Record sales for FlashBlade portfolio
including FB//E
Expect nearly $400
Million of Combined Annual Evergreen//One and
Evergreen//Flex Sales
Increased Operating Margin Annual
Guidance
SANTA
CLARA, Calif., Nov. 29,
2023 /PRNewswire/ -- 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 third
quarter fiscal 2024 ended November 5, 2023.
"Pure continues to see extraordinary growth in our Evergreen
Storage-as-a-Service consumption services providing customers with
a Cloud Operating Model for their multi-cloud infrastructure," said
Charles Giancarlo, Chairman and CEO,
Pure Storage. "And we have raised the bar for data storage
management with strong SLAs that guarantee no change management
downtime or disruption, and no future data migrations for hardware
changes or replacements — all while simplifying data storage
operations, optimizing cloud storage, and reducing costs."
Third Quarter Financial Highlights
- Revenue $762.8 million, an
increase of 13% year-over-year
- Subscription services revenue $309.6
million, up 26% year-over-year
- Subscription annual recurring revenue (ARR) $1.3 billion, up 26% year-over-year
- Remaining performance obligations (RPO) $2.0 billion, up 30% year-over-year
- GAAP gross margin 72.5%; non-GAAP gross margin 74.0%
- GAAP operating income $74.2
million; non-GAAP operating income $169.1 million
- GAAP operating margin 9.7%; non-GAAP operating margin
22.2%
- Operating cash flow $158.4
million; free cash flow $113.4
million
- Total cash, cash equivalents, and marketable securities
$1.35 billion
- Returned approximately $22.4
million in Q3 to stockholders through share repurchases of
0.6 million shares
"We are pleased to see strengthening demand across our data
storage platform, including the growth of our
Evergreen//One Storage-as-a-Service
offering, while also expanding our operating margin," said
Kevan Krysler, Chief Financial
Officer, Pure Storage. "Our business strategy continues to focus on
continually increasing the value we provide to our customers
including our consumption and subscription based offerings."
Third Quarter Company Highlights
- Industry-First Paid Power and Rack Commitment: In Q3,
Pure tackled the growing challenges of managing rising electricity
costs and rack unit space with the introduction of a first of its
kind program which will pay for its customers' power and rack space
through an Evergreen//One Storage
as-a-Service and Evergreen//Flex subscription, taking
responsibility for the associated costs of power and rack unit to
run our offerings.
- Storage as-a-Service Innovation: Already a leader in
service-level agreement (SLA) guarantees, Pure added three new SLA
guarantees for No Data Migration, Zero Data Loss, and Power and
Space Efficiency across its family of Evergreen (//Forever, //One,
//Flex) offerings.
- General Availability (GA) of FlashArray//E:
FlashArray//E has begun shipping, completing the //E family of
products. The combination of FlashArray//E and FlashBlade//E
starting from 1 PB, taking Pure's all-flash promise to the heart of
the now-legacy disk market.
- Leader in Gartner Magic Quadrant for Distributed File
Systems & Object Storage: Pure was named a leader for the
third consecutive year in the rapidly growing storage market for
unstructured data.
Fourth Quarter and FY24 Guidance
Q4 and FY24 revenue and revenue growth rates are reflective of
continuing outperformance and increased momentum in
Evergreen//One
Storage-as-a-Service.
|
Q4FY24
|
FY24
|
Revenue
|
$782M
|
$2.82B
|
Non-GAAP Operating
Income
|
$150M
|
$450M
|
Non-GAAP Operating
Margin
|
19 %
|
16 %
|
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 third quarter
fiscal 2024 results at 2:00 pm PT
today, November 29, 2023. A live audio broadcast of the
conference call will be available on the Pure Storage Investor
Relations website. Pure will also post its earnings presentation
and prepared remarks to this website concurrent with this
release.
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 1-647-362-9199 for international callers) with
passcode 5667482.
Additionally, Pure is scheduled to participate at the following
investor conferences:
UBS Global Technology Conference
Date: Thursday, November 30, 2023
Time: 7:55 a.m. PT / 10:55 a.m. ET
Chief Technology Officer Rob Lee
Barclays Global Technology Conference
Date:
Wednesday, December 6, 2023
Time: 12:45 p.m. PT / 3:45 p.m. ET
Chairman and CEO Charles Giancarlo,
and CFO Kevan Krysler
The presentations will be webcast live and archived on Pure's
Investor Relations website at investor.purestorage.com.
----
About Pure Storage
Pure Storage (NYSE: PSTG) uncomplicates data storage, forever.
