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
Nimble Storage Reports Fourth Quarter and Fiscal Year 2014 Financial Results
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