EX-99.1 2 d456061dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

Tintri Reports Second Quarter Fiscal 2018 Financial Results

MOUNTAIN VIEW, Calif, September 7, 2017 Tintri, Inc. (NASDAQ: TNTR), a leading enabler of enterprise cloud, today reported results for its second quarter fiscal 2018 ended July 31, 2017.

“While the company’s revenue came in at the low end of our expectations, we delivered stronger than projected profitability and cash flow improvements,” said Ken Klein, Chairman and CEO at Tintri. “We remain confident in our competitive position and in the strength of our value proposition. In the quarter we received the largest order in the company’s history and added new enterprise logos. Additionally, we experienced continued momentum in our land-and-expand strategy with more purchases from current customers. We enter the second half of our fiscal year having just announced a new all-flash platform and additional software offerings—these further enhance our differentiation and better enable our customers to transition to the enterprise cloud.”

Q2 Key Quarterly Business and Financial Highlights

 

    Quarterly revenue: $34.9 million, up 27% year-over-year.

 

    Net Loss per Share Attributable to Common Stockholders: ($2.05) per share GAAP, improved from ($7.53) per share in the year-ago quarter; and ($0.91) per share non-GAAP, improved from ($1.03) per share in the year-ago quarter.

 

    Cash and cash equivalents, and short-term investments: $80.6 million as of July 31, 2017, compared to $48.0 million as of January 31, 2017.

 

    New customers: added new enterprise and CSP customers, increasing total customer count to over 1,400.

 

    Launched new enterprise cloud offerings: Tintri EC6000 all-flash storage platform, Tintri Cloud Connector for integration to Amazon Web Services and IBM Cloud Object Storage, and advancements to machine learning powered Tintri Analytics.

 

    Announced integration with Cisco UCS Director.


Tintri Reports Second Quarter of Fiscal 2018 Financial Results

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Second Quarter Fiscal 2018 Financial Highlights

The following tables summarize our consolidated financial results for the fiscal quarters ended July 31, 2017 and 2016 ($ and share count in millions except per share amounts, unaudited):

 

GAAP Quarterly Financial Information

     Three Months Ended
July 31, 2017
  Three Months Ended
July 31, 2016
  Year-over-Year
Change

Revenue

   $34.9   $27.6   27%

Gross Profit

   $19.7   $17.8   $1.9

Gross Margin

   56.5%   64.7%   (8.2 ppts)

Operating Loss

   ($49.1)   ($24.5)   ($24.6)

Operating Margin

   (141.0%)   (89.0%)   (52.0 ppts)

Net Loss

   ($51.7)   ($25.7)   ($26.0)

Net Loss Attributable to Common Stockholders

   ($25.3)   ($25.7)   $0.4

Net Loss per Share Attributable to Common Stockholders

   ($2.05)   ($7.53)   $5.48

Weighted-Average Shares (Basic and Diluted)

   12.3   3.4   8.9

Non-GAAP Quarterly Financial Information

     Three Months Ended
July 31, 2017
  Three Months Ended
July 31, 2016
  Year-over-Year
Change

Gross Margin

   60.1%   65.3%   (5.2 ppts)

Operating Loss

   ($24.9)   ($20.9)   ($4.0)

Operating Margin

   (71.4%)   (75.8%)   4.4 ppts

Net Loss

   ($27.4)   ($22.0)   ($5.4)

Net Loss per Share

   ($0.91)   ($1.03)   $0.12

Weighted-Average Shares (Basic and Diluted)

   30.2   21.4   8.8

Free Cash Flow

   ($23.9)   ($21.8)   ($2.1)

Free Cash Flow % of Revenue

   (68.4%)   (79.0%)   10.6 ppts

A reconciliation between GAAP and non-GAAP information is provided at the end of this release.

Third Quarter Fiscal 2018 Financial Outlook

As we look ahead, we are providing the following outlook for the quarter ending October 31, 2017. We expect:

 

    Revenue in the range of $36 to $37 million;

 

    Non-GAAP loss per share in the range of ($0.77) to ($0.81), using 31.2 million weighted-average shares outstanding.

