https://investor.purestorage.com/news-and-events/press-relea…
Key quarterly financial highlights include:
Record revenue: $338.3 million, up 48% Y/Y, 2% ahead of the midpoint of guidance; Record full year revenue: $1.023 billion, up 41% Y/Y.
Record operating margin: -4.7% GAAP; 8.3% non-GAAP, up 13.9 ppts and 10.2 ppts Y/Y, respectively, marking Pure’s first profitable quarter on a non-GAAP basis.
Record operating cash flow of $59.0 million and free cash flow of $38.3 million, and record full-year operating cash flow of $72.8 million and free cash flow of $7.7 million.
“This quarter marks an important milestone for Pure surpassing $1 billion in annual sales and achieving non-GAAP profitability,” said Charles Giancarlo, CEO of Pure Storage. “Momentum in the business is strong as we continue our drive to help customers turn data into intelligence and advantage.”
Crossing a billion of revenue, achieving non-GAAP profitability and positive free cash flow starting all sound like pretty nice things to me.
7 Likes
Maybe all of that was already baked into the price though?
Looks like a >5% drop here early on in the after-hours.
Down 8% AH.
My guess is dropping from 48% topline growth to 30-35% for the year is harming the stock.
1 Like
Down 8% AH.
My guess is dropping from 48% topline growth to 30-35% for the year is harming the stock.
Probably so. Wonder if their forecasting uncertainty is similar to Arista’s, requiring their guidance to remain pretty conservative. Some of that should come through in the call, I would guess.
I listened to part of the call. The growth seems to be there pretty solidly for them.
I added about 1% to my position in the after-hours at $20.80/share, which should take it back up to a bit above a 6% position.
1 Like
First glance it looks like a really solid quarter. Growing top and bottom really fast.
We have discussed on this board and NPI a bit about the importance of the business model Evergreen. This, as it’s been discussed, is the recurring revenue service that Pure describes as “Storage as a Service”.
I’d like to point out on slide #5 that growth of “Support Revenue” has outpaced “Product Revenue” every quarter listed. That support revenue has also grown every quarter sequentially, including the dreaded Q4 to Q1 that normally sees a decline for these types of companies (As ANET just got swacked for). It is now greater than 25% of total revenue.
Looking forward to reading the call and find out more, particularly on Flashblade. I thought guidance was very bullish, whole year pretty tough to nail down for these type of companies right off the bat. As they get closer to Q4 i wouldn’t be surprised to see full year raised a few times.
Darth
Also small positions in TTD, VEEV, and AAXN. Been a good week.
14 Likes