Nimble Storage Reports Fourth Quarter and Fiscal Year 2014 Financial Results

 Nimble Storage Reports Fourth Quarter and Fiscal Year 2014 Financial Results

-Company achieves record quarterly revenue of $41.7 million, up 107%
year-over-year

-Adds over 500 new end-customers in the fourth quarter, reaching 2,645 total
end-customers

PR Newswire

SAN JOSE, Calif., Feb. 27, 2014

SAN JOSE, Calif., Feb. 27, 2014 /PRNewswire/ --Nimble Storage (NYSE: NMBL), a
leading provider of flash-optimized hybrid storage solutions, today reported
financial results for the fourth quarter and fiscal year ended January 31,
2014. 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
letter.

Fiscal Fourth Quarter 2014 Financial Highlights:

  oRevenues for the fourth quarter of fiscal 2014 were $41.7 million,
    compared to $20.2 million in the fourth quarter of fiscal 2013,
    representing growth of 107% year-over-year.
  oNon-GAAP Gross Margins of 67.2% for the fourth quarter of fiscal 2014,
    compared to 61.8% in the fourth quarter of fiscal 2013.
  oNon-GAAP Operating Margins of negative 20.9% for the fourth quarter of
    fiscal 2014, compared to negative 45.8% in the fourth quarter of fiscal
    2013.
  oGAAP net loss for the fiscal fourth quarter was $13.2 million, or $0.29
    per basic and diluted share, compared with a net loss of $10.2 million, or
    $0.53 per basic and diluted share in the fiscal fourth quarter of 2013.
  oNon-GAAP net loss for the fiscal fourth quarter was $9.1 million, or $0.14
    per basic and diluted share, compared with a net loss of $9.3 million, or
    $0.16 per basic and diluted share in the fiscal fourth quarter of 2013.

Fiscal Year 2014 Financial Highlights:

  oRevenues for fiscal 2014 were $125.7 million, compared to $53.8 million in
    fiscal 2013, representing growth of 134% year-over-year.
  oNon-GAAP Gross Margins of 65.4% for fiscal 2014, compared to 62.3% in
    fiscal 2013.
  oNon-GAAP Operating Margins of negative 26.6% for fiscal 2014, compared to
    negative 46.7% in fiscal 2013.
  oGAAP net loss for fiscal 2014 was $43.1 million, or $1.61 per basic and
    diluted share, compared with a net loss of $27.9 million, or $1.53 per
    basic and diluted share in fiscal 2013.
  oNon-GAAP net loss for fiscal 2014 was $34.0 million, or $0.56 per basic
    and diluted share, compared with a net loss of $25.3 million, or $0.46 per
    basic and diluted share in fiscal 2013.

"Fiscal 2014 was an exciting year for Nimble Storage. We completed our IPO
and achieved strong year-over-year revenue growth of 134%," said Suresh
Vasudevan, chief executive officer, Nimble Storage. "We ended fiscal 2014 with
over 2,600 end-customers and over 900 channel partners, while further
expanding our customer base of large enterprise companies and service
providers. We view this success and our continued momentum as market
validation of our differentiated platform, built on our innovative CASL file
system software and InfoSight, our cloud based management software."

Recent Business Highlights:

  oAnnounced a new Nimble Storage SmartStack converged infrastructure
    solution that allows enterprises to address the storage performance
    challenges for desktop and server virtualization workloads in a single
    converged infrastructure stack.
  oSigned an exclusive master distribution agreement with Toshiba, which will
    distribute Nimble Storage hybrid arrays through its value-added
    distributor and reseller partner community in Japan. In addition, Toshiba
    will provide local language 24x7 on-site support for all Nimble hybrid
    storage products throughout Japan.
  oAnnounced that its Nimble Storage CS-Series Arrays have been selected as
    the Best Hybrid Flash Storage Product by TechTarget's storage magazine
    Modern Infrastructure Magazine.
  oRaised $176.7 million in net proceeds from its December 12, 2013 initial
    public offering

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 fourth quarter and fiscal yearended January 31,
2014.

To access the conference call, dial 877-941-8416, using conference code
4667492. Callers outside the U.S. and Canada should dial 480-629-9808, using
conference code 4667492. A replay of the conference call will be available
through Thursday, March 6, 2014. To access the replay, please dial
800-406-7325 and enter pass code 4667492. Callers outside the U.S. and Canada
should dial 303-590-3030 and enter pass code 4667492.

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.

Non-GAAP Financial Measures

To provide investors with additional information regarding its financial
results, Nimble Storage has disclosed in this release 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 and
non-GAAP net loss per share. 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 areconciliation
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 the core 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 core 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.

