Nutanix : Q1 FY 2021 Investor Presentation

Safe Harbor

Non-GAAP Financial Measures and Other Key Performance Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial and other key performance measures: billings, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP net loss, non-GAAP net loss per share, free cash flow, subscription revenue, subscription billings, subscription revenue mix, subscription billings mix, professional services billings, Annual Contract Value Billings (or ACV Billings), and Run-rate Annual Contract Value (or Run-rate ACV). In computing these non-GAAP financial measures and key performance measures, we exclude certain items such as stock-based compensation and the related income tax impact, costs associated with our acquisitions (such as amortization of acquired intangible assets, income tax-related impact, and other acquisition-related costs), impairment of operating lease-related assets, change in fair value of derivative liability, amortization of debt discount and issuance costs, non-cash interest expense, other non-recurring transactions and the related tax impact, and the revenue and billings associated with pass-through hardware sales. Billings is a performance measure which we believe provides useful information to investors because it represents the amounts under binding purchase orders received by us during a given period that have been billed, and we calculate

billings by adding the change in deferred revenue between the start and end of the period to total revenue recognized in the same period. Non-GAAP gross margin, non-GAAP operating expenses, non-

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GAAP net loss, and non-GAAP net loss per share are financial measures which we believe provide useful information to investors because they provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures such as stock-based compensation expense that may not be indicative of our ongoing core business operating results. Free cash flow is a performance measure that we believe provides useful information to management and investors about the amount of cash generated by the business after necessary capital expenditures, and we define free cash flow as net cash (used in) provided by operating activities less purchases of property and equipment. Subscription revenue, subscription billings, subscription revenue mix, subscription

billings mix, and professional services billings are performance measures that we believe provide useful information to our management and investors as they allow us to better track the growth of the subscription-based portion of our business, which is a critical part of our business plan. ACV Billings and Run-rate ACV are performance measures that we believe provide useful information to our management and investors as they allow us to better track the topline growth of our business during our transition to a subscription-based business model because they take into account variability in term

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lengths. We use these non-GAAP financial and key performance measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. However, these non-GAAP financial and key performance measures have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Billings, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP net loss, non-GAAP net loss per share, and free cash flow are not substitutes for total revenue, gross margin, operating expenses, net loss, net loss per share, or net cash (used in) provided by operating activities, respectively; subscription revenue is not a substitute for total revenue; and subscription and professional services billings are not substitutes for subscription and professional services revenue, respectively, or total revenue. There is no GAAP measure that is comparable to either ACV Billings or Run-rate ACV, so we have not reconciled the ACV Billings or Run-rate ACV numbers included in this presentation to any GAAP measure. In addition, other companies, including companies in our industry, may calculate non-GAAP financial measures and key performance measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures and key performance measures as tools for comparison. We urge you to review the reconciliation of our non-GAAP financial measures and key performance measures to the most directly comparable GAAP financial measures set forth in the tables captioned "GAAP to Non-GAAP Reconciliations and Calculation of Billings" and "Disaggregation of Billings and Revenue" included in the appendix hereto, and not to rely on any single financial measure to evaluate our business.

Safe Harbor

Forward Looking Statements

This presentation and the accompanying oral commentary contain express and implied forward-looking statements, including, but not limited to, statements relating to: our business plans, strategies, initiatives, objectives and outlook, including changes we have made or anticipate making in response to the COVID-19 pandemic, our ability to manage our business during the pandemic, and the position we anticipate being in following the pandemic; our ability to execute such plans, strategies, initiatives and objectives successfully and in a timely manner, and the benefits and impact of such plans, initiatives and objectives, including our ability to manage our expenses and drive long-term growth and our cash usage in future periods; the competitive market, including our competitive position, our projections about our market share and the size of our total addressable market; our customer needs and our response to those needs; the benefits and capabilities of our platform, solutions, products, services and technology, including the interoperability and availability of our solutions with and on third-party platforms; our plans and expectations regarding new products, services, product features and technology, including those that are still under development or in process; the success and impact of our customer, partner, industry, analyst, investor, and employee events on our business, including on future pipeline

generation; our plans and timing for, and the success and impact of, any current and future business model transitions, including the impact thereof on average contract term lengths; the timing and potential impact of the COVID-19 pandemic on the global market environment and the IT industry, as well as on our business, operations and financial results, including the actions we have taken to manage operating expenses; the timing and impact of our announced CEO transition plan; and our guidance on estimated ACV Billings, non-GAAP gross margin, non-GAAP operating expenses and weighted shares outstanding for any future fiscal periods. These forward-looking statements are not historical facts and instead are based on our current expectations, estimates, opinions, and beliefs. Consequently, you should not rely on these forward-looking statements. The accuracy of these forward-looking statements depends upon future events and involves risks, uncertainties, and other factors, including factors that

