Record sales quarter for FlashBlade portfolio
Doubled subscription sales year-over-year for Evergreen//One
Increased operating margin annual guidance
Today Pure Storage (NYSE: PSTG), the IT pioneer that delivers the world’s most advanced data storage technology and services, announced financial results for its second quarter fiscal 2024 ended August 6, 2023.
“Customers have responded enthusiastically to Pure’s new ability to satisfy all of their data storage needs on a single, consistent, flash data storage and management platform,” said Charles Giancarlo, Chairman and CEO, Pure Storage. “With the introduction of Pure’s //E family of products, customers can now store cost sensitive bulk data with the benefits of all flash.”
Second Quarter Financial Highlights
- Revenue $688.7 million, an increase of 6.5% year-over-year
- Subscription services revenue $288.9 million, up 24% year-over-year
- Subscription annual recurring revenue (ARR) $1.2 billion, up 27% year-over-year
- Remaining performance obligations (RPO) $1.9 billion, up 26% year-over-year
- GAAP gross margin 70.7%; non-GAAP gross margin 72.8%
- GAAP operating loss $(6.2) million; non-GAAP operating income $111.8 million
- GAAP operating margin (0.9)%; non-GAAP operating margin 16.2%
- Operating cash flow $101.6 million; free cash flow $46.5 million
- Total cash, cash equivalents, and marketable securities $1.2 billion
- Returned approximately $22.0 million in Q2 to stockholders through share repurchases of 0.6 million shares
“We were very pleased with record sales across our FlashBlade portfolio, and doubling sales of our Evergreen//One subscription offering this quarter,” said Kevan Krysler, CFO, Pure Storage. “With our Purity software working directly with raw flash, we have established substantial differentiated advantages and business value for our customers, while at the same time expanding our margins.”
Second Quarter Company Highlights
- Platform Innovation: Pure expanded the Pure//E™ family of products with the all-new FlashArray//E™, meeting the needs of the secondary storage market at prices competitive to 7200 RPM hard disk systems, with a fraction of the power, space, and operational costs. Pure introduced a new ransomware SLA guarantee for Evergreen//One™ and enhanced AIOps capabilities, offering customers advanced data resilience, enabling organizations to benefit from a comprehensive data protection strategy. In addition, Pure introduced the next generation FlashArray//X™ and FlashArray//C™ models, delivering the largest ever performance, efficiency, and security advancements to customers.
- Awards in AI and Cloud-Native Software: AIRI//S, Pure’s next-gen AI-ready infrastructure, was recognized by AI Breakthrough Awards as the Best AI Solution for Big Data. Portworx by Pure Storage was recognized as a leader in kubernetes storage by GigaOm for the fourth consecutive year.
- New Global Headquarters: Pure opened its new global corporate headquarters in Santa Clara, California to provide state-of-the-art support to employees and customers as the company’s industry-leading innovations continue to drive strong growth. Pure was also recognized by Fortune’s Best Workplaces in the Bay Area and was again certified as a Great Place to Work®.
Third Quarter and FY24 Guidance
| Q3FY24 | FY24 | |
| Revenue | $760M | Mid to High Single Digit Y/YGrowth |
| Non-GAAP Operating Income | $135M | – |
| Non-GAAP Operating Margin | 17.8 % | 15.5 % |
These statements are forward-looking and actual results may differ materially. Refer to the Forward Looking Statements section below for information on the factors that could cause our actual results to differ materially from these statements. Pure has not reconciled its guidance for non-GAAP operating income and non-GAAP operating margin to their most directly comparable GAAP measures because certain items that impact these measures are not within Pure’s control and/or cannot be reasonably predicted. Accordingly, reconciliations of these non-GAAP financial measures guidance to the corresponding GAAP measures are not available without unreasonable effort.
Conference Call Information
Pure will host a teleconference to discuss the second quarter fiscal 2024 results at 2:00 pm PT today, August 30, 2023. A live audio broadcast of the conference call will be available at the Pure Storage Investor Relations website, investor.purestorage.com. Pure will also post its earnings presentation to this website in advance of the call and post its prepared remarks to this website within 24 hours following completion of the call.
A replay will be available following the call on the Pure Storage Investor Relations website or for two weeks at 1-800-770-2030 (or +44 647 362 9199 for international callers) with passcode 5667482.
Additionally, Pure is scheduled to participate at the following investor conference or event:
Goldman Sachs Communacopia + Technology Conference
Date: Tuesday, September 5, 2023
Time: 11:30 a.m. PT / 2:30 p.m. ET
Kevan Krysler, CFO and Rob Lee, CTO
The presentation will be webcast live and archived on Pure’s Investor Relations website at investor.purestorage.com.
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