The use of non-GAAP financial measures has limitations as analytical tools, as
such, non-GAAP financial measures 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:

  oNon-GAAP financial measures do not consider the potentially dilutive
    impact of equity-based compensation, which is an ongoing expense for the
    Company; and
  oOther 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 presentation, including information concerning our 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, market acceptance of our
solutions, our ability to increase sales of our solutions, including 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, 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 we make 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

  oNimble Storage Website
  oCase Studies and Videos
  oFollow Nimble Storage on Twitter: @NimbleStorage
  oJoin the Nimble Storage Group on LinkedIn
  oVisit Nimble Storage on Facebook

About Nimble Storage
Nimble Storage believes enterprises should not have to compromise on
performance, capacity, ease of use, or price. Nimble has developed a hybrid
storage architecture engineered from the ground up to seamlessly integrate
flash and high-capacity drives. Our customers enjoy fast application
performance, enhanced backup and disaster recovery, and stress-free
operations—all while lowering their TCO. Nimble Storage solutions are
available through a global network of world-class channel partners. For more
information, visit www.nimblestorage.comand follow us on Twitter:
@nimblestorage.

©Nimble Storage, 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
650-346-7810
Kristalle@nimblestorage.com

Investor Relations Contact:
Cynthia Hiponia and Alice Kousoum
The Blueshirt Group
408-514-3475
IR@nimblestorage.com



Nimble Storage, Inc.
Preliminary Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
                              Three Months Ended      Year Ended
                              January 31,             January 31,
                              2014         2013         2014       2013
Revenue:
Product                     $  37,162  $  18,627  $         $  49,765
                                                        112,812
Support and service         4,558        1,552        12,921     4,075
Total revenue               41,720       20,179       125,733    53,840
Cost of revenue:
Product (1)                 11,536       6,409        36,231     17,266
Support and service (1)     2,445        1,357        7,980      3,184
Total cost of revenue       13,981       7,766        44,211     20,450
Total gross profit          27,739       12,413       81,522     33,390
Operating expenses:
Research and development     11,510       5,120        35,247     16,135
(1)
Sales and marketing (1)     23,777       15,489       75,107     39,851
General and administrative   5,265        1,930        13,737     5,168
(1)
Total operating expenses    40,552       22,539       124,091    61,154
Loss from operations        (12,813)     (10,126)     (42,569)   (27,764)
Interest income (expense),   (6)          11           21         32
net
Other expense, net          (161)        (23)         (150)      (26)
Loss before provision for    (12,980)     (10,138)     (42,698)   (27,758)
income taxes
Provision for income         173          73           425        99
taxes
Net loss                    (13,153)     (10,211)     (43,123)   (27,857)
Accretion of redeemable      (5)          (10)         (36)       (34)
convertible preferred stock
Net loss attributable to     $ (13,158)  $ (10,221)  $         $ (27,891)
common stockholders                                    (43,159)
Net loss per share
attributable to common        $         $         $       $   
stockholders,                 (0.29)       (0.53)       (1.61)    (1.53)
 basic and diluted
Weighted-average shares used
to compute net loss per share
 attributable to common 45,278       19,218       26,772     18,236
stockholders, basic and
diluted
(1) Includes stock-based
compensation expense as
follows:
Cost of product revenue     $        $       $      $     
                              102          29          232       48
Cost of support and service  210          37           468        114
revenue
Research and development    1,354        295          3,049      874
Sales and marketing         1,703        357          3,674      1,029
General and                  733          164          1,726      539
administrative
Total stock-based            $         $        $       $   
compensation expense         4,102        882         9,149     2,604



Nimble Storage, Inc.
Preliminary Consolidated Balance Sheets
(In thousands)
(Unaudited)
                                               As of January 31,
                                               2014              2013
Assets


Current assets:
Cash and cash equivalents                    $   208,486     $  49,205
Accounts receivable, net                     17,676            13,725
Inventories                                  5,412             4,359
Prepaid expenses and other current assets    3,176             1,153
Total current assets                         234,750           68,442
Property and equipment, net                  20,209            4,061
Restricted cash, non-current                 3,900             -
Other long-term assets                       212               60
Total assets                                 $   259,071     $  72,563
Liabilities, Redeemable Convertible Preferred
Stock and
 Stockholders' Equity (Deficit)
Current liabilities:
Accounts payable                             $     9,093  $    6,467
Accrued compensation and benefits            9,837             6,773
Deferred revenue, current portion            16,178            5,465
Other current liabilities                    3,855             902
Total current liabilities                    38,963            19,607
Deferred revenue, non-current portion        17,331            5,431
Other long-term liabilities                  11,091            2,628
Total liabilities                            67,385            27,666
Commitments and contingencies
Redeemable convertible preferred stock       -                 98,559
Stockholders' equity (deficit):
Common stock                                 67                17
Additional paid-in capital                   292,686           5,835
Notes receivable from stockholders           -                 (1,562)
Accumulated other comprehensive income       25                17
Accumulated deficit                          (101,092)         (57,969)
Total stockholders' equity (deficit)         191,686           (53,662)
Total liabilities, redeemable convertible
preferred stock                                $   259,071     $  72,563
 and stockholders' equity (deficit)



