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Nimble Storage Announces First Quarter 2017 Results
[May 24, 2016]

Nimble Storage Announces First Quarter 2017 Results


SAN JOSE, Calif., May 24, 2016 /PRNewswire/ -- Nimble Storage (NYSE: NMBL), the leader in predictive flash storage solutions, today reported financial results for the fiscal first quarter 2017. The company has released a discussion of these results by posting the current Shareholder Letter on its website at http://investors.nimblestorage.com.

"We saw strong customer and channel partner interest in our All Flash Arrays with deal sizes substantially above our overall average. All Flash Arrays accounted for 12% of our total array bookings during the first quarter after launch," said Suresh Vasudevan, chief executive officer. "Our Unified Flash Fabric combines industry-leading All-Flash and Adaptive Flash arrays into a single architecture that accelerates every application at a total cost of ownership that is unmatched in the industry."

"We delivered solid financial results in Q1 as we executed against our financial and operational plans as outlined last quarter.  We saw steady progress in larger deals greater than $250K, which were up 51% year-over-year, and continued growth in our customer base, which was up 48% year-over-year," said Anup Singh, chief financial officer.

First Quarter Fiscal 2017 Financial Highlights:

  • Total revenue increased 21% to $86.4 million for the first quarter of fiscal 2017, up from $71.3 million in the first quarter of fiscal 2016.  
  • GAAP gross margin for the first quarter of fiscal 2017 was 63.4% compared to 65.2% in the first quarter of fiscal 2016.
  • Non-GAAP gross margin for the first quarter of fiscal 2017 was 65.7% compared to 67.6% in the first quarter of fiscal 2016.
  • GAAP operating loss was $42.2 million for the first quarter of fiscal 2017, compared to a loss of $28.9 million in the first quarter of fiscal 2016.
  • Non-GAAP operating loss was $19.7 million for the first quarter of fiscal 2017, compared to a loss of $7.9 million in the first quarter of fiscal 2016.
  • GAAP net loss for the first quarter of fiscal 2017 was $42.7 million, or $0.51 per basic and diluted share, compared with a net loss in the first quarter of fiscal 2016 of $29.0 million, or $0.38 per basic and diluted share.
  • Non-GAAP net loss for the first quarter of fiscal 2017 was $20.1 million, or $0.24 per basic and diluted share, compared with a net loss of $8.0 million in the first quarter of fiscal 2016, or $0.10 per basic and diluted share.  

An explanation of non-GAAP measures and a reconciliation of non-GAAP to GAAP results are provided below.

Forward Outlook:  

Nimble Storage provides guidance based on current market conditions and expectations. For the second quarter of fiscal 2017, Nimble Storage expects: 

  • Total revenue in the range of $93.0 to $96.0 million
  • Non-GAAP operating loss in the range of $16.0 to $18.0 million
  • Non-GAAP net loss per basic and diluted share in the range of $0.19 to $0.21 based on weighted average shares outstanding of approximately 85.0 million

Business Highlights

  • Nimble Unveiled a New Series of Predictive All Flash Arrays. The Nimble AF-Series All Flash Arrays deliver absolute performance; superior scalability and non-stop availability at a total cost of ownership (TCO) that is up to 33 to 66 percent lower than competitive arrays. Powered by Samsung 3D V-NAND-based solid-state drives, the AF-Series scales capacity to new industry heights with up to 553TB of raw capacity in a 12U configuration with a single array and two expansion shelves.
  • Unified Flash Fabric Makes the Flash Data Center a Reality. The Nimble Unified Flash Fabric enables flash for all enterprise applications by unifying All Flash and Adaptive Flash arrays into a single consolidation architecture with common data services.
  • Introduced Innovative Business Model: Timeless Storage. The Timeless Guarantee provides investment protection and upgrade certainty with an option to receive a free faster controller upgrade after three years. The business model offers all-inclusive pricing with no forklift upgrades and the flexibility to purchase storage as a capital investment or as Storage on Demand service.
  • Inaugural Net Promoter Survey Yields Score of 85. In January 2016, Nimble executed its inaugural NPS customer survey and earned a score of 85, reflecting an outstanding customer experience with Nimble products and support.
  • Awarded 5-Star Rating in CRN's 2016 Partner Program Guide. For two consecutive years Nimble has received the highest rating on CRN's definitive listing of technology vendors that serve solution providers or provide products through the IT channel.
  • Global Survey Results Reveal the Impact of Application Performance Delays. The "Mind the Gap" report published by Nimble Storage in collaboration with Oxford Economics found that delays in propagating and refreshing application data (the app-data gap) can cause significant productivity drains and economic losses. U.S. companies may be losing as much as $7.5 billion of worker time annually due to delays and downtime.
  • Nimble InfoSight Research Shows More than 50% of Performance Issues are Non-Storage Related. "Can Machine Learning Prevent Application Downtime?" analyzes data collected by Nimble Storage and points to the most pertinent hurdles impacting the speed at which companies access the data that powers applications, showing that 54% of all issues have nothing to do with storage.
  • Obtained IBM Testing Certification for SVC. Nimble storage solutions are certified with IBM SAN Virtual Volume (SVC), offering joint customers additional options to deliver high availability, data protection and mobility for their mission critical applications.

