Nutanix Reports Third Quarter Fiscal 2017 Financial Results

May 25, 2017

Record Revenue of $192 Million Up 67 Percent YOY; Record Number of Large Deals; Expanding Market Opportunity with HPE and IBM Hardware

SAN JOSE, Calif.--(BUSINESS WIRE)-- Nutanix, Inc. (NASDAQ:NTNX), a leader in enterprise cloud computing, today announced financial results for its third quarter of fiscal 2017, ended April 30, 2017.

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Nutanix Fiscal Q3'17 Earnings Infographic (Graphic: Business Wire)

Third Quarter Fiscal Year 2017 Financial Highlights

  • Revenue: $191.8 million, growing 67% year-over-year from $114.7 million in the third quarter of fiscal 2016
  • Billings: $234.1 million, growing 47% year-over-year from $159.5 million in the third quarter of fiscal 2016
  • Net Loss: GAAP net loss of $112.0 million, compared to a GAAP net loss of $46.8 million in the third quarter of fiscal 2016; Non-GAAP net loss of $60.8 million, compared to a non-GAAP net loss of $40.4 million in the third quarter of fiscal 2016
  • Net Loss Per Share: GAAP net loss per share of $0.78, compared to a pro forma GAAP net loss per share of $0.39 in the third quarter of fiscal 2016; Non-GAAP net loss per share of $0.42, compared to a pro forma non-GAAP net loss per share of $0.33 in the third quarter of fiscal 2016
  • Cash and Short-term Investments: $350.3 million, up 83% from the third quarter of fiscal 2016
  • Deferred Revenue: $463.0 million, up 102% from the third quarter of fiscal 2016
  • Operating Cash Flow: $(16.0) million, compared to $2.4 million in the third quarter of fiscal 2016, reflecting a $(9.6) million outflow of operating cash related to the purchase of ESPP shares
  • Free Cash Flow: $(29.2) million, compared to $(11.0) million in the third quarter of fiscal 2016, also reflecting a $(9.6) million outflow of operating cash related to the purchase of ESPP shares

Reconciliations between GAAP and non-GAAP financial measures and key performance measures are provided in the tables of this press release.

“We continue to execute on our strategy of building a cloud operating system that provides our customers maximum choice of hardware platforms. We recently established a partnership with IBM® to bring to market the industry’s first hyperconverged solution on Power Systems, and introduced support for HPE® ProLiant® and Cisco UCS® blade servers,” said Dheeraj Pandey, CEO, Nutanix. “Our third quarter results reflect our continued focus on the Global 2000 as well as a measurable improvement in the number of larger deals in the quarter, particularly in North America.”

Recent Company Highlights

  • Continued Customer Growth: Nutanix ended the third quarter of fiscal 2017 with 6,172 end-customers, adding approximately 790 new end-customers during the quarter. Third quarter customer wins included Caterpillar Inc., KYOCERA Communication Systems Co., Ltd., MobileIron, SAIC Volkswagen, Société Générale, and Sprint.
  • Added Support for New Hardware Platforms: The company announced plans to expand the supported hardware platforms for its enterprise cloud OS Software to include Hewlett Packard Enterprise (HPE) ProLiant rackmount servers and Cisco UCS B-Series blade servers, allowing customers greater choice of hardware.
  • Partnered with IBM for New HCI Solution: New partnership between Nutanix and IBM® will bring a turnkey hyperconverged solution combining Nutanix’s software and IBM Power Systems™ targeting high-performance workloads and one-click private clouds for large enterprises.
  • Expanded Economic Consumption Model with Nutanix Go: Nutanix Go offers qualified U.S. customers a new pricing model that enables enterprises to build their cloud, from hardware to software, using operating budgets. This innovative economic model allows customers to break free of long-term capital budget commitments and align with the purchasing experience of the public cloud.
  • Increased Number of $1 Million+ Deals: 34 customers with over $1 million in the quarter as a result of an increased focus on large deals.
  • Announced Extensive Speaker Line-Up for Third Annual .NEXT Conference: Broad range of industry luminaries including Bill McDermott, CEO, SAP; Diane Greene, SVP Google Cloud; Adena Friedman, President and CEO, Nasdaq; Ashok Belani, Executive Vice President, Technology, Schlumberger; Chad Sakac, Dell EMC President, VCE - Converged Platform Division; Kirk Skaugen, EVP and President, Lenovo Datacenter Group; and Virginia Gambale, JetBlue Board Member.