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may be beyond our control, that may cause these statements to be inaccurate and cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by such statements, including, among others: failure to successfully implement or realize the full benefits of, or unexpected difficulties or delays in successfully implementing or realizing the full benefits of, our business plans, initiatives and objectives; the timing, breadth, and impact of the COVID-19 pandemic on our business, operations, and financial results, as well as the impact on our customers, partners,

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and end markets; failure to timely and successfully meet our customer needs; delays in or lack of customer or market acceptance of our new products, services, product features or technology; delays or unexpected accelerations in the transition to a subscription-based business model; the rapid evolution of the markets in which we compete; our ability to achieve, sustain and/or manage future growth effectively; factors that could result in the significant fluctuation of our future quarterly operating results, including, among other things, anticipated changes to our revenue and product mix, including changes as a result of our transition to a subscription-based business model, which will slow revenue growth during such transition and make forecasting future performance more difficult, the timing and magnitude of orders, shipments and acceptance of our solutions in any given quarter, our ability to attract new and retain existing end-customers, changes in the pricing of certain components of our solutions, and fluctuations in demand and competitive pricing pressures for our solutions; the introduction, or acceleration of adoption of, competing solutions, including public cloud infrastructure; and other risks detailed in our Annual Report on Form 10-K for the fiscal year ended July 31, 2020, filed with the U.S. Securities and Exchange Commission, or the SEC, on September 23, 2020. Additional information will also be set forth in our Quarterly Report on Form 10-Q that will be filed for the fiscal quarter ended October 31, 2020 which should be read in conjunction with this presentation and the financial results included herein. Our SEC filings are available on the Investor Relations section of our website at ir.nutanix.com and on the SEC's website atwww.sec.gov. These forward-looking statements speak only as of the date of this presentation and, except as required by law, we assume no obligation, and expressly disclaim any obligation, to update, alter or otherwise revise any of these forward-looking statements to reflect actual results or subsequent events or circumstances.

© 2020 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix logo, and all Nutanix product, feature, and service names mentioned herein are registered trademarks or trademarks of Nutanix, Inc. in the United States and other countries. All other brand names or logos mentioned or used herein are for identification purposes only and may be the trademarks of their respective holder(s). Nutanix may not be associated with, or be sponsored or endorsed by, any such holder(s).

Nutanix Overview - Q1'21

Nutanix is a global leader in cloud software and a pioneer in hyperconverged infrastructure solutions, making computing invisible anywhere.

$1.29B

+29% YoY Run-rate ACV

81.9%

+180 bps YoY Non-GAAP Gross Margin

$138M

+10% YoY ACV Billings

18,040

+3,080 YoY Total Customer

Count

$313M (1)

(0.6)% YoY Total Revenue

930

+90 YoY Global 2000 Customer Count

3.5 Years

(0.4) Years YoY Total Average Contract Term

90

6-Year Average Net Promoter

Score

Note: Data is as of October 31, 2020. See Appendix for definitions of Run-rate ACV, ACV Billings, Total Average Contract Term and a non-GAAP to GAAP reconciliation of Non-GAAP Gross Margin.

(1) Q1'21 total revenue was negatively impacted by year-over-year decline in average contract term associated with the Company's ongoing transition to subscription.

Nutanix Value Proposition

Differentiated Cloud Platform for Hybrid and Multicloud Solutions

Manage any app anywhere at any scale with unparalleled simplicity, scalability, choice, and portability

Compelling Market Opportunity

Large and expanding $200+ billion TAM in hyperconverged infrastructure and multicloud markets

Multiple Long-Term Growth Drivers

Datacenter modernization | Digital transformation | Hybrid cloud infrastructure

Customer Delight and Expansion

Loyal customer base with best-in-class Net Promoter Score (NPS) of 90, 96% customer retention, and 125% ACV dollar-based net expansion rate*

Subscriptions for Datacenter and Cloud Infrastructures

Higher customer lifetime value, and a more predictable business model with recurring revenue over time

Unlocking Operating Leverage

ACV-first strategy drives better unit economics and shortens time to efficient renewals, which drives operating leverage over time

*Reflect FY'20 results. See Appendix for definitions of Customer Retention, ACV and ACV Dollar-based Net Expansion.