Pure delivers a cloud experience that empowers every organization
to get the most from their data while reducing the complexity and
expense of managing the infrastructure behind it. Pure's commitment
to providing true storage as-a-service gives customers the agility
to meet changing data needs at speed and scale, whether they are
deploying traditional workloads, modern applications, containers,
or more. Pure believes it can make a significant impact in reducing
data center emissions worldwide through its environmental
sustainability efforts, including designing products and solutions
that enable customers to reduce their carbon and energy footprint.
And with the highest Net Promoter Score in the industry, Pure's
ever-expanding list of customers are among the happiest in the
world. For more information, visit www.purestorage.com.
Analyst Recognition
Leader in the 2023 Gartner Magic Quadrant for Primary
Storage
Leader in the 2023 Gartner Magic Quadrant for Distributed File
Systems & Object Storage
Connect with Pure
Blog
LinkedIn
Twitter
Facebook
Pure Storage, the Pure P Logo, Portworx, and the marks on the
Pure Trademark List at
www.purestorage.com/legal/productenduserinfo.html are trademarks of
Pure Storage, Inc. Other names are trademarks of their respective
owners.
Forward Looking Statements
This press release contains forward-looking statements regarding
our products, business and operations, including but not limited to
our views relating to future period financial results, demand for
our products and subscription services, including Evergreen//One,
our technology and product strategy, specifically customer
priorities around sustainability, the benefits to our customers of
using our products, our ability to perform during current macro
conditions and expand market share, our sustainability goals and
benefits, the timing and magnitude of large orders, the impact of
inflation, economic or supply chain disruptions, our expectations
regarding our product and technology differentiation, including
FlashBlade//E and FlashArray//E, new customer acquisition, the
continued success of the Portworx technology, and other statements
regarding our products, business, operations and results.
Forward-looking statements are subject to known and unknown risks
and uncertainties and are based on potentially inaccurate
assumptions that could cause actual results to differ materially
from those expected or implied by the forward-looking
statements.
Actual results may differ materially from the results predicted,
and reported results should not be considered as an indication of
future performance. The potential risks and uncertainties that
could cause actual results to differ from the results predicted
include, among others, those risks and uncertainties included under
the caption "Risk Factors" and elsewhere in our filings and reports
with the U.S. Securities and Exchange Commission, which are
available on our Investor Relations website at
investor.purestorage.com and on the SEC website at www.sec.gov.
Additional information is also set forth in our Annual Report on
Form 10-K for the year ended February 5, 2023. All information
provided in this release and in the attachments is as of
November 29, 2023, and Pure undertakes no duty to update this
information unless required by law.
Key Business Metrics
Subscription ARR is a key business metric that refers to total
annualized contract value of all active subscription agreements on
the last day of the quarter, plus on-demand revenue for the quarter
multiplied by four.
Sales, or bookings, of Pure's Evergreen//One and Evergreen//Flex
offerings is an operating metric, representing the value of orders
received and/or expected to be received during the fiscal year.
Non-GAAP Financial Measures
To supplement our unaudited condensed consolidated financial
statements, which are prepared and presented in accordance with
GAAP, Pure uses the following non-GAAP financial measures: non-GAAP
gross profit, non-GAAP gross margin, non-GAAP operating income
(loss), non-GAAP operating margin, non-GAAP net income (loss),
non-GAAP net income (loss) per share, and free cash flow.
We use these non-GAAP financial measures for financial and
operational decision-making and as a means to evaluate
period-to-period comparisons. Our management believes that these
non-GAAP financial measures provide meaningful supplemental
information regarding our performance and liquidity by excluding
certain expenses and expenditures such as stock-based compensation
expense, payments to former shareholders of acquired companies,
payroll tax expense related to stock-based activities, amortization
of debt issuance costs related to debt, amortization of intangible
assets acquired from acquisitions, acquisition-related transaction
and integration expenses, and costs associated with the exit of
certain operations and closing of certain leased facilities that
may not be indicative of our ongoing core business operating
results. Pure believes that both management and investors benefit
from referring to these non-GAAP financial measures in assessing
our performance and when analyzing historical performance and
liquidity and planning, forecasting, and analyzing future periods.
The presentation of these non-GAAP financial measures is not meant
to be considered in isolation or as a substitute for our financial
results prepared in accordance with GAAP, and our non-GAAP measures
may be different from non-GAAP measures used by other
companies.
