MOUNTAIN VIEW, Calif.,
Nov. 30, 2016 /PRNewswire/ -- Pure
Storage (NYSE: PSTG) today announced financial results for its
fiscal third quarter ended October 31,
2016.
Key financial highlights include:
- Quarterly revenue: $197.0
million, up 50% Y/Y, and ahead of the guidance range of
$187 million to $195 million.
- Quarterly gross margin: 64.8% GAAP; 65.5% non-GAAP, up 3.7 ppts
and 3.8 ppts Y/Y, respectively, and in line with non-GAAP gross
margin guidance of 64% to 67%.
- Quarterly operating margin: -39.7% GAAP; -9.8% non-GAAP, up 2.6
ppts and 11.6 ppts Y/Y, respectively, and ahead of non-GAAP
operating margin guidance of -17.5% to -13.5%.
"Pure Storage continues to rewrite the rules for the data
storage industry," said Pure Storage CEO Scott Dietzen. "We again reported
better-than-expected financial performance, driven by customer
enthusiasm for our smarter approach to enterprise storage. In a
world dominated by big data and cloud computing, Pure's
software-centric approach is the right solution at the right
time."
"We are excited about our record Q3 revenue and significant
operating leverage improvement," said Pure Storage CFO Tim Riitters. "We continue to focus on driving
growth and market share gains with a close eye on
profitability."
Over 300 new customers joined Pure Storage this quarter,
increasing the total to more than 2,600 organizations, including
more than 100 of the Fortune 500. New customer wins in the quarter
include: Hyatt Hotels Corporation, Cushman & Wakefield, Academy
Award-winning animation studio LAIKA, Bill.com and CallidusCloud,
among others. New FlashBlade customer wins include: CUProdigy, a
technology organization delivering private cloud solutions for
credit unions, and Paylocity, a developer of industry-leading,
cloud-based payroll and human capital management software solutions
for medium-sized organizations.
Third Quarter Fiscal 2017 Financial Highlights
The following tables summarize our consolidated financial
results for the fiscal quarters ended October 31, 2015 and 2016 (in millions except per
share amounts, unaudited):
GAAP Quarterly
Financial Information
|
|
Three Months
Ended
October 31, 2015
|
Three Months
Ended
October 31, 2016
|
Y/Y
Change
|
Revenue
|
$131.4
|
$197.0
|
50%
|
Gross
Margin
|
61.1%
|
64.8%
|
3.7 ppts
|
Product Gross
Margin
|
63.0%
|
65.9%
|
2.9 ppts
|
Support Gross
Margin
|
49.1%
|
59.9%
|
10.8 ppts
|
Operating
Loss
|
-$55.6
|
-$78.2
|
-$22.6
|
Operating
Margin
|
-42.3%
|
-39.7%
|
2.6 ppts
|
Net Loss
|
-$56.5
|
-$78.8
|
-$22.3
|
Net Loss per
Share
|
-$0.76
|
-$0.40
|
$0.36
|
Weighted-Average
Shares (Basic and Diluted)
|
74.6
|
195.8
|
N/A
|
Non-GAAP Quarterly
Financial Information
|
|
Three Months
Ended
October 31, 2015
|
Three Months
Ended
October 31, 2016
|
Y/Y
Change
|
Gross
Margin
|
61.7%
|
65.5%
|
3.8 ppts
|
Product Gross
Margin
|
63.1%
|
66.0%
|
2.9 ppts
|
Support Gross
Margin
|
52.8%
|
63.2%
|
10.4 ppts
|
Operating
Loss*
|
-$28.1
|
-$19.4
|
$8.7
|
Operating
Margin*
|
-21.4%
|
-9.8%
|
11.6 ppts
|
Net Loss*
|
-$29.1
|
-$20.0
|
$9.1
|
Net Loss per
Share*
|
-$0.18
|
-$0.10
|
$0.08
|
Weighted-Average
Shares (Basic and Diluted)
|
164.9
|
195.8
|
N/A
|
Free Cash
Flow*
|
-$13.0
|
-$35.8
|
-$22.8
|
*In the three months ended October 31,
2016, operating loss, operating margin, net loss, net loss
per share and free cash flow exclude a one-time cash charge of
$30.0 million or 15 cents per share related to a legal
settlement.
A reconciliation between GAAP and non-GAAP information is
provided at the end of this release.