Nutanix Timeline

Nutanix Founded

Launched

Shipped First Product

1st OEM PartnershipIntroduced

AHV HypervisorNutanix

IPO "NTNX"

Surpassed $1B Annual

RevenueLaunched

HPE Partnership

Transitioned 80%+ of Quarterly Billings to SubscriptionsLaunched ACV-First Strategy

Top IT Challenges in the Digital Economy

Complex, manually	Can't quickly	Ongoing struggle to
managed, siloed	provision and	keep apps and data
infrastructure	deploy apps	secure / compliant
Hybrid cloud too	Lift and shift of apps;
complex and difficult	mobility slow and	Unpredictable costs
to operate & manage	needs code changes

Rising Hybrid Cloud Deployments

of respondents said COVID-	of respondents consider	of respondents who
19 has caused IT to be viewed	hybrid their ideal	currently run on-premises
more strategically in their	operating model	infrastructure have deployed
organizations	or plan to deploy
hyperconverged
infrastructure

Source:2020 Enterprise Cloud Index, which is based on a survey of 3,400 IT decision makers globally.

Our Offering: One Platform. Any App. Any Cloud.

Focus on Long-term Sustainable Growth with Multi Product Focus: Platform-, App-, and Cloud-Agnostic

Enterprise AppsCloud Native AppsAnalytics/ ML

Databases

Dev & Test

IoT Edge

ROBO

EUC

1-Click Mobility

Private Cloud

Seamless Operations

Giving Customers Unparalleled Choice & Portability

Gives control back to IT

Provides choice of technology to avoid rigid technology and costly vendor lock-in

Supports all major hypervisors including VMware ESXi, Microsoft Hyper-V, and our own Nutanix (no additional cost) AHV to help IT preserve existing investment

All Major Server

PlatformsMultiple Hypervisors

Private, Hybrid/Multi,

Public CloudSoftware, Purposefully

Built Appliances

Our Hybrid Cloud Platform Adoption

49%	35%	87%
AHV Adoption as	% of Deals with	YoY Growth of
a % of NX Nodes (1)	> One New Product (1)	New ACV
+2pts YoY	+7pts YoY	from New Products
Note: Data is as of October 31, 2020.
(1) Calculated on a rolling four-quarter average.

Undisputed Market Leadership

Gartner

Magic Quadrant for HCI, 2019

Forrester Wave HCI, 2020

Completeness of Vision

Ability to Execute

As of Nov 2019

Stronger Current Offering

Weaker Current Offering

Weaker Strategy

Stronger Strategy

Gartner Magic Quadrant for Hyperconverged Infrastructure, Jeff Hewitt, Phil Dawson, Julia Palmer and John McArthur, Published 25 Nov 2019

The Forrester Wave™: Hyperconverged Infrastructure, Q3 2020, Forrester Research, Inc., 29 July 2020

Delivering Excellent Customer Business Outcomes

62%	85%	9	477%	$932,800
Lower	Less Unplanned	Months to	Five-Year	Additional
Five-Year TCO	Downtime	Payback	ROI	Revenue per Year

Source: IDC White Paper, sponsored by Nutanix, Organizations Leverage Nutanix Enterprise Cloud as Scalable, High-Performing, and Cost-Effective Infrastructure Foundation, January 2020.

Addressing a Large and Expanding TAM

Source: IDC April 2020.

Apps & Dev Ops

$5B

Edge & End User

$21B

Hybrid Cloud

$96B

Core/Private Cloud

$101B

Total

$200+B

HCI Market Growth

21%CAGR

Source: HCI market size is derived from Gartner's forecast on HCIS at 70% of the market total.

Key Growth Drivers of Our Business

Infrastructure Modernization

Operational Efficiency / Economics

Server Virtualization, VDI, ROBO, Business-critical Apps, Databases, Big Data

How We Win Against Legacy Infrastructure

Rapid Time to Market

Deploy apps in minutes

Flexible IT Consumption

Get and pay only for what you need-operating or capital expense

One-click Simplicity

No low-level infrastructure management

Continuous Innovation

Infrastructure regularly gets better

How We Win Against HCI Competition

Web-Scale Architecture

Unlike other packaged solutions

Resiliency & Performance

Better results delivered by data locality and management

One-click Upgrades

Across the entire infrastructure and software stack

Single User Interface

End-to-end infrastructure and application management

Go To Market Strategy

Direct Sales Reps, Overlays and Channel across AMER, EMEA and APJ

FederalState GovernmentHealthcare/ EducationLocal Government

Multi Channel Strategy

Multi Channel Focus

Over 10,000 total global partners as of Q1 FY'21

Obsessed with Customer Success

96%(2)
18,040
Proven, and Trusted	Customer	Gartner Peer
by Customers	Retention	Insights Score
(4.7 of 5)
(1) See endnote 1 in the Appendix.