Conference Call Information

As previously announced, Nimble Storage will host a live question and answer conference call and webcast today at 5:00 p.m. ET (2:00 p.m. PT) to discuss its financial results for the first quarter of fiscal year 2017.

Interested parties may access the call by dialing 877-604-9673 in the U.S. or 719-325-4773 from international locations.  In addition, a live audio webcast of the conference call will be available on the Nimble Storage Investor Relations website at http://investors.nimblestorage.com.  The live webcast will be archived and available on this site for 45 days.  A replay of the conference call will be available for 45 days. To access the replay, please dial 888-203-1112 and enter pass code 2350418. Callers outside the U.S. and Canada should dial 719-457-0820 and enter pass code 2350418.

Non-GAAP Financial Measures

To provide investors with additional information regarding our financial results, Nimble Storage has disclosed in this release and the accompanying tables non-GAAP financial measures that are not calculated in accordance with generally accepted accounting principles in the United States, or GAAP. The company provides non-GAAP gross margin, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss, non-GAAP net loss per share, non-GAAP free cash flow and adjusted EBITDA. In computing these non-GAAP financial measures, the company excludes the effects of stock-based compensation, which is a recurring non-cash expense for the company.  The company has provided reconciliation below of non-GAAP financial measures to the most directly comparable GAAP financial measures.  A reconciliation of the Q2FY17 forward outlook for non-GAAP operating loss or non-GAAP net loss per basic and diluted share is not available without unreasonable efforts as the quantification of stock-based compensation expense requires additional inputs such as number of shares granted and market price, that are not ascertainable.

The company discloses these non-GAAP financial measures because they are key measures used by the company's management and board of directors to understand and evaluate operating performance and trends, to prepare and approve the annual budget and to develop short-term and long-term operational and compensation plans. In particular, the exclusion of certain expenses in calculating non-GAAP financial measures can provide a useful measure for period-to-period comparisons of the company's business. Accordingly, the company believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating the company's operating results in the same manner as the company's management and board of directors.

Non-GAAP financial measures have limitations as analytical tools and, as such, should not be considered in isolation or as substitutes for analysis of the company's results as reported under GAAP. Some of these limitations are:

  • Non-GAAP financial measures do not consider the potentially dilutive impact of equity-based compensation, which is an ongoing expense for the company; and
  • Other companies, including companies in our industry, may calculate non-GAAP financial measures differently, which reduces their usefulness as comparative measures.

Forward-Looking Statements

This press release contains "forward-looking" statements that are based on our management's beliefs and assumptions and on information currently available to management.  We intend for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements other than statements of historical fact contained in this press release, including our current beliefs and expectations concerning our future financial results, business plans, strategy and objectives, competitive position and industry environment.

Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors including, but not limited to, those related to our future financial performance, which is inherently uncertain, unforeseen delays in product development or introduction, uncertainty around market acceptance of our solutions, our ability to increase sales of our solutions, including recently introduced products, our ability to attract and retain customers and to sell additional solutions to our existing customers, our ability to develop new solutions and bring them to market in a timely manner, pricing pressure (as a result of competition or otherwise), introduction of new technologies and products by other companies, changes in technologies, which could render our solutions less competitive, our ability to maintain, protect and enhance our brand and intellectual property, the effectiveness of our channel partners and sales team, our ability to convert leads into sales, our ability to recruit new or keep our existing key talent, global economic conditions, fluctuations in foreign currency rates and our ability to continue to expand our business and manage our growth. Moreover, we operate in very competitive and rapidly changing environments, and new risks may emerge from time to time.  It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Further information on these and other factors that could affect our financial results are included in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission and may cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by our forward-looking statements.

