Q4 fy16 nimble storage

© 2016 Nimble Storage | Confidential: Do Not Distribute
Fourth Quarter &
FY2016 Earnings Results
Suresh Vasudevan, Chief Executive Officer
Anup Singh, Chief Financial Officer
March 3, 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
Fourth Quarter Fiscal Year 2016 Financial Results
Q4 FY16 Q4 FY15 Y/Y
Revenue $90.1M* $68.3M +32%*
Gross Margin** 66.4% 67.2% -0.8pts
Operating Income** ($9.4M) ($8.5M) -$0.9M
Operating Margin -10% -12% +2pts
EPS ($0.12) ($0.13) +1 cent
EBITDA Margin -6% -10% +4pts
Cash Balance $211.2M $208.4M +$2.8M
* Excluding fluctuations in foreign currency, revenue would have been $92.6M representing a 36% increase over fourth quarter of fiscal 2015.
** Reflects Non-GAAP Gross Margin and Non-GAAP Operating Income, which excludes stock based compensation expense. See slide 18 for reconciliation

4
Fiscal Year 2016 Financial Results
FY16 FY15 Y/Y
Revenue $322.2M* $227.7M +42%*
Gross Margin** 67.1% 67.0% +0.1pts
Operating Income** ($35.3M) ($39.0M) +$3.7M
Operating Margin -11% -17% +6pts
EPS ($0.47) ($0.58) +11 cents
EBITDA Margin -6% -14% +8pts
Cash Balance $211.2M $208.4M +$2.8M
* Excluding fluctuations in foreign currency, revenue would have been $332.3M representing a 46% increase over fiscal 2015.
** Reflects Non-GAAP Gross Margin and Non-GAAP Operating Income, which excludes stock based compensation expense. See slide 18 for reconciliation

5
Revenue ($M)*
Strong Revenue Growth
$53.8
$125.7
$227.7
$322.2
$68.3
$90.1
FY2013 FY2014 FY2015 FY2016 Q4FY15 Q4FY16
Product Revenue Support & Service Revenue
CAGR 82%
32%
* Excluding fluctuations in foreign currency, Q4FY16 revenue would have been $92.6M representing a 36% increase over fourth quarter of fiscal 2015.

6
Industry Leading Gross Margins
62.3%
65.4%
67.0% 67.1%
FY13 FY14 FY15 FY16
Long Term Target Range 63%-65%*
Annual Gross Margin Quarterly Gross Margin*
67.2%
66.4%
Q4FY15 Q4FY16
*Reflects Non-GAAP Gross Margin, which excludes stock based compensation expense. See slide 18 for reconciliation. Long-term Gross Margin target range is 63%-65%.

7
Investing To Drive Sustainable Growth
FY2014 FY2015 FY2016
Company Headcount Growth
FY2014 FY2015 FY2016
Rest of Company
Headcount
R&D HC
S&M HC
Capital Investments
CAGR 30%

8
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

9
Improving Operating And EBITDA Margin
Annual Operating
& EBITDA Margin Quarterly Operating* & EBITDA Margin
-21%
-12%
-10%
-17%
-10%
-6%
Q4FY14 Q4FY15 Q4FY16
Operating Margin Adjusted EBITDA Margin
-47%
-27%
-17%
-11%
-45%
-23%
-14%
-6%
FY13 FY14 FY15 FY16
Operating Margin Adjusted EBITDA Margin
*Reflects Non-GAAP Operating Margin, which excludes stock based compensation expense. See slide 18 for reconciliation

10
Cash Balance Remains Very Healthy
Cash Flow from Operations* Free Cash Flow*
-$6.7
$5.4 $5.8
FY14 FY15 FY16
-$20.4
-$15.4
-$23.7
FY14 FY15 FY16
$208.5 $208.4 $211.2
FY14 FY15 FY16
Ending Cash*
*($M)

11
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

12
Record Pace Of New Customer Acquisition
Cumulative Customer Base
2,645
4,979
7,580
FY14 FY15 FY16
542
690
617
752
Q1 Q2 Q3 Q4
Quarterly Customers Added In FY16
Record number of new customers acquired in Q4FY16
2,600+ customers added in FY16; 52% growth over FY15

