Q3 revenue growth of 20%
year-over-year
Subscription services ARR exceeded
$1 billion
Increased FY23 non-GAAP operating income
guidance
MOUNTAIN
VIEW, Calif., Nov. 30,
2022 /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 fiscal
third quarter ended November 6,
2022.
"An ever growing number of customers around the world trust Pure
to provide the most advanced, reliable, and energy-efficient
technology to satisfy their mission-critical data storage and
management needs," said Charles
Giancarlo, Chairman and CEO, Pure Storage. "With the power
of our unique Flash-optimized technology and differentiated
business model, we look forward to managing increasingly more of
their data storage requirements."
Third Quarter Financial Highlights
- Revenue $676.0 million, up 20%
year-over-year
- Subscription Services revenue $244.8
million, up 30% year-over-year
- Subscription Annual Recurring Revenue (ARR) $1.0 billion, up 30% year-over-year
- Remaining Performance Obligations (RPO) $1.6 billion, up 26% year-over-year
- GAAP gross margin 69.0%; non-GAAP gross margin 70.9%
- GAAP operating income $9.1
million; non-GAAP operating income $107.2 million
- GAAP operating margin 1.4%; non-GAAP operating margin
15.9%
- Operating cash flow $154.7
million; free cash flow $114.8
million
- Total cash, cash equivalents, and marketable securities
$1.5 billion
- Returned approximately $24.5
million in Q3 to stockholders, repurchased 888 thousand
shares
"Through solid execution, we delivered strong financial results
in Q3 by growing revenue 20 percent and increasing our operating
profits," said Kevan Krysler, CFO,
Pure Storage. "Our leadership in Flash management, enabled with our
software, and declining cost of Flash is accelerating our progress
in replacing traditional disk solutions and substantially reducing
data center energy consumption."
Third Quarter Company Highlights
- Extending Leadership in Sustainability: Pure introduced
advancements in its sustainability efforts, helping customers
dramatically reduce their energy use and environmental footprint.
The Pure1® Sustainability Assessment gives customers visibility on
their environmental impact and proactively suggests optimization
opportunities, including power savings analysis and a greenhouse
gas emissions monitor.
- Portworx, Delivered as-a-Service: Pure announced a new
fully managed service for Portworx® Enterprise to bring a
Kubernetes-ready data plane to every developer that works on
containerized applications. Now, the full suite of Portworx
offerings can be consumed as a fully managed service. This provides
ease of use and faster deployment of Kubernetes data on any cloud
or on-premises storage, enabling DevOps and platform teams to
operate and scale containerized apps into production in
seconds.
- Gartner Magic Quadrant: A leader for nine consecutive
years:
-
- Magic Quadrant for Primary Storage Arrays: Pure positioned
highest on the ability to execute axis and furthest on the
completeness of vision axis.
- Magic Quadrant for Distributed File Systems and Object Storage:
Pure named a leader in the rapidly growing storage market for
unstructured data.
Fourth Quarter and FY23 Guidance
|
Q4 FY23
(Approx.)
|
FY23
(Approx.)
|
Revenue
|
$810 Million
|
$2.75
Billion
|
Non-GAAP Operating
Income
|
$130 Million
|
$430 Million
|
Non-GAAP Operating
Margin
|
16.0 %
|
15.6 %
|
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,
a reconciliation of these non-GAAP financial measures guidance to
the corresponding GAAP measures is not available without
unreasonable effort.
Conference Call Information
Pure will host a teleconference to discuss the third quarter
fiscal 2023 results at 2:00 pm PT
today, November 30, 2022. A live audio broadcast of the
conference call will be available at the Pure Storage Investor
Relations website, investor.purestorage.com. Pure will also post
its earnings presentation to this website in advance of the call
and post its prepared remarks to this website within 24 hours
following completion of the call.
A replay will be available following the call on the Pure
Storage Investor Relations website or for two weeks at
1-866-813-9403 (or +44 204 525 0658 for international callers) with
passcode 884841.