Financial Outlook
Fourth Quarter Fiscal 2017 Guidance:
- Revenue in the range of $219 million to
$227 million
- Non-GAAP gross margin in the range of 64% to 67%
- Non-GAAP operating margin in the range of -9% to -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.
Conference Call Information
Pure Storage will host a teleconference to discuss the third
quarter of fiscal 2017 results at 2:00 p.m.
(PT) on November 30, 2016.
Pure Storage will post its supplemental earnings presentation to
the investor relations website at investor.purestorage.com
following the conference call. Teleconference details are as
follows:
- To Listen via Telephone: (877) 201-0168 or (647) 788-4901 (for
international callers).
- To Listen via the Internet: A live and replay audio broadcast
of the conference call with corresponding slides will be available
at investor.purestorage.com.
- Replay: A telephone playback of this conference call is
scheduled to be available beginning at 5
p.m. (PT) on November 30, 2016
through 9 p.m. (PT) on January 13, 2017. The replay will be accessible
by calling (855) 859-2056 or (404) 537-3406 (for international
callers), with conference ID 91385195. The call runs 24 hours per
day, including weekends.
CEO Commentary
Pure Storage has posted a blog from its CEO discussing third
quarter results at investor.purestorage.com and
blog.purestorage.com.
Upcoming Investor Conferences
Matt Kixmoeller, Pure Storage's
Vice President of Product, will participate in a fireside chat at
the Raymond James Technology Investors Conference in New York on Monday,
December 5, 2016 at 4:10 p.m.
(ET).
Scott Dietzen, Pure Storage's
CEO, and Tim Riitters, Pure
Storage's CFO, will participate in a fireside chat at the Barclays
Global Technology, Media and Telecommunications Conference in
San Francisco on Wednesday, December 7, 2016 at 11:00 a.m. (PT).
About Pure Storage
Pure Storage (NYSE: PSTG) helps companies push the boundaries of
what's possible. The company's all-flash based technology, combined
with its customer-friendly business model, drives business and IT
transformation with Smart Storage that is effortless, efficient and
evergreen. Pure Storage offers two flagship products:
FlashArray//M, optimized for structured workloads, and FlashBlade,
ideal for unstructured data. With Pure's industry leading
Satmetrix-certified NPS score of 83.5, Pure customers are some of
the happiest in the world, and include organizations of all sizes,
across an ever-expanding range of industries.
Connect with Pure Storage:
Read the blog
Converse on Twitter
Follow on LinkedIn
Analyst Recognition:
Gartner Magic Quadrant for
Solid-State Arrays
IDC MarketScape for All-Flash Arrays
Pure Storage, Evergreen, FlashBlade and the "P" Logo mark are
trademarks of Pure Storage, Inc. All other trademarks or names
referenced in this document are the property of their respective
owners.
Forward Looking Statements
This press release contains forward-looking statements regarding
our products, business and operations, including our expectations
regarding technology differentiation, customer adoption and
business model advantages, our ability to maintain growth and take
market share, and our financial outlook for the fourth quarter of
fiscal 2017 and statements regarding our products, business,
operations and results, including progress towards
profitability. 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 captions "Risk Factors" and
elsewhere in our filings and reports with the U.S. Securities and
Exchange Commission, including, but not limited to, our Annual
Report on Form 10-K for the fiscal year ended January 31, 2016, which is available on our
investor relations website at investor.purestorage.com and on the
SEC website at www.sec.gov. Additional information will also be set
forth in our Quarterly Report on Form 10-Q for the quarter ended
October 31, 2016. All information
provided in this release and in the attachments is as of
November 30, 2016, and we undertake
no duty to update this information unless required by law.
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements,
which are prepared and presented in accordance with GAAP, we use
the following non-GAAP financial measures: non-GAAP gross profit,
non-GAAP gross margin, non-GAAP loss from operations, non-GAAP
operating margin, non-GAAP net loss, non-GAAP net loss per share,
free cash flow, and free cash flow as a percentage of revenue. In
computing these non-GAAP financial measures, we exclude the effects
of stock-based compensation expense, payroll tax expense related to
stock-based activities and assumed preferred stock
conversion. For the three months ended October 31, 2016, non-GAAP loss from operations,
non-GAAP operating margin, non-GAAP net loss, non-GAAP net loss per
share, free cash flow and free cash flow as a percentage of revenue
also exclude a one-time cash charge related to a legal settlement.
