Document


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)
September 5, 2017

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, including zip code)
(408) 216-8360
(Registrant’s telephone number, including area code)

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))
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 x

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.  o





Item 7.01.          Regulation FD Disclosure
 
Beginning August 1, 2017, Nutanix, Inc. (the “Company”) elected to early adopt the new accounting standard for revenue recognition, Accounting Standards Codification Topic 606, Revenue From Contracts With Customers (“ASC 606”). The Company is furnishing this Form 8-K under Regulation FD to present the Company’s previously reported financial information, including as set forth in the Form 8-K filed by the Company with the Securities and Exchange Commission on August 31, 2017, on a basis consistent with ASC 606. Beginning with the quarter ending October 31, 2017, the Company’s financial information will reflect adoption of ASC 606, with prior periods adjusted accordingly.

   
Revenue from Contracts with Customers

In May 2014, the Financial Accounting Standards Board issued ASC 606, which is a new standard related to revenue recognition. The Company elected to early adopt ASC 606 effective August 1, 2017 using the full retrospective method, which requires the Company to restate the Company’s historical financial information for fiscal years 2017 and 2016 to be consistent with the standard.

The adoption of ASC 606 had a material impact on the Company’s consolidated statements of operations and balance sheets, but had no impact to cash from or used in operating, financing, or investing on the consolidated statements of cash flows. The most significant impact of ASC 606 relates to the timing of revenue recognition for certain software licenses sold with post contract support for which the Company does not have vendor-specific objective evidence of fair value (“VSOE”) under current guidance. Under ASC 606, the requirement to have VSOE for undelivered elements is eliminated and the Company will recognize revenue for such software licenses upon transfer of control to its end-customers.

Financial Information

Refer to Exhibit 99.1 for financial information on a basis consistent with ASC 606 for fiscal years 2017 and 2016.
The Company will host a conference call at 1:00 p.m. Pacific time (4:00 p.m. Eastern time) on September 5, 2017 to discuss ASC 606. To listen to the call via telephone, dial 1-833-227-5841 in the United States or 1-647-689-4068 from outside the United States. The conference ID is 73993615. The call is also being webcast live and will be available on the Company's 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 Company’s 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 73993615.
The information in this Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01.          Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Number
 
Description
 








SIGNATURES

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

 
 
NUTANIX, INC.
 
 
 
 Date: September 5, 2017
By:
/s/ Duston M. Williams
 
 
Duston M. Williams
 
 
Chief Financial Officer
 
 
(Principal Financial Officer)




EXHIBIT INDEX

 Exhibit Number
 
Description
 




Exhibit


Exhibit 99.1

NUTANIX, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)
 
Restated For New Revenue Standard
 
Previously Reported
 
Change
Year Ended July 31,
2016
 
2017
 
2016
 
2017
 
2016
 
2017
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Product
$
413,910

 
$
673,297

 
$
350,798

 
$
583,011

 
$
63,112


$
90,286

Support and other services
89,500

 
172,606

 
94,130

 
183,858

 
(4,630
)

(11,252
)
Total revenue
503,410


845,903

 
444,928

 
766,869


58,482


79,034

Cost of revenue:
 
 
 
 
 
 
 
 
 
 
 
Product
133,541

 
249,393

 
133,541

 
249,393

 



Support and other services
37,246

 
77,938

 
37,246

 
77,938

 



Total cost of revenue
170,787

 
327,331

 
170,787

 
327,331





Gross profit
332,623


518,572

 
274,141

 
439,538


58,482


79,034

Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Sales and marketing
286,584

 
501,021

 
288,493

 
500,529

 
(1,909
)

492

Research and development
116,400

 
288,619

 
116,400

 
288,619

 



General and administrative
34,265

 
77,341

 
34,265

 
77,341

 



Total operating expenses
437,249

 
866,981

 
439,158

 
866,489


(1,909
)

