Exhibit 99.1
Tintri Reports Third Quarter Fiscal 2018 Financial Results
MOUNTAIN VIEW, Calif., December 13, 2017 –Tintri, Inc. (NASDAQ: TNTR), a leading enabler of enterprise cloud, today reported results for its third quarter fiscal 2018 ended October 31, 2017.
“We made progress in the quarter by expanding our differentiated technology portfolio with two new all-flash product lines and software that integrates our products with leading public cloud storage solutions. These innovations helped us to increase our footprint with existing customers. However, we are disappointed with Q3 revenue. The company was impacted by delayed and reduced purchases by some accounts, but some of the delayed transactions closed in November,” said Ken Klein, Chairman and CEO at Tintri. “Despite the lower revenue, we saw improvement in our gross margin and our non-GAAP earnings per share met consensus expectations. We are exploring strategic options available to the company to deliver value to our stockholders, including retaining investment bank advisors to assist us in this process and optimizing our operating model to reduce our cash burn rate and shorten the time to generate positive cash flow.”
Q3 Key Quarterly and Year-to-Date Business and Financial Highlights
| • | Quarterly revenue: $31.8 million, down 6% year-over-year, and year-to-date revenue: $97.0 million, up 15% year-over-year. |
| • | Gross margin increased sequentially 300 basis points to 59.5% GAAP, and 170 basis points to 61.7% non-GAAP. |
| • | Quarterly net loss per share: ($1.21) per share GAAP, and ($0.79) per share non-GAAP, within the company’s guidance range. |
| • | Launched Tintri EC6000 all-flash series for enterprises and the T1000 for remote office and departmental use cases. |
| • | Announced Tintri Cloud Connector to integrate Tintri on-premises with AWS S3 and IBM Cloud Object Storage public cloud. |
| • | Named visionary in the Gartner Magic Quadrant for General-Purpose Disk Arrays for the fourth year in a row. |
| • | New customers: added new enterprise and CSP customers, increasing total customer count to over 1,490. |
| • | Customers spending more than $1M lifetime-to-date increased 59% year-over-year. |
Tintri Reports Third Quarter Fiscal 2018 Financial Results
Page 2 of 10
Third Quarter Fiscal 2018 Financial Highlights
The following tables summarize our consolidated financial results for the fiscal quarters and nine-months ended October 31, 2016, and October 31, 2017 (unaudited):
| GAAP Quarterly Financial Information | ||||||||||||||||||||||||
| (in millions, except percentages and per share data) | Three Months Ended October 31, 2016 |
Three Months Ended October 31, 2017 |
Year-over- Year Change |
Nine Months Ended October 31, 2016 |
Nine Months Ended October 31, 2017 |
Year-over- Year Change |
||||||||||||||||||
| Revenue |
$ | 33.9 | $ | 31.8 | -6 | % | $ | 84.3 | $ | 97.0 | 15 | % | ||||||||||||
| Gross Profit |
$ | 22.5 | $ | 18.9 | ($ | 3.6 | ) | $ | 55.2 | $ | 57.0 | $ | 1.8 | |||||||||||
| Gross Margin |
66.5 | % | 59.5 | % | -7 ppts | 65.5 | % | 58.8 | % | -6.7 ppts | ||||||||||||||
| Operating Loss |
($ | 22.5 | ) | ($ | 35.8 | ) | ($ | 13.3 | ) | ($ | 76.5 | ) | ($ | 114.2 | ) | ($ | 37.7 | ) | ||||||
| Operating Margin |
-66.4 | % | -112.5 | % | -46.1 ppts | -90.7 | % | -117.7 | % | -27 ppts | ||||||||||||||
| Net Loss |
($ | 23.8 | ) | ($ | 37.9 | ) | ($ | 14.1 | ) | ($ | 80.3 | ) | ($ | 120.3 | ) | ($ | 40.0 | ) | ||||||
| Net Loss Attributable to Common Stockholders |
($ | 23.8 | ) | ($ | 37.9 | ) | ($ | 14.1 | ) | ($ | 80.3 | ) | ($ | 100.5 | ) | ($ | 20.2 | ) | ||||||
| Net Loss per Share Attributable to Common Stockholders |
($ | 6.87 | ) | ($ | 1.21 | ) | $ | 5.66 | ($ | 23.52 | ) | ($ | 6.33 | ) | $ | 17.19 | ||||||||
