September 1, 2017
Nutanix (NTNX: $22, up 2%) announced financial results for its fourth quarter and fiscal year ended July 31st, yesterday after the close.
Fiscal 4Q 2017 Financials
Revenue: $226 million, up 62% year-over-year from $140 million in 4Q16
Net Loss: $50 million, compared to a net loss of $47 million in 4Q16
Operating Cash Flow: $6 million, compared to $2.5 million in 4Q16
Cash and Short-term Investments: $350 million, up 90% from 4Q16
Deferred Revenue: $525 million, up 77% from 4Q16*
Free Cash Flow: $(6.5) million, compared to $(6.5) million in the fourth quarter of fiscal 2016
Billings: $289 million, growing 40% year-over-year from $207 million in 4Q16
* We are not clear on exactly what deferred revenue means in this case. We understand deferred revenue - it is an accounting rule. We are looking into this and will let you know. Note that this number is very big, and generally very bullish.
Full-year Fiscal 2017 Financials
Revenue: $770 million, growing 72% year-over-year from $445 million in fiscal 2017
Billings: $990 million, growing 55% year-over-year from $640 million
Net Loss: $200 million, compared to a net loss of $150 million
Operating Cash Flow: $14 million, compared to $4 million
Dheeraj Pandey, CEO, had this to say:
“The fourth quarter was another record quarter and an outstanding conclusion to the fiscal year. This quarter, marked by record revenues, increased software-only sales, strong growth from our OEM partners, and positive operating cash flow, was a great way to end our first year as a public company.”
Continued Customer Growth: Nutanix ended their fiscal year on July 31st with 7,050 customers, adding almost 900 new customers during the quarter. Fourth quarter customer wins included ABC Stores, Amgen, Bacardi, HCA Healthcare, Konica Minolta, The Hershey Company and The Home Depot among many others.
Increased Number of $1 Million+ Deals: 43 customers came on board in deals over $1 million in the quarter, up 39% YoY.
BMR Take: As you know, the stock has been hovering at our Sell Price. We have tried to explain how much we like this company and how we would hate to have to sell the stock at the bottom. We believe this company can be a triple-digit stock in the next few years. This quarterly report is a stellar one and reinforces why we believe in the company. Remember, with revenues comes all. Yes, the company is still losing money but they have a big stash of cash ($350 million) and can withstand some losses for a bit as they continue to add customers. However, this will be a drag on the stock until they can turn profitable, likely in fiscal 2019, a long time from now. The company is on track to hit $1 billion in revenue this coming fiscal year ending July 31, 2018. We are very pleased.