Nutanix, Inc. revenue surged on 36.6% and EBITDA Margin surged on 16.7 pp from -36.6% to -19.9%
08/30/2018 • About Nutanix, Inc. (
$NTNX) • By InTwits
Nutanix, Inc. reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Nutanix, Inc. is a fast growth stock: FY2018 revenue growth was 36.6%, 5 year revenue CAGR was 107% at FY2018 ROIC -57.6%
- The company operates at negative EBITDA Margin: -19.9%
- Nutanix, Inc. motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 was 15.7% while average EBITDA Margin was -27.4% for the sames years
- Nutanix, Inc. has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.9%. At the same time it's in pair with industry average of 7.6%
- CAPEX is quite volatile: $62m in FY2018, $50m in FY2017, $42m in FY2016, $23m in FY2015, $19m in FY2014
- The company has unprofitable business model: ROIC is -57.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Nutanix, Inc.'s Revenue surged on 36.6%. Revenue growth showed slowdown in FY18Q4 - it was 20.3% YoY. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 16.7 pp from -36.6% to -19.9% in FY2018.
Gross Margin increased on 5.3 pp from 61.3% to 66.6% in FY2018. SG&A as a % of Revenue decreased on 4.7 pp from 68.4% to 63.7% in FY2018. SG&A as a % of Revenue stuck to a declining trend at -4.9 pp per annum in the last 5 years. Stock Based Compensation (SBC) as a % of Revenue dropped on 12.0 pp from 27.4% to 15.4% in FY2018.
Net Income margin surged on 19.2 pp from -44.9% to -25.7% in FY2018.
Investments (CAPEX, working capital and M&A)
Nutanix, Inc.'s CAPEX/Revenue was 5.4% in FY2018. Nutanix, Inc. showed decline in CAPEX/Revenue of 4.3 pp from 9.7% in FY2015 to 5.4% in FY2018. For the last three years the average CAPEX/Revenue was 6.6%. CAPEX as a % of Revenue stuck to a declining trend at -2.3 pp per annum in the last 5 years.
Accounts receivable as a % of Revenue increased slightly on 1.2 pp from 21.1% to 22.4% in FY2018. Accounts payable as a % of Revenue decreased on 5.6 pp from 22.5% to 17.0% in FY2018.
Nutanix, Inc. has spent
$22m on M&A in FY2018 which accounts for 1.9% of revenue.
Return on investment
The company operates at negative ROIC (-57.6%) and ROE (-109.3%). ROIC jumped on 253 pp from -310% to -57.6% in FY2018.
Leverage (Debt)
Company's Net Debt / EBITDA is -4.7x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2018. Debt jumped while cash jumped on 121%.
The company has no short term refinancing risk: short term debt is zero.
Management team
Nutanix, Inc.'s CEO is Dheeraj Pandey. Dheeraj Pandey is a founder and has 3 years tenure with the company. CEO total compensation was
$11,202,225 in FY2018 which included
$350,000 salary. The company's CFO is Duston M Williams. Duston M Williams has 5 years tenure at the company.
At the end of financial year the company had 1.5% shares owned by insiders. Insider ownership didn't change in 2018.
The company has 4,000 employees. The number of employees jumped on 42.2%. Average revenue per employee in FY2018 was
$288,864 and it decreased on 3.9%.
