Nimble Storage (NYSE:NMBL) CEO Suresh Vasudevan: "The future of infrastructure is predictive and autonomous. Since our inception, this has been at the forefront of our mission. With the help of our tremendous partner ecosystem, more than 10,000 customers have purchased our Predictive Flash platform. In addition to acquiring new customers at a rapid pace, we continue to see a steady pattern of repeat deployments from our installed base. We are pioneering a new level of technology innovation and customer support that businesses will come to expect from all vendors."
From Sector Weight prior, analyst Alex Kurtz models Nimble Storage's contract competition at 50% from Dell EMC and considers the latter emphasizing an improved cost of sales strategy for the mid-market, suggesting decrease in direct involvement for greater-sized transactions, particularly in the $100K-$250K range. Consequently views Nimble Storage as potentially able to grow win rates among larger deals, appeal to new channel partners and escalate revenue growth near a 25% level.
Respective Positive, Outperform and Buy ratings are restated at Susquehanna (target $12) [well-positioned, potential takeover target], BMO Capital Markets (target from $13 to $12) [all-flash array momentum, large deal metrics potential, shares undervalued] and Needham & Company ($12) [highlights all-flash array, views long-term potential] on the earnings reaction, with a Sector Perform rating reissued at RBC Capital Markets.
Nimble Storage (NYSE:NMBL) shares are off pre-market to $8.30.
Results – revenue $102M (+26.3% Y/Y, in line), EPS -$0.18 (in line), gross margin 66% (vs. 66.9% Y/Y), operating loss $15.4M (vs. $10.8M loss Y/Y), net loss $15.7M (vs. $11M loss Y/Y)
Q4 projections – revenue $112M-$115M (consensus $113.13M), operating loss $11M-$13M, net loss per share $0.13-$0.15 (consensus $0.12 loss)
Nimble Storage (NYSE:NMBL) CEO Suresh Vasudevan: "The differentiation of our Predictive Flash platform is driving market-share gains and strong win-rates. A single architecture across All Flash and Adaptive Flash arrays is designed to accelerate every enterprise application. Our cloud-based predictive analytics delivers unmatched reliability and radically simplifies operations for customers."