You should not rely upon forward-looking statements as predictions of future events. Although our management believes that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances described in the forward-looking statements will be achieved or occur.  Moreover, neither the company, nor any other person, assumes responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to publicly update any forward-looking statements for any reason after the date of this presentation to conform these statements to actual results or to changes in our expectations, except as required by law.

Nimble Storage Resources

About Nimble Storage
Nimble Storage (NYSE: NMBL) is the leader in predictive flash storage solutions. Nimble offers a Predictive Flash platform that combines flash performance with predictive analytics to predict and prevent barriers to data velocity caused by complex IT infrastructure. Nimble customers experience absolute performance, non-stop availability and cloud-like agility that accelerate critical business processes. More than 8,100 enterprises, governments, and service providers have deployed the Nimble Predictive Flash Platform across more than 50 countries. For more information visit www.nimblestorage.com and follow us on Twitter: @nimblestorage.

Nimble Storage, the Nimble Storage logo, CASL, InfoSight, Timeless Storage, Data Velocity Delivered, Unified Flash Fabric and NimbleConnect are trademarks or registered trademarks of Nimble Storage, Inc. Other trade names or words used in this document are the properties of their respective owners.

Press Contact:
Kristalle Cooks
408-514-3313
[email protected]

Investor Relations Contact:
Edelita Tichepco
408-514-3379
[email protected]

 





 Nimble Storage, Inc. 

 Preliminary Consolidated Statements of Operations 

 (In thousands, except per share amounts) 

 (Unaudited) 














 Three Months Ended 






 April 30, 






2016


2015






 (Unaudited) 


 (Unaudited) 

 Revenue: 








 Product 





$            68,385


$            60,193

 Support and service 




18,032


11,095

 Total revenue 




86,417


71,288

 Cost of revenue: 







 Product (1) 




23,791


19,141

 Support and service (1) 



7,807


5,652

 Total cost of revenue 



31,598


24,793

 Total gross profit 




54,819


46,495

 Operating expenses: 







 Research and development (1) 



26,147


21,709

 Sales and marketing (1) 



60,444


44,443

 General and administrative (1) 



10,442


9,261

 Total operating expenses 



97,033


75,413

 Loss from operations 



(42,214)


(28,918)

 Interest income, net 




73


68

 Other income (expense), net 



(224)


76

 Loss before provision for income taxes 


(42,365)


(28,774)

 Provision for income taxes 



317


212

 Net loss 




$          (42,682)


$          (28,986)

 Net loss per share, basic and diluted 

$              (0.51)


$              (0.38)

 Weighted-average shares used to compute net loss per share, basic and diluted 

83,154


76,506

















 (1) Includes stock-based compensation expense as follows: 




 Cost of product revenue 



$                  615


$                  545

 Cost of support and service revenue 


1,385


1,157

 Research and development 



6,146


5,431

 Sales and marketing 




10,613


10,111

 General and administrative 



3,788


3,741

 Total stock-based compensation expense 


$            22,547


$            20,985


 

 Nimble Storage, Inc. 

 Preliminary Consolidated Balance Sheets 

 (In thousands) 












 As of 





 April 30, 


 January 31, 





2016


2016





 (Unaudited) 



 Assets

 







 Current assets: 






 Cash and cash equivalents 


$         202,984


$       211,160

 Restricted cash, current 


183


793

 Accounts receivable, net 


46,877


50,432

 Inventories 



15,483


15,994

 Prepaid expenses and other current assets 

6,263


5,212

 Total current assets 


271,790


283,591

 Property and equipment, net 


49,898


47,404

 Restricted cash, non-current 


79


74

 Other long-term assets 



803


680

 Total assets 



$          322,570


$        331,749








 Liabilities and Stockholders' Equity 




 Current liabilities: 






