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Nimble Storage Reports Financial Results for Fiscal Second Quarter 2015

- Revenue Up 89% year-over-year

SAN JOSE, Calif., Aug. 26, 2014 /PRNewswire/ -- Nimble Storage (NYSE: NMBL), the flash storage solutions company, today reported financial results for the fiscal second quarter 2015.  The Company has released a discussion of these results by posting the current Shareholder Letter on its website.  Please visit the Nimble Storage investor relations website at http://investors.nimblestorage.com to view the Shareholder Letter.

"During Q2, our Adaptive Flash platform launch underscored the breadth and comprehensive nature of our approach to leveraging flash, particularly when contrasted against more narrowly focused tiered hybrid storage offerings or flash-only offerings," said Suresh Vasudevan, chief executive officer, Nimble Storage.   "We added a record 663 new end customers during the quarter, ending with a total of 3,756 end customers, an increase of 115% from Q2 of last year.  During the last four quarters, we added a total of over 2,000 new end customers as we continued to increase our share of market.  We also closed a record number of deals with a value over $100K during Q2, including the largest deal in our history."

"Q2 was a great quarter for us.  We reported record revenue of $53.8 million, ahead of our guidance of $49 to $51 million. Our gross margin was also a record high at 67.4%, and remains best of breed in the storage industry.  We remain very pleased with the progress we are making towards achieving our long-term financial goals," said Anup Singh, chief financial officer, Nimble Storage. 

Fiscal Second Quarter 2015 Financial Results:

  • Revenue:  Total revenue for the second quarter of fiscal 2015 was $53.8 million, compared to $28.5 million in the second quarter of fiscal 2014, representing growth of 89% year-over-year.
  • Non-GAAP Gross Margin:  Second quarter non-GAAP gross margin of 67.4%, compared to 64.3% in the second quarter of fiscal 2014.
  • Non-GAAP Operating Margin:  Second quarter non-GAAP operating margin was negative 20%, compared to negative 30% in the second quarter of fiscal 2014.
  • GAAP Net Loss: Second quarter net loss was $0.37 per basic and diluted share, compared with a net loss of $0.51 per basic and diluted share in the fiscal second quarter of 2014.
  • Non-GAAP Net Loss: Second quarter non-GAAP net loss was $0.15 per basic and diluted share, compared with a non-GAAP net loss of $0.15 per basic and diluted share in the fiscal second quarter of 2014.

Forward Outlook:

Nimble Storage provides guidance based on current market conditions and expectations. For the fiscal third quarter of 2015, we expect: 

  • Revenue in the range of $56 to $58 million; the midpoint of this range reflects 71% growth compared to the prior year period
  • Non-GAAP operating loss of $11 to $12 million; the midpoint of this range represents negative 20% operating margin compared to negative 24% in the prior year period
  • Non-GAAP net loss of $0.16 to $0.17 per share
  • Weighted average basic shares outstanding of approximately 73 million

Our financial objectives remain (1) driving strong revenue growth and increasing our market share (2) maintaining industry leading gross margins and (3) steadily progressing towards our long-term target financial model of 16%-20% operating margin by delivering sequential improvement in operating margin every year.  We remain on track to achieve break-even on a non-GAAP basis by the end of our next fiscal year (FY16).

Conference Call Information:

As previously announced, Nimble Storage will host a live question & answer conference call and webcast today at 5:00 p.m. ET (2:00 p.m. PT) to discuss its financial results for the fiscal second quarter 2015.

To access the conference call, dial (888) 855-5487 in the U.S. or (719) 325-2104 from international locations.  In addition, a live audio webcast of the conference call will be available on the Nimble Storage Investor Relations website at http://investors.nimblestorage.com.  

To access the replay, please dial 888-203-1112 and enter pass code 5883072. Callers outside the U.S. and Canada should dial 719-457-0820 and enter pass code 5883072.

The live webcast will be accessible on Nimble Storage's investor relations website at http://investors.nimblestorage.com and will be archived and available on this site for 45 days.

