2. Safe Harbor
This presentation and the accompanying oral presentation contain “forward-looking” statements that are based on our management’s beliefs and assumptions and on information currently
available to management. We intend for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the U.S. Private Securities
Litigation Reform Act of 1995. Forward-looking statements include all statements other than statements of historical fact contained in this presentation, including information concerning our
financial outlook, business plans and objectives, potential growth opportunities, competitive position, industry environment and potential market opportunities.
Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors including, but not limited to, those related to our future financial performance,
market acceptance of our solutions, our ability to increase sales of our solutions, including to attract and retain customers and to selling additional solutions to our existing customers, our ability
to develop new solutions and bring them to market in a timely manner, pricing pressure (as a result of competition or otherwise), our ability to maintain, protect and enhance our brand and
intellectual property, global economic conditions and our ability to continue to expand our business and manage our growth. Moreover, we operate in very competitive and rapidly changing
environments, and new risks may emerge from time to time. It is not possible for our management 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 in any forward-looking statements we may make. Further information on these and
other factors that could affect our financial results are included in our filings we make with the Securities and Exchange Commission, and may cause our actual results, performance or
achievements to differ materially and adversely from those anticipated or implied by our forward-looking statements.
You should not rely upon forward-looking statements as predictions of future events. Although our management believes that the expectations reflected in our forward-looking statements are
reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances described in the forward-looking statements will be achieved or occur.
Moreover, neither we, nor any other person, assume responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to publicly update any
forward-looking statements for any reason after the date of this presentation to conform these statements to actual results or to changes in our expectations, except as required by law.
In addition to GAAP financial information, this presentation includes certain non-GAAP financial measures. The non-GAAP measures have limitations and you should not consider them in
isolation or as a substitute for our GAAP financial information. There are limitations to the use of non-GAAP measures. For example, bookings and free cash flow are not substitutes for
revenues or cash provided by operations. In addition, non-GAAP operating expenses exclude the impact of stock-based compensation expense, which is a recurring expense for us. See the
Appendix for a reconciliation of these non-GAAP financial measures to their nearest GAAP equivalent.
2
3. Table of Contents
3
§ Nimble Storage Opportunity
§ Business & Financial Overview
§ Customer Case Studies
5. Customer Challenges – Scaling and Simplifying Storage Management
Exacerbating Trends
Virtualization Cloud Computing Big Data Social and Collaboration
Poor Application
Performance
Compute 20X
Network 10X
Storage Same
Mobility
Increasing Demands
of Data Growth
40-45%*
CAGR
VM / Application Data
Management Complexity
CRM
ERP
CRM
ERP
*Source: IDC, The Digital Universe in 2020, sponsored by EMC
5
6. Founding Thesis
2013 TAM:
~$40B
1980s
DAS
1995+
Networked Storage
Opportunity for a ground-up redesign of storage
Today
Flash
Cloud
Connectivity
6
7. Flash and Disk are Complementary
Component Flash Disk
Random IO/$ 100X 1X
Sequential IO/$ 1X 3X
Capacity/$ 1X 15X
Write Endurance Poor Proven
Need for Performance Varies Greatly
Analytics
VDI
OLTP
File Services
Low High
Core design principles:
• Efficiency: Leverage flash and disk for their complementary characteristics
• Flexibility: Adapt to workloads, and as the merits of flash and disk evolve over time
7
8. Our Value Proposition
CASL™
Flash-optimized file
system software
InfoSight™
Cloud-based
management/support
Integrated Protection Proactive Wellness
Non-disruptive, flexible
scaling to massive scale
Peak system health
and availability
Scale-To-Fit
Rapid Backup and
Recovery
Efficiency
Significantly better
performance / $ and
capacity / $
8
Adaptive Flash
9. Incumbent Response
Tiering
Flash Arrays for High Performance
Flash Requires a Ground-Up Design
Application
Integration
Data Management
• Compression
• Snapshots
• Thin provisioning
• Replication
• Others
File System
Software
Key Decisions in
Ground-Up Design
How do we:
§ Leverage flash for performance, while
overcoming endurance concerns?