492

Loss from operations
(104,626
)

(348,409
)
 
(165,017
)
 
(426,951
)

60,391


78,542

Other expense—net
(1,290
)
 
(26,377
)
 
(1,290
)
 
(26,377
)
 



Loss before provision for income taxes
(105,916
)

(374,786
)
 
(166,307
)
 
(453,328
)

60,391


78,542

Provision for income taxes
2,317

 
4,852

 
2,192

 
4,683

 
125


169

Net loss
$
(108,233
)

$
(379,638
)
 
$
(168,499
)
 
$
(458,011
)

$
60,266


$
78,373

Net loss per share —basic and diluted
$
(2.46
)
 
$
(2.96
)
 
$
(3.83
)
 
$
(3.57
)
 
$
1.37


$
0.61

 
Restated results reflect the adoption of the new revenue recognition standard. Previously reported results for fiscal year 2016 were derived from audited financial statements included in our prospectus filed pursuant to Rule 424(b)(4), as amended, on September 28, 2016. Results for fiscal year 2017 were derived from financial statements that will be included in the Annual Report on Form 10-K for the year ended July 31, 2017.






NUTANIX, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
 
Restated For New Revenue Standard
 
Previously Reported
 
Change
As of July 31,
2016
 
2017
 
2016
 
2017
 
2016
 
2017
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
99,209

 
$
138,359

 
$
99,209

 
$
138,359

 
$


$

Short-term investments
85,991

 
210,694

 
85,991

 
210,694

 



Accounts receivable—net
110,659

 
178,876

 
110,659

 
178,876

 



Deferred commissions—current
14,216

 
23,843

 
17,864

 
27,679

 
(3,648
)
 
(3,836
)
Prepaid expenses and other current assets
16,138

 
28,362

 
16,138

 
28,362

 



Total current assets
326,213

 
580,134


329,861


583,970


(3,648
)

(3,836
)
Property and equipment—net
42,218

 
58,072

 
42,218

 
58,072

 



Deferred commissions—non-current
35,306

 
49,684

 
19,029

 
33,709

 
16,277

 
15,975

Intangible assets-net

 
26,001

 

 
26,001

 



Goodwill

 
16,672

 

 
16,672

 



Other assets—non-current
7,978

 
7,649

 
7,978

 
7,649

 



Total assets
$
411,715

 
$
738,212


$
399,086


$
726,073


$
12,629


$
12,139

Liabilities, Convertible Preferred Stock and Stockholders’ (Deficit) Equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
$
52,111

 
$
73,725

 
$
52,111

 
$
73,725

 
$


$

Accrued compensation and benefits
24,547

 
57,521

 
24,547

 
57,521

 



Accrued expenses and current other liabilities
5,662

 
9,707

 
5,537

 
9,414

 
125

 
293

Deferred revenue—current
101,607

 
170,123

 
130,569

 
233,498

 
(28,962
)
 
(63,375
)
Total current liabilities
183,927

 
311,076


212,764


374,158


(28,837
)

(63,082
)
Deferred revenue—non-current
116,874

 
198,933

 
165,896

 
292,573

 
(49,022
)
 
(93,640
)
Senior notes
73,260

 

 
73,260

 

 



Convertible preferred stock warrant liability
9,679

 

 
9,679

 

 



Early exercised stock options liability
2,320

 
851

 
2,320

 
851

 



Other liabilities—non-current
1,103

 
10,289

 
1,103

 
10,289

 



Total liabilities
387,163

 
521,149


465,022


677,871


(77,859
)

(156,722
)
Commitments and contingencies
 
 
 
 
 
 
 
 



Convertible preferred stock
310,379

 

 
310,379

 

 



Stockholders’ (deficit) equity:
 
 
 
 
 
 
 
 



Common stock
1

 
4

 
1

 
4

 



Additional paid-in capital
65,629

 
948,134

 
65,629

 
948,134

 



