Nimble Storage revenues soar as mainstream rivals experience droop Nimble Storage had another successful quarter in terms of revenue, beating its own estimates: the figure of $80.1m in its second fiscal 2016 quarter was 49 per cent higher than a year ago, and 12 per cent more than the previous quarter. Nimble_revs_to_Q2_fy2016 Nimble generated losses of $30.1m, 15 per cent worse than the $ …
Thus, I wouldnt expect it to impact Nimbles growth potential. As a limited scale solution, with a small price point of entry, they have to compete against the dozens of other products in this space. Hybrid storage solutions are dying off, and Nimbles long term prospects are dim. Expect them to continue to slog around in the space with the rest of the just existing players while they cater to the lower end storage needs. Those revenue numbers and the trend mean they are not a long term viable company and they will never turn a profit.
what you've just said is one of the most insanely idiotic things I have ever heard. At no point in your rambling, incoherent response were you even close to anything that could be considered a rational thought. Everyone in this room is now dumber for having listened to it. I award you no points, and may God have mercy on your soul.
With the price of flash steadily approaching disk, hybrid is a middle stage in the evolution of storage technology, and without hybrid, Nimble will not get any value out of it's hybrid tweaked algorithms, so long-term, that's not good for Nimble.
However! As far as I know, Nimbles business strategy is "land and expand", so they will almost give away the first sample, and charge you a fortune for upgrades and maintenance renewals.
So let's see what happens after 5 years when customers need to renew. That might temporarily help limiting the losses.
Nimble support and upgrades are flat for the life of the product. In fact, upgrade prices have actually dropped. They don't play the you need to pay 75% of the original purchase price for support like the others. If you need year 4 and 5 support, it's basically the same price you paid at purchase for the first three years. I used to hate the EMC tactic that you can pay me 100K for 3 years more support, or 95K of an all new array...I'm saving you money. The Nimble support pricing is even lower out of the gate, it's usually under 9% list price, while some arrays the support is 23% off list.
You do realise you're talking out your backside.
Upgrades.
You do realise that Nimble (unlike some other vendors) use the same price and part code for shelf upgrades as they do it if it's purchased with a system. Try that with NetApp, it's a different part code for the same product with a higher list
Suport
Unlike other vendors who give 3 years warranty with the box and charge an uplift and rip your eyes out for years 4 and 5 hoping we refresh, nimble have a linear cost model.
Renew what in 5 years? Most people replace after that time period.
Go get a Nimble quote, get the facts and stop spouting utter rubbish.
Very impressed on the gross margin numbers, that says to me that they aren't just going out and BUYING customers like some of the other startups out there. However I still feel like sub 50% y/y revenue growth for a "HOT" company when they are that size is good, not great.
Also, with margins like those what are they losing money on?? What happens when they dip down into the low 60's like other major storage vendors?
Yes numbers look solid but the 50% yoy is still impressive considering that:
1) A ton of startups buying business at impressively low margin or even at a loss
2) Larger competitors have slashed their prices in order to compete
yet Nimble's driving 50% yoy growth! That's even more impressive!
The primary focus for companies like Nimble is to grow the top line and acquire new customers thus they must expand sales, administrative and marketing capacity. I'm sure they could sacrifice growth for profit if they wanted to, but any CFO would tell you this is not how it's done. It appears they've already made good progress and are a cash flow positive operation. Furthermore, it looks like at this pace of growth they'll probably turn a profit within the next 12mos.
So far, it looks like the company's being run well, have built a strong customer base and their customers seem to have nice things to say about them which is a plus.
All in all they seem to be on the right track
Agree on most accounts, but the growth for the past 5 qtrs y/y has gone from 88% to 76% to 63% to 53% to 49% and its constantly trending down. Yes I'm aware that as you grow in Rev size, the hard it is to keep those numbers.
But looking at other major players in this space like the EMC's, NTAP's etc they had LONG strings of over 50% growth (y/y). EMC had something like 10-12 consecutive qtrs in their early days. I think NetApp had 18+ qtrs before the Dot Com bubble burst.
Yes, those companies were way earlier to market when there wasn't a ton of competition. Nimble is doing decently well but its in a supremely oversaturated market, they've only got 1% market share, only do $300M in Revenue and aren't profitable (yet). It's going to be a LONG road to climb and with the way technology changes, it could be irrelevant in 5 years.
Thanks for digging up those numbers. It is a downward trend, and definitely worth noting. Their next couple of quarters will be very interesting to see if they can reverse the sales growth decline or get back up over 50% per annum. Their smaller hybrid competitors, Tegile and Tintri, are both growing at over 100% per annum. If these trends continue, the two T's are certainly going to catch up and pass Nimble revenue wise.
If they can maintain a 49% growth rate, it will take them a decade to create a billion dollar company. I think that means they will need to acquire a technology sooner rather than later to prop up their slowing sales growth.
Growing from 500 and 1000 is much easier than growing from 5000. The companies you mentioned have no more than 1500-1600 customers combined.
Some of you disquised netapp or ex-netapp people now working for competitors (ie RollTide14 - EMCier) just won't learn anything from history...
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