false000161873200016187322024-08-282024-08-28

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported) August 28, 2024

 

 

NUTANIX, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware			001-37883	27-0989767
(State or other jurisdiction of incorporation)			(Commission File Number)	(IRS Employer Identification No.)
1740 Technology Drive, Suite 150
San Jose, California				95110
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 408 216-8360

 

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading symbol(s)		Name of each exchange on which registered
Class A Common Stock, $0.000025 par value per share		NTNX		The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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Item 2.02 Results of Operations and Financial Condition.

On August 28, 2024, Nutanix, Inc. (the “Company”) issued a press release announcing the Company’s financial results for its fourth fiscal quarter and fiscal year ended July 31, 2024. A copy of this press release is attached hereto as Exhibit 99.1.

The information provided pursuant to Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise be subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the rules and regulations of the Securities and Exchange Commission (the “SEC”) thereunder, or the Exchange Act or the rules and regulations of the SEC thereunder, except as shall be expressly set forth by specific reference in such filing or document.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit Number		Description
99.1		Press release issued by Nutanix, Inc. on August 28, 2024
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			NUTANIX, INC.
Date:	August 28, 2024	By:	/s/ Rukmini Sivaraman
			Rukmini Sivaraman Chief Financial Officer

 

 

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Exhibit 99.1

Nutanix Reports Fourth Quarter and Fiscal 2024 Financial Results

Reports 22% YoY ARR Growth and Strong Free Cash Flow for Fiscal 2024

 

Delivers Outperformance Across All Fourth Quarter Guided Metrics

 

SAN JOSE, Calif. – Aug. 28, 2024 – Nutanix, Inc. (NASDAQ: NTNX), a leader in hybrid multicloud computing, today announced financial results for its fourth quarter and fiscal year ended July 31, 2024.

 

“Our fourth quarter was a solid finish to a fiscal year that showed good progress on our financial model with solid top line growth and sharp year-over-year improvement in profitability,” said Rajiv Ramaswami, President and CEO of Nutanix. “In fiscal 2024, we also made notable progress on partnerships, signing new or enhanced agreements with Cisco, NVIDIA and Dell, and continued to innovate towards our goal of being the leading platform for running applications and managing data, anywhere.”

“Our fiscal 2024 results demonstrated a good balance of top and bottom line performance with 22% year-over-year ARR growth, strong free cash flow generation and our first full year of positive GAAP operating income,” said Rukmini Sivaraman, CFO of Nutanix. “We remain focused on delivering sustainable, profitable growth.”

Fourth Quarter Fiscal 2024 Financial Summary

 

	Q4 FY’24	Q4 FY’23	Y/Y Change
Annual Contract Value (ACV)1 Billings	$338.0 million	$278.7 million	21%
Annual Recurring Revenue (ARR)2	$1.91 billion	$1.56 billion	22%
Average Contract Duration3	3.1 years	3.0 years	0.1 year
Revenue	$548.0 million	$494.2 million	11%
GAAP Gross Margin	85.2%	83.7%	150 bps
Non-GAAP Gross Margin	86.9%	85.8%	110 bps
GAAP Operating Expenses	$479.2 million	$425.1 million	13%
Non-GAAP Operating Expenses	$405.5 million	$360.6 million	12%
GAAP Operating Loss	$(12.2) million	$(11.3) million	$(0.9) million
Non-GAAP Operating Income	$70.5 million	$63.6 million	$6.9 million

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GAAP Operating Margin	(2.2)%	(2.3)%	0.1% pts
Non-GAAP Operating Margin	12.9%	12.9%	0% pts
Net Cash Provided by Operating Activities	$244.7 million	$58.3 million	$186.4 million
Free Cash Flow	$224.3 million	$45.5 million	$178.8 million

 

 

Fiscal 2024 Financial Summary

 