All forward-looking non-GAAP financial measures contained in this section titled “Third Quarter Fiscal 2018 Financial Outlook” exclude stock-based compensation expense, payroll tax expense related to stock-based activities, and, as applicable, other special items. We have not reconciled guidance for non-GAAP loss per share to its most directly comparable GAAP measure because the items that have been excluded are uncertain and cannot be reasonably predicted. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measures is not available without unreasonable effort.


Tintri Reports Second Quarter of Fiscal 2018 Financial Results

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Conference Call and Webcast

Tintri is hosting a conference call for analysts and investors to discuss its second quarter fiscal 2018 results and outlook for its third quarter at 2:00 p.m. Pacific Time today, September 7, 2017. Participants can listen in via webcast by visiting the Investor Relations section of Tintri’s website at ir.tintri.com. Please go to the website at least 15 minutes early to register, download, and install any necessary audio software. A replay of the webcast will be available for 7 days after the call. The conference call can also be accessed by dialing 1-844-379-5957 or +1-209-905-5964 and using the conference ID 63265823. Following the call, an audio replay will also be available by calling 1-855-859-2056 or +1-404-537-3406 and entering the conference ID 63265823. The audio replay will be available through 5:00 p.m. Pacific Time on September 14, 2017.

Forward-Looking Statements

This press release contains forward-looking statements, including but not limited to statements relating to estimated revenues and non-GAAP loss per share for future fiscal periods, our competitive position and environment, sales trends, and product releases. These forward-looking statements are not historical facts, and instead are based on our current expectations, estimates, opinions, and beliefs. Consequently, you should not rely on these forward-looking statements. The accuracy of such forward-looking statements depends upon future events, and involves risks, uncertainties, and other factors beyond our control that may cause these statements to be inaccurate and cause our actual results, performance, or achievements to differ materially and adversely from those anticipated or implied by such statements, including, among others: the rapid evolution of the markets in which we compete; our ability to sustain or manage future growth effectively; factors that could result in the significant fluctuation of our future quarterly operating results, including, among other things, our revenue mix, the timing and magnitude of orders, shipments and acceptance of our solutions in any given quarter, our ability to attract new and retain existing end-customers, changes in the pricing of certain components of our solutions, and fluctuations in demand and competitive pricing pressures for our solutions; the introduction or acceleration of adoption of competing solutions; failure to develop, or unexpected difficulties or delays in developing, new product features or technology on a timely or cost-effective basis; and other risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the final Prospectus related to our initial public offering of common stock (“IPO”) filed pursuant to Rule 424(b) under the Securities Act of 1933 (Registration No. 333-218429), and other reports on file with the U.S. Securities and Exchange Commission (“SEC”), which are available on our investor relations website at https://ir.tintri.com and on the SEC website at www.sec.gov, or that we may file with the SEC following the date of this press release, including our Quarterly Report on Form 10-Q for the quarter ended July 31, 2017. All statements provided in this release speak only as of the date of this press release and, except as required by law, we assume no obligation to update any forward-looking statements to reflect actual results or subsequent events or circumstances.


Tintri Reports Second Quarter of Fiscal 2018 Financial Results

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Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures and other key performance measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss, non-GAAP net loss per share, pro forma non-GAAP net loss per share, free cash flow, and free cash flow as a percentage of revenue. In computing these non-GAAP financial measures, we exclude the effects of certain items such as stock-based compensation expense, IPO-related expenses not netted against IPO proceeds, and adjustment to Series E, E-1, and F Convertible Preferred Stock related to our IPO. Free cash flow is a performance measure that our management believes provides useful information to management and investors about the amount of cash generated by the business after necessary capital expenditures, and we define free cash flow as net cash used in operating activities less purchases of property and equipment. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We use these non-GAAP financial measures and key performance measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures and key performance measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures such as stock-based compensation expense that may not be indicative of our ongoing core business operating results. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity, and planning, forecasting, and analyzing future periods. However, these non-GAAP financial and key performance measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss, non-GAAP net loss per share, pro forma non-GAAP net loss per share, and free cash flow are not substitutes for gross profit, gross margin, operating expenses, loss from operations, operating margin, net loss or net loss attributable to common stockholders, net loss per share or net loss per share attributable to common stockholders, net loss per share or net loss per share attributable to common stockholders, or net cash used in operating activities, respectively. In addition, other companies, including companies in our industry, may calculate non-GAAP financial measures and key performance measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures and key performance measures as tools for comparison. We urge you to review the reconciliation of our non-GAAP financial measures and key performance measures to the most directly comparable GAAP financial measures included below in the tables captioned “Reconciliation of GAAP to Non-GAAP Profit Measures,” and “Reconciliation of GAAP Net Cash Used In Operating Activities to Non-GAAP Free Cash Flow,” and not to rely on any single financial measure to evaluate our business.