4.7(3)

(1)

90

Net Promoter Score (6-Year Average)

• (2) Customer Retention reflects FY'20 results. See Appendix for the definition of Customer Retention.

• (3) Gartner Peer Insights ratings and reviews as of March 24, 2020. Clickhere for more details.

Customer Growth Momentum

(1)

Q1'21 Highlights

18,040

Q1'19

21%

Total Customers

YoY Growth

930

G2K Customers

16.4x(2)

G2K Lifetime ACV Repeat Purchase Multiple

Forbes Global 100 Customers

90 NPS

6-Year Average

Q2'19

Q3'19

Q4'19

Q1'20

Q2'20

Q3'20

Q4'20

Q1'21

• (1) The G2K customer count reflects standard adjustments to certain customer accounts within our system of record and is rounded to the nearest 10. See endnote 1 in the Appendix.

• (2) See endnote 2 in the Appendix.

79

Large Customer Growth

Q1'21 Highlights

Q1'19

+29% YoY

+19% YoY

+37% YoY

+31% YoY

907

Customers $1-$3M in LTB

169

Customers $3-$5M in LTB

129

Customers $5-$10M in LTB

71

Q2'19

Q3'19

Q4'19

Q1'20

Q2'20

Q3'20

Q4'20

Q1'21

Customers >$10M in LTB

Customer Case Studies

"We're operating in a much more agile environment, and Nutanix is helping us do that... It's also a very flexible platform. No matter what type of workload we want to use, we can quickly deploy it to Nutanix and then get it out in front of our customers and see what they think."

- Ken Shaffer, Assistant Vice President for Enterprise Systems, CarMax

Learn More

"Nutanix not only converges technologies, their software has enabled us to converge infrastructure, teams, and opportunities. By combining IT specialists into a single operations group, we can now see our end-to-end environment, work collaboratively, and make better decisions for the business."

- Kevin Priest, Senior Director, The Home Depot

Learn More

Visitnutanix.com/company/customers for more customer case studies.

"Société Générale's private cloud is based on the hyperconverged platform in the Dell EMC XC Series which runs on Nutanix Enterprise Cloud Platform."

- Vincent Hoose, Head of IT Infrastructure-as-a-Service (IaaS), Société Générale

Learn More

Experienced Nutanix Leadership Team

Dheeraj Pandey

FOUNDER,

Rajiv Mirani

CHIEF TECHNOLOGY OFFICER

Ben Gibson

CHIEF MARKETING OFFICER

Rukmini Sivaraman

SVP, PEOPLE & BUSINESS OPERATIONS

Chris Kaddaras

EVP, WORLDWIDE SALES

Tarkan Maner

CHIEF COMMERCIAL OFFICER

David Sangster

CHIEF OPERATING OFFICER

Tyler WallDuston Williams

CHIEF FINANCIAL OFFICER

Wendy Pfeiffer

CHIEF INFORMATION OFFICER

Investing in Our Subscription Transformation

Subscription

Software

Appliance

Initial Delivery Model

Transitioned to Software

Transforming to Subscription

Prior to subscription model transition:

Reached $1.5B LTM total billings as of Q1'19, using $73M cumulative Free Cash Flow from Q1'15 to Q1'19Hardware sales made up 28% of Nutanix's revenue in fiscal 2017 vs. ~0% as of Q1 fiscal 2021

FY'19 total revenue growth would have been 26% without model transition

Subscription model offers tremendous long-term benefits despite top-line headwind during transition.88% of total billings and 89% of total revenue were subscription-based as of Q1'21

Q1'21 marked our shift of focus from TCV to ACV, making ACV a key metric for top-line performance

Note: See Appendix for non-GAAP to GAAP reconciliations.

Subscription Model Benefits

Customers

No lock-in on hardware, hypervisor and cloud

Flexible consumption (monthly, 1, 3, and 5-year term) and license bursting

License mobility between private and public clouds

Foundation for hybrid multicloud infrastructure, the ideal IT operating model for 86% surveyed enterprises*

Easy access to Nutanix's continuous innovation via subscriptions

Partners and Nutanix

Access to real-time customer relationships with more frequent cross-and-upsell opportunities

Higher total customer lifetime value

Lower go-to-market cost structure

More predictable business model

Recurring revenue stream over time

ACV-first focus expected to shorten time to efficient renewals

*Source:2020 Enterprise Cloud Index, which is based on a survey of 3,400 IT decision makers globally.

