10-K annual report · filed Sep 18, 2017

Nutanix Inc (NTNX) FY2017 10-K Annual Report

Short answer

Nutanix Inc (NTNX) filed its fiscal 2017 10-K annual report with the SEC on Sep 18, 2017. It reported revenue of $846M and net income of −$458M.

  • Top risk flagged: GDPR effective May 2018, with stringent EU data-protection requirements and large noncompliance penalties

FY2017 key financial metrics · XBRL

Revenue
$846M
Net income
−$458M
Operating margin
-50.5%
Gross margin
52.0%
ROE
-950.2%
Operating cash flow
$14M

Source: XBRL data from the Nutanix Inc (NTNX) FY2017 10-K on SEC EDGAR. USD.

Nutanix Inc FY2017 10-K analysis

AI summary of each section, grounded in the filing text

Business Overview

  • Enterprise cloud operating system converging server, virtualization, storage and networking across private and public clouds
  • New Nutanix Calm orchestration software and Xi Cloud Services disaster recovery offering announced for 2017 and 2018 availability
  • Strategic expansion toward hybrid-cloud application mobility, native orchestration and cloud-delivered infrastructure services
  • 7,051 end-customers and 2,813 employees worldwide as of July 31, 2017
  • IBM partnership added CS Series, extending Nutanix software onto IBM Power Systems alongside Dell and Lenovo OEM offerings
  • R&D expense reached $288.6 million, up from $116.4 million in fiscal 2016

Management Discussion & Analysis

  • Revenue $766.9M, up $321.9M YoY, or 72.4%, with product revenue at $583.0M
  • Product segment largest at $583.0M, product gross margin 57% vs 62%; support revenue $183.9M
  • Net loss $458.0M vs $168.5M, operating margin negative 56% vs negative 37%
  • Operating cash flow $13.8M, free cash flow outflow $36.4M, capex $50.2M
  • IPO proceeds $254.5M, investment purchases $242.5M, no dividends or buybacks; DRAM and NAND supply constraints risk fiscal 2018 margins

Risk Factors

  • GDPR effective May 2018, with stringent EU data-protection requirements and large noncompliance penalties
  • International revenue 40% in fiscal 2017, exposing Nutanix to political instability, tariffs and changing trade policies
  • Super Micro and Flextronics manufacturing reliance, with Super Micro agreement expiring May 2018 and no minimum commitment
  • Public-cloud alternatives from Amazon, Google and Microsoft threatening on-premise Nutanix demand
  • Dell represented 10% of fiscal 2017 revenue under ASC 606, creating OEM concentration and reporting volatility risk
  • Net loss $458.0 million in fiscal 2017 and accumulated deficit $899.8 million as of July 31, 2017
  • CEO Dheeraj Pandey critical to technology and strategy, with no key-person life insurance coverage

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