The presentation of this financial information is not intended to
be considered in isolation or as a substitute for, or superior to,
the financial information prepared and presented in accordance with
GAAP.
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 and one time legal settlement charge that may not be
indicative of our ongoing core business operating results. We
believe 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 used in operating
activities to free cash flow," included at the end of this
release.
PURE STORAGE,
INC.
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
|
|
|
|
|
|
|
As
of
|
|
As
of
|
|
|
January 31,
2016
|
|
October 31,
2016
|
|
|
|
|
(unaudited)
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and
cash equivalents
|
|
$
604,742
|
|
$
152,461
|
Marketable securities
|
|
-
|
|
365,785
|
Accounts
receivable, net of allowance of $944 and $2,414
|
|
126,324
|
|
163,038
|
Inventory
|
|
20,649
|
|
20,112
|
Deferred
commissions, current
|
|
15,703
|
|
14,298
|
Prepaid
expenses and other current assets
|
|
20,652
|
|
18,756
|
Total current
assets
|
|
788,070
|
|
734,450
|
Property and
equipment, net
|
|
52,629
|
|
82,088
|
Intangible assets,
net
|
|
6,980
|
|
6,936
|
Deferred income
taxes, non-current
|
|
536
|
|
1,074
|
Other long-term
assets
|
|
22,568
|
|
29,588
|
Total assets
|
|
$
870,783
|
|
$
854,136
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
38,187
|
|
$
43,412
|
Accrued
compensation and benefits
|
|
32,995
|
|
29,137
|
Accrued
expenses and other liabilities
|
|
14,076
|
|
20,545
|
Deferred
revenue, current
|
|
94,514
|
|
134,536
|
Liability related to early exercised stock options
|
|
4,760
|
|
3,967
|
Total current
liabilities
|
|
184,532
|
|
231,597
|
|
|
|
|
|
Deferred revenue,
non-current
|
|
121,690
|
|
141,849
|
Other long-term
liabilities
|
|
1,207
|
|
2,925
|
Total liabilities
|
|
307,429
|
|
376,371
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock and
additional paid-in capital
|
|
1,118,689
|
|
1,237,032
|
Accumulated other
comprehensive income
|
|
-
|
|
298
|
Accumulated
deficit
|
|
(555,335)
|
|
(759,565)
|
Total stockholders'
equity
|
|
563,354
|
|
477,765
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
870,783
|
|
$
854,136
|
|
|
|
|
|
PURE STORAGE,
INC.
|
Condensed
Consolidated Statements of Operations
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
October 31,
|
|
Nine Months Ended
October 31,
|
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
|
(unaudited)
|
Revenue:
|
|
|
|
|
|
|
|
|
Product
|
|
$
113,573
|
|
$
160,523
|
|
$
248,383
|
|
$
403,181
|
Support
|
|
17,791
|
|
36,433
|
|
41,719
|
|
96,936
|
Total
revenue
|
|
131,364
|
|
196,956
|
|
290,102
|
|
500,117
|
|
|
|
|
|
|
|
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
Product
(1)
|
|
41,995
|
|
54,725
|
|
92,348
|
|
131,618
|
Support
(1)
|
|
9,058
|
|
14,597
|
|
23,479
|
|
41,531
|
Total cost of
revenue
|
|
51,053
|
|
69,322
|
|
115,827
|
|
173,149
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
80,311
|
|
127,634
|
|
174,275
|
|
326,968
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development (1)
|
|
43,065
|
|
61,612
|
|
112,935
|
|
173,185
|
Sales and
marketing (1)
|
|
63,803
|
|
91,392
|
|
171,647
|
|
262,073
|
General and
administrative (1)
|
|
29,022
|
|
22,810
|
|
56,941
|
|
64,021
|
Legal
settlement (2)
|
|
-
|
|
30,000
|
|
-
|
|
30,000
|
Total operating
expenses
|
|
135,890
|
|
205,814
|
|
341,523
|
|
529,279
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(55,579)
|
|
(78,180)
|
|
(167,248)
|
|
(202,311)
|
Other income
(expense), net
|
|
(171)
|
|
(192)
|
|
(1,245)
|
|
1,127
|
Loss before provision
for income taxes
|
|
(55,750)
