[November 29, 2016] |
|
Nutanix Reports First Quarter Fiscal 2017 Financial Results
Nutanix,
Inc. (NASDAQ:NTNX), a leader in enterprise cloud computing, today
announced financial results for its first quarter of fiscal 2017, ended
October 31, 2016.
First Quarter Fiscal Year 2017 Financial Highlights
-
Revenue: $166.8 million, growing 90.1% year-over-year from
$87.8 million in the first quarter of fiscal 2016
-
Billings: $239.8 million, growing 86.9% year-over-year from
$128.3 million in the first quarter of fiscal 2016
-
Net Loss: GAAP net loss of $162.2 million, compared with a net
loss of $38.5 million in the first quarter of fiscal 2016; Non-GAAP
net loss of $47.8 million, compared to a net loss of $32.4 million in
the first quarter of fiscal 2016
-
Net Loss Per Share: GAAP loss per share of $(2.18), compared to
a net loss per share of $(0.90) in the first quarter of fiscal 2016;
Pro forma non-GAAP net loss per share of $(0.37), compared to a pro
forma non-GAAP net loss per share of $(0.27) in the first quarter of
fiscal 2016
-
Cash and Short-term investments: $347.1 million, up 154.9% from
the first quarter of fiscal 2016
-
Deferred Revenue: $375.4 million, up 160.5% from the first
quarter of fiscal 2016
-
Operating Cash Flow: $4.2 million, compared to $(5.6) million
in the first quarter of fiscal 2016
-
Free Cash Flow: $(7.8) million, compared to $(15.3) million in
the first quarter of fiscal 2016
Reconciliations between GAAP and non-GAAP financial measures and key
performance measures are provided in the tables of this press release.
"The time warp between an enterprise-friendly VMware and a
consumer-friendly AWS is our cloud opportunity," said Dheeraj Pandey,
chairman and CEO of Nutanix. "Our first quarter results are reflective
of the strength of our thesis on how enterprise computing will morph in
the coming three to five years."
"The backdrop of our $100 billion addressable market continues to
provide many opportunities for disciplined growth," said Duston
Williams, chief financial officer of Nutanix. "This quarter our federal
business significantly contributed to our strong performance. We also
are pleased with the evolution of our business model, with this quarter
marking the fourth consecutive quarter of positive cash flow from
operations."
Recent Company Highlights
-
Customer growth: Nutanix ended the first quarter of fiscal 2017
with a total of 4,473 end-customers, adding a total of 705
end-customers during the quarter.
-
Large deals increasing: Large end-customers continue to invest
in Nutanix, with cumulative end-customers with lifetime bookings over
$1 million growing to 256 in the quarter.
-
Expanded platform to deliver one-click networks: The company
recently announced new and planned capabilities including network
visualization, orchestration and security, which will further increase
the value of the Nutanix Enterprise Cloud operating system and extend
the company's competitive differentiation.
-
Completed acquisitions of PernixData and Calm.io: The addition
of PernixData and Calm.io will enable the company to accelerate and
further automate the delivery of its Enterprise Cloud operating system.
-
Once again named a Leader in Gartner's Magic Quadrant: For the
second consecutive year, Nutanix was recognized as a Leader in the
Gartner, Inc. October 2016 Magic Quadrant for Integrated Systems.1
-
Hosted 1,200+ Attendees at .NEXT Europe: The inaugural .NEXT
Conference Europe, held in Vienna, Austria, marked the company's
second largest user event in its history.
-
Renewed Dell OEM Agreement: Signed an extension to the Dell OEM
Agreement, which now runs through June 2021, providing Dell/EMC
sellers and channel partners with uninterrupted access to Nutanix
software on Dell hardware.
-
Initial Public Offering: Completed its initial public offering,
becoming listed on the NASDAQ Stock Exchange on September 30, 2016 and
selling 17.1 million shares at $16 per share.
Q2 Fiscal 2017 Financial Outlook
For the second quarter of fiscal 2017, Nutanix expects:
-
Revenues between $175 and $180 million;
-
Non-GAAP gross margin of approximately 60.0%, and
-
Non-GAAP loss per share between $(0.35) and $(0.36), using 142 million
weighted shares outstanding.
