Nimble Storage Reports Financial Results for First Quarter 2015

       Nimble Storage Reports Financial Results for First Quarter 2015

-Achieves record quarterly total revenue of $46.5 million, up 110%
year-over-year

-Adds over 450 new end-customers in the first quarter, reaching 3,097 total
end-customers

PR Newswire

SAN JOSE, Calif., May 29, 2014

SAN JOSE, Calif., May 29, 2014 /PRNewswire/ -- Nimble Storage (NYSE: NMBL), a
leading provider of flash-optimized hybrid storage solutions, today reported
financial results for the first 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 letter.

Nimble Storage

Fiscal First Quarter 2015 Financial Highlights:

  oTotal Revenue for the first quarter of fiscal 2015 was $46.5 million,
    compared to $22.1 million in the first quarter of fiscal 2014,
    representing growth of 110% year-over-year.
  oNon-GAAP Gross Margin of 66.2% for the first quarter of fiscal 2015,
    compared to 61.8% in the first quarter of fiscal 2014.
  oNon-GAAP Operating Margin of negative 22% for the first quarter of fiscal
    2015, compared to negative 36% in the first quarter of fiscal 2014.
  oGAAP net loss for the fiscal first quarter was $19.6 million, or $0.28 per
    basic and diluted share, compared with a net loss of $9.4 million, or
    $0.47 per basic and diluted share in the fiscal first quarter of 2014.
  oNon-GAAP net loss for the fiscal first quarter was $10.0 million, or $0.14
    per basic and diluted share, compared with a non-GAAP net loss of $8.2
    million, or $0.14 per basic and diluted share in the fiscal first quarter
    of 2014.

"Our performance during the first quarter of fiscal year 2015 continues to
validate our belief that a major transition is underway within the storage
industry driven by flash as a disruptive ingredient. Our execution during the
quarter underscores our belief that we have built the leading next generation
flash storage platform," said Suresh Vasudevan, chief executive officer,
Nimble Storage.

"During Q1, we executed very well against our financial goals and maintained
our focus on operational excellence," said Anup Singh, chief financial
officer, Nimble Storage. "Our financial priorities remain driving strong
revenue growth and increasing our market share, maintaining industry leading
gross margins and steadily progressing towards achieving our long term target
financial model by delivering sequential improvement in operating margin every
year."

Recent Business Highlights:

  oAnnounced that more than 200 enterprise customers have implemented
    SmartStack converged infrastructure solutions to accelerate deployment and
    eliminate risks associated with their datacenter infrastructure. Since
    late 2012, Nimble Storage has rolled out a series of SmartStack solutions,
    built on Cisco UCS and pre-validated through ecosystem partners including
    Citrix, Microsoft, Oracle, and VMware, to deliver aggressive performance,
    shorten deployment times, and reduce project risk.
  oGeneral availability of Nimble Storage scale-out storage architecture,
    with over 1,200 systems deployed. The scale-to-fit approach enables
    customers to grow capacity and increase performance beyond the physical
    limits of a singe storage array.
  oAnnounced a pan-European distribution agreement with Ingram Micro, the
    world's largest wholesale technology distributor and a global leader in IT
    supply-chain and mobile device lifecycle services that enables the
    distributor to sell Nimble Storage's portfolio of flash storage arrays.
    Through the distribution agreement, Ingram Micro Europe's Advanced
    Solutions Division will also offer Nimble Storage's SmartStack converged
    infrastructure solutions to the Nimble Storage partner community and
    Ingram's broader reseller partners across Europe.
  oAnnounced that its flash-optimized storage solutions have been verified as
    part of the Citrix Ready® VDI Capacity Program Verified for Citrix
    XenDesktop®.

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 first quarter 2015.

To access the conference call, dial 877-941-2068, using conference code
4681069. Callers outside the U.S. and Canada should dial 480-629-9712, using
conference code 4681069. A replay of the conference call will be available
through June 5, 2014. To access the replay, please dial 800-406-7325 and enter
pass code 4681069. Callers outside the U.S. and Canada should dial
303-590-3030 and enter pass code 4681069.

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 our 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, 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
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 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:

  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 press release, including information concerning our future
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

  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 (NYSE: NMBL) 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, 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
650-346-7810
Kristalle@nimblestorage.com

Investor Relations Contact:
Edelita Tichepco
408-514-3379
IR@nimblestorage.com





Nimble Storage, Inc.
Preliminary Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
                                                  Three Months Ended
                                                  April 30,
                                                  2014           2013
Revenue:
 Product                                      $  41,235     $ 20,046
 Support and service                          5,312          2,078
 Total revenue                                46,547         22,124
Cost of revenue:
 Product (1)                                  13,011         6,895
 Support and service (1)                      3,324          1,648
 Total cost of revenue                        16,335         8,543
Total gross profit                              30,212         13,581
Operating expenses:
 Research and development (1)                 14,217         6,318
 Sales and marketing (1)                      29,202         14,160
 General and administrative (1)               6,437          2,301
 Total operating expenses                     49,856         22,779
 Loss from operations                         (19,644)       (9,198)
Interest income (expense), net                  (4)            6
Other income (expense), net                     209            (133)
 Loss before provision for income taxes       (19,439)       (9,325)
Provision for income taxes                      156            46
 Net loss                                     (19,595)       (9,371)
Accretion of redeemable convertible preferred    -              (10)
stock
 Net loss attributable to common stockholders $ (19,595)     $ (9,381)
Net loss per share attributable to common
stockholders,                                     $   (0.28)  $  (0.47)
 basic and diluted
Weighted-average shares used to compute net loss
per share                                         70,319         19,805
 attributable to common stockholders, basic
and diluted
(1) Includes stock-based compensation expense as
follows:
 Cost of product revenue                      $     231  $     40
 Cost of support and service revenue          393            43
 Research and development                     2,440          367
 Sales and marketing                          4,921          498
 General and administrative                   1,572          207
 Total stock-based compensation expense       $   9,557   $  1,155