For a reconciliation of these non-GAAP financial measures to
GAAP measures, please see the tables captioned "Reconciliations of
non-GAAP results of operations to the nearest comparable GAAP
measures" and "Reconciliation from net cash provided by operating
activities to free cash flow," included at the end of this
release.
PURE STORAGE,
INC.
Condensed
Consolidated Balance Sheets
(in thousands,
unaudited)
|
|
|
|
At the End
of
|
|
|
Third Quarter of
Fiscal 2024
|
|
Fiscal
2023
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
529,191
|
|
$
580,854
|
Marketable
securities
|
|
821,868
|
|
1,001,352
|
Accounts receivable,
net of allowance of $1,178 and $1,057
|
|
636,324
|
|
612,491
|
Inventory
|
|
46,211
|
|
50,152
|
Deferred commissions,
current
|
|
74,303
|
|
68,617
|
Prepaid expenses and
other current assets
|
|
139,129
|
|
161,391
|
Total current
assets
|
|
2,247,026
|
|
2,474,857
|
Property and equipment,
net
|
|
337,559
|
|
272,445
|
Operating lease
right-of-use-assets
|
|
126,558
|
|
158,912
|
Deferred commissions,
non-current
|
|
190,614
|
|
177,239
|
Intangible assets,
net
|
|
36,868
|
|
49,222
|
Goodwill
|
|
361,427
|
|
361,427
|
Restricted
cash
|
|
9,960
|
|
10,544
|
Other assets,
non-current
|
|
45,497
|
|
38,814
|
Total
assets
|
|
$
3,355,509
|
|
$
3,543,460
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
101,092
|
|
$
67,121
|
Accrued compensation
and benefits
|
|
149,705
|
|
232,636
|
Accrued expenses and
other liabilities
|
|
141,241
|
|
123,749
|
Operating lease
liabilities, current
|
|
44,301
|
|
33,707
|
Deferred revenue,
current
|
|
801,562
|
|
718,149
|
Debt,
current
|
|
—
|
|
574,506
|
Total current
liabilities
|
|
1,237,901
|
|
1,749,868
|
Long-term
debt
|
|
100,000
|
|
—
|
Operating lease
liabilities, non-current
|
|
122,388
|
|
142,473
|
Deferred revenue,
non-current
|
|
694,945
|
|
667,501
|
Other liabilities,
non-current
|
|
51,820
|
|
42,385
|
Total
liabilities
|
|
2,207,054
|
|
2,602,227
|
Stockholders'
equity:
|
|
|
|
|
Common stock and
additional paid-in capital
|
|
2,699,676
|
|
2,493,799
|
Accumulated other
comprehensive loss
|
|
(10,032)
|
|
(15,504)
|
Accumulated
deficit
|
|
(1,541,189)
|
|
(1,537,062)
|
Total stockholders'
equity
|
|
1,148,455
|
|
941,233
|
Total liabilities and
stockholders' equity
|
|
$
3,355,509
|
|
$
3,543,460
|
PURE STORAGE,
INC.
Condensed
Consolidated Statements of Operations
(in thousands,
except per share data, unaudited)
|
|
|
Third Quarter of Fiscal
|
|
First Three Quarters
of Fiscal
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
Product
|
$
453,277
|
|
$
431,281
|
|
$ 1,161,978
|
|
$ 1,247,045
|
Subscription
services
|
309,561
|
|
244,769
|
|
878,838
|
|
696,182
|
Total
revenue
|
762,838
|
|
676,050
|
|
2,040,816
|
|
1,943,227
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Product
(1)
|
126,770
|
|
135,546
|
|
343,588
|
|
395,322
|
Subscription services
(1)
|
83,321
|
|
74,169
|
|
244,541
|
|
211,576
|
Total cost of
revenue
|
210,091
|
|
209,715
|
|
588,129
|
|
606,898
|
Gross profit
|
552,747
|
|
466,335
|
|
1,452,687
|
|
1,336,329
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development (1)
|
182,100
|
|
180,008
|
|
549,923
|
|
506,971
|
Sales and marketing
(1)
|
231,707
|
|
212,140
|
|
696,885
|
|
637,129
|
General and
administrative (1)
|
64,729
|
|
65,054
|
|
192,944
|
|
173,300
|
Impairment and other
(2)
|
—
|
|
—
|
|
16,766
|
|
—
|
Total operating
expenses
|
478,536
|
|
457,202
|
|
1,456,518
|
|
1,317,400
|
Income (loss) from
operations
|
74,211
|
|
9,133
|
|
(3,831)
|
|
18,929
|