About Tintri

Tintri (NASDAQ: TNTR) offers an enterprise cloud infrastructure built on a public cloud-like web services architecture and RESTful APIs. Organizations use Tintri all-flash storage with scale-out and automation as a foundation for their own clouds—to build agile development environments for cloud native applications and to run mission critical enterprise applications. Tintri enables users to guarantee the performance of their applications, automate common IT tasks to reduce operating expenses, troubleshoot across their infrastructure, and predict an organization’s needs to scale—the underpinnings of a modern data center. That’s why leading cloud service providers and enterprises, including Comcast, Chevron, NASA, Toyota, United Healthcare and 20% of the Fortune 100 companies, trust Tintri with enterprise cloud. For more information, visit www.tintri.com and follow us on Twitter: @Tintri. Tintri has used, and intends to continue to use, its Investor Relations website and the Twitter account of @tintri as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.


Tintri Reports Second Quarter of Fiscal 2018 Financial Results

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© 2017 Tintri, Inc. All rights reserved. Tintri and the Tintri logo are registered trademarks or trademarks of Tintri, Inc. in the United States and other countries. Other brand names mentioned herein are for identification purposes only and may be trademarks of their respective holder(s).

AT TINTRI:

Investor Relations Contact: David Jew, 650.772.3838, ir@tintri.com

TINTRI, INC.

Condensed Consolidated Balance Sheets

(in thousands, unaudited)

 

     As of January 31,     As of July 31,  
     2017     2017  

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 48,048     $ 72,691  

Short-term investments

     —         7,926  

Accounts receivable, net

     30,749       18,946  

Inventories, net

     6,509       6,180  

Prepaid and other current assets

     6,202       4,958  
  

 

 

   

 

 

 

Total current assets

     91,508       110,701  

Property and equipment, net

     10,410       10,000  

Other long-term assets

     2,984       3,000  
  

 

 

   

 

 

 

Total assets

   $ 104,902     $ 123,701  
  

 

 

   

 

 

 

Liabilities, Convertible Preferred Stock and Stockholders’ Deficit

    

Current liabilities:

    

Accounts payable

   $ 15,674     $ 18,057  

Accrued and other current liabilities

     20,668       19,725  

Deferred revenue, current

     28,056       30,172  

Long-term debt, current portion

     —         18,962  
  

 

 

   

 

 

 

Total current liabilities

     64,398       86,916  

Deferred revenue, non-current

     28,389       30,463  

Long-term debt

     48,914       49,540  

Other long-term liabilities

     5,041       5,256  
  

 

 

   

 

 

 

Total liabilities

   $ 146,742     $ 172,175  
  

 

 

   

 

 

 

Commitments and contingencies

    

Convertible preferred stock

   $ 257,141     $ —    

Stockholders’ deficit:

    

Common stock

     1       2  

Additional paid-in capital

     41,745       355,132  

Notes receivables from stockholders

     (1,544     (744

Accumulated other comprehensive loss

     (466     (337

Accumulated deficit

     (338,717     (401,316

Treasury stock

     —         (1,211
  

 

 

   

 

 

 

Total stockholders’ deficit

     (298,981     (48,474
  

 

 

   

 

 

 

Total liabilities, convertible preferred stock and stockholders’ deficit

   $ 104,902     $ 123,701  
  

 

 

   

 

 

 


Tintri Reports Second Quarter of Fiscal 2018 Financial Results

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TINTRI, INC.