Upcoming Events
Pure is scheduled to participate at the following investor
conferences:
Credit Suisse 26th Annual Technology Conference
Date:
Thursday, December 1, 2022
Time: 6:35 a.m. PT/ 9:35 a.m. ET
Ajay Singh, Chief Product Officer
(CPO)
Wells Fargo 6th Annual TMT
Summit
Date: Thursday, December 1,
2022
Time: 11:20 a.m. PT/ 2:20 p.m. ET
Rob Lee, Chief Technology Officer
(CTO)
UBS Global TMT Conference
Date: Tuesday, December 6, 2022
Time: 8:40 a.m. PT/ 11:40 a.m. ET
Charles Giancarlo, Chairman and CEO
and Kevan Krysler, CFO
Raymond James Technology Investors Conference
Date:
Tuesday, December 6, 2022
Time: 10:40 a.m. PT/ 1:40 p.m. ET
Charles Giancarlo, Chairman and CEO
and Kevan Krysler, CFO
Barclays Global TMT Conference
Date: Thursday, December 8, 2022
Time: 8:40 a.m. PT/ 11:40 a.m. ET
Rob Lee, CTO and Kevan Krysler, CFO
The presentation(s) 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 a certified customer satisfaction score in the top one
percent of B2B companies, 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 2022 Gartner Magic Quadrant for Primary Storage
Arrays
Leader in the 2022 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, our
technology and product strategy, specifically customer priorities
around sustainability, our growth potential, particularly within
certain customer segments, our sustainability goals and benefits,
the timing and magnitude of large orders, the potential for
inflation, economic or supply chain disruptions, the COVID-19
pandemic and its lingering impacts, demand for our products and
subscription services, including Evergreen//One, our expectations
regarding our product and technology differentiation, 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 6, 2022. All information
provided in this release and in the attachments is as of
November 30, 2022, and Pure undertakes no duty to update this
information unless required by law.
Key Business Metric
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.
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 discount and debt issuance costs related to long-term debt,
amortization of intangible assets acquired from acquisitions,
acquisition-related transaction and integration expenses, and costs
associated with the exit of certain operations 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 2023
|
|
Fiscal
2022
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
795,931
|
|
$
466,199
|
Marketable
securities
|
|
669,173
|
|
947,073
|
Accounts receivable,
net of allowance of $1,053 and $945
|
|
435,618
|
|
542,144
|
Inventory
|
|
61,355
|
|
38,942
|
Deferred commissions,
current
|
|
69,397
|
|
81,589
|
Prepaid expenses and
other current assets
|
|
176,741
|
|
116,232
|
Total current
assets
|
|
2,208,215
|
|
2,192,179
|
Property and equipment,
net
|
|
248,606
|
|
195,282
|
Operating lease
right-of-use-assets
|
|
163,676
|
|
111,763
|
Deferred commissions,
non-current
|
|
165,735
|
|
164,718
|
Intangible assets,
net
|
|
53,379
|
|
62,646
|
Goodwill
|
|
361,427
|
|
358,736
|
Restricted
cash
|
|
10,544
|
|
10,544
|
Other assets,
non-current
|
|
40,785
|
|
39,447
|
Total
assets
|
|
$
3,252,367
|
|
$
3,135,315
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
102,879
|
|
$
70,704
|
Accrued compensation
and benefits
|
|
159,231
|
|
205,431
|
Accrued expenses and
other liabilities
|
|
108,514
|
|
78,511
|
Operating lease
liabilities, current
|
|
31,114
|
|
35,098
|
Deferred revenue,
current
|
|
647,116
|
|
562,576
|
Debt,
current
|
|
573,855
|
|
—
|
Total current
liabilities
|
|
1,622,709
|
|
952,320
|
Long-term
debt
|
|
—
|
|
786,779
|
Operating lease
liabilities, non-current
|
|
147,110
|
|
93,479
|
Deferred revenue,
non-current
|
|
601,103
|
|
517,296
|
Other liabilities,
non-current
|
|
40,937
|
|
31,105
|
Total
liabilities
|
|
2,411,859
|
|
2,380,979
|
Stockholders'
equity:
|
|
|
|
|
Common stock and
additional paid-in capital
|
|
2,475,794
|
|
2,470,972
|
Accumulated other
comprehensive loss
|
|
(23,753)
|
|
(8,365)
|
Accumulated
deficit
|
|
(1,611,533)
|
|
(1,708,271)
|
Total stockholders'
equity
|
|
840,508
|
|
754,336
|
Total liabilities and
stockholders' equity
|
|
$
3,252,367
|
|
$
3,135,315
|
PURE STORAGE,
INC.