	FY’24	FY’23	Y/Y Change
Annual Contract Value (ACV)1 Billings	$1.16 billion	$956.8 million	21%
Annual Recurring Revenue (ARR)2	$1.91 billion	$1.56 billion	22%
Average Contract Duration3	3.0 years	3.0 years	0.0 year
Revenue	$2.15 billion	$1.86 billion	15%
GAAP Gross Margin	84.9%	82.2%	270 bps
Non-GAAP Gross Margin	86.7%	84.6%	210 bps
GAAP Operating Expenses	$1.82 billion	$1.74 billion	5%
Non-GAAP Operating Expenses	$1.52 billion	$1.41 billion	7%
GAAP Operating Income (Loss)	$7.6 million	$(207.2) million	$214.8 million
Non-GAAP Operating Income	$347.1 million	$161.0 million	$186.1 million
GAAP Operating Margin	0.4%	(11.1)%	11.5% pts
Non-GAAP Operating Margin	16.2%	8.6%	7.6% pts
Net Cash Provided by Operating Activities	$672.9 million	$272.4 million	$400.5 million
Free Cash Flow	$597.7 million	$207.0 million	$390.7 million

 

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

 

 

First Quarter Fiscal 2025 Outlook

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Revenue	$565 - $575 million
Non-GAAP Operating Margin	14.5% to 15.5%
Weighted Average Shares Outstanding (Diluted)4	Approximately 287 million

 

Fiscal 2025 Outlook

Revenue	$2.435 - $2.465 billion
Non-GAAP Operating Margin	15.5% to 17.0%
Free Cash Flow	$540 - $600 million

Supplementary materials to this press release, including our fourth quarter and fiscal 2024 earnings presentation, can be found at https://ir.nutanix.com/financial/quarterly-results.

 

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

 

Webcast and Conference Call Information

Nutanix executives will discuss the Company’s fourth quarter and fiscal 2024 financial results on a conference call today at 4:30 p.m. Eastern Time/1:30 p.m. Pacific Time. Interested parties may access the conference call by registering at this link to receive dial in details and a unique PIN number. The conference call will also be webcast live on the Nutanix Investor Relations website at ir.nutanix.com. An archived replay of the webcast will be available on the Nutanix Investor Relations website at ir.nutanix.com shortly after the call.

 

 

Footnotes

1Annual Contract Value, or ACV, is defined as the total annualized value of a contract. The total annualized value for a contract is calculated by dividing the total value of the contract by the number of years in the term of such contract, using, where applicable, an assumed term of five years for life-of-device contracts that do not have a specified term. Excludes amounts related to professional services and hardware. ACV Billings, for any given period, is defined as the sum of the ACV for all contracts billed during the given period. The Company will

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discontinue reporting ACV Billings beginning with the Company’s first quarter fiscal 2025 financial results.

2Annual Recurring Revenue, or ARR, for any given period, is defined as the sum of ACV for all subscription contracts in effect as of the end of a specific period. For the purposes of this calculation, we assume that the contract term begins on the date a contract is booked, unless the terms of such contract prevent us from fulfilling our obligations until a later period, and irrespective of the periods in which we would recognize revenue for such contract. Excludes all life-of-device contracts.

3Average Contract Duration represents the dollar-weighted term, calculated on a billings basis, across all subscription and life-of-device contracts, using an assumed term of five years for life-of-device licenses, executed in the period.

4Weighted average share count used in computing diluted non-GAAP net income per share.

Non-GAAP Financial Measures and Other Key Performance Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, this press release includes the following non-GAAP financial and other key performance measures: non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, free cash flow, Annual Contract Value Billings (or ACV Billings), Annual Recurring Revenue (or ARR), and Average Contract Duration. In computing 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, income tax-related impact, and other acquisition-related costs), costs related to the impairment and early exit of operating lease-related assets, restructuring charges, litigation settlement accruals and legal fees related to certain litigation matters, the amortization and conversion of the debt discount and issuance costs related to convertible senior notes, interest expense related to convertible senior notes, gains on divestitures, and other non-recurring transactions and the related tax impact. Non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, and non-GAAP operating margin are financial measures which we believe provide useful information to investors because they 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. Free cash flow is a performance measure that we believe provides useful information to our 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 provided by (used in) operating activities less purchases of property and equipment. ACV Billings is a performance measure that we believe has provided useful information to our management and investors during our transition to a subscription-based business model as it has allowed us to better track the topline growth of our business during the transition because it takes into account variability in term lengths. ARR is a performance measure that we believe provides useful information to our management and investors as it allows us to better track the topline growth of our subscription business because