Recent Business Highlights:

  • Nimble Storage Redefines Storage Market With Adaptive Flash Platform - Delivers Enterprise Scale Performance with New CS700 Series Arrays and All-Flash Shelf.  Nimble Storage's Adaptive Flash platform provides the performance of flash-only arrays and the capacity of hybrid arrays with the introduction of the CS700 Series arrays and All-Flash Shelf delivering up to 500,000 IOPS, 64 terabytes (TBs) of flash, and a petabyte of capacity. By minimizing performance and capacity tradeoffs, Nimble's Adaptive Flash platform enables the consolidation of all workloads and eliminates storage silos.  The CS700 Series array and All-Flash Shelf are now generally available.
  • Nimble Storage Extends Industry-Leading Performance Efficiency with New Adaptive Flash Arrays.  Nimble Storage announced upgrades to its CS-Series arrays with the introduction of two new families: CS300 and CS500. The new families, like Nimble's high-end CS700 array, leverage the company's unique Adaptive Flash CPU-driven architecture and the newest version of Intel's high-performance CPU architecture. The new arrays deliver 50 percent more performance than the CS200 and CS400 families that they are replacing.  Like the recently announced CS700, the CS300 and CS500 arrays can be combined with Nimble's All-Flash Shelf to support tens of terabytes of flash in a scale-out cluster. Nimble's Adaptive Flash platform eliminates performance and capacity tradeoffs, providing the performance of flash-only arrays and the capacity of hybrid arrays.  The Nimble Storage CS300 and CS500 are now generally available.
  • Nimble Storage was Recognized by CRN as a 2014 Emerging Vendor.  The annual Emerging Vendors list identifies up-and-coming technology vendors that have introduced innovative new products, creating opportunities for channel partners in North America to create high-margin, cutting-edge solutions for their customers. Nimble's channel-centric model continues to be a key driver of the company's growth and has successfully launched within several new regions, including Singapore, Thailand, Philippines, Malaysia and throughout EMEA. Nimble launched a two-tier distribution model in North America, successfully transitioning 100 percent of all resellers to purchase through distribution.
  • Nimble Storage Named 'Top Workplace' By the Bay Area News Group for the Second Consecutive Year.  For the second consecutive year, Nimble Storage has ranked in the top 10, placing seventh this year and up two spots from the previous listing. In addition, chief executive officer, Suresh Vasudevan, was selected as the winner of the Special Recognition Award for Leadership for mid-size companies in the Bay Area.

Non-GAAP Financial Measures

To provide investors with additional information regarding our financial results, Nimble Storage has disclosed in this release and the accompanying tables non-GAAP financial measures that are not calculated in accordance with generally accepted accounting principles in the United States, or GAAP. The Company provides non-GAAP gross margin, non-GAAP operating margin, non-GAAP net loss, non-GAAP net loss per share and adjusted EBITDA. In computing these non-GAAP financial measures, the Company excludes the effects of stock-based compensation, which is a recurring expense for the Company.  The Company has provided a reconciliation below of non-GAAP financial measures to the most directly comparable GAAP financial measures.

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

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

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

Forward Looking Statements

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

Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors including, but not limited to, those related to our future financial performance which is inherently uncertain, uncertainty of market acceptance of our solutions, our ability to increase sales of our solutions, our ability to attract and retain customers and to selling additional solutions to our existing customers, our ability to develop new solutions and bring them to market in a timely manner, pricing pressure (as a result of competition or otherwise), our ability to maintain, protect and enhance our brand and intellectual property, the effectiveness of our channel partners, and our ability to continue to expand our business and manage our growth.  Moreover, we operate in very competitive and rapidly changing environments, and new risks may emerge from time to time.  It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Further information on these and other factors that could affect our financial results are included in our filings with the Securities and Exchange Commission and may cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by our forward-looking statements.

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

Nimble Storage Resources

  • Nimble Storage Website
  • Case Studies and Videos
  • Follow Nimble Storage on Twitter: @NimbleStorage
  • Join the Nimble Storage Group on LinkedIn  
  • Visit Nimble Storage on Facebook

About Nimble Storage
Nimble Storage (NYSE: NMBL) is redefining the storage market with its Adaptive Flash platform. Nimble's flash storage solutions enable the consolidation of all workloads and eliminate storage silos by providing enterprises with significant improvements in application performance and storage capacity. At the same time, Nimble delivers superior data protection, while simplifying business operations and lowering costs. At the core of the Adaptive Flash platform is the patented Cache Accelerated Sequential Layout (CASL) architecture and InfoSight, an automated cloud-based management and support system that maintains storage system peak health. More than 3,000 enterprises, governments, and service providers have deployed Nimble's flash storage solutions across 37 countries. For more information about Nimble Storage, visit www.nimblestorage.com and follow us on Twitter: @nimblestorage.