Supplementary materials to this earnings release, including the
company's first quarter fiscal 2017 investor presentation, can be found
at http://ir.nutanix.com/company/financial/.
All forward-looking non-GAAP financial measures contained in this
section titled "Q2 Fiscal 2017 Financial Outlook" exclude stock-based
compensation expense, and may also exclude, as applicable, other special
items. We have not reconciled guidance for non-GAAP gross margin and
non-GAAP loss per share to their most directly comparable GAAP measures
because such items that impact these measures are not within our control
and are subject to constant change. While the actual amounts of such
items will have a significant impact on the company's non-GAAP gross
margin and non-GAAP loss per share, a reconciliation of the non-GAAP
financial measure guidance to the corresponding GAAP measures is not
available without unreasonable effort.
1 Source: Gartner, Magic Quadrant for
Integrated Systems, [Andrew Butler, Philip Dawson, Julie Palmer, George
J. Weiss, Kiyomi Yamada], 10 October 2016. Gartner does not endorse
any vendor, product or service depicted in its research publications,
and does not advise technology users to select only those vendors with
the highest ratings or other designation. Gartner research publications
consist of the opinions of Gartner's research organization and should
not be construed as statements of fact. Gartner disclaims all
warranties, expressed or implied, with respect to this research,
including any warranties of merchantability or fitness for a particular
purpose.
Webcast and Conference Call Information
Nutanix executives will discuss the company's first quarter fiscal 2017
financial results on a conference call at 5:00 p.m. Eastern time/2:00
p.m. Pacific time today. To listen to the call via telephone, dial
1-866-393-4306 in the United States or 1-734-385-2616 from outside the
United States. The conference ID is 4062277. This call is being webcast
live and is available to all interested parties on our Investor
Relations website at ir.nutanix.com.
Shortly after the conclusion of the conference call, a replay of the
audio webcast will be available on Nutanix's Investor Relations website.
A telephonic replay will be available for one week following the
conference call at 1-855-859-2056 or 1-404-537-3406, conference ID
4062277.
Non-GAAP Financial Measures and Other Key Performance Measures
To supplement our condensed consolidated financial statements, which are
prepared and presented in accordance with GAAP, we use the following
non-GAAP financial and other key performance measures: billings,
non-GAAP gross margin percentage, non-GAAP net loss, pro forma non-GAAP
net loss per share, and free cash flow. In computing these non-GAAP
financial measures, we exclude certain items such as stock-based
compensation and the related income tax impact, costs associated with
our acquisitions (such as amortization of acquired intangible assets,
revaluation of contingent consideration, income tax related impact, and
other acquisition-related costs), loss on debt extinguishment, and
changes in the fair value of our preferred stock warrant liability.
Billings is a performance measure which our management believes provides
useful information to investors because it represents the amounts under
binding purchase orders received by us during a given period that have
been billed, and we calculate billings by adding the change in deferred
revenue between the start and end of the period to total revenue
recognized in the same period. Free cash flow is a performance measure
that our management believes provides useful information to management
and investors about the amount of cash generated by the business after
necessary capital expenditures, and we define free cash flow as net cash
(used in) provided by operating activities less purchases of property
and equipment. We use these non-GAAP financial and key performance
measures for financial and operational decision-making and as a means to
evaluate period-to-period comparisons. Our management believes that
these non-GAAP financial measures provide meaningful supplemental
information regarding our performance and liquidity by excluding certain
expenses and expenditures such as stock-based compensation expense that
may not be indicative of our ongoing core business operating results.
However, these non-GAAP financial and key performance measures have
limitations as analytical tools, and you should not consider them in
isolation or as substitutes for analysis of our results as reported
under GAAP. Billings, non-GAAP gross margin percentage, non-GAAP net
loss, pro forma non-GAAP net loss per share, and free cash flow are not
substitutes for total revenue, gross profit, net loss, net loss per
share, or net cash (used in) provided by operating activities,
respectively. In addition, other companies, including companies in our
industry, may calculate non-GAAP financial measures and key performance
measures differently or may use other measures to evaluate their
performance, all of which could reduce the usefulness of our non-GAAP
financial measures and key performance measures as tools for comparison.