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it takes into account variability in term lengths. 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. 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. Non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, and free cash flow are not substitutes for gross margin, operating expenses, operating income (loss), operating margin, or net cash provided by (used in) operating activities, respectively. There is no GAAP measure that is comparable to ACV Billings, ARR, or Average Contract Duration, so we have not reconciled the ACV Billings, ARR, or Average Contract Duration data included in this press release to any GAAP measure. 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 GAAP to Non-GAAP Profit Measures” and “Reconciliation of GAAP Net Cash Provided By Operating Activities to Non-GAAP Free Cash Flow,” and not to rely on any single financial measure to evaluate our business. This press release also includes the following forward-looking non-GAAP financial measures as part of our first quarter fiscal 2025 outlook and/or our fiscal 2025 outlook: non-GAAP gross margin, non-GAAP operating margin, and free cash flow. We are unable to reconcile these forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures without unreasonable efforts, as we are currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact the GAAP financial measures for these periods but would not impact the non-GAAP financial measures.

Forward-Looking Statements

This press release contains express and implied forward-looking statements, including, but not limited to, statements regarding: our business momentum and prospects; our plan to continue innovating towards our goal of being the leading platform for running applications and managing data, anywhere; our focus on delivering sustainable, profitable growth; our first quarter fiscal 2025 outlook; and our fiscal 2025 outlook.

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 these forward-looking statements depends upon future events and involves risks, uncertainties, and other factors, including factors that may be 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 inherent uncertainty or assumptions and estimates underlying our projections and guidance, which are necessarily speculative in

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nature; any failure to successfully implement or realize the full benefits of, or unexpected difficulties or delays in successfully implementing or realizing the full benefits of, our business plans, strategies, initiatives, vision, objectives, momentum, prospects and outlook; our ability to achieve, sustain and/or manage future growth effectively; the rapid evolution of the markets in which we compete, including the introduction, or acceleration of adoption of, competing solutions, including public cloud infrastructure; failure to timely and successfully meet our customer needs; delays in or lack of customer or market acceptance of our new solutions, products, services, product features or technology; macroeconomic or geopolitical uncertainty; our ability to attract, recruit, train, retain, and, where applicable, ramp to full productivity, qualified employees and key personnel; factors that could result in the significant fluctuation of our future quarterly operating results (including anticipated changes to our revenue and product 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 and availability of certain components of our solutions, and fluctuations in demand and competitive pricing pressures for our solutions); our ability to form new or maintain and strengthen existing strategic alliances and partnerships, as well as our ability to manage any changes thereto; our ability to make share repurchases; and other risks detailed in our Annual Report on Form 10-K for the fiscal year ended July 31, 2023 filed with the U.S. Securities and Exchange Commission, or the SEC, on September 21, 2023 and our subsequent Quarterly Reports on Form 10-Q filed with the SEC. Additional information will be set forth in our Annual Report on Form 10-K for the fiscal year ended July 31, 2024, which should be read in conjunction with this press release and the financial results included herein. Our SEC filings are available on the Investor Relations section of our 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, and expressly disclaim any obligation, to update, alter or otherwise revise any of these forward-looking statements to reflect actual results or subsequent events or circumstances.

About Nutanix

 

Nutanix is a global leader in cloud software, offering organizations a single platform for running apps and data across clouds. With Nutanix, companies can reduce complexity and simplify operations, freeing them to focus on their business outcomes. Building on its legacy as the pioneer of hyperconverged infrastructure, Nutanix is trusted by companies worldwide to power hybrid multicloud environments consistently, simply, and cost-effectively. Learn more at www.nutanix.com or follow us on social media @nutanix.

© 2024 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix logo, and all Nutanix product and service names mentioned herein are registered trademarks or unregistered trademarks of Nutanix, Inc. (“Nutanix”) in the United States and other countries. Other brand names or marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s). This press release is for informational purposes only and nothing herein constitutes a warranty or other binding commitment by Nutanix.