Condensed Consolidated Statements of Operations

(In thousands, except share and per share data, unaudited)

 

     Three Months Ended July 31,     Six Months Ended July 31,  
     2016     2017     2016     2017  

Revenue:

        

Product

   $ 20,768     $ 26,329     $ 37,445     $ 48,716  

Support and maintenance

     6,788       8,537       12,987       16,505  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     27,556       34,866       50,432       65,221  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cost of revenue:

        

Product

     7,160       11,470       13,096       20,379  

Support and maintenance

     2,568       3,682       4,640       6,721  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of revenue

     9,728       15,152       17,736       27,100  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross Profit:

        

Product

     13,608       14,859       24,349       28,337  

Support and maintenance

     4,220       4,855       8,347       9,784  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total gross profit

     17,828       19,714       32,696       38,121  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

        

Research and development

     12,989       23,080       26,648       38,003  

Sales and marketing

     24,466       32,607       49,462       60,049  

General and administrative

     4,911       13,171       10,586       18,503  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     42,366       68,858       86,696       116,555  
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss from operations

     (24,538     (49,144     (54,000     (78,434

Other expense, net:

        

Interest expense

     (1,376     (2,798     (2,813     (4,072

Other income, net

     395       413       681       455  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other expense, net

     (981     (2,385     (2,132     (3,617
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before provision for income taxes

     (25,519     (51,529     (56,132     (82,051

Provision for income taxes

     153       138       351       296  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (25,672   $ (51,667   $ (56,483   $ (82,347
  

 

 

   

 

 

   

 

 

   

 

 

 

Deemed dividend to Series E and E-1 Convertible Preferred Stock

   $ —       $ —       $ —       $ (6,588

Impact of adjustment to Series E, E-1 and F Convertible Preferred Stock

   $ —       $ 26,336     $ —       $ 26,336  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to common stockholders

   $ (25,672   $ (25,331   $ (56,483   $ (62,599
  

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ (7.53   $ (2.05   $ (16.63   $ (7.78
  

 

 

   

 

 

   

 

 

   

 

 

 

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

     3,409,123       12,343,830       3,397,369       8,045,418  
  

 

 

   

 

 

   

 

 

   

 

 

 


Tintri Reports Second Quarter of Fiscal 2018 Financial Results

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TINTRI, INC.

Condensed Consolidated Statements of Cash Flows

(In thousands, unaudited)

 

     Six Months Ended July 31,  
     2016     2017  

Cash flows from operating activities:

    

Net loss

   $ (56,483   $ (82,347

Adjustments to reconcile net loss to net cash used in operating activities:

    

Depreciation and amortization

     4,799       3,605  

Stock-based compensation expense

     7,441       25,918  

Accretion of balloon payment

     402       750  

Amortization of debt issuance cost, credit facility fees and debt discounts

     221       105  

Other

     (18     (13

Changes in operating assets and liabilities:

    

Accounts receivable

     5,662       11,803  

Inventories

     (1,009     329  

Prepaid expenses and other assets

     (2,976     (887

Payment of offering costs

     (1,900     (1,518

Accounts payable

     2,569       (1,583

Deferred revenue

     3,540       4,190  

Accrued and other liabilities

     (1,760     (1,807
  

 

 

   

 

 

 

Net cash used in operating activities

     (39,512     (41,455
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Purchase of property and equipment

     (2,331     (2,054

Purchase of investments

     (8,423     (7,926

Proceeds from maturities of investments

     40,810       —    
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     30,056       (9,980
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Payment on capital lease financing

     (112     (172

Proceeds from revolving line of credit

     6,962       5,000  

Proceeds from term loan

     —         15,000  

Proceeds from initial public offering, net of underwriting discounts and commissions

     —         55,804  

Proceeds from repayment of employee notes receivable

     67       —    

Proceeds from exercise of stock options

     696       470  
  

 

 

   

 

 

 

Net cash provided by financing activities

     7,613       76,102  

Foreign exchange impact on cash and cash equivalents

     (62     (24
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     (1,905     24,643  

