| | $ | 197,769 |
| | $ | 218,224 |
| | $ | (1,261 | ) | | $ | 216,963 |
| | $ | 217,198 |
| | $ | 1,773 |
| | $ | 218,971 |
|
| Loss from operations | $ | (136,381 | ) | | $ | 21,902 |
| | $ | (114,479 | ) | | $ | (92,290 | ) | | $ | 16,889 |
| | $ | (75,401 | ) | | $ | (109,667 | ) | | $ | 15,168 |
| | $ | (94,499 | ) | | $ | (88,613 | ) | | $ | 24,583 |
| | $ | (64,030 | ) |
| Net Loss | $ | (162,169 | ) | | $ | 21,867 |
| | $ | (140,302 | ) | | $ | (93,212 | ) | | $ | 16,843 |
| | $ | (76,369 | ) | | $ | (111,977 | ) | | $ | 15,142 |
| | $ | (96,835 | ) | | $ | (90,653 | ) | | $ | 24,521 |
| | $ | (66,132 | ) |
| Basic and diluted net loss per share | (2.18 | ) | | $ | 0.29 |
| | $ | (1.89 | ) | | $ | (0.66 | ) | | $ | 0.12 |
| | $ | (0.54 | ) | | $ | (0.78 | ) | | $ | 0.11 |
| | $ | (0.67 | ) | | $ | (0.59 | ) | | $ | 0.16 |
| | $ | (0.43 | ) |
| Pro forma net loss per share -basic and diluted * | $ | (1.26 | ) | | $ | 0.17 |
| | $ | (1.09 | ) | | $ | (0.66 | ) | | $ | 0.12 |
| | $ | (0.54 | ) | | $ | (0.78 | ) | | $ | 0.11 |
| | $ | (0.67 | ) | | $ | (0.59 | ) | | $ | 0.16 |
| | $ | (0.43 | ) |
Restated quarterly results reflect the adoption of the new revenue recognition standard. Previously reported quarterly results for fiscal year 2016 and 2017 were derived from unaudited quarterly financial results presented.
* Pro forma basic and diluted net loss per share was computed to give effect to the conversion of all outstanding convertible preferred stock upon closing of our initial public offering on October 5, 2016, as if the conversion had occurred at the beginning of the period.