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NUTANIX, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

		As of
		July 31, 2023				July 31, 2024
		(in thousands)
Assets
Current assets:
Cash and cash equivalents		$	512,929			$	655,270
Short-term investments			924,466				339,072
Accounts receivable, net			157,251				229,796
Deferred commissions—current			120,001				159,849
Prepaid expenses and other current assets			147,087				97,307
Total current assets			1,861,734				1,481,294
Property and equipment, net			111,865				136,180
Operating lease right-of-use assets			93,554				109,133
Deferred commissions—non-current			237,990				198,962
Intangible assets, net			4,893				5,153
Goodwill			184,938				185,235
Other assets—non-current			31,941				27,961
Total assets		$	2,526,915			$	2,143,918
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable		$	29,928			$	45,066
Accrued compensation and benefits			143,679				195,602
Accrued expenses and other current liabilities			109,269				24,967
Deferred revenue—current			823,665				954,543
Operating lease liabilities—current			29,567				24,163
Total current liabilities			1,136,108				1,244,341
Deferred revenue—non-current			771,367				918,163
Operating lease liabilities—non-current			68,940				90,359
Convertible senior notes, net			1,218,165				570,073
Other liabilities—non-current			39,754				49,130
Total liabilities			3,234,334				2,872,066
Stockholders’ deficit:
Common stock			6				7
Additional paid-in capital			3,930,668				4,118,898
Accumulated other comprehensive loss			(5,171	)			146
Accumulated deficit			(4,632,922	)			(4,847,199	)
Total stockholders’ deficit			(707,419	)			(728,148	)
Total liabilities and stockholders’ deficit		$	2,526,915			$	2,143,918

 

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NUTANIX, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

		Three Months Ended July 31,								Fiscal Year Ended July 31,
		2023				2024				2023				2024
		(in thousands, except per share data)
Revenue:
Product		$	240,495			$	265,901			$	912,114			$	1,067,948
Support, entitlements and other services			253,715				282,051				950,781				1,080,868
Total revenue			494,210				547,952				1,862,895				2,148,816
Cost of revenue:
Product (1)(2)			10,655				8,336				51,107				36,441
Support, entitlements and other services (1)			69,803				72,642				281,080				287,671
Total cost of revenue			80,458				80,978				332,187				324,112
Gross profit			413,752				466,974				1,530,708				1,824,704
Operating expenses:
Sales and marketing (1)(2)			229,425				259,360				924,696				977,286
Research and development (1)			146,201				167,396				580,961				638,992
General and administrative (1)			49,473				52,406				232,201				200,863
Total operating expenses			425,099				479,162				1,737,858				1,817,141
(Loss) income from operations			(11,347	)			(12,188	)			(207,150	)			7,563
Other income (expense), net			4,261				(106,361	)			(26,435	)			(108,881	)
Loss before provision for income taxes			(7,086	)			(118,549	)			(233,585	)			(101,318	)
Provision for income taxes			6,201				7,552				20,975				23,457
Net loss		$	(13,287	)		$	(126,101	)		$	(254,560	)		$	(124,775	)
Net loss per share attributable to Class A    common stockholders, basic and diluted		$	(0.06	)		$	(0.51	)		$	(1.09	)		$	(0.51	)
Weighted average shares used in computing net    loss per share attributable to Class A    common stockholders, basic and diluted			237,832				247,886				233,247				244,743

 

 

		Three Months Ended July 31,								Fiscal Year Ended July 31,
		2023				2024				2023				2024
		(in thousands)
Product cost of revenue		$	1,863			$	1,621			$	7,966			$	6,822
Support, entitlements and other services cost of revenue			6,528				6,595				26,611				27,285
Sales and marketing			19,333				19,080				82,758				80,190
Research and development			31,957				39,120				139,073				156,784
General and administrative			12,911				15,158				55,337				62,752
Total stock-based compensation expense		$	72,592			$	81,574			$	311,745			$	333,833

 

 

		Three Months Ended July 31,								Fiscal Year Ended July 31,
		2023				2024				2023				2024
		(in thousands)
Product cost of revenue		$	2,091			$	766			$	9,870			$	3,392
Sales and marketing			111				99				827				317
Total amortization of intangible assets		$	2,202			$	865			$	10,697			$	3,709

 

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NUTANIX, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