§ Leverage disk for capacity?
§ Be media-agnostic and flexible as the
merits of flash and disk evolve?
§ Leapfrog incumbents on data
management?
9
10. CASL: A Breakthrough File System
Traditional File Systems / Tiering CASL Innovations Nimble Advantage
Uses 30-70% less disk and
flash resources
Inline Compression,
using variable blocks
Fixed blocks:
No compression
Fast random writes
need a flash tier
Uses low-cost HDDs to deliver
SSD-like write performance
Inline Serialization of
all incoming write IO
SSD (Flash) Cache
Disk
More Flash
More Disk
Dynamic Caching to
serve reads from flash
Uses substantially less, low-cost
flash to accelerate reads
Fast reads by migrating
between tiers wastes flash
Copy-based snapshots
waste capacity and
degrade performance
Pointer-Based
Snapshots
Integrated, rapid backup
and recovery
Non-disruptive scaling
in least-cost increments
Scale-to-Fit: Scale-up,
deep and scale-out
Scale-Up OR
Limited Scale-Out
CASL is more performance and capacity efficient and easy to scale, while delivering integrated data protection
10
11. Broad Appeal
11
Diversified Workloads*
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Diversified Market Verticals*
Other
Legal
Energy
*Based on 12 month period through Q2 FY15. Y axis represents % of systems in the field that handle this type of workload
13%
Financial
12%
Service
Providers
10% Hi-Tech
11%
8% Education
Healthcare
23%
8%
3%
4%
8%
Mfg.
State/local
government
12. Traditional Storage Management is Inefficient and Expensive
!
!
#
! #
#
!
#
!
#
? ? ?
With modern data analytics tools
can vendors predict and prevent
problems before they occur?
In a connected world why
can’t vendors proactively monitor
customer deployed systems?
Vendor
12
13. InfoSight: Cloud-Based Management
Nimble Approach Customer Benefits
Comprehensive
Telemetry
Proactive
Wellness
Analysis and
Automation Storage Management
SaaS Offering
Community
Learning
Leveraging pervasive network connectivity and big data analytics to automate support and enable cloud-based management
13
14. InfoSight Impact Examples
* InfoSight case percentages and customer storage expansion needs based on 12 month period through Q2FY15
14
Proactive Wellness
Prevents problems before they occur
Customers receive unique
wellness insights 571
Performance
Analytics
1189 Unique users per month visit the
Performance Analytics page
125
41
Customers expanded flash*
Customers upgraded controllers*
Planning
1087 Unique users per month visit the
Capacity Planning page
458 Customers expanded capacity*
Comprehensive root cause analysis
CPU and flash recommendations to meet
growing workload demands
Customers predict capacity growth
using proprietary analytics
Capacity recommendations to meet
projected growth
15. Market Landscape and Our Opportunity
Industry Nimble Storage
Workloads
High-Performance Computing
Performance Intensive
Mainstream Applications
Cheap and Deep
Server
Flash
All Flash Arrays
Pure, SolidFire
XtremIO
Hybrid / Disk Arrays
Archival
Archival
Real Time Analytics
Adaptive Flash Platform
Oracle / Sql
Vertica
VDI
Mongo DB
SAP
Exchange
VMware
SharePoint
EMC VNX
NetApp FAS
HP 3PAR
Dell EQL/CML
Server
Flash
15
17. $14.0
+ 134% + 98%
$53.8
$125.7
$50.6
FY12 FY13 FY14 1H'FY14 1H'FY15
Quarterly Revenue
$ 11.0
$ 14.6
$ 20.2
$ 22.1
$ 28.5
$ 33.4
$ 41.7
$ 46.5
$ 53.8
Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15
Product Revenue Support and Service Revenue
Rapid Revenue Growth
Annual and 1H’FY Revenue*
$100.3
Product Revenue Support and Service Revenue
*Fiscal year ends on January 31
17
18. Rapid Customer Growth & Strong Repeat Business
18
Cumulative Customer Base 2-Year Bookings After Initial Sale – All Customers
573
1,749
3,756
Q2FY13 Q2FY14 Q2FY15
Note: Bookings defined as a purchase order received; statistics as of July 31, 2014
* Top 50 of all customers that have been Nimble Storage customers for 4 or more quarters; Of the 50, 20 customers have 8 quarters of history.