Q1'21 Company Highlights

FY'21 Off to a Strong Start Despite COVID-related Macro Uncertainty

10% YoY growth in ACV Billings, 29% YoY growth in Run-rate ACV, and outperformance across all other key financial metrics

ACV-First Thesis Nicely Played Out in Q1

Total Average Contract Term declined to 3.5 years, leading to 1) better unit economics, 2) shorter time to more efficient renewals, 3) accelerated new product adoption, and 4) strong ACV growth

Enhanced Go-to-Market Execution with Consistency

Solid performance across all geographies, driven by 1) increased sales alignment and enablement, 2) digital marketing efficiency, and 3) resilient ACV-first strategy

Continued Growth Momentum in New Products

New ACV from new products up 87% YoY and 27% QoQ; New product attach rate increased to 35%, up 7 points YoY

(1)

Entered New Partnership with Microsoft and Launched Nutanix Hybrid Cloud on AWS

Expanded and differentiated hybrid and multicloud strategy, providing seamless application, data and license mobility as well as a unified management platform

Note: See Appendix for definitions of ACV Billings, Run-rate ACV, ACV, and Total Average Contract Term. There is no GAAP measure that is comparable to either ACV Billings or Run-rate ACV, so the company has not reconciled the ACV Billings and Run-rate ACV numbers in this presentation to any GAAP measure.

(1) Calculated on a rolling four-quarter average.

Management Commentary

Dheeraj Pandey

Chairman, Co-Founder & Chief Executive Officer

"We are pleased with our financial performance in the first quarter, which marked a strong start to fiscal 2021 including increased adoption of new products as well as continued growth in our core hyperconverged infrastructure software. After launching our solutions on AWS in August, we announced a major partnership with Microsoft to develop our portfolio on Azure, placing the Nutanix HCI (Hybrid Cloud Infrastructure) at a significant competitive advantage to help our customers build out their hybrid and multicloud environments."

Duston Williams

Chief Financial Officer

"Our ACV-first strategy and solid go-to-market execution drove outperformance across all key financial metrics including ACV billings growth of 10 percent year-over-year and run-rate ACV growth of 29 percent year-over-year. Looking ahead, we remain focused on thoughtfully managing operating expenses as we continue to execute on our business model transformation and are confident in Nutanix's ability to drive long-term growth for the benefit of all stakeholders."

Note: See Appendix for definitions of ACV Billings, Run-rate ACV and ACV. There is no GAAP measure that is comparable to either ACV Billings or Run-rate ACV, so the company has not reconciled the ACV Billings and Run-rate ACV numbers in this presentation to any GAAP measure.

Q1'21 Financial Summary

Q1'21 Results	YoY Change	vs. Q1'21 Guidance
ACV Billings	$137.8M	10%	$118-$121M
Run-rate ACV	$1.29B	29%	>20%
Total Average Contract Term	3.5 Years	(0.4) Years	N/A
Total Revenue(1)	$312.8M	(0.6)%	N/A
Non-GAAP Gross Margin	81.9%	180 bps	~81%
Non-GAAP Operating Expenses	$341.2M	(12)%	$350-$360M
Non-GAAP Net Loss Per Share	$(0.44)	$0.27	N/A
Free Cash Flow	$(16.3)M	$28M	N/A

(1) Q1'21 total revenue was negatively impacted by year-over-year decline in average contract term associated with the Company's ongoing transition to subscription.

Note: See Appendix for non-GAAP to GAAP reconciliations, as well as definitions of ACV Billings, Run-rate ACV, and Total Average Contract Term. There is no GAAP measure that is comparable to either ACV Billings or Run-rate ACV, so the company has not reconciled the ACV Billings and Run-rate ACV numbers in this presentation to any GAAP measure.

Run-rate ACV

$ Millions

YoY $1,291

29%

Q2'19

Q3'19

Q4'19

Q1'20

Q2'20

Q3'20

Q4'20

Q1'21

Note: See Appendix for definition of Run-rate ACV. There is no GAAP measure that is comparable to Run-rate ACV, so the company has not reconciled the Run-rate ACV numbers in this presentation to any GAAP measure.

ACV Billings

$$MMililliloionnss

Q2'19

$140

$140

Q3'19

Q4'19

Q1'20

Q2'20

Q3'20

Q4'20

Note: ACV Billings exclude amounts related to professional services and hardware. See Appendix for definition of ACV Billings.