Nimble Storage, Inc.
Preliminary Consolidated Balance Sheets
(In thousands)
(Unaudited)
                                                As of
                                                April 30,  January 31,
                                                2014         2014
Assets
Current assets:
 Cash and cash equivalents                  $ 204,251   $    208,486
 Accounts receivable, net                   25,803       17,676
 Inventories                                7,275        5,412
 Prepaid expenses and other current assets  4,209        3,176
 Total current assets                       241,538      234,750
Property and equipment, net                   23,142       20,209
Restricted cash, non-current                  3,900        3,900
Other long-term assets                        202          212
 Total assets                               $ 268,782   $    259,071
Liabilities and Stockholders' Equity
Current liabilities:
 Accounts payable                           $  14,401  $      9,093
 Accrued compensation and benefits          13,224       9,837
 Deferred revenue, current portion          20,291       16,178
 Other current liabilities                  6,022        3,855
 Total current liabilities                  53,938       38,963
Deferred revenue, non-current portion         21,805       17,331
Other long-term liabilities                   10,699       11,091
 Total liabilities                          86,442       67,385
Commitments and contingencies
Stockholders' equity:
 Common stock                               68           67
 Additional paid-in capital                 302,863      292,686
 Accumulated other comprehensive income     96           25
 Accumulated deficit                        (120,687)    (101,092)
 Total stockholders' equity                 182,340      191,686
 Total liabilities and stockholders' equity $ 268,782   $    259,071





Nimble Storage, Inc.
Preliminary Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
                                                       Three Months Ended
                                                       April 30,
                                                       2014         2013
Cash flows from operating activities:
Net loss                                               $ (19,595)  $ (9,371)
Adjustments to reconcile net loss to net cash provided
by (used in) operating activities:
 Depreciation                                        1,758        617
 Stock-based compensation expense                    9,557        1,155
 Recoveries for allowance for doubtful accounts      (25)         -
 Provision (recoveries) for excess and obsolete      (18)         230
inventories
 Changes in operating assets and liabilities:
 Accounts receivable                                 (8,102)      2,028
 Inventories                                         (1,845)      (889)
 Prepaid expenses and other assets                   (1,023)      (912)
 Accounts payable                                    5,618        191
 Deferred revenue                                    8,587        3,983
 Accrued and other liabilities                       5,540        (1,908)
 Net cash provided by (used in) operating activities 452          (4,876)
Cash flows from investing activities:
Purchase of property and equipment                     (3,728)      (1,884)
Change in restricted cash                              -            (3,900)
 Net cash used in investing activities               (3,728)      (5,784)
Cash flows from financing activities:
Payment of issuance costs related to issuance of       (1,210)      -
common stock
Proceeds from exercise of stock options, net of        306          1,524
repurchases
Payment of taxes related to net settlement of          (125)        -
restricted stock units
 Net cash provided by (used in) financing activities (1,029)      1,524
Foreign exchange impact on cash and cash equivalents   70           10
 Net decrease in cash and cash equivalents          (4,235)      (9,126)
Cash and cash equivalents, beginning of period         208,486      49,205
Cash and cash equivalents, end of period               $ 204,251   $ 40,079





Nimble Storage, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share amounts)
(Unaudited)
                                                         Three Months Ended
                                                         April 30,
                                                         2014        2013
GAAP gross margin                                        $ 30,212    $ 13,581
Stock-based compensation                                 624         83
Non-GAAP gross margin                                    $ 30,836    $ 13,664
GAAP operating margin                                    $ (19,644)  $ (9,198)
Stock-based compensation                                 9,557       1,155
Non-GAAP operating margin                                $ (10,087)  $ (8,043)
GAAP net loss                                            $ (19,595)  $ (9,371)
Stock-based compensation                                 9,557       1,155
Non-GAAP net loss                                        $ (10,038)  $ (8,216)
Interest income (expense), net                           4           (6)
Provision for income taxes                               156         46
Depreciation                                             1,758       617
Adjusted EBITDA                                          $ (8,120)   $ (7,559)
GAAP net loss per share, basic and diluted               $ (0.28)    $ (0.47)
Stock-based compensation                                 0.14        0.06
Impact of difference in number of GAAP and non-GAAP      -           0.27
shares
Non-GAAP net loss per share                              $ (0.14)    $ (0.14)
Shares used to compute GAAP net loss per share
attributable to                                          70,319      19,805
common stockholders, basic and diluted
Weighted average effect of the assumed conversion of
convertible                                              -           38,868
preferred stock from the date of issuance
Shares used to compute Non-GAAP net loss per share       70,319      58,673

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SOURCE Nimble Storage

Website: http://www.nimblestorage.com
 
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