2X
1X
Initial Sale Total: Year 1 and 2
2-Year Bookings After Initial Sale – Top 50 Customers*
4.5X
1X
Initial Sale Total: Year 1 and 2
19. Increased Large Enterprise and Cloud Service Provider Penetration
19
Number of Large Enterprises* Large Enterprise Repeat Bookings
46
130
235
Q2FY13 Q2FY14 Q2FY15
Number of Cloud Service Providers
53
156
341
Q2FY13 Q2FY14 Q2FY15
3.3X
1X
Initial Sale Total: Year 1 and 2
Cloud Service Provider Repeat Bookings
*Company estimates of Global 5,000 customers
3.5X
1X
Initial Sale Total: Year 1 and 2
20. Additional Growth Drivers: International & Large Deals
Customers
Cumulative Customer Base
573
1,749
3,756
Q2FY13 Q2FY14 Q2FY15
Deals >$100K
% Customer Bookings > $100K
Bookings
>$100k
Bookings
<$100K
Number of Deals > $100K
65%
35%
12 months thru Q2FY15
239
444
+86%
TTM Q2FY14 TTM Q2FY15
20
International Expansion
% International Bookings
International
North America
17%
12 months thru Q2FY15
International Bookings
+169%
83%
TTM Q2FY14 TTM Q2FY15
21. Channel Leverage
Engagement Levels
Active Reseller AEs*
+99%
Base of Accredited SEs**
1,001
2,581
+158%
Q2FY14 Q2FY15
Opportunities & Customer Wins
Channel Generated Opportunities***
1,196
1,878
+57%
Q2FY14 Q2FY15
Reseller Led New Customer Wins****
128
250
+95%
Q2FY14 Q2FY15
436
867
Q2FY14 Q2FY15
* Total number of reseller AEs that closed 1 or more deals during the fiscal quarter ** Total cumulative number of accredited SEs as of the end of each fiscal quarter
*** Total number of opportunities generated by partners during the fiscal quarter **** Total number of new customers during the quarter where the reseller contributed 75% (or greater) of total effort to close the deal.
21
22. Best-in-Class Gross Margins
Quarterly Gross Margin* Product and Support and Service Gross Margin*
64.3%
66.4%
67.2%
66.2%
67.4%
Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15
67.2% 69.4%
37.3%
52.9%
Q2FY14 Q2FY15
Product Gross Margin Support and Service Gross Margin
*Reflects Non-GAAP Gross Margin; see slide 27 for reconciliation
22
23. Improving Operating And Cash Flow Margins
FY13 FY14 1H'FY14 1H'FY15
-47%
-27%
-33%
-21%
Cash Flow From Operations, Cash Burn and
Free Cash Flow % of Revenue**
Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15
v
Improving Operating Margin*
-35%
*Reflects Non-GAAP Operating Margin, which excludes stock based compensation expense. See slide 27 for reconciliation
**Free cash flow is defined as net cash from operating activities minus capital expenditures
5%
-37%
3%
-43%
-2%
Operating Cash Flow as % of Total Revenue
Cash Burn as % of Total Revenue
Free Cash Flow as % of Total Revenue
23
24. Target Operating Model
FY13 FY14 1H FY15 Long-Term Model
Gross Margin* 62% 65% 67% Currently operating above target model 63%–65%
R&D as % of
Revenue* 28% 26% 25% Leverage from investments we have made in our rich product
roadmap 11%–13%
S&M as % of
Revenue* 72% 57% 52%
Continuously improving leverage from channel partners, ramp of
sales teams to mature quota carrying levels, continued increase in
repeat business from existing customer base
28%–31%
G&A as % of
Revenue* 9% 9% 10% Continuous efficiency and economies of scale 5%–6%
Non-GAAP
Operating
Margin
-47% -27% -21% 16%–20%
*Reflects Non-GAAP Gross Margin, R&D, S&M, G&A and Operating Margin, see slide 27 for reconciliation
Note: due to rounding, numbers presented above may not sum to total.