10% YoY

$138

Q1'21

There is no GAAP measure that is comparable to ACV Billings, so the company has not reconciled the ACV Billings numbers in this presentation to any GAAP measure.

Gross Margin

By Quarter

By Fiscal Year

83%

Q1'20

82%

Q2'20

Q3'20

Q4'20

Q1'21

FY'17

Note: Margins shown on a non-GAAP basis. See Appendix for a reconciliation of GAAP to non-GAAP metrics.

81%

FY'18

FY'19

FY'20

FY'20 Retention and Expansion Rates

Customer Retention

ACV Dollar-based Net Expansion

FY'18

97%

97%

96%

FY'19

FY'20

FY'18

Note: See Appendix for definitions of Customer Retention and ACV Dollar-based Net Expansion.

FY'19

FY'20

Renewals-Paving the Way to Leverage

Renewals to Grow Substantially in Future Years

Note: Q1'21 LTM renewal billings accounted for approximately 10% of total billings.

Nutanix in Summary

Differentiated Cloud Platform for Hybrid and Multicloud Solutions

Manage any app anywhere at any scale with unparalleled simplicity, scalability, choice, and portability

Compelling Market Opportunity

Large and expanding $200+ billion TAM in hyperconverged infrastructure and multicloud markets

Multiple Long-Term Growth Drivers

Datacenter modernization | Digital transformation | Hybrid cloud infrastructure

Customer Delight and Expansion

Loyal customer base with best-in-class Net Promoter Score (NPS) of 90, 96% customer retention, and 125% ACV dollar-based net expansion rate*

Subscriptions for Datacenter and Cloud Infrastructures

Higher customer lifetime value, and a more predictable business model with recurring revenue over time

Unlocking Operating Leverage

ACV-first strategy drives better unit economics and shortens time to efficient renewals, which drives operating leverage over time

*Reflect FY'20 results. See Appendix for definitions of Customer Retention, ACV and ACV Dollar-based Net Expansion.

Nutanix Culture Principles

WE START WITH WHY...

...then the How, then the What. It helps us prioritize boulders, pebbles, and sand. With a beginner's mindset, we are curious about first principles.

HAVE BACKBONE; DISAGREE BUT COMMIT

Being authentic and respecting boundaries are how we build trust. Backbone is about brutal intellectual honesty, but also about committing.

There is no place for passive aggressive disagreements (indirect resistance) within.

WE HATE WASTE

It's our money, our property, our company.

As owners, we believe in sharing and leveraging common core, common data, and adjacencies. We fail fast and learn fast.

OBSESS OVER THE CUSTOMER & FRONTLINE

As insurgents, we are waging a war on behalf of the underserved customer, and against naysaying bureaucracy. We have an obsession for customer success. We win with honor.

HAVE BIAS FOR ACTION

Velocity is essential for survival. Balancing velocity and quality makes us thrive. Outcomes matter. We discern, design, and deliver.

DESIGN IS EVERYTHING!

Empathy drives design. We strive to reduce friction for the best end user experience.

Less-is-more, both in product and organizational design. We embrace the mundane, as we strive for elegant simplicity.

THINK BIG BUT START SMALL

A well-designed innovation engine is ambitious yet iterative, strategic yet detail-oriented, big-picture-biased yet milestone-based. We believe in a marathon of sprints.

BELIEVE IN STRIVING

We are a constantly learning, continuously improving, eternally evolving company with immense respect for the law of small improvements. We re-engineer, we re-factor, we take care of accumulated stress. We believe in long-term greed.

CELEBRATE AUTONOMY

We are a startup. It's still Day-1. We constantly disaggregate (products, organizations, decision-making), segment and delegate, while responsibly recomposing for a unified customer experience.

HIRE OFTEN AND HIRE DIVERSE

We celebrate people. We constantly evaluate, promote from within, and make bets on people who are different from us. We actively attract, retain, and motivate people from many backgrounds and perspectives. Being diverse is not optional; it is what we must be.

SHOW GRIT

We endure adversity. We are anti-fragile.

Every shock to the system makes us better. We celebrate failures and vulnerable leaders. Vulnerability connects us, and results in courage and integrity.

GET COMFORTABLE BEING UNCOMFORTABLE

Leaders accept ambiguity, are comfortable with change, and are adept at balancing paradoxes. We are big-hearted, tough decision-makers who are optimistic and paranoid simultaneously. Creators' monomaniacal focus and energy in bringing ideas to life are not always pleasant for those close to them.