Q4 Fiscal 2017 Financial Outlook

For the fourth quarter of fiscal 2017, Nutanix expects:

  • Revenues between $215 and $220 million;
  • Non-GAAP gross margin of approximately 58%;
  • Non-GAAP net loss per share of $0.38, using 152 million weighted shares outstanding.

Supplementary materials to this earnings release, including the company’s third 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 "Q4 Fiscal 2017 Financial Outlook" exclude stock-based compensation expense, and may also exclude, as applicable, other special items. The company has 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 its 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.

Webcast and Conference Call Information

Nutanix executives will discuss the company’s third quarter fiscal 2017 financial results on a conference call at 4:30 p.m. Eastern time/1:30 p.m. Pacific time today. To listen to the call via telephone, dial 1-877-201-0168 in the United States or 1-647-788-4901 from outside the United States. The conference ID is 12015922. 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 the Nutanix Investor Relations website. A telephonic replay will be available for one week following the conference call at 1-800-585-8367 or 1-416-621-4642, conference ID 12015922.

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 and key performance 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 competitive differentiation, our plans and expectations relating to our relationship with IBM and the deployment of our software on, and interoperability of our software with, IBM Power Systems, HPE ProLiant servers, and Cisco UCS B-Series blade servers, 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, changes in the pricing of certain components of our solutions, and fluctuations in demand and competitive pricing pressures for our solutions; the introduction, or acceleration of adoption of, competing solutions, including public cloud infrastructure; failure to develop, or unexpected difficulties or delays in developing, new product features or technology on a timely or cost-effective basis; and other risks detailed in our Quarterly Report on Form 10-Q for the quarter ended January 31, 2017, filed with the SEC on March 10, 2017. Additional information will also be set forth in our Form 10-Q that will be filed for the quarter ended April 30, 2017, 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.

© 2017 Nutanix, Inc. All rights reserved. Nutanix®, the Enterprise Cloud Platform™ and the Nutanix logo are trademarks of Nutanix, Inc., registered or pending registration in the United States and other countries. Hewlett Packard Enterprise®, HPE® and ProLiant® are the registered trademarks of Hewlett Packard Enterprise Development LP and/or its affiliates. Cisco® and Cisco UCS® are the registered trademarks of Cisco Technology, Inc. IBM® and Power Systems™ are the trademarks of International Business Machines (IBM) and/or its affiliates. Nutanix is not associated with, sponsored or endorsed by HPE or Cisco. All other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s).

 
NUTANIX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, unaudited)

     

As of

      July 31,   April 30,
      2016   2017

Assets

         
Current assets:          
Cash and cash equivalents     $ 99,209     $ 200,774  
Short-term investments     85,991     149,571  
Accounts receivable—net     110,659     170,335  
Deferred commissions—current     17,864     22,260  
Prepaid expenses and other current assets     16,138     44,313  
Total current assets     329,861     587,253  
Property and equipment—net     42,218     53,545  
Deferred commissions—non-current     19,029     28,039  
Intangible assets—net         26,609  
Goodwill         16,636  
Other assets—non-current     7,978     6,225  
Total assets     $ 399,086     $ 718,307  
           
Liabilities, Convertible Preferred Stock and Stockholders’ (Deficit) Equity          
Current liabilities:          
Accounts payable     $ 52,111     $ 83,869  
Accrued compensation and benefits     24,547     56,834  
Accrued expenses and other liabilities     5,537     9,018  
Deferred revenue—current     130,569     207,018  
Total current liabilities     212,764     356,739  
Deferred revenue—non-current     165,896     255,982  
Senior notes     73,260      
Convertible preferred stock warrant liability     9,679      
Early exercised stock options liability     2,320     1,185  
Other liabilities—non-current     1,103     9,163  
Total liabilities     465,022     623,069  
Commitments and contingencies          
Convertible preferred stock     310,379      
Stockholders’ (deficit) equity:          
Common stock     1     4  
Additional paid-in capital     65,629     904,507  
Accumulated other comprehensive loss     (12 )   (96 )
Accumulated deficit     (441,933 )   (809,177 )
Total stockholders’ (deficit) equity     (376,315 )   95,238  
Total liabilities, convertible preferred stock and stockholders’ (deficit) equity     $ 399,086     $ 718,307  
 

