Pure Storage: Fiscal 2Q24 Financial Results

(in $ million)	2Q23	2Q24	6 mo. 23	6 mo. 24
Revenue	646.8	688.7	1,267	1,278
*Growth*		6%		1%
Net income (loss)	10.9	(7.1)	(0.6)	(74.5)

Pure Storage, Inc. 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. “With the introduction of Pure’s //E family of products, customers can now store cost sensitive bulk data with the benefits of all flash.”

2FQ24 highlights
• Revenue $688.7 million, an increase of 6.5% Y/Y
• Subscription services revenue $288.9 million, up 24% Y/Y
• Subscription annual recurring revenue (ARR) $1.2 billion, up 27% Y/Y
• Remaining performance obligations (RPO) $1.9 billion, up 26% Y/Y
• 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 Y/Y 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. “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.”

Pure F

Comments

Revenue of $689 million in 2FQ24, grew 6.5% Y/Y and 17%, and exceeded guidance ($680 million).

The company achieved record sales of its entire FlashBlade portfolio, including
FlashBlade//E and saw continued high demand for its Evergreen//One subscription services as sales more than doubled Y/Y.

Subscription services revenue of $289 million comprised 42%,of total revenue, which is 6 points higher than 2FQ23.

In 2FQ24, subscriptions services annual recurring revenue grew 27% Y/Y to $1.2 billion, and included strong growth from its Evergreen//One storage-as-a-service offering.

US revenue for 2FQ24 was $495 million and international revenue was $194 million.

Pure acquired 325 new customers during the quarter and our total customer count now exceeds 12,000.

Customers
Pure F1 1693473626

The company has been shipping 48TB DFMs for the last 3 years, and will introduce 75TB DFM, later this year. Today, itss DFMs are 2x to 4x denser than the largest HDDss and SSDs in competitive use, and its advantage in density is accelerating. Roadmap calls for a
150TB DFM next year, and a 300TB DFM by 2026.

Subscription Annual Recurring Revenue
Pure F2 1693473625

Headcount increased slightly to 5,400 employees at the end of the quarter.

Annual revenue guidance previously communicated remains unchanged and assumes revenue growth in the mid-to-high single digits as the firm expects significantly stronger Y/Y revenue growth for 2FH24.

Revenue in $ million
(FY ended in January)

Period

Revenue

Y/Y growth

Net income (loss)

FY13

6.1

(23.4)

FY14

42.7

603%

(78.6)

FY15

174.5

308%

(183.2)

FY16

440.3

152%

(213.8)

FY17

728.0

65%

(245.1)

FY18

1,023

41%

(159.9)

FY19

1,360

33%

(178.4)

FY20

1,643

21%

(201.0)

FY21

1,684

(282.1)

1F22

412.7

12%

(84.2)

2F22

496.8

23%

(45.3)

3F22

562.7

29%

(28.7)

4F22

708.6

41%

14.9

FY22

2,181

30%

(143.3)

1F23

620.4

50%

(11.5)

2F23

646.8

30%

10.9

3F23

676.1

20%

(0.8)

4F23

810.2

14%

74.5

FY23

2,753

26%

73.1

1Q24

589.3

-5%

(67.4)

2Q24

688.7

(7.1)

3Q14 (estim.)

750

11%

FY24 (estim.)

Mid to high single digit growth Y/Y