		Fiscal Year Ended July 31,
		2023				2024
		(in thousands)
Cash flows from operating activities:
Net loss		$	(254,560	)		$	(124,775	)
Adjustments to reconcile net loss to net cash provided by    operating activities:
Depreciation and amortization			76,388				73,199
Stock-based compensation			311,745				333,833
Amortization of debt discount and issuance costs			42,636				41,600
Conversion of convertible senior notes attributable to debt discount and issuance costs			—				107,877
Operating lease cost, net of accretion			35,357				31,462
Early exit of lease-related assets			(1,040	)			—
Gain on Frame divestiture			(10,957	)			—
Non-cash interest expense			19,757				18,550
Other			(11,388	)			(13,312	)
Changes in operating assets and liabilities:
Accounts receivable, net			(25,885	)			(53,811	)
Deferred commissions			9,599				(820	)
Prepaid expenses and other assets			(59,243	)			46,623
Accounts payable			(9,600	)			14,749
Accrued compensation and benefits			(6,027	)			51,923
Accrued expenses and other liabilities			53,191				(82,632	)
Operating leases, net			(40,257	)			(30,475	)
Deferred revenue			142,687				258,940
Net cash provided by operating activities			272,403				672,931
Cash flows from investing activities:
Maturities of investments			965,040				774,237
Purchases of investments			(955,330	)			(871,259	)
Sales of investments			—				706,363
Proceeds from Frame divestiture			5,909				—
Payments for acquisitions, net of cash acquired			—				(4,500	)
Purchases of property and equipment			(65,404	)			(75,252	)
Net cash (used in) provided by investing activities			(49,785	)			529,589
Cash flows from financing activities:
Proceeds from sales of shares through employee equity incentive plans			46,501				51,571
Taxes paid related to net share settlement of equity awards			(10,214	)			(161,552	)
Repayment of convertible notes			(145,704	)			(817,633	)
Repurchases of common stock			—				(131,139	)
Payment of finance lease obligations			(3,292	)			(3,876	)
Net cash used in financing activities			(112,709	)			(1,062,629	)
Net increase in cash, cash equivalents and restricted cash		$	109,909			$	139,891
Cash, cash equivalents and restricted cash—beginning of period			405,862				515,771
Cash, cash equivalents and restricted cash—end of period		$	515,771			$	655,662
Restricted cash (1)			2,842				392
Cash and cash equivalents—end of period		$	512,929			$	655,270
Supplemental disclosures of cash flow information:
Cash paid for income taxes		$	30,781			$	23,647
Supplemental disclosures of non-cash investing and    financing information:
Purchases of property and equipment included in accounts payable and    accrued and other liabilities		$	15,754			$	19,275
Forfeited paid-in-kind interest recognized in equity upon note conversion		$	—			$	6,019

 

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Reconciliation of Revenue to Billings

(Unaudited)

 

		Three Months Ended July 31,								Fiscal Year Ended July 31,
		2023				2024				2023				2024
		(in thousands)
Total revenue		$	494,210			$	547,952			$	1,862,895			$	2,148,816
Change in deferred revenue			50,631				124,903				142,687				258,940
Total billings		$	544,841			$	672,855			$	2,005,582			$	2,407,756

 

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Disaggregation of Revenue and Billings

(Unaudited)

 

		Three Months Ended July 31,								Fiscal Year Ended July 31,
		2023				2024				2023				2024
		(in thousands)
Disaggregation of revenue:
Subscription revenue		$	459,460			$	518,695			$	1,730,848			$	2,016,776
Professional services revenue			24,020				26,769				91,841				100,852
Other non-subscription product revenue			10,730				2,488				40,206				31,188
Total revenue		$	494,210			$	547,952			$	1,862,895			$	2,148,816
Disaggregation of billings:
Subscription billings		$	504,191			$	636,040			$	1,868,943			$	2,253,633
Professional services billings			29,920				34,327				96,433				122,935
Other non-subscription product billings			10,730				2,488				40,206				31,188
Total billings		$	544,841			$	672,855			$	2,005,582			$	2,407,756

 

Subscription revenue — Subscription revenue includes any performance obligation which has a defined term, and is generated from the sales of software entitlement and support subscriptions, subscription software licenses and cloud-based Software as a Service, or SaaS offerings.