Other income (expense),
net
|
5,184
|
|
(2,814)
|
|
23,619
|
|
(8,410)
|
Income before provision
for income taxes
|
79,395
|
|
6,319
|
|
19,788
|
|
10,519
|
Income tax
provision
|
9,006
|
|
7,106
|
|
23,915
|
|
11,919
|
Net income
(loss)
|
$
70,389
|
|
$
(787)
|
|
$
(4,127)
|
|
$
(1,400)
|
|
|
|
|
|
|
|
|
Net income (loss) per
share attributable to common
stockholders, basic
|
$
0.22
|
|
$
(0.00)
|
|
$
(0.01)
|
|
$
(0.00)
|
Net income (loss) per
share attributable to common
stockholders, diluted
|
$
0.21
|
|
$
(0.00)
|
|
$
(0.01)
|
|
$
(0.00)
|
Weighted-average shares
used in computing net
income (loss) per share attributable to common
stockholders, basic
|
314,153
|
|
300,984
|
|
309,842
|
|
298,101
|
Weighted-average shares
used in computing net
income (loss) per share attributable to common
stockholders, diluted
|
330,255
|
|
300,984
|
|
309,842
|
|
298,101
|
|
|
|
|
|
(1) Includes
stock-based compensation expense as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue --
product
|
$
1,443
|
|
$
2,984
|
|
$
7,056
|
|
$
7,454
|
Cost of revenue --
subscription services
|
6,849
|
|
5,814
|
|
19,347
|
|
16,978
|
Research and
development
|
43,908
|
|
42,390
|
|
126,225
|
|
120,482
|
Sales and
marketing
|
19,209
|
|
18,441
|
|
55,883
|
|
54,740
|
General and
administrative
|
16,557
|
|
17,350
|
|
46,732
|
|
45,460
|
Total stock-based
compensation expense
|
$
87,966
|
|
$
86,979
|
|
$
255,243
|
|
$
245,114
|
|
(2) Lease impairment
and abandonment charges associated with cease-use of our former
corporate headquarters
|
PURE STORAGE,
INC.
Condensed
Consolidated Statements of Cash Flows
(in thousands,
unaudited)
|
|
|
Third Quarter of Fiscal
|
|
First Three Quarters
of Fiscal
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
70,389
|
|
$
(787)
|
|
$
(4,127)
|
|
$
(1,400)
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
31,647
|
|
25,719
|
|
91,560
|
|
72,268
|
Stock-based
compensation expense
|
87,966
|
|
86,979
|
|
255,243
|
|
245,114
|
Lease impairment and
abandonment charges
|
—
|
|
—
|
|
16,766
|
|
—
|
Other
|
(2,814)
|
|
(558)
|
|
(5,843)
|
|
2,473
|
Changes in operating
assets and liabilities, net of effect of acquisition:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
(111,190)
|
|
(33,791)
|
|
(23,959)
|
|
106,216
|
Inventory
|
818
|
|
(3,849)
|
|
5,278
|
|
(16,341)
|
Deferred
commissions
|
(9,501)
|
|
549
|
|
(19,061)
|
|
11,175
|
Prepaid expenses and
other assets
|
20,044
|
|
(40,601)
|
|
19,686
|
|
(56,164)
|
Operating lease
right-of-use assets
|
6,763
|
|
9,253
|
|
26,398
|
|
26,073
|
Accounts
payable
|
7,533
|
|
29,065
|
|
33,844
|
|
22,536
|
Accrued compensation
and other liabilities
|
4,767
|
|
20,085
|
|
(52,757)
|
|
(17,739)
|
Operating lease
liabilities
|
(7,454)
|
|
(6,897)
|
|
(20,587)
|
|
(28,339)
|
Deferred
revenue
|
59,464
|
|
69,529
|
|
110,856
|
|
168,336
|
Net cash provided by
operating activities
|
158,432
|
|
154,696
|
|
433,297
|
|
534,208
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
Purchases of property
and equipment (1)
|
(45,062)
|
|
(39,916)
|
|
(151,591)
|
|
(97,910)
|
Acquisition, net of
cash acquired
|
—
|
|
—
|
|
—
|
|
(1,989)
|
Purchases of
marketable securities
|
(105,108)
|
|
(74,878)
|
|
(351,725)
|
|
(92,129)
|
Sales of marketable
securities
|
3,747
|
|
—
|
|
52,495
|
|
—
|
Maturities of
marketable securities
|
109,196
|
|
111,302
|
|
495,899
|
|
352,295
|
Net cash provided by
(used in) investing activities
|
(37,227)
|
|
(3,492)
|
|
45,078
|
|
160,267
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
Net proceeds from