 

 

NUTANIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data, unaudited)
 
      Three Months Ended   Nine Months Ended
      April 30,   April 30,
      2016   2017   2016   2017
Revenue:                  
Product     $ 89,957     $ 143,142     $ 241,582     $ 411,307  
Support and other services     24,733     48,621     63,561     129,460  
Total revenue     114,690     191,763     305,143     540,767  
Cost of revenue:                  
Product (1)     33,427     62,593     91,061     173,206  
Support and other services (1)     9,966     20,613     25,347     56,608  
Total cost of revenue     43,393     83,206     116,408     229,814  
Gross profit     71,297     108,557     188,735     310,953  
Operating expenses:                  
Sales and marketing (1)     75,849     128,007     200,576     368,026  
Research and development (1)     31,390     74,607     81,271     220,802  
General and administrative (1)     8,761     15,610     23,976     60,463  
Total operating expenses     116,000     218,224     305,823     649,291  
Loss from operations     (44,703 )   (109,667 )   (117,088 )   (338,338 )

Other income (expense)—net

    (2,106 )   303     (331 )   (25,830 )
Loss before provision for income taxes     (46,809 )   (109,364 )   (117,419 )   (364,168 )

Provision for income taxes

    11     2,613     1,151     3,190  
Net loss     $ (46,820 )   $ (111,977 )   $ (118,570 )   $ (367,358 )
Net loss per share attributable to common stockholders—basic and diluted     $ (1.05 )   $ (0.78 )   $ (2.72 )   $ (3.07 )
Weighted-average shares used in computing net loss per share attributable to common stockholders—basic and diluted     44,441,954     144,054,432     43,643,451     119,851,586  
                   
(1) Includes the following stock-based compensation expense:                  
Product cost of sales     $ 98     $ 610     $ 311     $ 2,424  
Support cost of sales     230     2,471     764     8,210  
Sales and marketing     2,029     15,726     6,111     65,145  
Research and development     1,519     27,041     4,760     89,826  
General and administrative     1,168     4,503     3,434     28,081  
      $ 5,044     $ 50,351     $ 15,380     $ 193,686  
 

 

 
NUTANIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
 
      Nine Months Ended
     

April 30,

      2016   2017
Cash flows from operating activities:          
Net loss     $ (118,570 )   $ (367,358 )

Adjustments to reconcile net loss to net cash provided by operating activities:

         
Depreciation and amortization     18,975     27,934  
Stock-based compensation     15,380     193,686  
Loss on debt extinguishment         3,320  
Change in fair value of convertible preferred stock warrant liability     (567 )   21,133  
Other     (187 )   777  
Changes in operating assets and liabilities:          
Accounts receivable—net     (24,295 )   (58,841 )
Deferred commission     (14,190 )   (13,406 )
Prepaid expenses and other assets     (421 )   (29,628 )
Accounts payable     (3,551 )   32,468  
Accrued compensation and benefits     4,819     32,000  
Accrued expenses and other liabilities     (2,147 )   5,291  
Deferred revenue     126,024     160,527  
Net cash provided by operating activities     1,270     7,903  

Cash flows from investing activities:

