Q2 FY17 Earnings Presentation

© 2016 Nimble Storage | Confidential: Do Not Distribute
Q2 FY2017
Earnings Results
Suresh Vasudevan, Chief Executive Officer
Anup Singh, Chief Financial Officer
August 23, 2016

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.

3
Revenue ($M)
$53.8
$125.7
$227.7
$322.2
$80.1
$97.1
FY2013 FY2014 FY2015 FY2016 Q2FY16 Q2FY17
Product Revenue Support & Service Revenue
CAGR 82%
21%
Strong Revenue Growth

4
Strong Gross Margins While Investing to Drive Growth
Gross Margin*
*Reflects Non-GAAP Gross Margin, which excludes stock based compensation expense. See slide 14 for reconciliation. Long-term Gross Margin target range is 63%-65%.
Operating* & EBITDA Margin
-30%
-20%
-9%
-16%
-27%
-16%
-5%
-11%
Q2FY14 Q2FY15 Q2FY16 Q2FY17
Operating Margin Adjusted EBITDA Margin
64.3%
67.4%
67.8%
67.0%
Q2FY14 Q2FY15 Q2FY16 Q2FY17
Long Term Gross Margin Target Range 63%-65%*

5
Average Annual Bookings per Commercial Sales Team
Year 1 Year 2 Year 3
Average Bookings per Sales Team to Support Break Even Target
Average Bookings per Sales Team to Support Long-Term Profitability Target
Commercial sales teams operate
above breakeven levels of
productivity during their 2nd year
and at target operating margin
levels in their 3rd year.
Improving Sales Productivity Drives Business Model

6
Cash Balance Remains Very Healthy
Cash Flow from Operations ($M) Free Cash Flow ($M)
$205.8
$213.6
$194.2
Q2FY15 Q2FY16 Q2FY17
Ending Cash ($M)
$2.8
$14.9
-$4.1
-$1.3
$9.0
-$9.1

7
Strategy For Revenue Growth
Diversified
Customer Base
Continued expansion into international,
large enterprise and service
provider customers
New Customer
Acquisition
Invest aggressively to deepen
sales coverage within existing territories,
increase opportunities and drive channel leverage
Larger
Transactions
Expansion into larger transactions with unique Scale-
to-fit capabilities,AFAand FC
Land & Expand
Drive repeat business with rapidly growing install
base through InfoSight predictive analytics and
industry leading customer satisfaction
Driving
Revenue
Growth

8
Rapid Pace of New Customer Acquisition
Cumulative Customer Base*
3,800
6,200
8,900
*Rounded to the nearest hundred
+2400 customers
+2700 customers

9
Land And Expand Drives Repeat Business
Cumulative Bookings
46% 50%
54% 50%
TTM Q2FY16 TTM Q2FY17
Existing Customers New Customers
% New vs. Existing Customer Bookings
1.4X
1.9X
2.4X
1.8X
2.6X
3.7X
1.9X
2.7X
3.9X
Year 1 Year 2 Year 3
Overall Repeat Bookings
Enterprise Repeat Bookings
Cloud SP Repeat Bookings

10
Enterprise and Cloud Customers Driving Growth
Enterprise Bookings
G5K Bookings $
Cloud SP Bookings
Cloud SP Bookings $
G5K Bookings %
37%
Q2FY16 Q2FY17
13% 14%
17%
69%
Q2FY16 Q2FY17
Cloud SP Bookings %
13% 13%
19%

11
Larger Deals Fueling Growth
Bookings %
Bookings $ Growth
11%
Q2FY16 Q2FY17
> $100K
Bookings $ Growth
> $250K
60%
Q2FY16 Q2FY17
36%
42% 41%
Bookings %
9%
12%
17%

12
Q3 Fiscal Year 2017 Financial Guidance
Q3 FY17 Guidance
Revenue $100M ~ $103M
Non-GAAP Operating Loss* ($14M) ~ ($16M)
Non-GAAP EPS* ($0.17) ~ ($0.19)
Weighted Average Basic Shares Outstanding ~ 86.0M
*Reflects Non-GAAP operating loss and EPS which excludes stock based compensation expense. See slide 14 for reconciliation.