Financial and operational results
FY ended 07/31/2018
Nutanix, Inc. ($NTNX) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 127 | 241 | 503 | 846 | 1,155 | 36.6% |
| Gross Profit | 66 | 140 | 333 | 519 | 769 | 48.4% |
| SG&A | 106 | 186 | 321 | 578 | 736 | 27.3% |
| EBITDA | -67 | -102 | -78 | -310 | -230 | |
| EBIT | -78 | -119 | -105 | -348 | -280 | |
| Tax | 1 | 2 | 2 | 5 | 7 | 53.5% |
| Net Income | -84 | -126 | -108 | -380 | -297 | |
| Stock Based Compensation | 6 | 17 | 20 | 231 | 178 | -23.2% |
Balance Sheet
|
|---|
| Cash | 57 | 68 | 99 | 138 | 306 | 121.1% |
| Accounts Receivable | 30 | 39 | 111 | 179 | 258 | 44.4% |
| Accounts Payable | 17 | 32 | 52 | 74 | 66 | -11.2% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 73 | 0 | 430 | |
Cash flow
|
|---|
| Capex | 19 | 23 | 42 | 50 | 62 | 24.3% |
| Acquisitions | | | | 0 | 22 | 11,979.9% |
Ratios
|
|---|
| Revenue growth | 316.4% | 89.9% | 108.5% | 68.0% | 36.6% | |
| EBITDA growth | 59.0% | 53.1% | -23.5% | 296.3% | -25.8% | |
|
|---|
| Gross Margin | 52.1% | 58.2% | 66.1% | 61.3% | 66.6% | 5.3% |
| EBITDA Margin | -52.5% | -42.3% | -15.5% | -36.6% | -19.9% | 16.7% |
| EBIT Margin | -61.6% | -49.2% | -20.8% | -41.2% | -24.3% | 16.9% |
| SG&A, % of revenue | 83.8% | 76.9% | 63.7% | 68.4% | 63.7% | -4.7% |
| SBC, % of revenue | 4.6% | 7.1% | 4.0% | 27.4% | 15.4% | -12.0% |
| Net Income Margin | -66.1% | -52.2% | -21.5% | -44.9% | -25.7% | 19.2% |
| CAPEX, % of revenue | 15.0% | 9.7% | 8.4% | 5.9% | 5.4% | -0.5% |
|
|---|
| ROIC | | -201.7% | -250.6% | -310.2% | -57.6% | 252.6% |
| ROE | | | | | -109.3% | |
People
|
|---|
| Insider ownership | 1.5% | 1.5% | 1.5% | 1.5% | 1.5% | 0.0% |
| Employees | | | | 2,813 | 4,000 | 42.2% |
| Revenue/Employee, th. $ | | | | 301 | 289 | -3.9% |
Nutanix, Inc. ($NTNX) key quoterly financial indicators
| mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 276 | 287 | 289 | 304 | | 46.1% | 43.9% | 40.7% | 20.3% |
| EBITDA | -48 | -48 | -69 | -65 | | | | | |
| Net Income | -61 | -63 | -86 | -87 | | | | | |
Balance Sheet
|
|---|
| Cash | 132 | 610 | 377 | 306 | | -41.3% | 170.1% | 87.7% | 121.1% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | | |
| Long Term Debt | 0 | 416 | 423 | 430 | | | | | |
Ratios
|
|---|
| Gross Margin | 60.6% | 62.2% | 67.0% | 75.9% | | -2.4% | 0.7% | 7.4% | 14.5% |
| EBITDA Margin | -17.3% | -16.8% | -23.9% | -21.4% | | 38.9% | 16.2% | 17.3% | -0.2% |
| Net Income Margin | -22.3% | -21.8% | -29.6% | -28.8% | | 52.1% | 16.5% | 17.5% | -2.6% |
Peers in Application Software
Below you can find Nutanix, Inc. benchmarking vs. other companies in Application Software industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| nFusz Inc ($FUSZ) | | | | | 433.3% |
| CloudCommerce Inc ($CLWD) | | -38.1% | 247.6% | 40.9% | 301.1% |
| Seven Stars Cloud Group, Inc. ($SSC) | | 134.7% | 663.8% | 310.3% | 161.7% |