13
Land And Expand Drives Repeat Business
Overall Repeat Bookings
41% 48%
59% 52%
FY15 FY16
Existing Customers New Customers
1X
2.5X
Initial Sale Total: Year 1, 2 & 3
% New vs. Existing Customer Bookings
Initial Sale Total: Year 1, 2 and 3
3.9X
1X
Cloud SP Repeat Bookings
Initial Sale Total: Year 1, 2 and 3
4.3X
1X
Enterprise Repeat Bookings

14
Diversified Customer Base Driving Growth
Enterprise and Cloud SP Bookings
G5K Bookings $
International Revenue
66%
FY15 FY16
International Revenue $ Growth
Cloud SP Bookings $
32%
FY15 FY16
50%
FY15 FY16

15
Larger Deals Fueling Growth
Bookings % > $250K
Bookings $ > $250K
62%
FY15 FY16
13%
16%
FY15 FY16
Deals > $250K
Bookings $ > $100K
Deals > $100K
Bookings % > $100K
44%
FY15 FY16
40% 43%
FY15 FY16

16
Q1 Fiscal Year 2017 Financial Guidance
Q1 FY17 Guidance
Revenue $83.0M ~ $86.0M
Operating Loss ($20.0M) ~ ($22.0M)
EPS ($0.25) ~ ($0.27)
Weighted Average Basic Shares
Outstanding
~ 83.0M
Q1 Guidance considerations:
•  Seasonality effect of Q1 being our
slowest quarter
•  Impact of AFA introduction on
existing sales cycles
•  Incremental costs associated with
the launch of our Predictive Flash
Platform and AFA of approximately
$4M
•  Increased investments in Sales and
Marketing to re-accelerate growth in
our commercial business

17
Making Progress Towards Target Operating Model
FY13 FY14 FY15 FY16 Long-Term Model
Gross Margin* 62.3% 65.4% 67.0% 67.1 % Currently operating above target model 63%–65%
R&D as % of
Revenue* 28% 26% 24% 22%
Leverage from investments we have made in our rich
product roadmap 11%–13%
S&M as % of
Revenue* 72% 57% 51% 49%
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% 10% 9% 7% Continuous efficiency and economies of scale 5%–6%
Non-GAAP
Operating
Margin
-47% -27% -17% -11% 16%–20%
*Reflects Non-GAAP Gross Margin, R&D, S&M, G&A and Operating Margin, see slide 18 for reconciliation
Note: due to rounding, numbers presented above may not sum to total.
How We Get There