|
|
(78,372)
|
|
(168,493)
|
|
(201,184)
|
Provision for income
taxes
|
|
751
|
|
441
|
|
965
|
|
967
|
Net loss
|
|
$
(56,501)
|
|
$
(78,813)
|
|
$
(169,458)
|
|
$
(202,151)
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders, basic and diluted
|
|
$
(0.76)
|
|
$
(0.40)
|
|
$
(3.60)
|
|
$
(1.05)
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares used in computing net loss per share attributable to common
stockholders, basic and diluted
|
|
74,565
|
|
195,807
|
|
47,109
|
|
192,637
|
|
|
|
|
|
|
|
|
|
(1) Includes
stock-based compensation expense as follows:
|
|
|
|
|
|
|
|
|
|
Cost of revenue --
product
|
|
$
43
|
|
$
138
|
|
$
139
|
|
$
425
|
Cost of revenue --
support
|
|
657
|
|
1,178
|
|
1,511
|
|
3,982
|
Research and
development
|
|
8,195
|
|
15,241
|
|
18,624
|
|
40,875
|
Sales and
marketing
|
|
4,559
|
|
8,468
|
|
10,539
|
|
24,719
|
General and
administrative
|
|
2,085
|
|
3,210
|
|
5,385
|
|
9,128
|
Total stock-based
compensation expense
|
|
$
15,539
|
|
$
28,235
|
|
$
36,198
|
|
$
79,129
|
|
|
|
|
|
|
|
|
|
(2) One-time charge
for our legal settlement with Dell, Inc.
|
|
|
|
|
|
|
|
|
|
PURE STORAGE,
INC.
|
Condensed
Consolidated Statements of Cash Flows
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
October 31,
|
|
Nine Months Ended
October 31,
|
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
|
(unaudited)
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
(56,501)
|
|
$
(78,813)
|
|
$
(169,458)
|
|
$
(202,151)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
8,850
|
|
13,642
|
|
23,118
|
|
35,978
|
Stock-based compensation expense
|
|
15,539
|
|
28,235
|
|
36,198
|
|
79,129
|
Contribution of common stock to Pure Good Foundation
|
|
11,900
|
|
-
|
|
11,900
|
|
-
|
Other
|
|
-
|
|
557
|
|
-
|
|
1,051
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
(32,077)
|
|
(44,775)
|
|
(53,094)
|
|
(38,186)
|
Inventory
|
|
(1,767)
|
|
2,203
|
|
(3,420)
|
|
(189)
|
Deferred commissions
|
|
(3,607)
|
|
(43)
|
|
(8,472)
|
|
1,844
|
Prepaid expenses and other assets
|
|
569
|
|
848
|
|
(2,065)
|
|
39
|
Accounts payable
|
|
7,807
|
|
13,646
|
|
10,224
|
|
3,639
|
Accrued compensation and other liabilities
|
|
5,737
|
|
(1,901)
|
|
17,216
|
|
6,786
|
Deferred revenue
|
|
38,174
|
|
19,078
|
|
87,987
|
|
60,180
|
Net cash used in
operating activities
|
|
(5,376)
|
|
(47,323)
|
|
(49,866)
|
|
(51,880)
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
(7,672)
|
|
(18,484)
|
|
(29,495)
|
|
(64,602)
|
Purchases of intangible assets
|
|
-
|
|
-
|
|
-
|
|
(1,000)
|
Purchases of marketable securities
|
|
-
|
|
(55,590)
|
|
-
|
|
(483,558)
|
Sales of marketable securities
|
|
-
|
|
20,744
|
|
-
|
|
79,815
|
Maturities of marketable securities
|
|
-
|
|
32,413
|
|
-
|
|
38,213
|
Net increase in restricted cash
|
|
(2,484)
|
|
-
|
|
(2,484)
|
|
(5,600)
|
Net cash used in
investing activities
|
|
(10,156)
|
|
(20,917)
|
|
(31,979)
|
|
(436,732)
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Proceeds from initial public offering, net
|
|
459,425
|
|
-
|
|
459,425
|
|
-
|
Net proceeds from exercise of stock options
|
|
1,706
|
|
4,356
|
|
4,710
|
|
10,725
|
Proceeds from issuance of common stock under employee stock
purchase plan
|
-
|
|
10,527
|
|
-
|
|
25,606
|
Payments of deferred offering costs
|
|
(574)
|
|
-
|
|
(1,690)
|
|
-
|
Net cash provided by
financing activities
|
|
460,557
|
|
14,883
|
|
462,445
|
|
36,331
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
445,025
|
|
(53,357)
|
|
380,600
|
|
(452,281)
|
Cash and cash
equivalents, beginning of period
|
|
128,282
|
|
205,818
|
|
192,707
|
|
604,742
|
Cash and cash
equivalents, end of period
|
|
$
573,307
|
|
$
152,461