Nimble Storage, the Nimble Storage logo, CASL, InfoSight, SmartStack and NimbleConnect are trademarks or registered trademarks of Nimble Storage. Other trade names or words used in this document are the properties of their respective owners.

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

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

 

 Nimble Storage, Inc. 

 Preliminary Consolidated Statements of Operations 

 (In thousands, except per share amounts) 

 (Unaudited) 


















 Three Months Ended 


 Six Months Ended 






 July 31, 


 July 31, 






2014


2013


2014


2013

 Revenue: 












    Product 





$    47,123


$    25,720


$    88,358


$    45,766

    Support and service 

6,638


2,758


11,950


4,836

    Total revenue 

53,761


28,478


100,308


50,602

 Cost of revenue: 








    Product (1) 

14,797


8,480


27,808


15,375

    Support and service (1) 

3,719


1,818


7,043


3,466

    Total cost of revenue 

18,516


10,298


34,851


18,841

 Total gross profit 

35,245


18,180


65,457


31,761

 Operating expenses: 








    Research and development (1) 

17,417


8,058


31,634


14,376

    Sales and marketing (1) 

36,639


17,268


65,841


31,428

    General and administrative (1) 

7,101


3,041


13,538


5,342

    Total operating expenses 

61,157


28,367


111,013


51,146

    Loss from operations 

(25,912)


(10,187)


(45,556)


(19,385)

 Interest income, net 

22


16


18


22

 Other income (expense), net 

(65)


(162)


144


(295)

    Loss before provision for income taxes 

(25,955)


(10,333)


(45,394)


(19,658)

 Provision for income taxes 

162


130


318


176

 Net loss 

(26,117)


(10,463)


(45,712)


(19,834)

 Accretion of redeemable convertible preferred stock 

-


(11)


-


(21)

    Net loss attributable to common stockholders 

$   (26,117)


$   (10,474)


$   (45,712)


$   (19,855)

 Net loss per share attributable to common stockholders, basic and diluted 

$       (0.37)


$       (0.51)


$       (0.65)


$       (0.98)

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

71,381


20,525


70,854


20,172

























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








    Cost of product revenue 

$          374


$             38


$          605


$             78

    Cost of support and service revenue 

593


88


986


131

    Research and development 

3,692


547


6,132


914

    Sales and marketing 

8,664


623


13,585


1,121

    General and administrative 

1,846


331


3,418


538

    Total stock-based compensation expense 

$    15,169


$       1,627


$    24,726


$       2,782

 

 

Nimble Storage, Inc.

Preliminary Consolidated Balance Sheets

(In thousands)

(Unaudited)












As of






July 31,


January 31,






2014


2014

Assets


Current assets:




   Cash and cash equivalents

$ 205,793


$ 208,486

   Accounts receivable, net

29,620


17,676

   Inventories

9,269


5,412

   Prepaid expenses and other current assets

3,104


3,176

   Total current assets

247,786


234,750

Property and equipment, net

24,717


20,209

Restricted cash, non-current

3,998


3,900

Other long-term assets

121


212

   Total assets

$ 276,622


$ 259,071







Liabilities and Stockholders' Equity


Current liabilities:


   Accounts payable

$ 16,035


$ 9,093

   Accrued compensation and benefits

19,486


9,837

   Deferred revenue, current portion

23,493


16,178

   Other current liabilities

5,740


3,855

   Total current liabilities

64,754


38,963

Deferred revenue, non-current portion

26,982


17,331

Other long-term liabilities

9,901


11,091

   Total liabilities

101,637


67,385

Commitments and contingencies


Stockholders' equity:


   Common stock

69


67

   Additional paid-in capital

321,578


292,686

   Accumulated other comprehensive income

142


25

   Accumulated deficit

(146,804)


(101,092)

   Total stockholders' equity

174,985


191,686

   Total liabilities and stockholders' equity

$ 276,622


$ 259,071

 

 

 Nimble Storage, Inc. 