Appendix

Endnotes

• 1. Global 2000 (G2K) and Forbes 100 customer counts reflect yearly update to the members of both lists as reported by Forbes. Cumulative worldwide end-customer and G2K customer counts reflect standard adjustments to certain customer accounts within our system of record, and are rounded to the nearest 10.

• 2. G2K lifetime purchase multiple is defined as total lifetime purchase divided by initial purchase using software and support bookings, for G2K customers that have been customers for over 18 months.

Definitions

ACV Billings, for any given period, is defined as the sum of the ACV for all contracts billed during the given period. Annual Contract Value, or ACV, is defined as the total annualized value of a contract, excluding amounts related to professional services and hardware. The total annualized value for a contract is calculated by dividing the total value of the contract by the number of years in the term of such contract, using, where applicable, an assumed term of five years for contracts that do not have a specified term. ACV Billings is a performance measure that we believe provides useful information to our management and investors as it allows us to better track the topline growth of our business during our transition to a subscription-based business model because it takes into account variability in term lengths. There is no GAAP measure that is comparable to ACV Billings, so we have not reconciled the ACV Billings numbers included in this presentation to any GAAP measure.

Run-rate ACV, at the end of any period, is the sum of ACV for all contracts that are in effect as of the end of that period. For the purposes of this calculation, we assume that the contract term begins on the date a contract is booked, irrespective of the periods in which we would recognize revenue for such contract. There is no GAAP measure that is comparable to Run-rate ACV, so we have not reconciled the Run-rate ACV numbers included in this presentation to any GAAP measure.

ACV Dollar-based Net Expansion. We believe that our ACV Dollar-based net expansion rate provides insight into our ability to retain and increase revenue from our customers, as well as their potential long-term value to us. Accordingly, we compare the aggregate retained ACV of our customer base at the end of the prior fiscal year, referred as the base ACV, to the aggregate retained ACV from the same group of customers at the end of the current fiscal year. We calculate our dollar-based expansion rate on an annual basis by dividing the retained ACV by the base ACV on a dollar-weighted basis across cohort. Retained ACV is defined as aggregate ACV of a customer base less churn, assuming any active contract expiring during the period is renewed and continues on its existing terms and at its prevailing rate of utilization.

Customer Retention. We define our Customer Retention rate by subtracting our attrition rate from 100%. We calculate our attrition rate for a period by dividing the number of customers lost during the period by the sum of the number of customers at the beginning of the period and the number of new customers acquired during the period.

Total Average Contract Term, represents the dollar-weighted term, calculated on a billings basis, across all subscription and life-of-device contracts, using an assumed term of five years for life-of-device licenses, executed in the quarter.

Calculation of Billings

$ Millions

Software revenue

Support, entitlements & other services revenue

Total software and support (TCV) revenue

Change in software and support (TCV)

deferred revenue, net of acquisitions

Total software and support (TCV) billings

FY'17 $437.0 172.6 $609.6

• $630.7 $727.1

• 267.5 403.7

• $898.2 $1,130.8

  144.6

• 262.0 278.5

• $754.2 $1,160.2

FY'20 $742.4 541.8 $1,284.2

272.4

$1,409.3

$1,556.6

Software revenue

Support, entitlements & other services revenue

Total software and support (TCV) revenue

Change in software and support (TCV)