We urge you to review the reconciliation of our non-GAAP financial
measures and key performance measures to the most directly comparable
GAAP financial measures included below in the tables captioned
"Reconciliation of Revenue to Billings," "Reconciliation of GAAP to
Non-GAAP Profit Measures," and "Reconciliation of GAAP Net Cash (Used
In) Provided By Operating Activities to Non-GAAP Free Cash Flow," and
not to rely on any single financial measure to evaluate our business.
Forward Looking Statements
This press release contains express and implied forward-looking
statements, including but not limited to statements relating to our
business plans and objectives, product features and technology that are
under development or in process, such as additional security
capabilities, our plans to introduce product features in the future, the
impact of the recent PernixData and Calm.io acquisitions on our
business, our competitive differentiation, and anticipated future
financial results, including but not limited to our guidance on
estimated revenues, non-GAAP gross margin, and non-GAAP net loss per
share for future fiscal periods. These forward-looking statements are
not historical facts, and instead are based on our current expectations,
estimates, opinions and beliefs. Consequently, you should not rely on
these forward-looking statements. The accuracy of such forward-looking
statements depends upon future events, and involves risks, uncertainties
and other factors beyond our control that may cause these statements to
be inaccurate and cause our actual results, performance or achievements
to differ materially and adversely from those anticipated or implied by
such statements, including, among others: the rapid evolution of the
markets in which we compete; our ability to sustain or manage future
growth effectively; factors that could result in the significant
fluctuation of our future quarterly operating results, including, among
other things, our revenue mix, the timing and magnitude of orders,
shipments and acceptance of our solutions in any given quarter, our
ability to attract new and retain existing end-customers, and
fluctuations in demand and competitive pricing pressures for our
solutions; our ability to successfully integrate acquired companies,
employees and intellectual property; failure to develop, or unexpected
difficulties or delays in developing, new product features or technology
on a timely or cost-effective basis or at all; delays in or lack of
customer or market acceptance of our new product features or technology;
the introduction, or acceleration of adoption of, competing solutions,
including public cloud infrastructure; and other risks detailed in our
prospectus filed with the SEC on September 30, 2016 pursuant to Rule
424(b) under the Securities Act of 1933, as amended. Additional
information will also be set forth in our Form 10-Q that will be filed
for the quarter ended October 31, 2016, which should be read in
conjunction with these financial results. Our SEC filings are available
on the Investor Relations section of the company's website at ir.nutanix.com
and on the SEC's website at www.sec.gov.
These forward-looking statements speak only as of the date of this press
release and, except as required by law, we assume no obligation to
update forward-looking statements to reflect actual results or
subsequent events or circumstances.
About Nutanix
Nutanix makes infrastructure invisible, elevating IT to focus on the
applications and services that power their business. The Nutanix
Enterprise Cloud platform leverages web-scale engineering and
consumer-grade design to natively converge compute, virtualization and
storage into a resilient, software-defined solution with rich machine
intelligence. The result is predictable performance, cloud-like
infrastructure consumption, robust security, and seamless application
mobility for a broad range of enterprise applications. Learn more at www.nutanix.com
or follow us on Twitter @nutanix.
© 2016 Nutanix, Inc. All rights reserved. Nutanix and the Nutanix logo
are trademarks of Nutanix, Inc., registered in the United States and
other countries. All other brand names mentioned herein are for
identification purposes only and may be the trademarks of their
respective holder(s). AWS is a trademark of Amazon.com, Inc., and VMware
is a trademark of VMware, Inc.