         
Purchases of property and equipment     (33,419 )   (37,797 )
Purchases of investments     (85,740 )   (156,420 )
Maturities of investments     66,613     59,542  
Sale of investments         32,640  
Payments for business acquisitions, net of cash acquired         (184 )
Net cash used in investing activities     (52,546 )   (102,219 )
Cash flows from financing activities:          
Proceeds from initial public offering, net of underwriting discounts and commissions         254,455  
Payments of offering costs, net     (2,791 )   (1,609 )
Proceeds from sales of shares through employee equity incentive plans, net of repurchases     2,747     26,662  
Repayment of senior notes         (75,000 )
Debt extinguishment costs         (1,580 )
Payment of debt in conjunction with a business acquisition         (7,124 )
Proceeds from long-term debt - net of issuance costs     73,319      
Other     836     77  
Net cash provided by financing activities     74,111     195,881  
Net increase in cash and cash equivalents     22,835     101,565  
Cash and cash equivalents—beginning of period     67,879     99,209  
Cash and cash equivalents—end of period     $ 90,714     $ 200,774  
Supplemental disclosures of cash flow information:          
Cash paid for income taxes     $ 2,093     $ 3,559  
Cash paid for interest     $     $ 1,271  
Supplemental disclosures of non-cash investing and financing information:          
Vesting of early exercised stock options     $ 2,658     $ 1,293  
Purchases of property and equipment included in accounts payable     $ 2,932     $ 4,496  
Offering costs included in accounts payable     $ 980     $ 51  
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 April 30,   Nine Months Ended April 30,
      2016   2017   2016   2017
Total revenue     $ 114,690   $ 191,763     $ 305,143   $ 540,767
Change in deferred revenue, net of acquisitions (1)     44,815   42,384     126,024   160,527
Billings     $ 159,505   $ 234,147     $ 431,167   $ 701,294
 

(1) Excludes $6.0 million of deferred revenue assumed in the PernixData acquisition.

 
 
Reconciliation of GAAP to Non-GAAP Profit Measures
(In thousands, except share and per share data, unaudited)
 
      GAAP   Non-GAAP Adjustments   Non-GAAP
      Three Months                   Three Months
      Ended April                  

Ended April 30,

      30, 2017  

(1)

 

(2)

 

(3)

 

(4)

 

2017

Gross profit     $ 108,557     $ 3,081     $ 358     $     $     $ 111,996  

Gross margin

    56.6 %   1.6 %   0.2 %           58.4 %
Operating expenses:                          
Sales and marketing     $ 128,007     $ (15,726 )   $ (250 )   $         $ 112,031  
Research and development     74,607     (27,041 )               47,566  
General and administrative     15,610     (4,503 )       296         11,403  
Total operating expenses     $ 218,224     $ (47,270 )   $ (250 )   $ 296     $     $ 171,000  
Loss from operations     $ (109,667 )   $ 50,351     $ 608     $ (296 )   $     $ (59,004 )
Net loss     $ (111,977 )   $ 50,351     $ 608     $ (296 )   $ 513     $ (60,801 )
Weighted-shares outstanding, basic and diluted     144,054,432                     144,054,432  
Net loss per share, basic and diluted     $ (0.78 )   $ 0.35     $ 0.01     $     $     $ (0.42 )
 
(1) Stock-based compensation expense
(2) Amortization of intangible assets
(3) Change in fair value of contingent consideration assumed in the PernixData acquisition
(4) Tax effect of stock-based compensation expense
 

 

 
      GAAP   Non-GAAP Adjustments   Non-GAAP
      Three Months           Three Months
      Ended April           Ended April
      30, 2016  

(1)

  (2)   30, 2016
Gross profit     $ 71,297     $ 328     $     $ 71,625  
Gross margin     62.2 %   0.3 %   %   62.5 %
Operating expenses:                  
Sales and marketing     $ 75,849     $ (2,029 )   $     $ 73,820  
Research and development     31,390     (1,519 )       29,871  
General and administrative     8,761     (1,168 )       7,593  
Total operating expenses     $ 116,000     $ (4,716 )   $     $ 111,284  
Loss from operations     $ (44,703 )   $ 5,044     $     $ (39,659 )
Net loss     $ (46,820 )   $ 5,044     $ 1,337     $ (40,439 )
Weighted-shares outstanding, basic and diluted     44,441,954             44,441,954  
Pro forma adjustment     76,319,511             76,319,511  
Pro forma weighted-shares outstanding, basic and diluted     120,761,465             120,761,465  
Net loss per share, basic and diluted     $ (1.05 )            
Pro forma net loss per share, basic and diluted     $ (0.39 )   $ 0.05     $ 0.01     $ (0.33 )
 

(1) Stock-based compensation expense

(2) Change in fair value of preferred stock warrant liability
 

 