18
GAAP to Non-GAAP Reconciliation
($ in thousands) FY12 FY13 FY14 FY15 FY16 Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16
GAAP Product Gross Profit 7,880 32,499 76,581 135,349 179,096 25,626 28,224 32,326 34,716 40,083 41,052 45,625 44,202 48,217
% GAAP Product Gross Margin 60.1% 65.3% 67.9% 68.3% 67.4% 69.0% 68.4% 68.6% 67.9% 68.3% 68.2% 68.4% 67.4% 66.0%
(+) Stock-based Compensation 10 48 232 1,508 1,972 102 231 374 486 417 545 660 265 502
Non-GAAP Product Gross Profit 7,890 32,547 76,813 136,857 181,068 25,728 28,455 32,700 35,202 40,500 41,597 46,285 44,467 48,719
Non-GAAP Product Gross Margin 60.2% 65.4% 68.1% 69.1% 68.2% 69.2% 69.0% 69.4% 68.9% 69.1% 69.1% 69.3% 67.8% 66.7%
GAAP Support and Service Gross Profit (145) 891 4,941 13,371 30,484 2,113 1,988 2,919 3,716 4,748 5,443 6,720 8,488 9,833
% GAAP Support and Service Gross Margin -16.1% 21.9% 38.2% 45.3% 53.8% 46.4% 37.4% 44.0% 46.6% 49.3% 49.1% 50.3% 56.0% 57.8%
(+) Stock-based Compensation 31 114 468 2,380 4,743 210 393 593 749 645 1,157 1,304 1,026 1,256
Non-GAAP Support and Service Gross Profit (114) 1,005 5,409 15,751 35,227 2,323 2,381 3,512 4,465 5,393 6,600 8,024 9,514 11,089
Non-GAAP Support and Service Gross Margin -12.7% 24.7% 41.9% 53.3% 62.2% 51.0% 44.8% 52.9% 56.0% 56.0% 59.5% 60.1% 62.8% 65.2%
GAAP Gross Profit 7,735 33,390 81,522 148,720 209,580 27,739 30,212 35,245 38,432 44,831 46,495 52,345 52,690 58,050
% GAAP Gross Margin 55.2% 62.0% 64.8% 65.3% 65.0% 66.5% 64.9% 65.6% 65.0% 65.7% 65.2% 65.3% 65.3% 64.4%
(+) Stock-based Compensation 41 162 700 3,888 6,715 312 624 967 1,235 1,062 1,702 1,964 1,291 1,758
Non-GAAP Gross Profit 7,776 33,552 82,222 152,608 216,295 28,051 30,836 36,212 39,667 45,893 48,197 54,309 53,981 59,808
% Non-GAAP Gross Margin 55.5% 62.3% 65.4% 67.0% 67.1% 67.2% 66.2% 67.4% 67.1% 67.2% 67.6% 67.8% 66.9% 66.4%
GAAP Research and Development 7,903 16,135 35,247 70,338 93,990 11,510 14,217 17,417 19,679 19,025 21,709 24,539 22,936 24,806
(-) Stock-based Compensation 268 874 3,049 15,137 23,259 1,354 2,440 3,692 4,595 4,410 5,431 6,638 4,888 6,302
Non-GAAP Research and Development 7,635 15,261 32,198 55,201 70,731 10,156 11,777 13,725 15,084 14,615 16,278 17,901 18,048 18,504
GAAP Sales and Marketing 12,863 39,851 75,107 143,575 197,979 23,777 29,202 36,639 36,994 40,740 44,443 47,860 49,853 55,823
(-) Stock-based Compensation 244 1,029 3,674 27,752 39,648 1,703 4,921 8,664 7,575 6,592 10,111 9,389 9,132 11,016
Non-GAAP Sales and Marketing 12,619 38,822 71,433 115,823 158,331 22,074 24,281 27,975 29,419 34,148 34,332 38,471 40,721 44,807
GAAP General and Administrative 3,756 5,168 13,737 30,884 36,247 5,265 6,437 7,101 8,887 8,459 9,261 9,449 8,249 9,288
(-) Stock-based Compensation 267 539 1,726 10,290 13,682 733 1,572 1,846 4,001 2,871 3,741 4,330 2,219 3,392
Non-GAAP General and Administrative 3,489 4,629 12,011 20,594 22,565 4,532 4,865 5,255 4,886 5,588 5,520 5,119 6,030 5,896
GAAP Operating Expenses 24,522 61,154 124,091 244,797 328,216 40,552 49,856 61,157 65,560 68,224 75,413 81,848 81,038 89,917
(-) Stock-based Compensation 779 2,442 8,449 53,179 76,589 3,790 8,933 14,202 16,171 13,873 19,283 20,357 16,239 20,710
Non-GAAP Operating Expenses 23,743 58,712 115,642 191,618 251,627 36,762 40,923 46,955 49,389 54,351 56,130 61,491 64,799 69,207
GAAP Operating Loss (16,787) (27,764) (42,569) (96,077) (118,636) (12,813) (19,644) (25,912) (27,128) (23,393) (28,918) (29,503) (28,348) (31,867)
% of Revenue -120% -52% -34% -42% -37% -31% -42% -48% -46% -34% -41% -37% -35% -35%
(+) Stock-based Compensation 820 2,604 9,149 57,067 83,304 4,102 9,557 15,169 17,406 14,935 20,985 22,321 17,530 22,468
Non-GAAP Operating Loss (15,967) (25,160) (33,420) (39,010) (35,332) (8,711) (10,087) (10,743) (9,722) (8,458) (7,933) (7,182) (10,818) (9,399)
% of Revenue -114% -47% -27% -17% -11% -21% -22% -20% -16% -12% -11% -9% -13% -10%
Net Cash Provided by (Used in) Operating Activities (14,841) (18,754) (6,742) 5,376 5,755 2,185 452 2,837 (6,522) 8,609 (8,307) 14,876 (3,104) 2,290
% of Revenue -105.9% -35% -5% 2% 2% 5% 1% 5% -11% 13% -12% 19% -4% 3%
(-) Property and Equipment, Net 1,303 3,954 13,613 20,820 29,423 5,461 3,728 4,179 4,933 7,980 8,057 5,901 9,073 6,392
Free Cash Flow (16,144) (22,708) (20,355) (15,444) (23,668) (3,276) (3,276) (1,342) (11,455) 629 (16,364) 8,975 (12,177) (4,102)
% of Revenue -115.2% -42% -16% -7% -7% -8% -7% -2% -19% 1% -23% 11% -15% -5%

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