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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended October 31, 2021

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from to

Commission File Number: 001-37883

 

NUTANIX, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

 

27-0989767

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

1740 Technology Drive, Suite 150

San Jose, CA 95110

(Address of principal executive offices, including zip code)

 

(408) 216-8360

(Registrant's telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading symbol(s)

 

Name of each exchange on which registered

Class A Common Stock, $0.000025 par value per share

 

NTNX

 

Nasdaq Global Select Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

 

Accelerated Filer

 

Non-accelerated Filer

 

Smaller Reporting Company

 

 

 

 

Emerging Growth Company

 

 

 


 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

As of November 30, 2021, the registrant had 214,714,323 shares of Class A common stock, $0.000025 par value per share, and 2,272,877 shares of Class B common stock, $0.000025 par value per share, outstanding.

 


 

 

TABLE OF CONTENTS

 

 

 

PAGE

PART I.

 

FINANCIAL INFORMATION

 

 

 

 

 

 

Item 1

Financial Statements (Unaudited)

6

 

 

 

 

 

Item 2

Management’s Discussion and Analysis of Financial Condition and Results of Operations

36

 

 

 

 

 

Item 3

Quantitative and Qualitative Disclosures About Market Risk

55

 

 

 

 

 

Item 4

Controls and Procedures

55

 

 

 

 

PART II.

 

OTHER INFORMATION

 

 

 

 

 

 

Item 1

Legal Proceedings

56

 

 

 

 

 

Item 1A

Risk Factors

56

 

 

 

 

 

Item 2

Unregistered Sales of Equity Securities and Use of Proceeds

56

 

 

 

 

 

Item 3

Defaults Upon Senior Securities

56

 

 

 

 

 

Item 4

Mine Safety Disclosures

56

 

 

 

 

 

Item 5

Other Information

56

 

 

 

 

 

Item 6

Exhibits

56

 

 

 

 

EXHIBIT INDEX

57

SIGNATURES

58

 

3


Table of Contents

 

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains express and implied forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"), which statements involve substantial risks and uncertainties. Other than statements of historical fact, all statements contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations and financial position, our business strategy and plans and our objectives for future operations, are forward-looking statements. The words "believe," "may," "will," "potentially," "estimate," "continue," "anticipate," "plan," "intend," "could," "would," "expect," or words or expressions of similar substance or the negative thereof, that convey uncertainty of future events or outcomes are intended to identify forward-looking statements. Forward-looking statements included in this Quarterly Report on Form 10-Q include, but are not limited to, statements regarding:

our future billings, revenue, cost of revenue and operating expenses, as well as changes in the cost of product revenue, component costs, contract terms, product gross margins and support, entitlements and other services revenue and changes in research and development, sales and marketing and general and administrative expenses;
our business plans, strategies, initiatives, objectives and outlook, as well as our ability to execute such plans, strategies, initiatives and objectives successfully and in a timely manner, and the benefits and impact of such plans, initiatives and objectives on our business, operations, and financial results, including any impact on our revenue and product mix, average contract term lengths and discounting behavior;
our plans for, and the timing of, any current and future business model transitions, including our ongoing transition to a subscription-based business model, our ability to manage, complete or realize the benefits of such transitions successfully and in a timely manner, and the short-term and long-term impacts of such transitions on our business, operations and financial results;
the timing, evolution and potential impact of the COVID-19 pandemic on the global market environment and the IT industry, as well as on our business, operations and financial results, including changes we have made or anticipate making in response to the COVID-19 pandemic, our ability to manage our business during the pandemic, and the position we anticipate being in following the pandemic;
the benefits and capabilities of our platform, solutions, products, services and technology, including the interoperability and availability of our solutions with and on third-party platforms;
our plans and expectations regarding new solutions, products, services, product features and technology, including those that are still under development or in process;
our growth strategy, our ability to effectively achieve and manage our growth, and the amount, timing and impact of any investments to grow our business, including any plans to increase or decrease investments in our global engineering, research and development and sales and/or marketing teams;
our go-to-market strategy and the impact of any adjustments thereto, including any adjustments to our go-to-market cost structure, in particular, our sales compensation structure, and our plans regarding pricing and packaging of our product portfolio;
the success and impact of our customer, partner, industry, analyst, investor and employee events on our business, including on future pipeline generation;
the impact of our decision to use new or different metrics, or to make adjustments to the metrics we use, to supplement our financial reporting;
our ability to successfully manage or realize the benefits of our Chief Executive Officer transition, as well as the impact thereof on our business, operations and financial results;
anticipated trends, growth rates and challenges in our business and in the markets in which we operate, including the segmentation and productivity of our sales team;
market acceptance of new technology and recently introduced solutions;
our ability to increase sales of our solutions, particularly to large enterprise customers;
our ability to attract new end customers and retain and grow sales from our existing end customers;

