If you are considering becoming a 1M/1M premium member and would like to join our mailing list to receive ongoing information, please sign up here.

Subscribe to our Feed

2016 IPO Prospects: Nutanix Files for IPO

Posted on Monday, Feb 1st 2016

According to Gartner, the Infrastructure as a Service market is expected to grow 38.4% in 2016 to reach $22.4 billion. Billion Dollar Unicorn club member and hyperconverged storage provider Nutanix has recently filed to go public with plans to raise $200 million. 

Nutanix’s Offerings

San Jose-based Nutanix was founded in 2009 by Dheeraj Pandey, Ajeet Singh, and Mohit Aron – all technology experts who had built scalable systems such as Google File System and Oracle Exadata. In October 2011, they started selling the initial version of the Nutanix Operating System, which pioneered hyperconverged infrastructure by providing block storage for virtualized environments on VMware. According to an IDC report, Nutanix is the market leader in the hyperconverged infrastructure industry with 52% share of the revenue.

Nutanix’s offerings include two key suites. The Nutanix Prism is a comprehensive management solution designed to simplify datacenter storage and virtualization operations, and the Nutanix Acropolis is a turnkey infrastructure platform that converges compute, storage, and virtualization resources to run any application, at any scale.

Their platform is primarily sold through channel partners, including distributors and resellers, and delivered directly to end-customers. They have a base of approximately 2,100 end-customers, including 226 Global 2000 enterprises such as Best Buy, Kellogg, Nasdaq, Nintendo, and Nordstrom. They have about 1,368 employees. Distributors Carahsoft Technology and Promark Technology accounted for 23% and 15%, respectively of its revenue in 2015.

Nutanix’s Financials

Total revenue was $30.5 million, $127.1 million, and $241.4 million for fiscal 2013, 2014, and 2015, respectively, representing year-over-year growth of 316% and 90%, respectively. Net loss was $44.7 million, $84.0 million and $126.1 million for fiscal 2013, 2014, and 2015, respectively.

Sales and marketing expenses accounted for 72% and 67% of total revenue in 2014 and 2015, respectively. Net cash used in operating activities was $29.1 million, $45.7 million, and $25.7 million for fiscal 2013, 2014 and 2015, respectively. In the first quarter ending October 31, 2015 net loss was $38.5 million on revenue of $87.7 million and ccumulated deficit was $312 million.

Nutanix competes in a rapidly evolving market with traditional storage vendors EMC, NetApp, and Hitachi; traditional IT systems vendors HP, Cisco, Lenovo, Dell, Hitachi, and IBM; and hyperconverged infrastructure and software-defined storage vendors like VMware.

In its IPO filing, Nutanix also alludes to the risks associated with Dell’s recent mammoth $67 billion acquisition of EMC and its 80% holding in VMware.

“Dell is not just a competitor but also is an OEM partner of ours and the combined company may also be more likely to promote and sell its own solutions over our products. EMC also holds the majority of the outstanding voting power in VMware, Inc. and if the acquisition is completed, Dell will control VMware, and could combine the Dell, EMC and VMware product portfolios into unified offerings optimized for their platforms.”

Nutanix recently entered into an OEM partnership with Lenovo.

They are venture funded with investments of $312.2 million from investors Fidelity Investments, Riverwood Capital, Sapphire Ventures, Battery Ventures, Greenspring Associates, Khosla Ventures, Lightspeed Venture Partners, Morgan Stanley, Goldman Sachs, Wellington Management, and Blumberg Capital. Their last round of funding was held in August 2014 when they raised $140 million at a valuation of over $2 billion. An earlier round of funding in January 2014 had valued them at $950 million.

Kurt Marko on Forbes says that

“Given ongoing consolidation in the server and storage business, it’s conceivable that Nutanix never makes it to IPO. Using a price-to-sales ratio of 8-10, Nutanix could fetch upwards of $3 billion in an acquisition; high, but feasible for a company like Cisco or Oracle looking for a competitive edge over Dell-EMC-VMware.”

It is quite possible, given the state of the industry.


This segment is a part in the series : 2016 IPO Prospects

. Airbnb Sees Skyrocketing Valuations
. Actifio Looks Ready
. AppDynamics May Sustain Unicorn Valuation
. Automattic Needs to Justify Valuation
. Avant Will Have to Wait and Watch
. BuzzFeed Feeds on Native Advertising
. Coupa Manages Expenses Expertly
. Datto Bootstrapped First, Raised Money Later
. Is Uber Ready to Ride the Stock Market?
. Overfunded Domo Looks Promising
. Houzz May Unveil The Curtains
. DocuSign Looks Ready to Sign Up
. Illumio Rides On Security Trend
. Appears Ready to List
. Okta Prepares to Reveal Public Identity
. Palantir Wants to Stay Private
. Nutanix Files for IPO
. Medallia Bootstrapped First, Raised Money Later
. Slack Prepares to Communicate with the Market
. Twilio Expected to go Public Soon
. Snapchat Needs to Up Monetization ASAP
. Zscaler Sets IPO as a Long-Term Goal
. Warby Parker Should Look Before Leaping
. MuleSoft is a Unicorn, but Detailed Financials Remain Unknown
. Apttus Bootstrapped First, Raised Money Later
. Fanatics Expanding Its Playing Field
. Pinterest Finally Sees Revenues, But are they Enough?
. Tanium Bootstrapped First, Raised Money Later
. ironSource Strengthening its Revenue Generating Capabilities
. Anaplan Getting Ready to Go Public
. SecureWorks is Ready to List
. IPO-Ready Cloudera Wants to Wait and Watch
. HelloFresh Puts its IPO Plans on Hold
. Is Stripe Lining up Next?
. Qualtrics Bootstrapped First, Raised Money Later
. Skyscanner Bootstraps First from Scotland, Raises Money Later from Sequoia
. SurveyMonkey Will Likely Wait
. The Honest Company Makes the Online to Offline Model Work
. NantHealth Testing the IPO Markets, Yet Again
. BigCommerce Prepares to List
. Bloom Energy Likely to Stay Private
. Avast Software Preparing for a Listing, Yet Again
. Gusto Expands Beyond Payroll Processing
. InMobi May Have Missed the Bus
. Glassdoor Gearing up to go Public
. Human Longevity Leverages Machine Learning and Analytics to Increase Lifespan
. Blue Apron Cooking up an IPO
. Optiv Grows Inorganically
. Uber Eyeing Self-Driving
. The Trade Desk Files to List
. Deliveroo Delivers its Way to the Bank
. Selfie App Meitu Files to List on HKSE
. Apptio Files Despite Reduced Valuation and Mounting Losses
. Snap Snaps out of Chat Business to Justify Valuation
. From Bootstrapping to IPO, BlackLine Shows the Way

Hacker News
() Comments

Featured Videos