| Weighted-Average Shares (Basic and Diluted) |
3.5 | 31.3 | 27.8 | 3.4 | 15.9 | 12.5 | ||||||||||||||||||
| Non-GAAP Quarterly Financial Information | ||||||||||||||||||||||||
| (in millions, except percentages and per share data) | Three Months Ended October 31, 2016 |
Three Months Ended October 31, 2017 |
Year-over- Year Change |
Nine Months Ended October 31, 2016 |
Nine Months Ended October 31, 2017 |
Year-over- Year Change |
||||||||||||||||||
| Gross Margin |
66.9 | % | 61.7 | % | -5.2 ppts | 66.0 | % | 61.0 | % | -5 ppts | ||||||||||||||
| Operating Loss |
($ | 19.2 | ) | ($ | 22.5 | ) | ($ | 3.3 | ) | ($ | 65.8 | ) | ($ | 73.3 | ) | ($ | 7.5 | ) | ||||||
| Operating Margin |
-56.6 | % | -71.0 | % | -14.4 ppts | -78.0 | % | -75.5 | % | 2.5 ppts | ||||||||||||||
| Net Loss |
($ | 20.5 | ) | ($ | 24.7 | ) | ($ | 4.2 | ) | ($ | 69.4 | ) | ($ | 79.3 | ) | ($ | 9.9 | ) | ||||||
| Net Loss per Share |
($ | 0.95 | ) | ($ | 0.79 | ) | $ | 0.16 | ($ | 3.24 | ) | ($ | 2.86 | ) | $ | 0.38 | ||||||||
| Weighted-Average Shares (Basic and Diluted) |
21.5 | 31.3 | 9.8 | 21.4 | 27.8 | 6.4 | ||||||||||||||||||
| Free Cash Flow |
($ | 19.8 | ) | ($ | 32.2 | ) | ($ | 12.4 | ) | ($ | 61.6 | ) | ($ | 75.7 | ) | ($ | 14.1 | ) | ||||||
| Free Cash Flow % of Revenue |
-58.4 | % | -101.4 | % | -43 ppts | -73.1 | % | -78.1 | % | -5 ppts | ||||||||||||||
A reconciliation between GAAP and non-GAAP information is provided at the end of this release.
Fourth Quarter Fiscal 2018 Financial Outlook
As we look ahead, we are providing the following outlook for the quarter ending January 31, 2018. We expect:
| • | Revenue in the range of $25 to $27 million; |
| • | Non-GAAP loss per share in the range of ($0.79) to ($0.83), using 31.4 million weighted-average shares outstanding. |
All forward-looking non-GAAP financial measures contained in this section titled “Fourth Quarter Fiscal 2018 Financial Outlook” exclude stock-based compensation expense, payroll tax expense related to stock-based activities, legal fees related to securities lawsuits, 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 Third Quarter Fiscal 2018 Financial Results
Page 3 of 10
Conference Call and Webcast
Tintri is hosting a conference call for analysts and investors to discuss its third quarter fiscal 2018 results and outlook for its fourth quarter at 2:00 p.m. Pacific Time today, December 13, 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 5868359. 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 5868359. The audio replay will be available through 5:00 p.m. Pacific Time on December 20, 2017.
Forward-Looking Statements
This press release contains forward-looking statements, including but not limited to statements relating to our exploration of strategic options, the continued availability of customer transactions that failed to close in Q3, 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 availability and timing of, and our ability to execute on, potential strategic options; 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 our 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.
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
Tintri Reports Third Quarter Fiscal 2018 Financial Results
Page 4 of 10
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, restructuring charges, legal fees related to securities lawsuits and other one-off activities, IPO-related expenses not netted against IPO proceeds, deemed dividend to Series E and E-1 Convertible Preferred Stock, adjustment to Series E, E-1, and F Convertible Preferred Stock related to our IPO, and income tax-related impact. 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
Tintri Reports Third Quarter Fiscal 2018 Financial Results
Page 5 of 10
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.