                 
      GAAP   Non-GAAP Adjustments     Non-GAAP
     

Nine Months
Ended April
30, 2017

  (1)   (2)   (3)   (4)   (5)   (6)   (7)    

Nine Months
Ended April
30, 2017

Gross profit     $ 310,953     $ 10,634     $ 956     $     $     $     $     $       $ 322,543  
Gross margin     57.5 %   2.0 %     0.2 %     %     %     %     %     %       59.7 %
Operating expenses:                                        
Sales and marketing     $ 368,026     $ (65,145 )     $ (665 )     $     $     $     $     $       $ 302,216  
Research and development     220,802     (89,826 )                               130,976  
General and administrative     60,463     (28,081 )         (176 )     (672 )                   31,534  
Total operating expenses     $ 649,291     $ (183,052 )     $ (665 )     $ (176 )     $ (672 )     $     $     $       $ 464,726  
Loss from operations     $ (338,338 )   $ 193,686     $ 1,621     $ 176     $ 672     $     $     $       $ (142,183 )
Net loss     $ (367,358 )   $ 193,686     $ 1,621     $ 176     $ 672     $ 21,133     $ 3,320     $ (1,721 )       $ (148,471 )
Weighted-shares outstanding, basic and diluted     119,851,586                                   119,851,586  
Pro forma adjustment     18,171,312                                   18,171,312  
Pro forma weighted-shares outstanding, basic and diluted     138,022,898                                   138,022,898  
Net loss per share, basic and diluted     $ (3.07 )                                  
Pro forma net loss per share, basic and diluted     $ (2.66 )   $ 1.40     $ 0.01     $     $ 0.01     $ 0.15     $ 0.02     $ (0.01 )       $ (1.08 )
                                                                               

(1)

 

Stock-based compensation expense

(2)

 

Amortization of intangible assets

(3)

 

Change in fair value of contingent consideration assumed in the PernixData acquisition

(4)

 

Acquisition-related costs

(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 tax effect of stock-based compensation expense

     

 

               
      GAAP   Non-GAAP Adjustments   Non-GAAP
     

Nine Months
Ended April 30,
2016

  (1)   (2)  

Nine Months
Ended April
30, 2016

Gross profit     $ 188,735     $ 1,075     $     $ 189,810  
Gross margin     61.9 %   0.3 %     %     62.2 %
Operating expenses:                  
Sales and marketing     $ 200,576     $ (6,111 )     $     $ 194,465  
Research and development     81,271     (4,760 )         76,511  
General and administrative     23,976     (3,434 )         20,542  
Total operating expenses     $ 305,823     $ (14,305 )     $     $ 291,518  
Loss from operations     $ (117,088 )   $ 15,380     $     $ (101,708 )
Net loss     $ (118,570 )   $ 15,380     $ (567 )     $ (103,757 )
Weighted-shares outstanding, basic and diluted     43,643,451             43,643,451  
Pro forma adjustment     76,319,511             76,319,511  
Pro forma weighted-shares outstanding, basic and diluted     119,962,962             119,962,962  
Net loss per share, basic and diluted     $ (2.72 )            
Pro forma net loss per share, basic and diluted     $ (0.99 )   $ 0.13     $     $ (0.86 )
                                   

(1) Stock-based compensation expense

(2) Change in fair value of preferred stock warrant liability

                                   
           

Reconciliation of GAAP Net Cash Provided By (Used in) Operating Activities to Non-GAAP Free Cash Flow

(In thousands, unaudited)

           

 

    Three Months Ended April 30,   Nine Months Ended April 30,
      2016   2017   2016   2017
Net cash provided by (used in) operating activities     $ 2,413     $ (16,009 )   $ 1,270     $ 7,903  
Purchase of property and equipment     (13,398 )   (13,181 )   (33,419 )   (37,797 )
Free cash flow     $ (10,985 )   $ (29,190 )   $ (32,149 )   $ (29,894 )
                                   

 

Source: Nutanix, Inc.

Nutanix, Inc.

Investor Contact:

Tonya Chin, 408-560-2675

tonya@nutanix.com

or

Media Contact:

Raj Badarinath, 650-200-0725

raj.badarinath@nutanix.com