Cash and cash equivalents, beginning of period

     50,716       48,048  
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 48,811     $ 72,691  
  

 

 

   

 

 

 

Reconciliation of GAAP to Non-GAAP Profit Measures

(in thousands, except share and per share data)

 

     GAAP     Non-GAAP Adjustments     Non-GAAP  
     Three Months
Ended July 31,
2017
    Stock-based
compensation
    Other
non-GAAP
adjustments (1)
    Income tax
effect on
non-GAAP
adjustments
    Three Months
Ended July 31,
2017
 

Gross profit

   $ 19,714     $ 1,228     $ —       $ —       $ 20,942  

Gross margin

     56.5           60.1

Operating expenses

          

Research and development

     23,080       (8,380     (20       14,680  

Sales and marketing

     32,607       (4,638     (984       26,985  

General and administrative

     13,171       (8,207     (805       4,159  

Total operating expenses

     68,858       (21,225     (1,809       45,824  

Loss from operations

     (49,144     22,453       1,809         (24,882

Operating margin

     (141.0 %)            (71.4 %) 

Net loss

   $ (51,667   $ 22,453     $ 1,809     $ (32   $ (27,437

Net loss adjustment (2)

     26,336       —         (26,336     —         —    

Net loss attributable to common stockholders

   $ (25,331   $ 22,453     $ (24,527   $ (32   $ (27,437

Weighted-shares outstanding, basic and diluted

     12,343,830             12,343,830  

Pro forma adjustment (3)

     17,884,027             17,884,027  

Pro forma weighted-shares outstanding, basic and diluted

     30,227,857             30,227,857  

Net loss per share attributable to common stockholders, basic and diluted

   $ (2.05        

Pro forma net loss per share attributable to common stockholders, basic and diluted

   $ (0.84   $ 0.74     $ (0.81   $ —       $ (0.91

 

(1) IPO-related expenses not netted against IPO proceeds
(2) adjustment to Series E, E-1, and F Convertible Preferred Stock related to IPO
(3) to reflect assumed conversion of convertible preferred stock, IPO shares, and other adjustments as of the beginning of the period


Tintri Reports Second Quarter of Fiscal 2018 Financial Results

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Reconciliation of GAAP to Non-GAAP Profit Measures

(in thousands, except share and per share data)

 

     GAAP     Non-GAAP Adjustments      Non-GAAP  
     Three Months
Ended July 31,
2016
    Stock-based
compensation
    Income tax effect
on non-GAAP
adjustments
     Three Months
Ended July 31,
2016
 

Gross profit

   $ 17,828     $ 163     $ —        $ 17,991  

Gross margin

     64.7          65.3

Operating expenses

         

Research and development

     12,989       (1,384        11,605  

Sales and marketing

     24,466       (1,027        23,439  

General and administrative

     4,911       (1,069        3,842  

Total operating expenses

     42,366       (3,480        38,886  

Loss from operations

     (24,538     3,643          (20,895

Operating margin

     (89.0 %)           (75.8 %) 

Net loss

   $ (25,672   $ 3,643     $ 39      $ (21,990

Weighted-shares outstanding, basic and diluted

     3,409,123            3,409,123  

Pro forma adjustment (1)

     17,992,973            17,992,973  

Pro forma weighted-shares outstanding, basic and diluted

     21,402,096            21,402,096  

Net loss per share, basic and diluted

   $ (7.53       

Pro forma net loss per share, basic and diluted

   $ (1.20   $ 0.17     $ —        $ (1.03

 

(1) to reflect assumed conversion of convertible preferred stock as of the beginning of the period

Reconciliation of GAAP Net Cash Used In Operating Activities to Non-GAAP Free Cash Flow

(in thousands)

 

     Three Months Ended
July 31, 2017
    Three Months Ended
July 31, 2016
 

Net cash used in operating activities

   $ (22,480   $ (19,816

Less: Purchase of property and equipment

     (1,378     (1,959

Free cash flow

     (23,858     (21,775

Free cash flow % revenue

     (68.4 %)      (79.0 %) 

Source: Tintri