© 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, 2017 |
As of October 31, 2017 |
|||||||
| Assets |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 48,048 | $ | 48,899 | ||||
| Short-term investments |
— | 5,994 | ||||||
| Accounts receivable, net |
30,749 | 21,161 | ||||||
| Inventories, net |
6,509 | 6,958 | ||||||
| Prepaid and other current assets |
6,202 | 4,698 | ||||||
|
|
|
|
|
|||||
| Total current assets |
91,508 | 87,710 | ||||||
| Property and equipment, net |
10,410 | 10,223 | ||||||
| Other long-term assets |
2,984 | 3,011 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 104,902 | $ | 100,944 | ||||
|
|
|
|
|
|||||
| Liabilities, Convertible Preferred Stock and Stockholders’ Deficit |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ | 15,674 | $ | 15,424 | ||||
| Accrued and other current liabilities |
20,668 | 18,417 | ||||||
| Deferred revenue, current |
28,056 | 31,414 | ||||||
| Long-term debt, current portion |
— | 18,962 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
64,398 | 84,217 | ||||||
| Deferred revenue, non-current |
28,389 | 30,366 | ||||||
| Long-term debt |
48,914 | 49,607 | ||||||
| Other long-term liabilities |
5,041 | 5,150 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
146,742 | 169,340 | ||||||
|
|
|
|
|
|||||
| Commitments and contingencies |
||||||||
| Convertible preferred stock |
257,141 | — | ||||||
| Stockholders’ deficit: |
||||||||
| Common stock |
1 | 2 | ||||||
| Additional paid-in capital |
41,745 | 373,126 | ||||||
| Notes receivables from stockholders |
(1,544 | ) | (747 | ) | ||||
| Accumulated other comprehensive loss |
(466 | ) | (325 | ) | ||||
| Accumulated deficit |
(338,717 | ) | (439,241 | ) | ||||
| Treasury stock |
— | (1,211 | ) | |||||
|
|
|
|
|
|||||
| Total stockholders’ deficit |
(298,981 | ) | (68,396 | ) | ||||
|
|
|
|
|
|||||
| Total liabilities, convertible preferred stock and stockholders’ deficit |
$ | 104,902 | $ | 100,944 | ||||
|
|
|
|
|
|||||
Tintri Reports Third Quarter Fiscal 2018 Financial Results
Page 6 of 10
TINTRI, INC.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share data, unaudited)
| Three Months Ended October 31, |
Nine Months Ended October 31, |
|||||||||||||||
| 2016 | 2017 | 2016 | 2017 | |||||||||||||
| Revenue: |
||||||||||||||||
| Product |
$ | 26,871 | $ | 22,758 | $ | 64,316 | $ | 71,474 | ||||||||
| Support and maintenance |
7,046 | 9,014 | 20,033 | 25,519 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenue |
33,917 | 31,772 | 84,349 | 96,993 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Cost of revenue: |
||||||||||||||||
| Product |
8,953 | 9,757 | 22,049 | 30,136 | ||||||||||||
| Support and maintenance |
2,424 | 3,095 | 7,064 | 9,816 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total cost of revenue |
11,377 | 12,852 | 29,113 | 39,952 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit: |
||||||||||||||||
| Product |
17,918 | 13,001 | 42,267 | 41,338 | ||||||||||||
| Support and maintenance |
4,622 | 5,919 | 12,969 | 15,703 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total gross profit |
22,540 | 18,920 | 55,236 | 57,041 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating expenses: |
||||||||||||||||
| Research and development |
13,227 | 17,287 | 39,875 | 55,290 | ||||||||||||
| Sales and marketing |
27,862 | 28,435 | 77,324 | 88,484 | ||||||||||||
| General and administrative |
3,955 | 8,061 | 14,541 | 26,564 | ||||||||||||
| Restructuring charges |
— | 890 | — | 890 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total operating expenses |
45,044 | 54,673 | 131,740 | 171,228 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Loss from operations |
(22,504 | ) | (35,753 | ) | (76,504 | ) | (114,187 | ) | ||||||||
| Other expense, net: |
||||||||||||||||
| Interest expense |