Nimble Storage, Inc.
Preliminary Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
                                     Three Months Ended  Year Ended
                                     January 31,         January 31,
                                     2014        2013      2014       2013
Cash flows from operating
activities:
Net loss                             $          $        $         $ 
                                     (13,153)   (10,211)  (43,123)  (27,857)
Adjustments to reconcile net loss to
net cash provided by (used in)
operating activities:
Depreciation and amortization        1,729       446       4,177      1,118
Stock-based compensation expense     4,102       882       9,149      2,604
Loss on disposal of property and     72          -         148        -
equipment
Provision (recoveries) for           55          (21)      104        -
allowance for doubtful accounts
Provision for excess and obsolete    177         194       252        421
inventories
Changes in operating assets and
liabilities:
Accounts receivable                  (1,066)     (1,753)   (4,055)    (9,187)
Inventories                          423         (1,627)   (1,304)    (3,043)
Prepaid expenses and other assets    996         205       (2,182)    (570)
Accounts payable                     (2,567)     1,251     333        4,318
Deferred revenue                     7,128       3,406     22,613     8,868
Accrued and other liabilities        4,289       3,330     7,146      4,574
Net cash provided by (used in)       2,185       (3,898)   (6,742)    (18,754)
operating activities
Cash flows from investing
activities:
Purchase of property and             (5,461)     (1,424)   (13,613)   (3,954)
equipment
Proceeds from sale of property and   -           -         27         -
equipment
Change in restricted cash            -           -         (3,900)    400
Net cash used in investing           (5,461)     (1,424)   (17,486)   (3,554)
activities
Cash flows from financing
activities:
Proceeds from issuance of of common  176,729     -         176,729    -
stock, net of issuance costs
Proceeds from issuance of redeemable
convertible preferred stock, net of  -           -         -          40,604
issuance costs
Proceeds from exercise of stock      357         719       5,201      2,096
options, net of repurchases
Proceeds from repayment of loans     -           -         1,571      -
from stockholders
Net cash provided by financing       177,086     719       183,501    42,700
activities
Foreign exchange impact on cash      (43)        20        8          17
and cash equivalents
Net increase (decrease) in cash and  173,767     (4,583)   159,281    20,409
cash equivalents
Cash and cash equivalents,           34,719      53,788    49,205     28,796
beginning of period
Cash and cash equivalents, end of    $          $       $         $  
period                               208,486    49,205   208,486   49,205



Nimble Storage, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share amounts)
(Unaudited)
                                Three Months Ended      Year Ended
                                January 31,             January 31,
                                2014        2013        2014        2013
GAAP gross margin               $ 27,739    $ 12,413    $ 81,522    $ 33,390
Stock-based compensation        312         66          700         162
Non-GAAP gross margin           $ 28,051    $ 12,479    $ 82,222    $ 33,552
GAAP operating margin           $ (12,813)  $ (10,126)  $ (42,569)  $ (27,764)
Stock-based compensation        4,102       882         9,149       2,604
Non-GAAP operating margin       $ (8,711)   $ (9,244)   $ (33,420)  $ (25,160)
GAAP net loss                   $ (13,153)  $ (10,211)  $ (43,123)  $ (27,857)
Stock-based compensation        4,102       882         9,149       2,604
Non-GAAP net loss               $ (9,051)   $ (9,329)   $ (33,974)  $ (25,253)
GAAP net loss per share,        $ (0.29)    $ (0.53)    $ (1.61)    $ (1.53)
basic and diluted
Stock-based compensation        0.09        0.05        0.34        0.14
Impact of difference in number  0.06        0.32        0.71        0.93
of GAAP and non-GAAP shares
Non-GAAP net loss per share     $ (0.14)    $ (0.16)    $ (0.56)    $ (0.46)
Shares used to compute GAAP net
loss per share attributable to  45,278      19,218      26,772      18,236
common stockholders, basic and
diluted
Weighted average effect of the
assumed conversion of
convertible                     19,856      38,868      34,076      36,651
preferred stock from the date
of issuance
Shares used to compute Non-GAAP 65,134      58,086      60,848      54,887
net loss per share

SOURCE Nimble Storage

Website: http://www.nimblestorage.com
 
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