| Aurora Mobile Limited ($JG) | | | | 304.9% | 150.8% |
| Intelligent Systems Corporation ($INS) | | 14.2% | 71.0% | 12.2% | 119.0% |
| |
|---|
| Median (150 companies) | 27.9% | 13.5% | 13.6% | 14.8% | 15.2% |
|---|
| Nutanix, Inc. ($NTNX) | | 89.9% | 108.5% | 68.0% | 36.6% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Skkynet Cloud Systems Inc ($SKKY) | 99.7% | 97.4% | 98.0% | 97.6% | 96.5% |
| hopTo Inc ($HPTO) | 91.8% | 87.8% | 95.9% | 98.2% | 95.4% |
| Aware, Inc. ($AWRE) | 75.4% | 87.2% | 90.3% | 94.6% | 92.3% |
| Alteryx, Inc. ($AYX) | 77.5% | 80.5% | 81.3% | 83.4% | 91.0% |
| Aspen Technology, Inc. ($AZPN) | 86.5% | 88.7% | 89.7% | 90.2% | 89.9% |
| |
|---|
| Median (149 companies) | 63.4% | 61.9% | 63.8% | 64.6% | 65.3% |
|---|
| Nutanix, Inc. ($NTNX) | 52.1% | 58.2% | 66.1% | 61.3% | 66.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Aspen Technology, Inc. ($AZPN) | 34.5% | 42.2% | 46.0% | 45.2% | 43.3% |
| ANSYS, Inc. ($ANSS) | 45.9% | 45.8% | 45.1% | 41.9% | 41.4% |
| Paycom Software, Inc. ($PAYC) | 15.1% | 19.5% | 35.1% | 34.4% | 35.9% |
| j2 Global, Inc. ($JCOM) | 41.6% | 40.6% | 41.7% | 36.5% | 35.7% |
| Adobe Inc. ($ADBE) | 17.5% | 25.9% | 31.2% | 34.2% | 35.3% |
| |
|---|
| Median (151 companies) | -10.1% | -9.4% | -4.7% | -3.3% | -3.1% |
|---|
| Nutanix, Inc. ($NTNX) | -52.5% | -42.3% | -15.5% | -36.6% | -19.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| TimefireVR Inc ($TFVR) | 0.0% | 350.5% | 4.3% | | 1,021.9% |
| MGT Capital Investments Inc ($MGTI) | 0.0% | 36.5% | 221.4% | 129.8% | 344.5% |
| Integrated Ventures Inc ($INTV) | | | | | 199.9% |
| ShotSpotter, Inc. ($SSTI) | | 18.3% | 28.9% | 27.1% | 24.3% |
| Ellie Mae, Inc. ($ELLI) | 12.3% | 20.6% | 16.7% | 21.1% | 19.4% |
| |
|---|
| Median (152 companies) | 2.8% | 2.7% | 2.9% | 2.3% | 2.4% |
|---|
| Nutanix, Inc. ($NTNX) | 15.0% | 9.7% | 8.4% | 5.9% | 5.4% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| InsPro Technologies Corp ($ITCC) | -558.9% | | | | 127.4% |
| Manhattan Associates, Inc. ($MANH) | 64.8% | 78.7% | 99.3% | 102.5% | 80.9% |
| Intuit Inc. ($INTU) | 34.2% | 23.7% | 52.1% | 72.6% | 66.8% |
| Aspen Technology, Inc. ($AZPN) | 133.4% | | | | 58.1% |
| Paycom Software, Inc. ($PAYC) | 16.7% | 30.5% | 75.4% | 51.1% | 47.5% |
| |
|---|
| Median (178 companies) | -14.3% | -11.2% | -9.2% | -10.2% | -9.1% |
|---|
| Nutanix, Inc. ($NTNX) | | -201.7% | -250.6% | -310.2% | -57.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Upland Software, Inc. ($UPLD) | | | 16.4x | 115.6x | 16.7x |
| Nuance Communications, Inc. ($NUAN) | 7.9x | 5.7x | 5.3x | 7.1x | 15.2x |
| Asure Software Inc ($ASUR) | 3.4x | 4.5x | 3.6x | 9.5x | 14.5x |
| SS&C Technologies Holdings, Inc. ($SSNC) | 1.7x | 7.3x | 4.6x | 3.1x | 8.5x |
| Avaya Holdings Corp. ($AVYA) | | | | | 7.4x |
| |
|---|
| Median (70 companies) | -1.4x | -1.0x | -0.9x | -0.8x | -0.7x |
|---|
