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Nutanix Seeks Financial Downpour From Long-Awaited IPO

Nutanix has filed for its long-anticipated public offering, with hopes to rake in $209 million.

Mitch Wagner

September 19, 2016

2 Min Read
Nutanix Seeks Financial Downpour From Long-Awaited IPO

Hyperconverged hardware provider Nutanix filed its long-awaited IPO on Monday, looking to raise up to $209.3 million from the issuance of 16.1 million shares of Class A common stock at an IPO price of $11 to $13 per share.

Nutanix Inc. pioneered "hyperconverged" hardware architecture, where storage and compute are combined in servers. Cloud is driving the architecture's popularity. (See Nutanix Takes Hyper-Convergence Downscale.)

In the S-1 statement that Nutanix filed with the SEC Monday, the company revealed some intriguing financial tidbits: Revenue growth has averaged 17% quarterly for the last eight fiscal quarters, growing to $139.8 million in the quarter ending July 31, 2016, from $46.1 million in the quarter ending Oct. 31 2014.

Annual basis revenue is $444.9 for fiscal 2016, up from $127.1 million in 2014. 2016 growth was 84% and 2015 growth was 90%. Net losses for 2016, 2015 and 2014 were $168.5 million, $126.1 million and $84 million, respectively.

Nutanix had announced its IPO in December, but put it off seeking more favorable economic conditions.

The underwriters include Goldman Sachs & Co. , Morgan Stanley and JP Morgan. Goldman loaned $75 million to Nutanix in April.

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The IPO valuation is $1.76 billion, down from the $2 billion implied by the company's last funding round in August 2014, according to MarketWatch.

Nutanix acquired PernixData and Calm.io late last month. PernixData develops data acceleration and analytics technology, and Calm.io develops DevOps automation.

Launched in 2009, Nutanix faces increased competition from incumbent vendors, as Hewlett Packard Enterprise , Cisco Systems Inc. (Nasdaq: CSCO), VMware Inc. (NYSE: VMW) and Dell Technologies (Nasdaq: DELL)-backed VCE all have their own hyperconverged offering. Nutanix also faces competition from startup SimpliVity.

— Mitch Wagner, Follow me on TwitterVisit my LinkedIn profile, Editor, Light Reading Enterprise Cloud

About the Author(s)

Mitch Wagner

Executive Editor, Light Reading

San Diego-based Mitch Wagner is many things. As well as being "our guy" on the West Coast (of the US, not Scotland, or anywhere else with indifferent meteorological conditions), he's a husband (to his wife), dissatisfied Democrat, American (so he could be President some day), nonobservant Jew, and science fiction fan. Not necessarily in that order.

He's also one half of a special duo, along with Minnie, who is the co-habitor of the West Coast Bureau and Light Reading's primary chewer of sticks, though she is not the only one on the team who regularly munches on bark.

Wagner, whose previous positions include Editor-in-Chief at Internet Evolution and Executive Editor at InformationWeek, will be responsible for tracking and reporting on developments in Silicon Valley and other US West Coast hotspots of communications technology innovation.

Beats: Software-defined networking (SDN), network functions virtualization (NFV), IP networking, and colored foods (such as 'green rice').

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