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2017 Press Releases

November 30, 2017

Pure Storage - Things Are Getting Serious

Comment From DSA Editor:

Based on Pure Storage’s third quarter fiscal 2018 financial results, they are now on course to become a billion-dollar company - and that has to be taken seriously.

Their revenue continues to grow impressively with a lot of repeat business.

Their international business is getting stronger (31%, up from 26% last quarter – also an all-time high for the company), which is a good indicator.

They still make massive losses, but the losses are getting smaller each quarter and at the same time, revenue is growing. They predict non-GAAP profit next quarter, but GAAP profit looks unlikely.

Pure Storage seem to be the real deal now and they're here to stay - BUT we still think it’s going take something special to get them to the point where they actually make money.
 
Highlights of the financials and full press release follows:
 
Pure Storage Announces Third Quarter Fiscal 2018 Financial Results

Pure Storage (NYSE: PSTG) today announced financial results for its third quarter ended October 31, 2017.

Key quarterly business and financial highlights include:

  • Record quarterly revenue: $278 million, up 41% Y/Y, 2% ahead of midpoint of guidance
  • Quarterly gross margin: 65.5% GAAP; 66.4% non-GAAP
  • Quarterly operating margin: -15.1% GAAP; -0.7% non-GAAP, up 24.6 ppts and 9.1 ppts Y/Y, respectively
  • Raising full-year fiscal 2018 revenue guidance to between $1.012 billion and $1.020 billion and non-GAAP operating margin guidance to between -4.9% and -3.5%

"Pure has built a platform that allows customers to build a better world with data," said Pure Storage CEO Charlie Giancarlo. "Pure offers a simpler, more effective, and agile solution for data-rich applications like artificial intelligence."
 
In the quarter, more than 300 new customers joined Pure Storage, increasing the total to more than 4,000 organizations, including more than 25% of the Fortune 500. A few new customer wins in the quarter include: NASA Goddard, Krispy Kreme, John Lewis PLC, Movado Group, Weave Communications, Comodo Group, and Pronto Software.
 
"We had an excellent quarter, highlighted by strong revenue growth, positive free cash flow, and a continued march toward profitability," said Pure Storage CFO Tim Riitters. "We are excited to be fast approaching the $1 billion annual revenue mark and our first profitable quarter on a non-GAAP basis."
 
Third Quarter Fiscal 2018 Financial Highlights
 
The following tables summarize our consolidated financial results for the fiscal quarters ended October 31, 2017 and 2016 (in millions except percentages and per share amounts, unaudited):



A reconciliation between GAAP and non-GAAP information is provided at the end of this release.

Financial Outlook
 
Pure Storage's fourth quarter fiscal 2018 guidance is as follows:

  • Revenue in the range of $327 million to $335 million
  • Non-GAAP gross margin in the range of 63.5% to 66.5%
  • Non-GAAP operating margin in the range of 3.0% to 7.0%

Pure Storage's full year fiscal 2018 guidance is as follows:

  •  Revenue in the range of $1.012 billion to $1.020 billion
  • Non-GAAP gross margin in the range of 65.6% to 66.6%
  • Non-GAAP operating margin in the range of -4.9% to -3.5%

All forward-looking non-GAAP financial measures contained in this section titled "Financial Outlook" exclude stock-based compensation expense, payroll tax expense related to stock-based activities and, as applicable, other special items. We have not reconciled guidance for non-GAAP gross margin and non-GAAP operating margin to their most directly comparable GAAP measures because such items that impact these measures are not within our control and/or cannot be reasonably predicted. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measures is not available without unreasonable effort.