4


Table of Contents

 

our ability to maintain and strengthen existing strategic alliances and partnerships, including our relationships with our channel partners and original equipment manufacturers, and to develop any new strategic alliances and partnerships, and the impact of any changes to such relationships on our business, operations and financial results;
the effects of seasonal trends on our results of operations;
our expectations concerning relationships with third parties, including our ability to compress and stabilize sales cycles;
our ability to maintain, protect and enhance our intellectual property;
our exposure to and ability to guard against cyber attacks and other actual or perceived security breaches;
our ability to continue to expand internationally;
the competitive market, including our ability to compete effectively, the competitive advantages of our products, and the effects of increased competition in our market;
anticipated capital expenditures;
future acquisitions or investments in complementary companies, products, services or technologies and the ability to successfully integrate completed acquisitions;
our ability to stay in compliance with laws and regulations that currently apply or become applicable to our business both in the United States and internationally, including recent changes in global tax laws;
macroeconomic and industry trends, projected growth or trend analysis;
the impact of events that may be outside of our control, such as political and social unrest, terrorist attacks, hostilities, malicious human acts, climate change, natural disasters (including extreme weather), pandemics or other major public health concerns, and other similar events;
our ability to attract and retain qualified employees and key personnel; and
the sufficiency of cash balances to meet cash needs for at least the next 12 months.

We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs in light of the information currently available to us. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described under the heading "Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended July 31, 2021 and in Part II, Item 1A, "Risk Factors" in this Quarterly Report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment and new risks emerge from time to time. It is not possible for us 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 or implied in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and trends discussed in this Quarterly Report on Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, performance, or events and circumstances reflected in the forward-looking statements will be achieved or will occur. The forward-looking statements in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation, and expressly disclaim any obligation, to update, alter or otherwise revise or publicly release the results of any revision to these forward-looking statements to reflect new information or the occurrence of unanticipated or subsequent events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements.

5


Table of Contents

 

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

 

 

Page

 

 

Condensed Consolidated Balance Sheets as of July 31, 2021 and October 31, 2021

7

 

 

Condensed Consolidated Statements of Operations for the Three Months Ended October 31, 2020 and 2021

8

 

 

Condensed Consolidated Statements of Comprehensive Loss for the Three Months Ended October 31, 2020 and 2021

9

 

 

Condensed Consolidated Statements of Stockholders' Deficit for the Three Months Ended October 31, 2020 and 2021

10

 

 

Condensed Consolidated Statements of Cash Flows for the Three Months Ended October 31, 2020 and 2021

11

 

 

Notes to Condensed Consolidated Financial Statements

12

 

 

Note 1: Overview and Basis of Presentation

12

Note 2: Revenue, Deferred Revenue and Deferred Commissions

14

Note 3: Fair Value Measurements

17

Note 4: Balance Sheet Components

20

Note 5: Convertible Senior Notes

22

Note 6: Leases

27

Note 7: Commitments and Contingencies

29

Note 8: Stockholders' Equity

30

Note 9: Equity Incentive Plans

31

Note 10: Income Taxes

33

Note 11: Net Loss Per Share

34

Note 12: Segment Information

35

 

6


Table of Contents

 

NUTANIX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

As of

 

 

 

July 31,
2021

 

 

October 31,
2021

 

 

 

(in thousands, except per share data)

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

285,723

 

 

$

350,985

 

Short-term investments

 

 

928,006

 

 

 

925,116

 

Accounts receivable, net of allowances of $892 and $486, respectively

 

 

180,781

 

 

 

116,944

 

Deferred commissions—current

 

 

110,935

 

 

 

110,468

 

Prepaid expenses and other current assets

 

 

56,816

 

 

 

48,882

 

Total current assets

 

 

1,562,261

 

 

 

1,552,395

 

Property and equipment, net

 

 

131,621

 

 

 

120,596

 

Operating lease right-of-use assets

 

 

105,903

 

 

 

100,665

 

Deferred commissions—non-current

 

 

232,485

 

 

 

239,177

 

Intangible assets, net

 

 

32,012

 

 

 

27,885

 

Goodwill

 

 

185,260

 

 

 

185,260

 

Other assets—non-current

 

 

27,954

 

 

 

28,588

 

Total assets

 

$

2,277,496

 

 

$

2,254,566

 

Liabilities and Stockholders’ Deficit

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

47,056

 

 