24
How we get there
25. Financial Highlights
Strong revenue growth with a significant “land and expand” opportunity
Attractive and best-in-class gross margin profile
Investments to expand differentiation and capitalize on large market opportunity
Improving operating leverage and cash flow margins
Attractive long term financial model
25
26. Customers
Continue expansion into
large enterprise and service
provider customers
Sales and Marketing
Invest aggressively to deepen
sales coverage within existing territories,
expand internationally, and drive continued
channel leverage
People
Build best-in-class company
founded on recruiting and retaining
the industry’s best talent
Our Strategic Priorities
Technology Platform
Build on our broad technology
foundation to further extend our
differentiation, broaden feature coverage,
and further expand our target market
26
29. Fortune 500 Engineering & Construction Company
Competitor Solution
Challenges
§ 80% physical servers; EMC & NetApp SAN
§ Struggled with performance for Autonomy e-discovery
& Oracle data warehouse
§ Application backups taking over 10 hours
Nimble Advantage
§ Performance up by 2X, despite using virtual servers
§ Data reduction of 2.3X lowers $/GB substantially
§ Snapshots -based backup eliminated backup window
§ Replication for DR
§ Power, cooling and space costs lower by $3,500/month
Nimble SmartStack
DR with 90 days
of replicated
snapshots
Prod (Houston) DR (Austin)
Replication
§ 6U!
§ 110TB with 2.3X
data reduction
§ 30 days of
snapshots
Pre-Nimble Environment
Primary SAN: 2 Racks
Daily backup to tape
29
30. Lower TCO: Global Office Products Company
Competitor Solution
3 Racks of “Tier 1” storage
40TB Usable
Storage in 126U
Nimble Solution
2 CS 460 arrays
59TB Usable
Storage in 6U
§ SQL Server, SAP applications
and other VMs using traditional
“Tier 1” Storage
§ Core project drivers:
– Minimize data center
costs like power, cooling
– Reduce storage
capacity costs
– Reduce complexity
“Nimble has given us much more
flexibility with primary storage and data
protection and a much more resilient
infrastructure – all at a much lower
cost.”