Accumulated other comprehensive loss
(12
)
 
(106
)
 
(12
)
 
(106
)
 



Accumulated deficit
(351,445
)
 
(730,969
)
 
(441,933
)
 
(899,830
)
 
90,488


168,861

Total stockholders’ (deficit) equity
(285,827
)
 
217,063


(376,315
)

48,202


90,488


168,861

Total liabilities, convertible preferred stock and stockholders’ (deficit) equity
$
411,715

 
$
738,212


$
399,086


$
726,073


$
12,629


$
12,139

 
Restated results reflect the adoption of the new revenue recognition standard. Previously reported results for fiscal year 2016 were derived from audited financial statements included in our prospectus filed pursuant to Rule 424(b)(4), as amended, on September 28, 2016. Results for fiscal year 2017 were derived from financial statements that will be included in the Annual Report on Form 10-K for the year ended July 31, 2017.








NUTANIX, INC.
QUARTERLY FINANCIAL INFORMATION
(In thousands, except per share data, unaudited)

Fiscal Year 2016
Q1 2016
 
Q2 2016
 
Q3 2016
 
Q4 2016
 
As Reported
 
Impact of Adoption
 
As Adjusted
 
As Reported
 
Impact of Adoption
 
As Adjusted
 
As Reported
 
Impact of Adoption
 
As Adjusted
 
As Reported
 
Impact of Adoption
 
As Adjusted
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Product revenue
$
70,396

 
$
13,693

 
$
84,089

 
$
81,229

 
$
14,652

 
$
95,881

 
$
89,957

 
$
12,434

 
$
102,391

 
$
109,216

 
$
22,333

 
$
131,549

Support and other services
17,360

 
(904
)
 
16,456

 
21,468

 
(957
)
 
20,511

 
24,733

 
(1,156
)
 
23,577

 
30,569

 
(1,613
)
 
28,956

Total revenue
$
87,756

 
$
12,789

 
$
100,545

 
$
102,697

 
$
13,695

 
$
116,392

 
$
114,690

 
$
11,278

 
$
125,968

 
$
139,785

 
$
20,720

 
$
160,505

Gross profit
$
52,677

 
$
12,789

 
$
65,466

 
$
64,761

 
$
13,695

 
$
78,456

 
$
71,297

 
$
11,278

 
$
82,575

 
$
85,406

 
$
20,720

 
$
106,126

Gross margin
60.0
%
 
5.1
%
 
65.1
%
 
63.1
%
 
4.3
%
 
67.4
%
 
62.2
%
 
3.4
%
 
65.6
%
 
61.1
%
 
5.0
%
 
66.1
%
Operating expenses
$
89,831

 
$
(455
)
 
$
89,376

 
$
99,992

 
$
(900
)
 
$
99,092

 
$
116,000

 
$
(71
)
 
$
115,929

 
$
133,335

 
$
(483
)
 
$
132,852

Loss from operations
$
(37,154
)
 
$
13,244

 
$
(23,910
)
 
$
(35,231
)
 
$
14,595

 
$
(20,636
)
 
$
(44,703
)
 
$
11,349

 
$
(33,354
)
 
$
(47,929
)
 
$
21,203

 
$
(26,726
)
Net Loss
$
(38,545
)
 
$
13,228

 
$
(25,317
)
 
$
(33,205
)
 
$
14,565

 
$
(18,640
)
 
$
(46,820
)
 
$
11,317

 
$
(35,503
)
 
$
(49,929
)
 
$
21,157

 
$
(28,772
)
Basic and diluted net loss per share
$
(0.90
)
 
$
0.31

 
$
(0.59
)
 
$
(0.76
)
 
$
0.33

 
$
(0.43
)
 
$
(1.05
)
 
$
0.25

 
$
(0.80
)
 
$
(1.11
)
 
$
0.47

 
$
(0.64
)
Pro forma net loss per share -basic and diluted
$
(0.32
)
 