Condensed
Consolidated Statements of Operations
(in thousands,
except per share data, unaudited)
|
|
|
Third Quarter of Fiscal
|
|
First Three
Quarters of Fiscal
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
Product
|
$
431,281
|
|
$
374,913
|
|
$ 1,247,045
|
|
$
949,736
|
Subscription
services
|
244,769
|
|
187,827
|
|
696,182
|
|
522,542
|
Total
revenue
|
676,050
|
|
562,740
|
|
1,943,227
|
|
1,472,278
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Product
(1)
|
135,546
|
|
129,721
|
|
395,322
|
|
309,935
|
Subscription
services(1)
|
74,169
|
|
58,227
|
|
211,576
|
|
165,658
|
Total cost of
revenue
|
209,715
|
|
187,948
|
|
606,898
|
|
475,593
|
Gross profit
|
466,335
|
|
374,792
|
|
1,336,329
|
|
996,685
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development (1)
|
180,008
|
|
147,808
|
|
506,971
|
|
419,296
|
Sales and marketing
(1)
|
212,140
|
|
193,172
|
|
637,129
|
|
567,054
|
General and
administrative (1)
|
65,054
|
|
51,890
|
|
173,300
|
|
138,500
|
Total operating
expenses
|
457,202
|
|
392,870
|
|
1,317,400
|
|
1,124,850
|
Income (loss) from
operations
|
9,133
|
|
(18,078)
|
|
18,929
|
|
(128,165)
|
Other income (expense),
net
|
(2,814)
|
|
(7,953)
|
|
(8,410)
|
|
(20,090)
|
Income (loss) before
provision for income taxes
|
6,319
|
|
(26,031)
|
|
10,519
|
|
(148,255)
|
Income tax
provision
|
7,106
|
|
2,700
|
|
11,919
|
|
9,947
|
Net loss
|
$
(787)
|
|
$
(28,731)
|
|
$
(1,400)
|
|
$
(158,202)
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common
stockholders, basic and diluted
|
$
(0.00)
|
|
$
(0.10)
|
|
$
(0.00)
|
|
$
(0.56)
|
Weighted-average shares
used in computing net
loss per share attributable to common stockholders,
basic and diluted
|
300,984
|
|
287,462
|
|
298,101
|
|
283,918
|
|
|
|
|
|
|
|
|
(1) Includes
stock-based compensation expense as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue --
product
|
$
2,984
|
|
$
1,634
|
|
$
7,454
|
|
$
4,547
|
Cost of revenue --
subscription services
|
5,814
|
|
5,555
|
|
16,978
|
|
15,098
|
Research and
development
|
42,390
|
|
36,797
|
|
120,482
|
|
102,343
|
Sales and
marketing
|
18,441
|
|
19,151
|
|
54,740
|
|
54,317
|
General and
administrative
|
17,350
|
|
12,863
|
|
45,460
|
|
31,458
|
Total stock-based
compensation expense
|
$
86,979
|
|
$
76,000
|
|
$
245,114
|
|
$
207,763
|
PURE STORAGE,
INC.