 Accounts payable 



$            26,085


$          24,330

 Accrued compensation and benefits 


16,933


19,325

 Deferred revenue, current portion 


58,191


54,580

 Other current liabilities 


8,595


8,933

 Total current liabilities 


109,804


107,168

 Deferred revenue, non-current portion 


62,017


60,265

 Other long-term liabilities 


8,334


8,708

 Total liabilities 



180,155


176,141

 Commitments and contingencies 





 Stockholders' equity: 






 Common stock 



77


75

 Additional paid-in capital 


505,265


476,271

 Accumulated other comprehensive loss 

(238)


(731)

 Accumulated deficit 



(362,689)


(320,007)

 Total stockholders' equity 


142,415


155,608

 Total liabilities and stockholders' equity 

$         322,570


$       331,749

 

 Nimble Storage, Inc. 

 Preliminary Consolidated Statements of Cash Flows 

 (In thousands) 

 (Unaudited) 














 Three Months Ended 






 April 30, 






2016


2015






 (Unaudited) 


 (Unaudited) 

Cash flows from operating activities:






Net loss





$         (42,682)


$         (28,986)

Adjustments to reconcile net loss to net cash used in operating activities:




Depreciation




5,141


3,312

Stock-based compensation expense



22,547


20,985

Loss on disposal of property and equipment



89


-

Provision (recoveries) for allowance for doubtful accounts


38


(1)

Allowance for inventory reserves



(25)


25

Changes in operating assets and liabilities:






Accounts receivable




3,517


(8,982)

Inventories




(604)


(906)

Prepaid expenses and other assets



(1,211)


(199)

Short term restricted cash





610


-

Accounts payable




759


2,625

Deferred revenue




5,363


11,812

Accrued and other liabilities



(1,840)


(7,992)

Net cash used in operating activities


(8,298)


(8,307)

Cash flows from investing activities:






Purchase of property and equipment



(6,776)


(8,057)

Change in restricted cash




(5)


(2)

Net cash used in investing activities


(6,781)


(8,059)

Cash flows from financing activities:






Proceeds from exercise of stock options, net of repurchases


846


2,108

Proceeds from issuance of stock under employee stock purchase plan

5,568


7,201

Excess tax benefit from employee stock plans



-


124

Net cash provided by financing activities


6,414


9,433

Foreign exchange impact on cash and cash equivalents


489


(2)

Net decrease in cash and cash equivalents 


(8,176)


(6,935)

Cash and cash equivalents, beginning of period



211,160


208,394

Cash and cash equivalents, end of period



$         202,984


$         201,459

 

 Nimble Storage, Inc. 

 Reconciliation of GAAP to Non-GAAP Financial Measures 

 (In thousands, except per share amounts) 

 (Unaudited) 














 Three Months Ended 






 April 30, 






2016


2015









 GAAP gross margin 




$    54,819


$    46,495

 Stock-based compensation 



2,000


1,702

 Non-GAAP gross margin 




$    56,819


$    48,197









 GAAP operating margin 




$  (42,214)


$  (28,918)

 Stock-based compensation 



22,547


20,985

 Non-GAAP operating margin 




$  (19,667)


$    (7,933)









 GAAP net loss 





$  (42,682)


$  (28,986)

 Stock-based compensation 



22,547


20,985

 Non-GAAP net loss 




$  (20,135)


$    (8,001)

 Interest income, net 




(73)


(68)

 Provision for income taxes 



317


212

 Depreciation 




5,141


3,312

 Adjusted EBITDA  




$  (14,750)


$    (4,545)









 GAAP net loss per share, basic and diluted 



$       (0.51)


$       (0.38)

 Stock-based compensation 



0.27


0.28

 Non-GAAP net loss per share 



$       (0.24)


$       (0.10)





 Shares used to compute GAAP net loss per share, basic and diluted 

83,154


76,506

 Shares used to compute Non-GAAP net loss per share 

83,154


76,506









 GAAP net cash provided by operating activities 


$    (8,298)


$    (8,307)

 Purchase of property and equipment 



(6,776)


(8,057)

 Non-GAAP free cash flow 




$  (15,074)


$  (16,364)

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/nimble-storage-announces-first-quarter-2017-results-300274215.html

SOURCE Nimble Storage


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