$
0.11

 
$
(0.21
)
 
$
(0.28
)
 
$
0.12

 
$
(0.16
)
 
$
(0.39
)
 
$
0.10

 
$
(0.29
)
 
$
(0.41
)
 
$
0.17

 
$
(0.24
)
Fiscal Year 2017
Q1 2017
 
Q2 2017
 
Q3 2017
 
Q4 2017
 
As Reported
 
Impact of Adoption
 
As Adjusted
 
As Reported
 
Impact of Adoption
 
As Adjusted
 
As Reported
 
Impact of Adoption
 
As Adjusted
 
As Reported
 
Impact of Adoption
 
As Adjusted
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Product revenue
$
129,657

 
$
23,879

 
$
153,536

 
$
138,508

 
$
19,705

 
$
158,213

 
$
143,142

 
$
16,934

 
$
160,076

 
$
171,704

 
$
29,768

 
$
201,472

Support and other services
37,152

 
$
(2,127
)
 
35,025

 
43,687

 
(2,686
)
 
41,001

 
48,621

 
(3,027
)
 
45,594

 
54,398

 
(3,412
)
 
50,986

Total revenue
$
166,809

 
$
21,752

 
$
188,561

 
$
182,195

 
$
17,019

 
$
199,214

 
$
191,763

 
$
13,907

 
$
205,670

 
$
226,102

 
$
26,356

 
$
252,458

Gross profit
$
97,047

 
$
21,752

 
$
118,799

 
$
105,349

 
$
17,019

 
$
122,368

 
$
108,557

 
$
13,907

 
$
122,464

 
$
128,585

 
$
26,356

 
$
154,941

Gross margin
58.2
%
 
4.8
%
 
63.0
%
 
57.8
%
 
3.6
%
 
61.4
%
 
56.6
%
 
2.9
%
 
59.5
%
 
56.9
%
 
4.5
%
 
61.4
%
Operating expenses
$
233,428

 
$
(150
)
 
$
233,278

 
$
197,639

 
$
130

 
$
197,769

 
$
218,224

 
$
(1,261
)
 
$
216,963

 
$
217,198

 
$
1,773

 
$
218,971

Loss from operations
$
(136,381
)
 
$
21,902

 
$
(114,479
)
 
$
(92,290
)
 
$
16,889

 
$
(75,401
)
 
$
(109,667
)
 
$
15,168

 
$
(94,499
)
 
$
(88,613
)
 
$
24,583

 
$
(64,030
)
Net Loss
$
(162,169
)
 
$
21,867

 
$
(140,302
)
 
$
(93,212
)
 
$
16,843

 
$
(76,369
)
 
$
(111,977
)
 
$
15,142

 
$
(96,835
)
 
$
(90,653
)
 
$
24,521

 
$
(66,132
)
Basic and diluted net loss per share
(2.18
)
 
$
0.29

 
$
(1.89
)
 
$
(0.66
)
 
$
0.12

 
$
(0.54
)
 
$
(0.78
)
 
$
0.11

 
$
(0.67
)
 
$
(0.59
)
 
$
0.16

 
$
(0.43
)
Pro forma net loss per share -basic and diluted *
$
(1.26
)
 
$
0.17

 
$
(1.09
)
 
$
(0.66
)
 
$
0.12

 
$
(0.54
)
 
$
(0.78
)
 
$
0.11

 
$
(0.67
)
 
$
(0.59
)
 
$
0.16

 
$
(0.43
)

Restated quarterly results reflect the adoption of the new revenue recognition standard. Previously reported quarterly results for fiscal year 2016 and 2017 were derived from unaudited quarterly financial results presented.

* Pro forma basic and diluted net loss per share was computed to give effect to the conversion of all outstanding convertible preferred stock upon closing of our initial public offering on October 5, 2016, as if the conversion had occurred at the beginning of the period.