|
|
$
573,307
|
|
$
152,461
|
|
|
|
|
|
|
|
|
|
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, unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
October 31, 2015
|
|
Three Months Ended
October 31, 2016
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
43
|
(c)
|
|
|
|
|
|
$
138
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
2
|
(d)
|
|
Gross profit --
product
|
$
71,578
|
63.0%
|
$
43
|
|
$
71,621
|
63.1%
|
|
$105,798
|
65.9%
|
$
140
|
|
$
105,938
|
66.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
657
|
(c)
|
|
|
|
|
|
$
1,178
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
9
|
(d)
|
|
Gross profit --
support
|
$
8,733
|
49.1%
|
$
657
|
|
$
9,390
|
52.8%
|
|
$
21,836
|
59.9%
|
$
1,187
|
|
$
23,023
|
63.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
700
|
(c)
|
|
|
|
|
|
$
1,316
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
11
|
(d)
|
|
Total gross
profit
|
$
80,311
|
61.1%
|
$
700
|
|
$
81,011
|
61.7%
|
|
$127,634
|
64.8%
|
$
1,327
|
|
$
128,961
|
65.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) GAAP gross margin
is defined as 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.
|
|
|
|
|
The following table
presents certain non-GAAP consolidated results before certain items
(in thousands, except per share amounts, unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
October 31, 2015
|
|
Three Months Ended
October 31, 2016
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
15,539
|
(c)
|
|
|
|
|
|
$
28,235
|
(c)
|
|
|
|
|
11,900
|
(d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30,000
|
(e)
|
|
|
|
|
|
|
|
|
|
|
|
548
|
(f)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
$(55,579)
|
-42.3%
|
$
27,439
|
|
$
(28,140)
|
-21.4%
|
|
$(78,180)
|
-39.7%
|
$
58,783
|
|
$
(19,397)
|
-9.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
15,539
|
(c)
|
|
|
|
|
|
$
28,235
|
(c)
|
|
|
|
|
11,900
|
(d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30,000
|
(e)
|
|
|
|
|
|
|
|
|
|
|
|
548
|
(f)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
$(56,501)
|
|
$
27,439
|
|
$
(29,062)
|
|
|
$(78,813)
|
|
$
58,783
|
|
$
(20,030)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
-- basic and diluted
|
$
(0.76)
|
|
|
|
$
(0.18)
|
|
|
$
(0.40)
|
|
|
|
$
(0.10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares used in per share calculation -- basic and
diluted
|
74,565
|
|
90,381
|
(g)
|
164,946
|
|
|
195,807
|
|
|
|
195,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) GAAP operating
margin is defined as loss from operations divided by
revenue.
|
|
|
|
|
|
(b) Non-GAAP
operating margin is defined as non-GAAP loss from operations
divided by revenue.
|
|
|
|
|
|
(c) To eliminate
stock-based compensation expense.
|
|
|
|
|
|
(d) To eliminate
one-time charge for an equity grant to the Pure Good
Foundation.
|
|
|
|
|
|
(e) To eliminate
one-time charge for our legal settlement with Dell, Inc.
|
|
|
|
|
|
(f) To eliminate
payroll tax expense related to stock-based activities.
|
|
|
|
|
|
(g) To assume
preferred stock conversion as of the beginning of the
period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
from net cash used in operating activities to free cash flow (in
thousands, unaudited):
|
|
|
|
|
|
|
Three Months Ended
October 31,
|
|
|
2015
|
|
2016
|
|
Net cash used in
operating activities
|
$
(5,376)
|
|
$
(47,323)
|
|
Less: purchases of
property and equipment
|
(7,672)
|
|
(18,484)
|
|
Add: cash paid for
legal settlement
|
-
|
|
30,000
|
|
Free cash
flow
|
$
(13,048)
|
|
$
(35,807)
|
|
Free cash flow as %
of revenue
|
-9.9%
|
|
-18.2%
|
|
|
|
|
|
|
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SOURCE Pure Storage