|
NUTANIX, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands, unaudited)
|
|
|
|
|
As of
|
|
|
|
July 31,
|
|
|
October 31,
|
|
|
|
2016
|
|
|
2016
|
Assets
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
99,209
|
|
|
|
$
|
225,463
|
|
Short-term investments
|
|
|
85,991
|
|
|
|
121,649
|
|
Accounts receivable-net
|
|
|
110,659
|
|
|
|
147,707
|
|
Deferred commissions-current
|
|
|
17,864
|
|
|
|
19,398
|
|
Prepaid expenses and other current assets
|
|
|
16,138
|
|
|
|
16,304
|
|
Total current assets
|
|
|
329,861
|
|
|
|
530,521
|
|
Property and equipment-net
|
|
|
42,218
|
|
|
|
46,328
|
|
Intangible assets-net
|
|
|
-
|
|
|
|
27,825
|
|
Goodwill
|
|
|
-
|
|
|
|
16,784
|
|
Deferred commissions-non-current
|
|
|
19,029
|
|
|
|
22,125
|
|
Other assets-non-current
|
|
|
7,978
|
|
|
|
4,680
|
|
Total assets
|
|
|
$
|
399,086
|
|
|
|
$
|
648,263
|
|
|
Liabilities, Convertible Preferred Stock and Stockholders'
(Deficit) Equity
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
52,111
|
|
|
|
$
|
57,308
|
|
Accrued compensation and benefits
|
|
|
24,547
|
|
|
|
28,352
|
|
Accrued expenses and other liabilities
|
|
|
5,537
|
|
|
|
6,591
|
|
Deferred revenue-current
|
|
|
130,569
|
|
|
|
165,833
|
|
Total current liabilities
|
|
|
212,764
|
|
|
|
258,084
|
|
Deferred revenue-non-current
|
|
|
165,896
|
|
|
|
209,598
|
|
Senior notes
|
|
|
73,260
|
|
|
|
-
|
|
Convertible preferred stock warrant liability
|
|
|
9,679
|
|
|
|
-
|
|
Early exercised stock options liability
|
|
|
2,320
|
|
|
|
1,874
|
|
Other liabilities-non-current
|
|
|
1,103
|
|
|
|
7,044
|
|
Total liabilities
|
|
|
465,022
|
|
|
|
476,600
|
|
|
|
|
|
|
|
|
Convertible preferred stock:
|
|
|
|
|
|
|
Convertible preferred stock
|
|
|
310,379
|
|
|
|
-
|
|
|
|
|
|
|
|
|
Stockholders' (deficit) equity:
|
|
|
|
|
|
|
Common stock
|
|
|
1
|
|
|
|
4
|
|
Additional paid-in capital
|
|
|
65,629
|
|
|
|
775,667
|
|
Accumulated other comprehensive loss
|
|
|
(12
|
)
|
|
|
(20
|
)
|
Accumulated deficit
|
|
|
(441,933
|
)
|
|
|
(603,988
|
)
|
Total stockholders' (deficit) equity
|
|
|
(376,315
|
)
|
|
|
171,663
|
|
Total liabilities, convertible preferred stock and stockholders'
(deficit) equity
|
|
|
$
|
399,086
|
|
|
|
$
|
648,263
|
|
|
|
NUTANIX, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands, except share and per share data, unaudited)
|
|
|
|
|
Three Months Ended
|
|
|
|
October 31,
|
|
|
|
2015
|
|
|
2016
|
Revenue:
|
|
|
|
|
|
|
Product
|
|
|
$
|
70,396
|
|
|
|
$
|
129,657
|
|
Support and other services
|
|
|
17,360
|
|
|
|
37,152
|
|
Total revenue
|
|
|
87,756
|
|
|
|
166,809
|
|
Cost of revenue:
|
|
|
|
|
|
|
Product (1)
|
|
|
27,657
|
|
|
|
52,210
|
|
Support and other services (1)
|
|
|
7,422
|
|
|
|
17,552
|
|
Total cost of revenue
|
|
|
35,079
|
|
|
|
69,762
|
|
Gross profit
|
|
|
52,677
|
|
|
|
97,047
|
|
Operating expenses:
|
|
|
|
|
|
|
Sales and marketing (1)
|
|
|
58,599
|
|
|
|
128,775
|
|
Research and development (1)
|
|
|
23,857
|
|
|
|
75,281
|
|
General and administrative (1)
|
|
|
7,375
|
|
|
|
29,372
|
|
Total operating expenses
|
|
|
89,831
|
|
|
|
233,428
|
|
Loss from operations
|
|
|
(37,154
|
)
|
|
|
(136,381
|
)
|
Other expense-net
|
|
|
(871
|
)
|
|
|
(25,712
|
)
|
Loss before provision for income taxes
|
|
|
(38,025
|
)
|
|
|
(162,093
|
)
|