exercise of stock options
|
3,056
|
|
3,867
|
|
32,904
|
|
19,131
|
Proceeds from issuance
of common stock under employee stock purchase plan
|
23,870
|
|
20,569
|
|
45,089
|
|
39,965
|
Principal payments on
borrowings and finance lease obligations
|
(7,515)
|
|
(4,568)
|
|
(584,582)
|
|
(256,145)
|
Proceeds from
borrowings
|
6,890
|
|
—
|
|
106,890
|
|
—
|
Tax withholding on
vesting of equity awards
|
(4,755)
|
|
(3,143)
|
|
(16,582)
|
|
(16,130)
|
Repurchases of common
stock
|
(22,460)
|
|
(24,565)
|
|
(114,341)
|
|
(151,564)
|
Net cash used in
financing activities
|
(914)
|
|
(7,840)
|
|
(530,622)
|
|
(364,743)
|
Net increase (decrease)
in cash, cash equivalents and restricted cash
|
120,291
|
|
143,364
|
|
(52,247)
|
|
329,732
|
Cash, cash equivalents
and restricted cash, beginning of period
|
418,860
|
|
663,111
|
|
591,398
|
|
476,743
|
Cash, cash equivalents
and restricted cash, end of period
|
$
539,151
|
|
$
806,475
|
|
$
539,151
|
|
$
806,475
|
|
(1) Includes
capitalized internal-use software costs of $5.1 million and
$3.7 million for the third quarter of fiscal 2024 and 2023 and
$15.7 million and $10.5 million for the first three quarters
of fiscal 2024 and 2023.
|
Reconciliations of non-GAAP results of operations to the
nearest comparable GAAP measures
The following table presents non-GAAP gross margins by revenue
source before certain items (in thousands except percentages,
unaudited):
|
|
Third Quarter of Fiscal
2024
|
|
Third Quarter of Fiscal
2023
|
|
|
GAAP
results
|
|
GAAP
gross
margin (a)
|
|
Adjustment
|
|
|
|
Non-
GAAP
results
|
|
Non-
GAAP
gross
margin (b)
|
|
GAAP
results
|
|
GAAP
gross
margin (a)
|
|
Adjustment
|
|
|
|
Non-
GAAP
results
|
|
Non-
GAAP
gross
margin (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 1,443
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$ 2,984
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
75
|
|
(d)
|
|
|
|
|
|
|
|
|
|
46
|
|
(d)
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
251
|
|
(e)
|
|
|
|
|
|
|
|
|
|
|
3,306
|
|
(f)
|
|
|
|
|
|
|
|
|
|
3,306
|
|
(f)
|
|
|
|
|
Gross profit --
product
|
|
$
326,507
|
|
72.0 %
|
|
$ 4,824
|
|
|
|
$ 331,331
|
|
73.1 %
|
|
$
295,735
|
|
68.6 %
|
|
$ 6,587
|
|
|
|
$
302,322
|
|
70.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 6,849
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$ 5,814
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
329
|
|
(d)
|
|
|
|
|
|
|
|
|
|
204
|
|
(d)
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
269
|
|
(e)
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
24
|
|
(g)
|
|
|
|
|
Gross profit
--
subscription
services
|
|
$
226,240
|
|
73.1 %
|
|
$ 7,178
|
|
|
|
$ 233,418
|
|
75.4 %
|
|
$
170,600
|
|
69.7 %
|
|
$ 6,311
|
|
|
|
$
176,911
|
|
72.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 8,292
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$ 8,798
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
404
|
|
(d)
|
|
|
|
|
|
|
|
|
|
250
|
|
(d)
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
520
|
|
(e)
|
|
|
|
|
|
|
|
|
|
|
3,306
|
|
(f)
|
|
|
|
|
|
|
|
|
|
3,306
|
|
(f)
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
24
|
|
(g)
|
|
|
|
|
Total gross
profit
|
|
$
552,747
|
|
72.5 %
|
|
$
12,002
|
|
|
|
$ 564,749
|
|
74.0 %
|
|
$
466,335
|
|
69.0 %
|
|
$
12,898
|
|
|
|
$
479,233
|
|
70.9 %
|
|
(a) GAAP gross margin
is defined as GAAP gross profit divided by revenue.
|
(b) Non-GAAP gross
margin is defined as non-GAAP gross profit divided by
revenue.
|
(c) To eliminate
stock-based compensation expense.