deferred revenue, net of acquisitions

Total software and support (TCV) billings

Q1'20 $182.7 122.4 $305.1

Q2'20 $205.0 133.2 $338.2

Q3'20 $177.0 137.5 $314.5

$177.7 $155.0 148.8 157.0 $326.5 $312.0

65.2

81.3

65.2

60.6 22.2

$370.3

$419.5

$379.7

$387.1 $334.2

Total revenue

Change in deferred revenue, net of acquisitions

Total billings

Q2'18 to

Q2'19

FY'19

FY'20

Q1'20

Q2'20

Q3'20

Q4'20

Q1'21

$1,193.1

$1,236.2

$1,307.7

$314.8

$346.8

$318.3

$327.9 $312.7

292.6

278.5

272.4

65.2

81.3

65.2

60.6 22.2

$1,485.7

$1,514.7

$1,580.1

$380.0

$428.1

$383.5

$388.5 $334.9

Disaggregation of Billings and Revenue

$ Millions

FY'18	FY'19	FY'20	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Subscription revenue	$330.7	$648.4	$1,030.2	$217.9	$266.5	$261.0	$284.8	$278.2
Change in subscription deferred revenue, net of acquisitions	251.3	267.6	246.2	57.6	72.6	60.1	55.9	15.7
$582.0	$916.0	$1,276.4	$275.5	$339.1	$321.1	$340.7	$293.9
Non-portable software revenue	$544.0	$449.1	$208.1	$77.6	$59.1	$41.9	$29.5	$20.0
Change in non-portable software deferred revenue, net of acquisitions	-	-	-	-	-	-	-	-
$544.0	$449.1	$208.1	$77.6	$59.1	$41.9	$29.5	$20.0
$23.4	$33.3	$45.9	$9.6	$12.6	$11.6	$12.2	$13.8
Change in professional services deferred revenue, net of acquisitions	$10.8	$11.0	$26.2	7.6	8.7	5.1	4.7	6.5
$34.2	$44.3	$72.1	$17.2	$21.3	$16.7	$16.9	$20.3
$257.3	$105.3	$23.5	$9.7	$8.6	$3.8	$1.4	$0.7
Change in pass-through hardware deferred revenue, net of acquisitions	-	-	-	-	-	-	-	-
$257.3	$105.3	$23.5	$9.7	$8.6	$3.8	$1.4	$0.7
29%	52%	79%	69%	77%	82%	87%	89%
Non-portable software revenue mix	47%	36%	16%	25%	17%	13%	9%	7%
Professional services revenue mix	2%	3%	3%	3%	4%	4%	4%	4%
Pass-through hardware revenue mix	22%	9%	2%	3%	2%	1%	0%	0%
Total	100%	100%	100%	100%	100%	100%	100%	100%
Subscription billings mix	41%	60%	81%	73%	79%	84%	88%	88%
Non-portable software billings mix	38%	30%	13%	20%	14%	11%	8%	6%
Professional services billings mix	3%	3%	5%	4%	5%	4%	4%	6%
Pass-through hardware billings mix	18%	7%	1%	3%	2%	1%	0%	0%
Total	100%	100%	100%	100%	100%	100%	100%	100%

Subscription billings

Non-portable software billings

Professional services revenue

Professional services billings Pass-through hardware revenue

Pass-through hardware billingsSubscription revenue mix

GAAP to Non-GAAP Reconciliations

Gross margin (GAAP)

Stock-based compensation expense

Amortization of intangible assets Impairment of lease-related assets

Gross margin (Non-GAAP)

Operating expenses (GAAP) Stock-based compensation expense

Amortization of intangible assets Impairment of lease-related assets

Other

Operating expenses (Non-GAAP)

Net loss per share (GAAP) Stock-based compensation expense

Amortization of intangible assets

Impairment of lease-related assets

Amortization of debt discount and issuance costs

Change in fair value of derivative liability

Income tax-related adjustments Net loss per share (Non-GAAP)

Net cash provided by operating activities

Purchases of property and equipment

Free cash flow (Non-GAAP)

Q1'20	Q2'20	Q3'20	Q4'20	Q1'21	FY'17	FY'18	FY'19	FY'20
77.1%	78.3%	77.3%	79.6%	78.3%	61.3%	66.6%	75.4%	78.1%
1.8	1.8	2.3	2.3	2.3	1.6	1.0	1.5	2.1
1.2	1.1	1.1	1.1	1.2	0.2	0.5	1.2	1.1
-	0.2	-	-	0.1	-	-	-	-
80.1%	81.4%	80.7%	83.0%	81.9%	63.1%	68.1%	78.1%	81.3%
$(462.9)	$(478.6)	$(476.2)	$(432.3)	$(426.9)
75.6	79.0	84.8	85.3	81.9
0.6	0.6	0.6	0.7	0.7
-	2.5	-	-	2.5
0.4	0.2	0.5	0.5	0.6

$(386.3) $(396.3) $(390.3) $(345.8) $(341.2)

$(1.21) 0.43 0.03 - 0.04 - -

$(1.13) 0.44 0.03 0.02

• 0.04 0.04

- -

$(0.71)

$(0.60)

$(26.2) (18.2)

$(52.5) (21.2)

$(44.4)

$(73.7)

Note: All amounts in millions, except per share amounts and percentages.

$(1.23) 0.48 0.02 -

• $(0.93) $(1.31)

• 0.47 0.44

• 0.02 0.02

- 0.02

0.04 0.07

- -

- 0.32

0.01

-

$(0.69)

• $(0.39) $(0.44)

  $(84.9)

• $3.6 $(4.1)

• (32.6) (17.4) (12.2)

$(117.5)

$(13.8)

$(16.3)