Provision for income taxes
|
|
|
520
|
|
|
|
76
|
|
Net loss
|
|
|
$
|
(38,545
|
)
|
|
|
$
|
(162,169
|
)
|
|
|
|
|
|
|
|
Net loss per share attributable to common stockholders-basic and
diluted
|
|
|
$
|
(0.90
|
)
|
|
|
$
|
(2.18
|
)
|
Weighted-average shares used in computing net loss per share
attributable to common stockholders-basic and diluted
|
|
|
42,838,933
|
|
|
|
74,373,788
|
|
|
|
|
|
|
|
|
(1) Includes the following stock-based compensation expense:
|
|
|
|
|
|
|
Product cost of sales
|
|
|
$
|
109
|
|
|
|
$
|
966
|
|
Support cost of sales
|
|
|
293
|
|
|
|
3,350
|
|
Sales and marketing
|
|
|
2,118
|
|
|
|
33,891
|
|
Research and development
|
|
|
1,629
|
|
|
|
34,026
|
|
General and administrative
|
|
|
$
|
1,237
|
|
|
|
18,495
|
|
|
|
|
$
|
5,386
|
|
|
|
$
|
90,728
|
|
|
During the three months ended October 31, 2016, we recorded (i)
approximately $83.0 million of stock-based compensation related to
our stock awards with performance conditions, which vesting is
subject to continuous service with us and satisfaction of certain
liquidity events or/and achievement of specified performance
targets, as the vesting of these stock awards became probable and
(ii) approximately $2.5 million of stock-based compensation
expense related to our ESPP plan, which we began offering upon the
effectiveness of our IPO.
|
|
|
NUTANIX, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands, unaudited)
|
|
|
|
|
Three Months Ended
|
|
|
|
October 31,
|
|
|
|
2015
|
|
|
2016
|
Cash flows from operating activities:
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(38,545
|
)
|
|
|
$
|
(162,169
|
)
|
Adjustments to reconcile net loss to net cash (used in) provided
by operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
5,557
|
|
|
|
8,572
|
|
Stock-based compensation
|
|
|
5,386
|
|
|
|
90,728
|
|
Loss on debt extinguishment
|
|
|
-
|
|
|
|
3,320
|
|
Change in fair value of convertible preferred stock warrant liability
|
|
|
771
|
|
|
|
21,133
|
|
Other
|
|
|
(328
|
)
|
|
|
369
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable-net
|
|
|
(8,816
|
)
|
|
|
(36,213
|
)
|
Deferred commission
|
|
|
(4,529
|
)
|
|
|
(4,630
|
)
|
Prepaid expenses and other assets
|
|
|
(419
|
)
|
|
|
840
|
|
Accounts payable
|
|
|
(5,864
|
)
|
|
|
5,052
|
|
Accrued compensation and benefits
|
|
|
(125
|
)
|
|
|
3,518
|
|
Accrued expenses and other liabilities
|
|
|
763
|
|
|
|
682
|
|
Deferred revenue
|
|
|
40,533
|
|
|
|
72,958
|
|
Net cash (used in) provided by operating activities
|
|
|
(5,616
|
)
|
|
|
4,160
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
Purchases of investments
|
|
|
(14,066
|
)
|
|
|
(87,448
|
)
|
Maturities of investments
|
|
|
15,225
|
|
|
|
19,950
|
|
Sales of investments
|
|
|
-
|
|
|
|
31,638
|
|
Payments for business acquisitions, net of cash acquired
|
|
|
-
|
|
|
|
(184
|
)
|
Purchases of property and equipment
|
|
|
(9,642
|
)
|
|
|
(11,915
|
)
|
Net cash used in investing activities
|
|
|
(8,483
|
)
|
|
|
(47,959
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
Proceeds from initial public offering, net of underwriting discounts
and commissions
|
|
|
-
|
|
|
|
254,455
|
|
Payments of offering costs
|
|
|
(803
|
)
|
|
|
(2,243
|
)
|
Proceeds from exercise of stock options, net of repurchases
|
|
|
1,298
|
|
|
|
1,472
|
|
Repayment of senior notes