Condensed
Consolidated Statements of Cash Flows
(in thousands,
unaudited)
|
|
|
Third Quarter of Fiscal
|
|
First Three
Quarters of Fiscal
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
Net loss
|
$
(787)
|
|
$
(28,731)
|
|
$
(1,400)
|
|
$
(158,202)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
25,719
|
|
21,506
|
|
72,268
|
|
59,605
|
Amortization of debt
discount and debt issuance costs
|
803
|
|
7,857
|
|
2,406
|
|
23,011
|
Stock-based
compensation expense
|
86,979
|
|
76,000
|
|
245,114
|
|
207,763
|
Impairment of
long-lived assets
|
—
|
|
471
|
|
—
|
|
471
|
Other
|
(1,361)
|
|
2,060
|
|
67
|
|
8,576
|
Changes in operating
assets and liabilities, net of effect of acquisition:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
(33,791)
|
|
4,282
|
|
106,216
|
|
106,788
|
Inventory
|
(5,489)
|
|
3,280
|
|
(17,981)
|
|
38
|
Deferred
commissions
|
549
|
|
(12,354)
|
|
11,175
|
|
(20,395)
|
Prepaid expenses and
other assets
|
(38,504)
|
|
12,672
|
|
(54,067)
|
|
(12,283)
|
Operating lease
right-of-use assets
|
9,253
|
|
7,243
|
|
26,073
|
|
22,061
|
Accounts
payable
|
29,065
|
|
(4,989)
|
|
22,536
|
|
(14,256)
|
Accrued compensation
and other liabilities
|
19,628
|
|
5,701
|
|
(18,196)
|
|
(35,251)
|
Operating lease
liabilities
|
(6,897)
|
|
(7,889)
|
|
(28,339)
|
|
(22,094)
|
Deferred
revenue
|
69,529
|
|
39,937
|
|
168,336
|
|
106,054
|
Net cash provided by
operating activities
|
154,696
|
|
127,046
|
|
534,208
|
|
271,886
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
Purchases of property
and equipment(1)
|
(39,916)
|
|
(25,718)
|
|
(97,910)
|
|
(81,217)
|
Acquisition, net of
cash acquired
|
—
|
|
—
|
|
(1,989)
|
|
—
|
Purchases of
marketable securities
|
(74,878)
|
|
(185,667)
|
|
(92,129)
|
|
(503,038)
|
Sales of marketable
securities
|
—
|
|
32,896
|
|
—
|
|
146,934
|
Maturities of
marketable securities
|
111,302
|
|
133,388
|
|
352,295
|
|
303,158
|
Net cash (used in)
provided by investing activities
|
(3,492)
|
|
(45,101)
|
|
160,267
|
|
(134,163)
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
Net proceeds from
exercise of stock options
|
3,867
|
|
22,580
|
|
19,131
|
|
33,743
|
Proceeds from issuance
of common stock under employee stock purchase plan
|
20,569
|
|
18,915
|
|
39,965
|
|
36,641
|
Principal payments on
borrowings and finance lease obligations
|
(4,568)
|
|
(679)
|
|
(256,145)
|
|
(1,284)
|
Tax withholding on
vesting of equity awards
|
(3,143)
|
|
(2,106)
|
|
(16,130)
|
|
(8,670)
|
Repurchases of common
stock
|
(24,565)
|
|
(56,215)
|
|
(151,564)
|
|
(130,608)
|
Net cash used in
financing activities
|
(7,840)
|
|
(17,505)
|
|
(364,743)
|
|
(70,178)
|
Net increase in cash,
cash equivalents and restricted cash
|
143,364
|
|
64,440
|
|
329,732
|
|
67,545
|
Cash, cash equivalents
and restricted cash, beginning of period
|
663,111
|
|
350,796
|
|
476,743
|
|
347,691
|
Cash, cash equivalents
and restricted cash, end of period
|
$
806,475
|
|
$
415,236
|
|
$
806,475
|
|
$
415,236
|
|
|
(1)
|
Includes capitalized
internal-use software costs of $3.7 million and $2.5 million for
the third quarter of fiscal 2023 and 2022 and $10.5 million and
$6.2 million for the first three quarters of fiscal 2023 and
2022.
|
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
2023
|
|
Third Quarter of Fiscal
2022
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 2,984
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$ 1,634
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
46
|
|
(d)
|
|
|
|
|
|
|
|
|
|
42
|
|
(d)
|
|
|
|
|
|
|
|
|
|
|
251
|
|
(e)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
3,306
|
|
(f)
|
|
|
|
|
|
|
|
|
|
3,207
|
|
(f)
|
|
|
|
|
Gross profit --
product
|
|
$
295,735
|
|
68.6 %
|
|
$ 6,587
|
|
|
|
$ 302,322
|
|
70.1 %
|
|
$
245,192
|
|
65.4 %
|
|
$ 4,883
|
|
|
|
$
250,075
|
|
66.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 5,814