 Preliminary Consolidated Statements of Cash Flows 

 (In thousands) 

 (Unaudited) 


















 Three Months Ended 


 Six Months Ended 






 July 31, 


 July 31, 






2014


2013


2014


2013

Cash flows from operating activities:








Net loss

$   (26,117)


$  (10,463)


$   (45,712)


$  (19,834)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:








   Depreciation

2,070


891


3,828


1,508

   Stock-based compensation expense

15,169


1,627


24,726


2,782

   Loss on disposal of property and equipment

-


33


-


33

   Provision (recoveries) for allowance for doubtful accounts

(7)


163


(32)


163

   Provision (recoveries) for excess and obsolete inventories

(149)


(181)


(167)


49

   Changes in operating assets and liabilities:








   Accounts receivable

(3,810)


(3,529)


(11,912)


(1,501)

   Inventories

(1,845)


(912)


(3,690)


(1,801)

   Prepaid expenses and other assets

1,186


(76)


163


(988)

   Accounts payable

2,030


623


7,648


814

   Deferred revenue

8,379


5,052


16,966


9,035

   Accrued and other liabilities

5,931


2,992


11,471


1,084

   Net cash provided by (used in) operating activities

2,837


(3,780)


3,289


(8,656)

Cash flows from investing activities:








Purchase of property and equipment

(4,179)


(1,542)


(7,907)


(3,426)

Proceeds from sale of property and equipment

-


27


-


27

Change in restricted cash

(98)


-


(98)


(3,900)

   Net cash used in investing activities

(4,277)


(1,515)


(8,005)


(7,299)

Cash flows from financing activities:








Payment of issuance costs related to issuance of common stock

-


-


(1,210)


-

Proceeds from exercise of stock options, net of repurchases

2,935


1,971


3,241


3,495

Payment of taxes related to net settlement of restricted stock units

-


-


(125)


-

   Net cash provided by financing activities

2,935


1,971


1,906


3,495

Foreign exchange impact on cash and cash equivalents

47


(35)


117


(25)

   Net increase (decrease) in cash and cash equivalents 

1,542


(3,359)


(2,693)


(12,485)

Cash and cash equivalents, beginning of period

204,251


40,079


208,486


49,205

Cash and cash equivalents, end of period

$   205,793


$    36,720


$   205,793


$    36,720

 

 

 Nimble Storage, Inc. 

 Reconciliation of GAAP to Non-GAAP Financial Measures 

 (In thousands, except per share amounts) 

 (Unaudited) 





























 Three Months Ended 


 Six Months Ended 






 July 31, 


 July 31, 






2014


2013


2014


2013













 GAAP gross margin 

$    35,245


$    18,180


$    65,457


$    31,761

   Stock-based compensation 

967


126


1,591


209

 Non-GAAP gross margin 

$    36,212


$    18,306


$    67,048


$    31,970













 GAAP operating margin 

$  (25,912)


$  (10,187)


$  (45,556)


$  (19,385)

   Stock-based compensation 

15,169


1,627


24,726


2,782

 Non-GAAP operating margin 

$  (10,743)


$    (8,560)


$  (20,830)


$  (16,603)









 GAAP net loss 

$  (26,117)


$  (10,463)


$  (45,712)


$  (19,834)

   Stock-based compensation 

15,169


1,627


24,726


2,782

 Non-GAAP net loss 

$  (10,948)


$    (8,836)


$  (20,986)


$  (17,052)

   Interest income, net 

(22)


(16)


(18)


(22)

   Provision for income taxes 

162


130


318


176

   Depreciation 

2,070


891


3,828


1,508

 Adjusted EBITDA  

$    (8,738)


$    (7,831)


$  (16,858)


$  (15,390)









 GAAP net loss per share, basic and diluted 

$       (0.37)


$       (0.51)


$       (0.65)


$       (0.98)

   Stock-based compensation 

0.21


0.08


0.35


0.14

   Impact of difference in number of GAAP and non-GAAP shares 

0.01


0.28


-


0.55

 Non-GAAP net loss per share 

$       (0.15)


$       (0.15)


$       (0.30)


$       (0.29)

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

71,381


20,525


70,854


20,172

   Weighted average effect of the assumed conversion of convertible preferred stock from the date of issuance 

-


38,868


-


38,868

 Shares used to compute Non-GAAP net loss per share 

71,381


59,393


70,854


59,040

SOURCE Nimble Storage

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