|
|
|
-
|
|
|
|
(75,000
|
)
|
Debt extinguishment costs
|
|
|
-
|
|
|
|
(1,580
|
)
|
Payment of debt assumed in a business acquisition
|
|
|
-
|
|
|
|
(7,124
|
)
|
Other
|
|
|
586
|
|
|
|
73
|
|
Net cash provided by financing activities
|
|
|
1,081
|
|
|
|
170,053
|
|
Net (decrease) increase in cash and cash equivalents
|
|
|
(13,018
|
)
|
|
|
126,254
|
|
Cash and cash equivalents-beginning of period
|
|
|
67,879
|
|
|
|
99,209
|
|
Cash and cash equivalents-end of period
|
|
|
$
|
54,861
|
|
|
|
$
|
225,463
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
Cash paid for income taxes
|
|
|
$
|
828
|
|
|
|
$
|
698
|
|
Cash paid for interest
|
|
|
$
|
-
|
|
|
|
$
|
1,271
|
|
Supplemental disclosures of non-cash investing and financing
information:
|
|
|
|
|
|
|
Vesting of early exercised stock options
|
|
|
$
|
1,049
|
|
|
|
$
|
499
|
|
Purchases of property and equipment included in accounts payable
|
|
|
$
|
5,308
|
|
|
|
$
|
5,033
|
|
Offering costs included in accounts payable
|
|
|
$
|
1,772
|
|
|
|
$
|
367
|
|
Conversion of convertible preferred stock to common stock, net of
issuance costs
|
|
|
$
|
-
|
|
|
|
$
|
310,379
|
|
Reclassification of convertible preferred stock warrant liability to
additional paid-in capital
|
|
|
$
|
-
|
|
|
|
$
|
30,812
|
|
Issuance of common stock for business acquisitions
|
|
|
$
|
-
|
|
|
|
$
|
27,063
|
|
|
|
Reconciliation of Revenue to Billings
|
(In thousands, unaudited)
|
|
|
|
|
Three Months Ended
|
|
|
|
October 31,
|
|
|
|
2015
|
|
|
2016
|
Total revenue
|
|
|
$
|
87,756
|
|
|
|
$
|
166,809
|
Change in deferred revenue, net of acquisitions (1)
|
|
|
40,533
|
|
|
|
72,958
|
Billings
|
|
|
$
|
128,289
|
|
|
|
$
|
239,767
|
|
(1) Excludes $6.0 million of deferred revenue assumed in the
PernixData acquisition.
|
|
|
Reconciliation of GAAP to Non-GAAP Profit Measures
|
(Dollars in thousands, unaudited)
|
|
|
|
|
GAAP
|
|
|
Non-GAAP Adjustments
|
|
|
Non-GAAP
|
|
|
|
Q1 2017
|
|
|
(1)
|
|
|
(2)
|
|
|
(3)
|
|
|
(4)
|
|
|
(5)
|
|
|
(6)
|
|
|
(7)
|
|
|
Q1 2017
|
Gross profit
|
|
|
$
|
97,047
|
|
|
|
$
|
4,316
|
|
|
|
$
|
242
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
101,605
|
|
Gross margin
|
|
|
58.2
|
%
|
|
|
2.6
|
%
|
|
|
0.1
|
%
|
|
|
-
|
%
|
|
|
-
|
%
|
|
|
-
|
%
|
|
|
-
|
%
|
|
|
-
|
%
|
|
|
60.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
$
|
128,775
|
|
|
|
$
|
(33,891
|
)
|
|
|
$
|
(167
|
)
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
94,717
|
|
Research and development
|
|
|
75,281
|
|
|
|
(34,026
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
41,255
|
|
General and administrative
|
|
|
29,372
|
|
|
|
(18,495
|
)
|
|
|
-
|
|
|
|
(672
|
)
|
|
|
(186
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,019
|
|
Total operating expenses
|
|
|
$
|
233,428
|
|
|
|
$
|
(86,412
|
)
|
|
|
$
|
(167
|
)
|
|
|
$
|
(672
|
)
|
|
|
$
|
(186
|
)
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
145,991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
|
$
|
(136,381
|
)
|
|
|
$
|
90,728
|
|
|
|
$
|
409
|
|
|
|
$
|
672
|
|
|
|
$
|
186
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
(44,386
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(162,169
|
)
|
|
|
$
|
90,728
|
|
|
|
$
|
409
|
|
|
|
$
|
672
|
|
|
|
$
|
186
|
|
|
|
$
|
21,133
|
|
|
|
$
|
3,320
|
|
|
|
$
|
(2,109
