Q3 revenue growing 37% year-over-year
Subscription Services ARR $788 million, up 30% year-over-year
Raised FY22 revenue outlook to $2.1 billion
Today Pure Storage (NYSE: PSTG), the IT pioneer that delivers storage as-a-service in a multi-cloud world, announced financial results for its fiscal third quarter ended October 31, 2021.
“With Q3 revenue up 37% year-over-year and with increasing profitability, it’s clear that Pure continues to set the pace for the industry,” said Charles Giancarlo, Chairman and CEO, Pure Storage. “We’re delighted to provide cutting edge data services to customers and with our continued leadership in two Gartner Magic Quadrants.”
Third Quarter Financial Highlights
- Revenue $562.7 million, up 37% year-over-year
- Subscription Services revenue $187.8 million, up 38% year-over-year
- Subscription Annual Recurring Revenue (ARR) $788.3 million, up 30% year-over-year
- Remaining Performance Obligations (RPO) $1.2 billion, up 27% year-over-year
- GAAP gross margin 66.6%; non-GAAP gross margin 68.5%
- GAAP operating loss $(18.1) million; non-GAAP operating income $69.5 million
- GAAP operating margin (3.2)%; non-GAAP operating margin 12.3%
- Operating cash flow $127.0 million; free cash flow $101.3 million
- Total cash and investments $1.4 billion
“Our strong Q3 performance was fueled by increased customer demand and execution across the entire business,” said Kevan Krysler, CFO, Pure Storage. “We are in a great innovation cycle with our portfolio.”
Third Quarter Company Highlights and Achievements
- Gartner Magic Quadrant: A storage leader for eight consecutive years
- Magic Quadrant for Primary Storage Arrays: Gartner named Pure a storage leader eight years in a row and the second year in a row the company has been positioned highest on the ability to execute axis and furthest on the completeness of vision axis.
- Magic Quadrant for Distributed File Systems and Object Storage: Gartner positioned Pure as a leader in the rapidly growing storage market for unstructured data.
- Net Promoter Score (NPS) of 83.5: For six years running, Pure continues to maintain a market-leading NPS, taking the top 1% spot across Medallia benchmarked B2B scores.
- Significant announcements in Q3 bring infrastructure and applications closer together by enabling cloud-like automation and delivery of storage:
- Pure Fusion™, a self-service, autonomous storage-as-code platform built for limitless scale, lets customers bring the cloud operating model anywhere and run, operate, and consume traditional storage like a cloud service.
- Portworx® Data Services, a Database-as-a-Service platform for Kubernetes, lets DevOps engineers deploy a managed, production-grade data service with the click of a button.
Fourth Quarter and FY22 Guidance
| Q4 FY22 | FY22 | |
| Revenue | $630 million | $2.1 billion |
| Non-GAAP Operating Income | $90 million | $206 million |
| Non-GAAP Operating Margin | approx. 14% | approx. 10% |
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, a reconciliation of these non-GAAP financial measures guidance to the corresponding GAAP measures is not available without unreasonable effort.
Conference Call Information
Pure will host a teleconference to discuss the third quarter fiscal 2022 results at 1:30 pm PT today, November 23, 2021. 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 of completion of the call. A replay will be available following the call on the Pure Storage Investor Relations website or for two weeks at 800-585-8367 (or 416-621-4642 for international callers) with passcode 9027916.
Upcoming Events
Pure is scheduled to participate at the following investor conferences:
Wells Fargo Virtual 5th Annual TMT Summit
Date: Tuesday, November 30, 2021
Time: 11:00 am PST
Pure Presenters: Charles Giancarlo, Chairman and CEO, Kevan Krysler, CFO
Pure Participants: Rob Lee, VP and CTO, Sanjot Khurana, VP, Investor Relations
Credit Suisse 25th Annual Technology Conference
Date: Wednesday, December 1, 2021
Time: 1:10 pm MST
Pure Presenters: Charles Giancarlo, Chairman and CEO, Kevan Krysler, CFO
Pure Participants: Rob Lee, VP and CTO, Sanjot Khurana, VP, Investor Relations
UBS Virtual Global TMT Conference
Date: Monday, December 6, 2021
Pure Participants: Charles Giancarlo, Chairman and CEO, Kevan Krysler, CFO, Rob Lee, VP and CTO, and Sanjot Khurana, VP, Investor Relations
Barclays Virtual Global Technology, Media and Telecommunications Conference
Date: Tuesday, December 7, 2021
Pure Participants: Kevan Krysler, CFO, Rob Lee, VP and CTO, and Sanjot Khurana, VP, Investor Relations
Raymond James Virtual Technology Investors Conference
Date: Wednesday, December 8, 2021
Pure Participants: Charles Giancarlo, Chairman and CEO, Kevan Krysler, CFO, Rob Lee, VP and CTO, and Sanjot Khurana, VP, Investor Relations
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