(1,231 | ) | (2,170 | ) | (4,044 | ) | (6,242 | ) | ||||||||
| Other income, net |
54 | 130 | 735 | 585 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total other expense, net |
(1,177 | ) | (2,040 | ) | (3,309 | ) | (5,657 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Loss before provision for income taxes |
(23,681 | ) | (37,793 | ) | (79,813 | ) | (119,844 | ) | ||||||||
| Provision for income taxes |
89 | 132 | 440 | 428 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net loss |
$ | (23,770 | ) | $ | (37,925 | ) | $ | (80,253 | ) | $ | (120,272 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
| 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 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net loss attributable to common stockholders |
$ | (23,770 | ) | $ | (37,925 | ) | $ | (80,253 | ) | $ | (100,524 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net loss per share attributable to common stockholders—basic and diluted |
$ | (6.87 | ) | $ | (1.21 | ) | $ | (23.52 | ) | $ | (6.33 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted-average shares used in computing net loss per share attributable to common stockholders—basic and diluted |
3,459,860 | 31,291,513 | 3,412,447 | 15,873,071 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
Tintri Reports Third Quarter Fiscal 2018 Financial Results
Page 7 of 10
TINTRI, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
| Nine Months Ended October 31, |
||||||||
| 2016 | 2017 | |||||||
| Cash flows from operating activities: |
||||||||
| Net loss |
$ | (80,253 | ) | $ | (120,272 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
| Depreciation and amortization |
7,137 | 5,330 | ||||||
| Stock-based compensation expense |
10,742 | 37,770 | ||||||
| Excess tax benefit from stock-based compensation |
47 | — | ||||||
| Accretion of balloon payment |
501 | 1,221 | ||||||
| Amortization of debt issuance cost, credit facility fees and debt discounts |
230 | 172 | ||||||
| Restructuring charges |
— | (940 | ) | |||||
| Other |
(27 | ) | (13 | ) | ||||
| Changes in operating assets and liabilities: |
||||||||
| Accounts receivable |
(4,132 | ) | 9,588 | |||||
| Inventories |
(1,352 | ) | (449 | ) | ||||
| Prepaid expenses and other assets |
(1,436 | ) | (659 | ) | ||||
| Payment of offering costs |
(2,113 | ) | (3,892 | ) | ||||
| Accounts payable |
4,462 | (1,859 | ) | |||||
| Deferred revenue |
7,710 | 5,335 | ||||||
| Accrued and other liabilities |
280 | (2,943 | ) | |||||
|
|
|
|
|
|||||
| Net cash used in operating activities |
(58,204 | ) | (71,611 | ) | ||||
|
|
|
|
|
|||||
| Cash flows from investing activities: |
||||||||
| Purchase of property and equipment |
(3,431 | ) | (4,100 | ) | ||||
| Purchase of investments |
(13,807 | ) | (11,513 | ) | ||||
| Proceeds from maturities of investments |
66,692 | 5,519 | ||||||
|
|
|
|
|
|||||
| Net cash provided by (used in) investing activities |
49,454 | (10,094 | ) | |||||
|
|
|
|
|
|||||
| Cash flows from financing activities: |
||||||||
| Payment on capital lease financing |
(178 | ) | (216 | ) | ||||
| 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 |
— | 62,314 | ||||||
| Proceeds from repayment of employee notes receivable |
101 | — | ||||||
| Proceeds from exercise of stock options |
1,459 | 470 | ||||||
|
|
|
|
|
|||||
| Net cash provided by financing activities |
8,344 | 82,568 | ||||||
| Foreign exchange impact on cash and cash equivalents |
(48 | ) | (12 | ) | ||||
|
|
|
|
|
|||||
| Net increase (decrease) in cash and cash equivalents |
(454 | ) | 851 | |||||
| Cash and cash equivalents, beginning of period |
50,716 | 48,048 | ||||||
|
|
|
|
|
|||||
| Cash and cash equivalents, end of period |
$ | 50,262 | $ | 48,899 | ||||
|
|
|
|
|
|||||
Tintri Reports Third Quarter Fiscal 2018 Financial Results
Page 8 of 10