Professional services revenue — We also sell professional services with our products. We recognize revenue related to professional services as they are performed.

Other non-subscription product revenue — Other non-subscription product revenue includes approximately $10.4 million and $37.4 million of non-portable software revenue for the three and twelve months ended July 31, 2023, respectively, $1.6 million and $27.9 million of non-portable software revenue for the three and twelve months ended July 31, 2024, respectively, $0.3 million and $2.8 million of hardware revenue for the three and twelve months ended July 31, 2023, respectively, and $0.9 million and $3.3 million of hardware revenue for the three and twelve months ended July 31, 2024, respectively.

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Annual Contract Value Billings and Annual Recurring Revenue

(Unaudited)

 

		As of and for the Three Months Ended July 31,								As of and for the Fiscal Year Ended July 31,
		2023				2024				2023				2024
		(in thousands)
Annual Contract Value Billings (ACV Billings)		$	278,699			$	337,999			$	956,810			$	1,162,428
Annual Recurring Revenue (ARR)		$	1,561,981			$	1,907,982			$	1,561,981			$	1,907,982

 

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Reconciliation of GAAP to Non-GAAP Profit Measures

(Unaudited)

 

		GAAP				Non-GAAP Adjustments																								Non-GAAP
		Three Months Ended July 31, 2024				(1)				(2)				(3)				(4)				(5)				(6)				Three Months Ended July 31, 2024
		(in thousands, except percentages and per share data)
Gross profit		$	466,974			$	8,216			$	766			$	—			$	—			$	—			$	—			$	475,956
Gross margin			85.2	%			1.6	%			0.1	%			—				—				—				—				86.9	%
Operating expenses:
Sales and marketing			259,360				(19,080	)			(99	)			—				—				—				—				240,181
Research and development			167,396				(39,120	)			—				—				—				—				—				128,276
General and administrative			52,406				(15,158	)			—				(216	)			—				—				—				37,032
Total operating expenses			479,162				(73,358	)			(99	)			(216	)			—				—				—				405,489
(Loss) income from operations			(12,188	)			81,574				865				216				—				—				—				70,467
Operating margin			(2.2	)%			14.9	%			0.2	%			—				—				—				—				12.9	%
Net (loss) income		$	(126,101	)		$	81,574			$	865			$	216			$	(120	)		$	119,505			$	(214	)		$	75,725
Weighted shares outstanding, basic			247,886																												247,886
Weighted shares outstanding, diluted (7)			247,886																												284,808
Net (loss) income per share, basic		$	(0.51	)		$	0.34			$	-			$	-			$	-			$	0.48			$	-			$	0.31
Net (loss) income per share, diluted		$	(0.51	)																										$	0.27

 

 

 

		GAAP				Non-GAAP Adjustments																												Non-GAAP
		Fiscal Year Ended July 31, 2024				(1)				(2)				(3)				(4)				(5)				(6)				(7)				Fiscal Year Ended July 31, 2024
		(in thousands, except percentages and per share data)
Gross profit		$	1,824,704			$	34,107			$	3,392			$	—			$	—			$	—			$	—			$	—			$	1,862,203
Gross margin			84.9	%			1.6	%			0.2	%			—				—				—				—				—				86.7	%
Operating expenses:
Sales and marketing			977,286				(80,190	)			(317	)			194				—				—				—				—				896,973
Research and development			638,992				(156,784	)			—				—				—				—				—				—				482,208
General and administrative			200,863				(62,752	)			—				—				(1,971	)			(225	)			—				—				135,915
Total operating expenses			1,817,141				(299,726	)			(317	)			194				(1,971	)			(225	)			—				—				1,515,096
Income from operations			7,563				333,833				3,709				(194	)			1,971				225				—				—				347,107
Operating margin			0.4	%			15.5	%			0.2	%			—				0.1	%			—				—				—				16.2	%
Net (loss) income		$	(124,775	)		$	333,833			$	3,709			$	(194	)		$	1,971			$	805			$	169,379			$	(527	)		$	384,201
Weighted shares outstanding, basic			244,743																																244,743
Weighted shares outstanding, diluted (8)			244,743																																293,901
Net (loss) income per share, basic		$	(0.51	)		$	1.36			$	0.02			$	-			$	0.01			$	-			$	0.69			$	-			$	1.57
Net (loss) income per share, diluted		$	(0.51	)																														$	1.31