—IT Platform Lead
Replaced
With
9X Reduction in Storage Costs
20X Reduction Footprint
50% Savings in Data Protection Costs
Zero Impact to Performance
Challenges
30
31. Consolidation and Efficiency at a Global Oil and Gas Leader
Challenges
§ Global Energy leader with hundreds of
remote sites
§ Initial VDI project goal to consolidate
thousands of employee desktops at
hundreds of field locations
§ XenDesktop deployment with
incumbent storage experienced
serious performance issues, prompting
a competitive bake-off with Nimble
Nimble VDI Solution
§ 3000 VDI users
§ 64TB and 30K
IOPS on average
§ Price-performance: 72% lower cost per
IOPS
§ Cost of capacity: 37% compression,
coupled with low-cost, Nearline HDDs
§ 50% lower recovery time for virtual PCs
§ Calls to help desk reduced dramatically
Nimble Expanded Use Cases
Phase 2: Exchange
§ 11,500 mailboxes
§ ~60TB used
§ HA across two data centers
Phase 3: ESX Farm
§ 600 VMs
§ Over 200 TBs across three
data centers
10 systems and over 600 TB of capacity in 18 months
31
32. Customer Case Study: Fortune 50 Telecommunications Company
Challenges
§ Storage challenges in
meeting the needs of a high-performance
Vertica cluster
- Constant trade-off
between IO and capacity
- Adding nodes to support
storage was not cost
effective
- Lack of consolidated
provisioning and
management
- Data protection difficult for
separate storage pools
Nimble Solution Nimble Advantage
§ Reduced cost by reducing the
number of required HP Vertica nodes
- Performance to meet the IO needs
of the analytics workload
- Scale-to-fit architecture allows for
separately scaling IO or capacity
§ Consolidated storage management
§ Nimble snapshots, clones and
replication improve data protection
and eliminate risk
§ Vertica cluster processing Billions
of events / hour
§ 170TB capacity
§ Hourly snapshots
for data protection
32
33. Customer Case Study: Global Managed Services Firm
Situation
§ Global firm with over
19,000 professionals
§ Managed Services
focused on delivering
hosted Microsoft
Applications
§ EMC storage
deployed as core
storage platform
Challenges
§ EMC VNX 7500 for 10,000
Exchange users
Goals from an alternative solution:
§ Lower capital costs
§ Small foot-print to lower monthly
data center costs of $14,000
§ Faster backup and recovery, to
avoid traditional backup challenges
§ Scalable platform for expansion
19 Nimble systems in 5 countries
Nimble Solution
§ 6U of Nimble storage replaced 2
racks of EMC
Nimble Advantage:
§ Much lower capital costs
§ Data center and rack space cost
savings of ~$10,500/ month
§ Compression of 1.5X
§ Snapshots for backup and recovery
§ Non-disruptive upgrades
33
34. Customer Case Study: Leading Cloud Services Provider
Challenges
§ Service Provider with
presence across the US
§ Core drivers:
• Datacenter consolidation
• Rapid provisioning
• Performance scaling
§ Large Telecom customer
with scaling challenges
prompted POC
Nimble SmartStack Nimble Advantage
§ Much higher performance at
substantially lower capital costs:
§ Compression savings of 50% site-wide
§ High-density HDDs and more effective
use of flash optimize both performance
and capacity
§ Much simpler management and
faster on-boarding time
§ Current environment comprises over
600 TB (pre-compression) hosting
over 6000 VMs for hundreds of
customers and a variety of workloads
10G iSCSI 10G UCS
VMWare
+
Cisco
+
Nimble
34
35. Transforming Storage Efficiency at a Large Bank
Challenges
§ Storage costs were 30% of
the capital budget
§ Core project drivers:
• Performance scaling
• Storage budget
• Datacenter footprint
Competitor Hybrid
Disk-Flash Solution VS. Nimble Nimble Advantage
§ 1.5x usable capacity and 50%
lower capital costs
§ 10x lower power and cooling costs
§ Dramatically simpler storage
management
Phase 1:
Exchange
½ Rack
6 Racks
§ 2.5x performance and 2x usable
capacity at much lower capital costs
§ 75% lower power and cooling costs
§ Dramatically simpler storage
management
Phase 2:
SQL
Databases
¾ Rack
3 Racks
35
36. Transforming Data Protection at a Global Consulting Firm
§ Nimble chosen as the platform
for all 11 sites
§ Each site protected with hourly
snapshots for rapid recovery
§ Data replicated between offices
for cost-effective and simple DR
§ Significant savings on storage and
bandwidth
Challenges
Nimble Approach
Boston
Data Center
Chicago
Data Center
9 Remote Sites
Inadequate data protection in
9 remote sites:
• Tapes for backup
• Offsite tape copies for disaster recovery
Aging storage infrastructure in
their main data centers:
Boston and Chicago
Rethinking infrastructure at
all of their 11 sites
36