$

43,184

 

Accrued compensation and benefits

 

 

162,337

 

 

 

122,372

 

Accrued expenses and other current liabilities

 

 

39,404

 

 

 

33,509

 

Deferred revenue—current

 

 

636,421

 

 

 

662,501

 

Operating lease liabilities—current

 

 

42,670

 

 

 

43,221

 

Total current liabilities

 

 

927,888

 

 

 

904,787

 

Deferred revenue—non-current

 

 

676,502

 

 

 

670,833

 

Operating lease liabilities—non-current

 

 

86,599

 

 

 

77,675

 

Convertible senior notes, net

 

 

1,055,694

 

 

 

1,261,656

 

Derivative liability

 

 

500,175

 

 

 

 

Other liabilities—non-current

 

 

42,679

 

 

 

38,354

 

Total liabilities

 

 

3,289,537

 

 

 

2,953,305

 

Commitments and contingencies (Note 7)

 

 

 

 

 

 

Stockholders’ deficit:

 

 

 

 

 

 

Preferred stock, par value of $0.000025 per share— 200,000 shares
   authorized as of July 31, 2021 and October 31, 2021;
no shares
   issued and outstanding as of July 31, 2021 and October 31, 2021

 

 

 

 

 

 

Common stock, par value of $0.000025 per share—1,200,000 
   (
1,000,000 Class A, 200,000 Class B) shares authorized as of July 31,
   2021 and October 31, 2021;
214,210 (208,579 Class A and 5,631 Class B)
   and
216,959 (211,386 Class A and 5,573 Class B) shares issued and
   outstanding as of July 31, 2021 and October 31, 2021, respectively

 

 

5

 

 

 

5

 

Additional paid-in capital

 

 

2,615,317

 

 

 

3,292,255

 

Accumulated other comprehensive loss

 

 

(8

)

 

 

(659

)

Accumulated deficit

 

 

(3,627,355

)

 

 

(3,990,340

)

Total stockholders’ deficit

 

 

(1,012,041

)

 

 

(698,739

)

Total liabilities and stockholders’ deficit

 

$

2,277,496

 

 

$

2,254,566

 

 

See the accompanying notes to condensed consolidated financial statements.

7


Table of Contents

 

NUTANIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three Months Ended
October 31,

 

 

 

2020

 

 

2021

 

 

 

(in thousands, except per share data)

 

Revenue:

 

 

 

 

 

 

Product

 

$

155,752

 

 

$

180,105

 

Support, entitlements and other services

 

 

157,002

 

 

 

198,412

 

Total revenue

 

 

312,754

 

 

 

378,517

 

Cost of revenue:

 

 

 

 

 

 

Product

 

 

12,814

 

 

 

14,221

 

Support, entitlements and other services

 

 

55,145

 

 

 

67,225

 

Total cost of revenue

 

 

67,959

 

 

 

81,446

 

Gross profit

 

 

244,795

 

 

 

297,071

 

Operating expenses:

 

 

 

 

 

 

Sales and marketing

 

 

257,290

 

 

 

250,033

 

Research and development

 

 

135,804

 

 

 

144,266

 

General and administrative

 

 

33,774

 

 

 

40,028

 

Total operating expenses

 

 

426,868

 

 

 

434,327

 

Loss from operations

 

 

(182,073

)

 

 

(137,256

)

Other expense, net

 

 

(78,732

)

 

 

(278,549

)

Loss before provision for income taxes

 

 

(260,805

)

 

 

(415,805

)

Provision for income taxes

 

 

4,243

 

 

 

4,047

 

Net loss

 

$

(265,048

)

 

$

(419,852

)

Net loss per share attributable to Class A and Class B
   common stockholders—basic and diluted

 

$

(1.31

)

 

$

(1.95

)

Weighted average shares used in computing net loss
   per share attributable to Class A and Class B
   common stockholders—basic and diluted

 

 

203,095

 

 

 

215,499

 

 

See the accompanying notes to condensed consolidated financial statements.

8


Table of Contents

 

NUTANIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)

 

 

 

Three Months Ended
October 31,

 

 

 

2020

 

 

2021

 

 

 

(in thousands)

 

Net loss

 

$

(265,048

)

 

$

(419,852

)

Other comprehensive loss, net of tax:

 

 

 

 

 

 

Change in unrealized loss on available-for-sale
   securities, net of tax

 

 

(1,150

)

 

 

(651

)

Comprehensive loss

 

$

(266,198

)

 

$

(420,503

)

 

See the accompanying notes to condensed consolidated financial statements.