|
(d) To eliminate
payroll tax expense related to stock-based activities.
|
(e) To eliminate
duplicate lease costs during the transition of our corporate
headquarters.
|
(f) To eliminate
amortization expense of acquired intangible assets.
|
(g) To eliminate
payments to former shareholders of acquired company.
|
The following table presents certain non-GAAP consolidated
results before certain items (in thousands, except per share
amounts and percentages, unaudited):
|
Third Quarter of Fiscal
2024
|
|
Third Quarter of Fiscal
2023
|
|
GAAP
results
|
|
GAAP
operating
margin (a)
|
|
Adjustment
|
|
|
|
Non-
GAAP
results
|
|
Non-
GAAP
operating
margin (b)
|
|
GAAP
results
|
|
GAAP
operating
margin (a)
|
|
Adjustment
|
|
|
Non-
GAAP
results
|
|
Non-
GAAP
operating
margin (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 87,966
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$ 86,979
|
|
(c)
|
|
|
|
|
|
|
|
|
580
|
|
(d)
|
|
|
|
|
|
|
|
|
|
1,479
|
|
(d)
|
|
|
|
|
|
|
|
|
2,604
|
|
(e)
|
|
|
|
|
|
|
|
|
|
2,098
|
|
(e)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
3,676
|
|
(f)
|
|
|
|
|
|
|
|
|
3,718
|
|
(g)
|
|
|
|
|
|
|
|
|
|
3,838
|
|
(g)
|
|
|
|
Operating
income
|
$
74,211
|
|
9.7 %
|
|
$ 94,868
|
|
|
|
$
169,079
|
|
22.2 %
|
|
$ 9,133
|
|
1.4 %
|
|
$ 98,070
|
|
|
$
107,203
|
|
15.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 87,966
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$ 86,979
|
|
(c)
|
|
|
|
|
|
|
|
|
580
|
|
(d)
|
|
|
|
|
|
|
|
|
|
1,479
|
|
(d)
|
|
|
|
|
|
|
|
|
2,604
|
|
(e)
|
|
|
|
|
|
|
|
|
|
2,098
|
|
(e)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
3,676
|
|
(f)
|
|
|
|
|
|
|
|
|
3,718
|
|
(g)
|
|
|
|
|
|
|
|
|
|
3,838
|
|
(g)
|
|
|
|
|
|
|
|
|
153
|
|
(h)
|
|
|
|
|
|
|
|
|
|
803
|
|
(h)
|
|
|
|
Net income
(loss)
|
$
70,389
|
|
|
|
$ 95,021
|
|
|
|
$
165,410
|
|
|
|
$
(787)
|
|
|
|
$ 98,873
|
|
|
$
98,086
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
per share -- diluted
|
$ 0.21
|
|
|
|
|
|
|
|
$
0.50
|
|
|
|
$
(0.00)
|
|
|
|
|
|
|
$ 0.31
|
|
|
Weighted-
average
shares used in
per share
calculation --
diluted
|
330,255
|
|
|
|
—
|
|
|
|
330,255
|
|
|
|
300,984
|
|
|
|
15,431
|
|
(i)
|
316,415
|
|
|
|
(a) GAAP operating
margin is defined as GAAP operating income divided by
revenue.
|
(b) Non-GAAP operating
margin is defined as non-GAAP operating income divided by
revenue.
|
(c) To eliminate
stock-based compensation expense.
|
(d) To eliminate
payments to former shareholders of acquired company.
|
(e) To eliminate
payroll tax expense related to stock-based activities.
|
(f) To eliminate
duplicate lease costs during the transition of our corporate
headquarters.
|
(g) To eliminate
amortization expense of acquired intangible assets.
|
(h) To eliminate
amortization expense of debt issuance costs related to our
debt.
|
(i) To include effect
of dilutive securities (employee stock options, restricted stock,
and shares from employee stock purchase plan).
|
Reconciliation from net cash provided by operating activities
to free cash flow (in thousands except percentages,
unaudited):
|
Third Quarter of Fiscal
|
|
2024
|
|
2023
|
Net cash provided by
operating activities
|
$
158,432
|
|
$
154,696
|
Less: purchases of
property and equipment (1)
|
(45,062)
|
|
(39,916)
|
Free cash flow
(non-GAAP)
|
$
113,370
|
|
$
114,780
|
|
(1) Includes
capitalized internal-use software costs of $5.1 million and
$3.7 million for the third quarter of fiscal 2024 and
2023.
|
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SOURCE Pure Storage