| 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 October 31, 2016 |
Stock-based compensation |
Income tax effect on non-GAAP adjustments |
Three Months Ended October 31, 2016 |
|||||||||||||
| Gross profit |
22,540 | 139 | 22,679 | |||||||||||||
| Gross margin |
66.5 | % | 66.9 | % | ||||||||||||
| Operating expenses |
||||||||||||||||
| Research and development |
13,227 | (1,230 | ) | 11,997 | ||||||||||||
| Sales and marketing |
27,862 | (959 | ) | 26,903 | ||||||||||||
| General and administrative |
3,955 | (973 | ) | 2,982 | ||||||||||||
| Total operating expenses |
45,044 | (3,162 | ) | 41,882 | ||||||||||||
| Loss from operations |
(22,504 | ) | 3,301 | (19,203 | ) | |||||||||||
| Operating margin |
-66.4 | % | -56.6 | % | ||||||||||||
| Net loss attributable to common stockholders |
(23,770 | ) | 3,301 | (15 | ) | (20,484 | ) | |||||||||
| Net loss per share attributable to common stockholders, basic and diluted |
(6.87 | ) | ||||||||||||||
| Pro forma net loss per share, basic and diluted |
(1.11 | ) | 0.16 | — | (0.95 | ) | ||||||||||
| Weighted-shares outstanding, basic and diluted |
3,459,860 | 3,459,860 | ||||||||||||||
| Pro forma adjustment (1) |
17,992,973 | 17,992,973 | ||||||||||||||
| Pro forma weighted-shares outstanding, basic and diluted |
21,452,833 | 21,452,833 | ||||||||||||||
| (1) | To reflect assumed conversion of convertible preferred stock as of the beginning of the period |
Tintri Reports Third Quarter Fiscal 2018 Financial Results
Page 9 of 10
| 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 October 31, 2017 |
Stock-based compensation |
Other non-GAAP adjustments (1) |
Income tax effect on non-GAAP adjustments |
Three Months Ended October 31, 2017 |
||||||||||||||||
| Gross profit |
18,920 | 692 | 19,612 | |||||||||||||||||
| Gross margin |
59.5 | % | 61.7 | % | ||||||||||||||||
| Operating expenses |
||||||||||||||||||||
| Research and development |
17,287 | (5,116 | ) | — | 12,171 | |||||||||||||||
| Sales and marketing |
28,435 | (2,468 | ) | — | 25,967 | |||||||||||||||
| General and administrative |
8,061 | (3,576 | ) | (463 | ) | 4,022 | ||||||||||||||
| Restructuring charges |
890 | (890 | ) | — | ||||||||||||||||
| Total operating expenses |
54,673 | (11,160 | ) | (1,353 | ) | 42,160 | ||||||||||||||
| Loss from operations |
(35,753 | ) | 11,852 | 1,353 | (22,548 | ) | ||||||||||||||
| Operating margin |
-112.5 | % | -71.0 | % | ||||||||||||||||
| Net loss attributable to common stockholders |
(37,925 | ) | 11,852 | 1,353 | 2 | (24,718 | ) | |||||||||||||
| Net loss per share attributable to common stockholders, basic and diluted |
(1.21 | ) | 0.38 | 0.04 | — | (0.79 | ) | |||||||||||||
| Weighted-shares outstanding, basic and diluted |
31,291,513 | 31,291,513 | ||||||||||||||||||
| (1) | Restructuring charges, legal fees related to securities lawsuits and other one-off activities, and IPO-related expenses not netted against IPO proceeds. |
| Reconciliation of GAAP to Non-GAAP Profit Measures (in thousands, except share and per share data) |
||||||||||||||||
| GAAP | Non-GAAP Adjustments | Non-GAAP | ||||||||||||||
| Nine Months Ended October 31, 2016 |
Stock-based compensation |
Income tax effect on non-GAAP adjustments |
Nine Months Ended October 31, 2016 |
|||||||||||||
| Gross profit |
55,236 | 440 | 55,676 | |||||||||||||
| Gross margin |
65.5 | % | 66.0 | % | ||||||||||||
| Operating expenses |
||||||||||||||||
| Research and development |
39,875 | (4,090 | ) | 35,785 | ||||||||||||
| Sales and marketing |
77,324 | (3,209 | ) | 74,115 | ||||||||||||
| General and administrative |
14,541 | (3,003 | ) | 11,538 | ||||||||||||
| Total operating expenses |
131,740 | (10,302 | ) | 121,438 | ||||||||||||
| Loss from operations |
(76,504 | ) | 10,742 | (65,762 | ) | |||||||||||
| Operating margin |
-90.7 | % | -78.0 | % | ||||||||||||