9


Table of Contents

 

NUTANIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

(Unaudited)

 

 

 

Three Months Ended October 31, 2020

 

 

 

Common Stock

 

 

Additional
Paid-In

 

 

Accumulated
Other
Comprehensive

 

 

Accumulated

 

 

Total
Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income

 

 

Deficit

 

 

Deficit

 

 

 

(in thousands)

 

Balance - July 31, 2020

 

 

201,949

 

 

$

5

 

 

$

2,245,180

 

 

$

2,030

 

 

$

(2,522,192

)

 

$

(274,977

)

Issuance of common stock through employee equity
   incentive plans

 

 

3,117

 

 

 

 

 

 

1,631

 

 

 

 

 

 

 

 

 

1,631

 

Issuance of common stock from ESPP purchase

 

 

1,456

 

 

 

 

 

 

18,070

 

 

 

 

 

 

 

 

 

18,070

 

Repurchase and retirement of common stock

 

 

(5,176

)

 

 

 

 

 

(54,176

)

 

 

 

 

 

(70,903

)

 

 

(125,079

)

Stock-based compensation

 

 

 

 

 

 

 

 

89,198

 

 

 

 

 

 

 

 

 

89,198

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(1,150

)

 

 

 

 

 

(1,150

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(265,048

)

 

 

(265,048

)

Balance - October 31, 2020

 

 

201,346

 

 

$

5

 

 

$

2,299,903

 

 

$

880

 

 

$

(2,858,143

)

 

$

(557,355

)

 

 

 

 

Three Months Ended October 31, 2021

 

 

 

Common Stock

 

 

Additional
Paid-In

 

 

Accumulated
Other
Comprehensive

 

 

Accumulated

 

 

Total
Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Loss

 

 

Deficit

 

 

Deficit

 

 

 

(in thousands)

 

Balance - July 31, 2021

 

 

214,210

 

 

$

5

 

 

$

2,615,317

 

 

$

(8

)

 

$

(3,627,355

)

 

$

(1,012,041

)

Adoption of ASU 2020-06

 

 

 

 

 

 

 

 

(148,598

)

 

 

 

 

 

100,585

 

 

 

(48,013

)

2026 Notes derivative liability reclassification

 

 

 

 

 

 

 

 

698,213

 

 

 

 

 

 

 

 

 

698,213

 

Issuance of common stock through employee equity
   incentive plans

 

 

2,809

 

 

 

 

 

 

1,352

 

 

 

 

 

 

 

 

 

1,352

 

Issuance of common stock from ESPP purchase

 

 

1,309

 

 

 

 

 

 

28,786

 

 

 

 

 

 

 

 

 

28,786

 

Repurchase and retirement of common stock

 

 

(1,369

)

 

 

 

 

 

(14,852

)

 

 

 

 

 

(43,718

)

 

 

(58,570

)

Unwinding of 2023 Notes hedges

 

 

 

 

 

 

 

 

39,880

 

 

 

 

 

 

 

 

 

39,880

 

Unwinding of 2023 Notes warrants

 

 

 

 

 

 

 

 

(18,390

)

 

 

 

 

 

 

 

 

(18,390

)

Stock-based compensation

 

 

 

 

 

 

 

 

90,547

 

 

 

 

 

 

 

 

 

90,547

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(651

)

 

 

 

 

 

(651

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(419,852

)

 

 

(419,852

)

Balance - October 31, 2021

 

 

216,959

 

 

$

5

 

 

$

3,292,255

 

 

$

(659

)

 

$

(3,990,340

)

 

$

(698,739

)

 

See the accompanying notes to condensed consolidated financial statements.

10


Table of Contents

 

NUTANIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Three Months Ended
October 31,

 

 

 

2020

 

 

2021

 

 

 

(in thousands)

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(265,048

)

 

$

(419,852

)

Adjustments to reconcile net loss to net cash (used in) provided by
   operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

23,499

 

 

 

23,291

 

Stock-based compensation

 

 

89,198

 

 

 

90,547

 

Change in fair value of derivative liability

 

 

64,740

 

 

 

198,038

 

Loss on debt extinguishment

 

 

 

 

 

64,910

 

Amortization of debt discount and issuance costs

 

 

11,708

 

 

 

9,831

 

Operating lease cost, net of accretion

 

 

8,347

 

 

 

9,189

 

Impairment of lease-related assets

 

 

2,822

 

 

 

 

Non-cash interest expense

 

 

1,952

 

 

 

4,773

 

Other

 

 

1,671

 

 

 

3,072

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable, net

 

 

60,094

 

 

 

64,740

 

Deferred commissions

 

 

(28,230

)

 

 

(6,225

)

