Pure Storage: Fiscal 4Q23 Financial Results

Pure Storage, Inc. announced financial results for its fiscal fourth quarter and full year 2023 ended February 5, 2023.

“Pure continued to grow faster than the market this year with the industry’s most advanced, reliable, and energy-efficient products and services,” said Charles Giancarlo, chairman and CEO. “Despite current macro conditions, we remain confident in our ability to execute, manage costs, and maintain a strong innovation cycle, highlighted by today’s introduction of FlashBlade//E.“

4FQ23 and FY highlights

• 4FQ23 revenue $810.2 million, up 14% Y/Y
• Full-year revenue $2.8 billion, up 26% Y/Y
• 4FQ23 subscription services revenue $265.1 million, up 23% Y/Y
  Full-year subscription services revenue $961.3 million, up 30% Y/Y
• 4FQ23 subscription annual recurring revenue (ARR) $1.1 billion, up 30% Y/Y
• Remaining performance obligations (RPO) $1.8 billion, up 24% Y/Y
• 4FQ23 GAAP gross margin 69.3%; non-GAAP gross margin 70.8%
• FY23 GAAP gross margin 68.9%; non-GAAP gross margin 70.7%
• 4FQ23 GAAP operating income $64.6 million; non-GAAP operating income $158.6 million
• Full-year GAAP operating income $83.5 million; non-GAAP operating income $457.2 million
• 4FQ23 GAAP operating margin 8.0%; non-GAAP operating margin 19.6%
• Full-year GAAP operating margin 3.0%; non-GAAP operating margin 16.6%
• 4FQ23 operating cash flow $233.0 million; free cash flow $172.8 million
• Full-year operating cash flow $767.2 million; free cash flow $609.1 million
• Total cash, cash equivalents, and marketable securities $1.6 billion
• Returned approximately $67.5 million and $219.0 million in 4FQ23 and FY23, respectively, to stockholders through share repurchases of 2.4 million shares and 7.8 million shares, respectively
• Authorized incremental share repurchases of up to an additional $250 million under its stock repurchase program

“Pure delivered strong 4FQ23 results growing revenue 14% and achieving record operating profit and margin,” said Kevan Krysler, CFO. “We are confident that we will navigate the current macro backdrop, while focusing on our commitment to deliver long-term, profitable growth.“

FY24 outlook

• Revenue: mid to high single digit Y/Y growth
• Non-GAAP operating margin: 15%

Share repurchase authorization
The board of directors has authorized, and its audit committee has approved, incremental share repurchases of up to an additional $250 million under its stock repurchase program. The authorization allows Pure to repurchase shares of its Class A common stock opportunistically and will be funded from available working capital. Repurchases may be made at management’s discretion from time to time on the open market through privately negotiated transactions, transactions structured through investment banking institutions, block purchase techniques, 10b5-1 trading plans, or a combination of the foregoing. The repurchase program does not have an expiration date, does not obligate the company to acquire any of its common stock, and may be suspended or discontinued by the company at any time without prior notice.