13
Target Operating Model
*Reflects Non-GAAP Gross Margin, R&D, S&M, G&A and Operating Margin, see slide 14 for reconciliation
Note: due to rounding, numbers presented above may not sum to total.
FY15 FY16 Q2FY17
Long-Term
Model
Gross Margin* 67.0% 67.1% 67.0 % Currently operating above target model 63%–65%
R&D as % of
Revenue* 24% 22% 22%
Leverage from investments we have made in our
rich product roadmap 11%–13%
S&M as % of
Revenue* 51% 49% 53%
Improved sales productivity driven by higher ASPs,
maturity of enterprise and international sales
teams, growth in repeat business and increase in
channel leverage
28%–31%
G&A as % of
Revenue* 9% 7% 7% Continuous efficiency and economies of scale 5%–6%
Non-GAAP
Operating
Margin*
-17% -11% -16% 16%–20%
How We Get There

14
GAAP to Non-GAAP Reconciliation
($ in thousands) FY15 FY16 Q2FY14 Q2FY15 Q2FY16 Q2FY17
GAAP Gross Profit 148,720 209,580 18,180 35,245 52,345 62,743
% GAAP Gross Margin 65.3% 65.0% 63.8% 65.6% 65.3% 64.6%
(+) Stock-based Compensation 3,888 6,715 126 967 1,964 2,296
Non-GAAP Gross Profit 152,608 216,295 18,306 36,212 54,309 65,039
% Non-GAAP Gross Margin 67.0% 67.1% 64.3% 67.4% 67.8% 67.0%
GAAP Research and Development 70,338 93,990 8,058 17,417 24,539 29,593
(-) Stock-based Compensation 15,137 23,259 547 3,692 6,638 7,773
Non-GAAP Research and Development 55,201 70,731 7,511 13,725 17,901 21,820
% of Revenue 24% 22% 26% 26% 22% 22%
GAAP Sales and Marketing 143,575 197,979 17,268 36,639 47,860 61,678
Non-GAAP Sales and Marketing 115,823 158,331 16,645 27,975 38,471 51,951
% of Revenue 51% 49% 58% 52% 48% 53%
GAAP General and Administrative 30,884 36,247 3,041 7,101 9,449 10,792
Non-GAAP General and Administrative 20,594 22,565 2,710 5,255 5,119 6,725
% of Revenue 9% 7% 10% 10% 6% 7%
GAAP Operating Loss (96,077) (118,636) (10,187) (25,912) (29,503) (39,320)
% of Revenue -42% -37% -36% -48% -37% -40%
(+) Stock-based Compensation 57,067 83,304 1,627 15,169 22,321 23,863
Non-GAAP Operating Loss (39,010) (35,332) (8,560) (10,743) (7,182) (15,457)
% Non-GAAP Operating Margin -17% -11% -30% -20% -9% -16%
GAAP Net Loss (98,846) (120,069) (10,463) (26,117) (30,109) (39,950)
(+) Stock-based Compensation 57,067 83,304 1,627 15,169 22,321 23,863
Non-GAAP Net Loss (41,779) (36,765) (8,836) (10,948) (7,788) (16,087)
(+) Interest Expense (Income), Net (139) (240) (16) (22) (61) (47)
(+) Provision for Income Taxes 837 1,017 130 162 288 338
(+) Depreciation and Amortization 8,753 15,598 891 2,070 3,626 5,437
Adjusted EBITDA (32,328) (20,390) (7,831) (8,738) (3,935) (10,359)
% Non-GAAP Adjusted EBITDA Margin -14% -6% -27% -16% -5% -11%
Net Cash Provided by (Used in) Operating Activities 5,376 5,755 (3,780) 2,837 14,876 (4,069)
(-) Property and Equipment, Net 20,820 29,423 1,542 4,179 5,901 5,002
Free Cash Flow (15,444) (23,668) (5,322) (1,342) 8,975 (9,071)

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