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$ 5,555
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
204
|
|
(d)
|
|
|
|
|
|
|
|
|
|
279
|
|
(d)
|
|
|
|
|
|
|
|
|
|
|
269
|
|
(e)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
24
|
|
(g)
|
|
|
|
|
|
|
|
|
|
24
|
|
(g)
|
|
|
|
|
Gross profit --
subscription
services
|
|
$
170,600
|
|
69.7 %
|
|
$ 6,311
|
|
|
|
$ 176,911
|
|
72.3 %
|
|
$
129,600
|
|
69.0 %
|
|
$ 5,858
|
|
|
|
$
135,458
|
|
72.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 8,798
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$ 7,189
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
250
|
|
(d)
|
|
|
|
|
|
|
|
|
|
321
|
|
(d)
|
|
|
|
|
|
|
|
|
|
|
520
|
|
(e)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
3,306
|
|
(f)
|
|
|
|
|
|
|
|
|
|
3,207
|
|
(f)
|
|
|
|
|
|
|
|
|
|
|
24
|
|
(g)
|
|
|
|
|
|
|
|
|
|
24
|
|
(g)
|
|
|
|
|
Total gross
profit
|
|
$
466,335
|
|
69.0 %
|
|
$
12,898
|
|
|
|
$ 479,233
|
|
70.9 %
|
|
$
374,792
|
|
66.6 %
|
|
$
10,741
|
|
|
|
$
385,533
|
|
68.5 %
|
|
|
(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
2023
|
|
Third Quarter of Fiscal
2022
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 86,979
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$ 76,000
|
|
(c)
|
|
|
|
|
|
|
|
|
1,479
|
|
(d)
|
|
|
|
|
|
|
|
|
|
4,230
|
|
(d)
|
|
|
|
|
|
|
|
|
2,098
|
|
(e)
|
|
|
|
|
|
|
|
|
|
2,631
|
|
(e)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
551
|
|
(f)
|
|
|
|
|
|
|
|
|
3,676
|
|
(g)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
3,838
|
|
(h)
|
|
|
|
|
|
|
|
|
|
3,739
|
|
(h)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
382
|
|
(i)
|
|
|
|
Operating
income (loss)
|
$ 9,133
|
|
1.4 %
|
|
$ 98,070
|
|
|
|
$
107,203
|
|
15.9 %
|
|
$
(18,078)
|
|
-3.2 %
|
|
$ 87,533
|
|
|
$
69,455
|
|
12.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 86,979
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$ 76,000
|
|
(c)
|
|
|
|
|
|
|
|
|
1,479
|
|
(d)
|
|
|
|
|
|
|
|
|
|
4,230
|
|
(d)
|
|
|
|
|
|
|
|
|
2,098
|
|
(e)
|
|
|
|
|
|
|
|
|
|
2,631
|
|
(e)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
551
|
|
(f)
|
|
|
|
|
|
|
|
|
3,676
|
|
(g)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
3,838
|
|
(h)
|
|
|
|
|
|
|
|
|
|
3,739
|
|
(h)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
382
|
|
(i)
|
|
|
|
|
|
|
|
|
803
|
|
(j)
|
|
|
|
|
|
|
|
|
|
7,857
|
|
(j)
|
|
|
|
Net income
(loss)
|
$
(787)
|
|
|
|
$ 98,873
|
|
|
|
$ 98,086
|
|
|
|
$
(28,731)
|
|
|
|
$ 95,390
|
|
|
$
66,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per
share -- diluted
|
$ (0.00)
|
|
|
|
|
|
|
|
$ 0.31
|
|
|
|
$
(0.10)
|
|
|
|
|
|
|
$ 0.22
|
|
|
Weighted-
average
shares used in
per share
calculation --
diluted
|
300,984
|
|
|
|
15,431
|
|
(k)
|
|
316,415
|
|
|
|
287,462
|
|
|
|
20,835
|
|
(k)
|
308,297
|
|
|
|
|
(a)
|
GAAP operating margin
is defined as GAAP operating income (loss) 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 impairment
of right-of-use assets associated with cease-use of a certain
facility.
|
(g)
|
To eliminate duplicate
lease costs during the transition of our corporate
headquarters.
|
(h)
|
To eliminate
amortization expense of acquired intangible assets.
|
(i)
|
To eliminate
acquisition-related transaction and integration
expenses.
|
(j)
|
To eliminate
amortization expense of debt discount and debt issuance costs
related to our long-term debt.
|
(k)
|
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
|
|
2023
|
|
2022
|
Net cash provided by
operating activities
|
$
154,696
|
|
$
127,046
|
Less: purchases of
property and equipment(1)
|
(39,916)
|
|
(25,718)
|
Free cash flow
(non-GAAP)
|
$
114,780
|
|
$
101,328
|
|
|
(1)
|
Includes capitalized
internal-use software costs of $3.7 million and $2.5 million for
the third quarter of fiscal 2023 and 2022.
|
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SOURCE Pure Storage