 

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		GAAP				Non-GAAP Adjustments																								Non-GAAP
		Three Months Ended July 31, 2023				(1)				(2)				(3)				(4)				(5)				(6)				Three Months Ended July 31, 2023
		(in thousands, except percentages and per share data)
Gross profit		$	413,752			$	8,391			$	2,091			$	—			$	—			$	—			$	—			$	424,234
Gross margin			83.7	%			1.7	%			0.4	%			—				—				—				—				85.8	%
Operating expenses:
Sales and marketing			229,425				(19,333	)			(111	)			—				—				—				—				209,981
Research and development			146,201				(31,957	)			—				—				—				—				—				114,244
General and administrative			49,473				(12,911	)			—				(176	)			—				—				—				36,386
Total operating expenses			425,099				(64,201	)			(111	)			(176	)			—				—				—				360,611
(Loss) income from operations			(11,347	)			72,592				2,202				176				—				—				—				63,623
Operating margin			(2.3	)%			14.8	%			0.4	%			—				—				—				—				12.9	%
Net (loss) income		$	(13,287	)		$	72,592			$	2,202			$	176			$	16,307			$	(10,957	)		$	503			$	67,536
Weighted shares outstanding, basic			237,832																												237,832
Weighted shares outstanding, diluted (7)			237,832																												286,033
Net (loss) income per share, basic		$	(0.06	)		$	0.31			$	0.01			$	-			$	0.07			$	(0.05	)		$	-			$	0.28
Net (loss) income per share, diluted		$	(0.06	)																										$	0.24

 

 

 

 

		GAAP				Non-GAAP Adjustments																																Non-GAAP
		Fiscal Year Ended July 31, 2023				(1)				(2)				(3)				(4)				(5)				(6)				(7)				(8)				Fiscal Year Ended July 31, 2023
		(in thousands, except percentages and per share data)
Gross profit		$	1,530,708			$	34,577			$	9,870			$	—			$	230			$	—			$	—			$	—			$	—			$	1,575,385
Gross margin			82.2	%			1.9	%			0.5	%			—				—				—				—				—				—				84.6	%
Operating expenses:
Sales and marketing			924,696				(82,758	)			(827	)			—				(3,283	)			—				—				—				—				837,828
Research and development			580,961				(139,073	)			—				—				(1,661	)			—				—				—				—				440,227
General and administrative			232,201				(55,337	)			—				(1,726	)			(129	)			(38,675	)			—				—				—				136,334
Total operating expenses			1,737,858				(277,168	)			(827	)			(1,726	)			(5,073	)			(38,675	)			—				—				—				1,414,389
(Loss) income from operations			(207,150	)			311,745				10,697				1,726				5,303				38,675				—				—				—				160,996
Operating margin			(11.1	)%			16.6	%			0.6	%			0.1	%			0.3	%			2.1	%			—				—				—				8.6	%
Net (loss) income		$	(254,560	)		$	311,745			$	10,697			$	1,726			$	5,303			$	38,675			$	64,112			$	(10,957	)		$	2,219			$	168,960
Weighted shares outstanding, basic			233,247																																				233,247
Weighted shares outstanding, diluted (9)			233,247																																				281,787
Net (loss) income per share, basic		$	(1.09	)		$	1.33			$	0.05			$	0.01			$	0.02			$	0.17			$	0.27			$	(0.05	)		$	0.01			$	0.72
Net (loss) income per share, diluted		$	(1.09	)																																		$	0.60

 

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Reconciliation of GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow

(Unaudited)

 

		Three Months Ended July 31,								Fiscal Year Ended July 31,
		2023				2024				2023				2024
		(in thousands)
Net cash provided by operating activities		$	58,309			$	244,697			$	272,403			$	672,931
Purchases of property and equipment			(12,801	)			(20,439	)			(65,404	)			(75,252	)
Free cash flow		$	45,508			$	224,258			$	206,999			$	597,679

 

 

 

 

 

Investor Contact:

Richard Valera

ir@nutanix.com

Media Contact:

Lia Bigano

pr@nutanix.com

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