|
)
|
|
|
$
|
(47,830
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-shares outstanding, basic and diluted
|
|
|
74,373,788
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
74,373,788
|
|
Pro forma adjustment
|
|
|
53,921,394
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53,921,394
|
|
Pro forma weighted-shares outstanding, basic and diluted
|
|
|
128,295,182
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
128,295,182
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic and diluted
|
|
|
$
|
(2.18
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma net loss per share, basic and diluted
|
|
|
$
|
(1.26
|
)
|
|
|
$
|
0.71
|
|
|
|
$
|
0.00
|
|
|
|
$
|
0.01
|
|
|
|
$
|
0.00
|
|
|
|
$
|
0.16
|
|
|
|
$
|
0.03
|
|
|
|
$
|
(0.02
|
)
|
|
|
$
|
(0.37
|
)
|
|
(1) Stock-based compensation expense
|
(2) Amortization of intangible assets
|
(3) Acquisition-related costs
|
(4) Change in fair value of contingent consideration assumed in
the PernixData acquisition
|
(5) Change in fair value of preferred stock warrant liability
|
(6) Loss on debt extinguishment
|
(7) Partial release of valuation allowance from the PernixData
acquisition and the tax effect of stock-based compensation expense
|
|
|
|
|
|
GAAP
|
|
|
Non-GAAP Adjustments
|
|
|
Non-GAAP
|
|
|
|
Q1 2016
|
|
|
(1)
|
|
|
(2)
|
|
|
Q1 2016
|
Gross profit
|
|
|
$
|
52,677
|
|
|
|
$
|
402
|
|
|
|
$
|
-
|
|
|
|
$
|
53,079
|
|
Gross margin
|
|
|
60.0
|
%
|
|
|
0.5
|
%
|
|
|
-
|
%
|
|
|
60.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
$
|
58,599
|
|
|
|
$
|
(2,118
|
)
|
|
|
$
|
-
|
|
|
|
$
|
56,481
|
|
Research and development
|
|
|
23,857
|
|
|
|
(1,629
|
)
|
|
|
-
|
|
|
|
22,228
|
|
General and administrative
|
|
|
7,375
|
|
|
|
(1,237
|
)
|
|
|
-
|
|
|
|
6,138
|
|
Total operating expenses
|
|
|
$
|
89,831
|
|
|
|
$
|
(4,984
|
)
|
|
|
$
|
-
|
|
|
|
$
|
84,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
|
$
|
(37,154
|
)
|
|
|
$
|
5,386
|
|
|
|
$
|
-
|
|
|
|
$
|
(31,768
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(38,545
|
)
|
|
|
$
|
5,386
|
|
|
|
$
|
771
|
|
|
|
$
|
(32,388
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-shares outstanding, basic and diluted
|
|
|
42,838,933
|
|
|
|
|
|
|
|
|
|
42,838,933
|
|
Pro forma adjustment
|
|
|
76,319,511
|
|
|
|
|
|
|
|
|
|
76,319,511
|
|
Pro forma weighted-shares outstanding, basic and diluted
|
|
|
119,158,444
|
|
|
|
|
|
|
|
|
|
119,158,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic and diluted
|
|
|
$
|
(0.90
|
)
|
|
|
|
|
|
|
|
|
|
Pro forma net loss per share, basic and diluted
|
|
|
$
|
(0.32
|
)
|
|
|
$
|
0.05
|
|
|
|
$
|
0.01
|
|
|
|
$
|
(0.27
|
)
|
|
(1) Stock-based compensation expense
|
(2) Change in fair value of preferred stock warrant liability
|
|
|
Reconciliation of GAAP Net Cash (Used In) Provided By Operating
Activities to Non-GAAP Free Cash Flow
|
(In thousands, unaudited)
|
|
|
|
|
Three Months Ended
|
|
|
|
October 31,
|
|
|
|
2015
|
|
|
2016
|
Net cash (used in) provided by operating activities
|
|
|
$
|
(5,616
|
)
|
|
|
$
|
4,160
|
|
Purchases of property and equipment
|
|
|
(9,642
|
)
|
|
|
(11,915
|
)
|
Free cash flow
|
|
|
$
|
(15,258
|
)
|
|
|
$
|
(7,755
|
)
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161129006172/en/
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