| Net loss attributable to common stockholders |
(80,253 | ) | 10,742 | 81 | (69,430 | ) | ||||||||||
| Net loss per share attributable to common stockholders, basic and diluted |
(23.52 | ) | ||||||||||||||
| Pro forma net loss per share, basic and diluted |
(3.75 | ) | 0.51 | — | (3.24 | ) | ||||||||||
| Weighted-shares outstanding, basic and diluted |
3,412,447 | 3,412,447 | ||||||||||||||
| Pro forma adjustment (1) |
17,992,973 | 17,992,973 | ||||||||||||||
| Pro forma weighted-shares outstanding, basic and diluted |
21,405,420 | 21,405,420 | ||||||||||||||
| (1) | To reflect assumed conversion of convertible preferred stock as of the beginning of the period |
Tintri Reports Third Quarter Fiscal 2018 Financial Results
Page 10 of 10
| Reconciliation of GAAP to Non-GAAP Profit Measures (in thousands, except share and per share data) |
||||||||||||||||||||
| GAAP | Non-GAAP Adjustments | Non-GAAP | ||||||||||||||||||
| Nine Months Ended October 31, 2017 |
Stock-based compensation |
Other non-GAAP adjustments (1) |
Income tax effect on non-GAAP adjustments |
Nine Months Ended October 31, 2017 |
||||||||||||||||
| Gross profit |
57,041 | 2,106 | 59,147 | |||||||||||||||||
| Gross margin |
58.8 | % | 61.0 | % | ||||||||||||||||
| Operating expenses |
||||||||||||||||||||
| Research and development |
55,290 | (14,772 | ) | (20 | ) | 40,498 | ||||||||||||||
| Sales and marketing |
88,484 | (8,150 | ) | (984 | ) | 79,350 | ||||||||||||||
| General and administrative |
26,564 | (12,742 | ) | (1,268 | ) | 12,554 | ||||||||||||||
| Restructuring charges |
890 | (890 | ) | — | ||||||||||||||||
| Total operating expenses |
171,228 | (35,664 | ) | (3,162 | ) | 132,402 | ||||||||||||||
| Loss from operations |
(114,187 | ) | 37,770 | 3,162 | (73,255 | ) | ||||||||||||||
| Operating margin |
-117.7 | % | -75.5 | % | ||||||||||||||||
| Net loss |
(120,272 | ) | 37,770 | 3,162 | 28 | (79,312 | ) | |||||||||||||
| Deemed dividend |
(6,588 | ) | 6,588 | — | ||||||||||||||||
| Net loss adjustment (2) |
26,336 | (26,336 | ) | — | ||||||||||||||||
| Net loss attributable to common stockholders |
(100,524 | ) | 37,770 | (16,586 | ) | 28 | (79,312 | ) | ||||||||||||
| Net loss per share attributable to common stockholders, basic and diluted |
(6.33 | ) | ||||||||||||||||||
| Pro forma net loss per share attributable to common stockholders, basic and diluted |
(3.62 | ) | 1.36 | (0.60 | ) | — | (2.86 | ) | ||||||||||||
| Weighted-shares outstanding, basic and diluted |
15,873,071 | 15,873,071 | ||||||||||||||||||
| Pro forma adjustment (3) |
11,892,693 | 11,892,693 | ||||||||||||||||||
| Pro forma weighted-shares outstanding, basic and diluted |
27,765,764 | 27,765,764 | ||||||||||||||||||
| (1) | Restructuring charges, legal fees related to securities lawsuits and other one-off activities, IPO-related expenses not netted against IPO proceeds, and deemed dividend to Series E and E-1 Convertible Preferred Stock. |
| (2) | Adjustment to Series E, E-1, and F Convertible Preferred Stock related to IPO. |
| (3) | To reflect assumed conversion of convertible preferred stock as of beginning of the year, and IPO shares as of the beginning of Q2. |
| Reconciliation of GAAP Net Cash Used In Operating Activities to Non-GAAP Free Cash Flow (in thousands) |
||||||||||||||||
| Three Months Ended October 31, 2016 |
Three Months Ended October 31, 2017 |
Nine Months Ended October 31, 2016 |
Nine Months Ended October 31, 2017 |
|||||||||||||
| Net cash used in operating activities |
(18,692 | ) | (30,156 | ) | (58,204 | ) | (71,611 | ) | ||||||||
| Less: Purchase of property and equipment |
(1,100 | ) | (2,046 | ) | (3,431 | ) | (4,100 | ) | ||||||||
| Free cash flow |
(19,792 | ) | (32,202 | ) | (61,635 | ) | (75,711 | ) | ||||||||
| Free cash flow % revenue |
-58.4 | % | -101.4 | % | -73.1 | % | -78.1 | % | ||||||||
Source: Tintri