Prepaid expenses and other assets

 

 

6,222

 

 

 

6,751

 

Accounts payable

 

 

(4,075

)

 

 

(3,139

)

Accrued compensation and benefits

 

 

10,041

 

 

 

(39,965

)

Accrued expenses and other liabilities

 

 

(1,238

)

 

 

(6,207

)

Operating leases, net

 

 

(7,970

)

 

 

(12,323

)

Deferred revenue

 

 

22,194

 

 

 

19,508

 

Net cash (used in) provided by operating activities

 

 

(4,073

)

 

 

6,939

 

Cash flows from investing activities:

 

 

 

 

 

 

Maturities of investments

 

 

97,578

 

 

 

272,024

 

Purchases of investments

 

 

(513,998

)

 

 

(290,050

)

Sales of investments

 

 

 

 

 

17,999

 

Purchases of property and equipment

 

 

(12,252

)

 

 

(8,844

)

Net cash used in investing activities

 

 

(428,672

)

 

 

(8,871

)

Cash flows from financing activities:

 

 

 

 

 

 

Payments of debt extinguishment costs

 

 

 

 

 

(14,709

)

Proceeds from unwinding of convertible note hedges

 

 

 

 

 

39,880

 

Payments for unwinding of warrants

 

 

 

 

 

(18,390

)

Proceeds from sales of shares through employee equity
   incentive plans

 

 

19,600

 

 

 

30,139

 

Proceeds from the issuance of convertible notes, net of
   issuance costs

 

 

723,757

 

 

 

89,128

 

Repurchases of common stock

 

 

(125,079

)

 

 

(58,570

)

Payment of finance lease obligations

 

 

 

 

 

(219

)

Net cash provided by financing activities

 

 

618,278

 

 

 

67,259

 

Net increase in cash, cash equivalents and restricted cash

 

$

185,533

 

 

$

65,327

 

Cash, cash equivalents and restricted cash—beginning of period

 

 

321,991

 

 

 

288,873

 

Cash, cash equivalents and restricted cash—end of period

 

$

507,524

 

 

$

354,200

 

Restricted cash (1)

 

 

3,042

 

 

 

3,215

 

Cash and cash equivalents—end of period

 

$

504,482

 

 

$

350,985

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

Cash paid for income taxes

 

$

5,050

 

 

$

6,181

 

Supplemental disclosures of non-cash investing and
   financing information:

 

 

 

 

 

 

Purchases of property and equipment included
   in accounts payable and accrued and other liabilities

 

$

2,948

 

 

$

12,099

 

Finance lease liabilities arising from obtaining right-of-use
   assets

 

$

 

 

$

7,857

 

Convertible senior notes offering costs included in accrued liabilities

 

$

 

 

$

700

 

 

(1)
Included within other assets—non-current in the condensed consolidated balance sheets.

See the accompanying notes to condensed consolidated financial statements.

11


Table of Contents

NUTANIX, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1. OVERVIEW AND BASIS OF PRESENTATION

Organization and Description of Business

Nutanix, Inc. was incorporated in the state of Delaware in September 2009. Nutanix, Inc. is headquartered in San Jose, California, and together with its wholly-owned subsidiaries (collectively, "we," "us," "our" or "Nutanix"), has operations throughout North America, Europe, Asia Pacific, the Middle East, Latin America, and Africa.

We provide a leading enterprise cloud platform, which we call the Nutanix Cloud Platform, that consists of software solutions and cloud services that power our customers' enterprise infrastructure. Our solutions run across private-, hybrid- and multicloud environments, and allow organizations to seamlessly "lift and shift" their workloads, including enterprise applications, high-performance databases, end-user computing and virtual desktop infrastructure ("VDI") services, cloud native workloads, and analytics applications, between different cloud environments. Our solutions are primarily sold through channel partners, including distributors, resellers and original equipment manufacturers ("OEMs") (collectively, "Partners"), and delivered directly to our end customers.

Principles of Consolidation and Significant Accounting Policies

The accompanying condensed consolidated financial statements, which include the accounts of Nutanix, Inc. and its wholly-owned subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") and are consistent in all material respects with those included in our Annual Report on Form 10-K for the fiscal year ended July 31, 2021, filed with the Securities and Exchange Commission ("SEC") on September 21, 2021. All intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated financial statements are unaudited, but include all adjustments of a normal recurring nature necessary for a fair presentation of our quarterly results. The consolidated balance sheet as of July 31, 2021 is derived from audited financial statements; however, it does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes in our Annual Report on Form 10-K for the fiscal year ended July 31, 2021.

Use of Estimates

The preparation of interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the am