0001474432false00014744322024-02-282024-02-28

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 28, 2024
_____________________________________
Pure Storage, Inc.
(Exact name of Registrant as Specified in Its Charter)
_____________________________________ 
Delaware 001-37570 27-1069557
(State or Other Jurisdiction
of Incorporation)		 (Commission
File Number)		 (IRS Employer Identification No.)
2555 Augustine Dr.
Santa Clara, California 95054
(Address of Principal Executive Offices, Including Zip Code) 

(800) 379-7873
(Registrant’s Telephone Number, Including Area Code)
 
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading symbol(s) Name of each exchange on which registered
Class A Common Stock, $0.0001 par value per share PSTGNew York Stock Exchange LLC
________________________________________

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨



Item 2.02 Results of Operations and Financial Condition.
 
On February 28, 2024, Pure Storage, Inc. (“Pure”) issued a press release and will hold a conference call regarding its financial results for the quarter ended February 4, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.
 
This information, including the exhibit(s) hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
 
Pure is making reference to non-GAAP financial information in the press release and the conference call. A reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures is contained in the attached press release.  These non-GAAP financial measures are reported in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

Item 8.01 Other Events.

Pure’s Audit & Risk Committee has approved incremental share repurchases of up to an additional $250 million under its stock repurchase program. The authorization allows Pure to repurchase shares of its Class A common stock opportunistically and will be funded from available working capital. Repurchases may be made at management’s discretion from time to time on the open market through privately negotiated transactions, transactions structured through investment banking institutions, block purchase techniques, 10b5-1 trading plans, or a combination of the foregoing. The repurchase program does not have an expiration date, does not obligate Pure to acquire any of its stock, and may be suspended or discontinued by the company at any time without prior notice.

Cautions Concerning Forward-Looking Statements

This report contains “forward-looking statements,” as defined in the Private Securities Litigation Reform Act of 1995, related to the share repurchase and the factors that will impact the amount and timing of purchases, if any, thereunder. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of the company. Risks and uncertainties include, but are not limited to, those described under the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Pure’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on December 15, 2023, and Pure’s subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, investors.purestorage.com or on request from the company. Pure does not undertake to update any forward-looking statements as a result of new information or future events or developments.

Item 9.01. Financial Statements and Exhibits.
 
(d) Exhibits.
The following exhibit is furnished herewith:
 
Exhibit No.  Description
99.1  
104Cover Page Interactive Data File (embedded within the InLine XBRL document)



SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
Pure Storage, Inc.
(Registrant)
  
By: /s/ Kevan Krysler
  Kevan Krysler
  Chief Financial Officer
February 28, 2024





Exhibit 99.1
 
Pure Storage Announces Fiscal Fourth Quarter and Full Year 2024 Financial Results
FY24 TCV sales growth of Evergreen//One and Evergreen//Flex offerings exceeding 100%
Q4 RPO growing 31% year-over-year

SANTA CLARA, Calif. – February 28, 2024 – 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 fourth quarter and full year 2024 ended February 4, 2024.

"Our data platform strategy is revolutionizing the storage industry. It helps enterprises and service providers unify fragmented data environments into a seamless, modern, and efficient system—a system performance-ready for artificial intelligence,” said Charles Giancarlo, Chairman and CEO, Pure Storage. “And this can all be done now with Flash reliability, performance and economics, even at hard disk system price levels."

Fourth Quarter and Full Year Financial Highlights

•Q4 revenue $789.8 million, a decrease of 3% year-over-year
•Full-year revenue $2.8 billion, up 3% year-over-year

•Q4 subscription services revenue $328.9 million, up 24% year-over-year
•Full-year subscription services revenue $1.2 billion, up 26% year-over-year

•Q4 subscription annual recurring revenue (ARR) $1.4 billion, up 25% year-over-year
•Remaining performance obligations (RPO) $2.3 billion, up 31% year-over-year

•Q4 GAAP gross margin 72.0%; non-GAAP gross margin 73.7%
•Full-year GAAP gross margin 71.4%; non-GAAP gross margin 73.2%

•Q4 GAAP operating income $57.4 million; non-GAAP operating income $157.8 million
•Full-year GAAP operating income $53.6 million; non-GAAP operating income $458.4 million

•Q4 GAAP operating margin 7.3%; non-GAAP operating margin 20.0%
•Full-year GAAP operating margin 1.9%; non-GAAP operating margin 16.2%

•Q4 operating cash flow $244.4 million; free cash flow $200.9 million
•Full-year operating cash flow $677.7 million; free cash flow $482.6 million

•Total cash, cash equivalents, and marketable securities $1.5 billion

•Returned approximately $21.4 million and $135.7 million in Q4 and FY24, respectively, to stockholders through share repurchases of 0.6 million shares and 4.7 million shares, respectively.

•Authorized incremental share repurchases of up to an additional $250 million under its stock repurchase program.

“We closed FY24 delivering strong RPO growth, and exceeded our revenue and operating margin guidance in Q4,” said Kevan Krysler, Chief Financial Officer, Pure Storage. “Looking to FY25, we expect double-digit revenue growth and strong growth of RPO, fueled by our highly differentiated data storage platform, and strength of our Evergreen and Portworx consumption and subscription offerings.”

1

Full Year Company Highlights

•Strong Subscription Services Momentum: Pure Storage set a new industry standard in FY24 with eight total service level agreements (SLAs) across its Evergreen portfolio, including the first and only Paid Power & Rack commitment for Evergreen//One and Evergreen//Flex, in addition to first-of-its-kind energy efficiency and ransomware recovery guarantees.
•Market-Leading Platform Innovation: In FY24, Pure Storage introduced the cost-optimized E//Family with FlashBlade//E, followed by FlashArray//E, enabling customers to leverage flash storage for any workload. Additionally, Pure delivered its largest ever performance, efficiency, and security advancements with the next generation FlashArray//X and FlashArray//C, expanded its strategic partnership with Microsoft with the introduction of Pure Cloud Block Store for Azure VMware Solution, and delivered the first and only native, unified block and file experience purpose-built for flash storage with the GA of File Services for FlashArray.
•AI Customer Impact: Among the first enterprise data storage vendors to receive the NVIDIA DGX BasePOD certification, and delivering critical validated designs with key alliance partners, Pure Storage continued to add to its 100+ customers across a wide variety of AI use cases, including self-driving cars, financial services, genomics, gaming, manufacturing, and many more.
•Industry Recognition and Accolades: In FY24, Pure Storage was recognized as a leader for the tenth consecutive year in the Gartner Magic Quadrant for Primary Storage, and the third consecutive year in the Gartner Magic Quadrant for Distributed File Systems and Object Storage. Additionally, Pure Storage was named a leader in the inaugural IDC MarketSpace: Worldwide Container Data Management 2023 Vendor Assessment.

First Quarter and FY25 Guidance

Q1 and FY25 revenue and revenue growth rates are reflective of continuing outperformance and increased momentum in Evergreen//One Storage-as-a-Service.

Q1FY25
Revenue$680M
Revenue YoY Growth Rate15.4%
Non-GAAP Operating Income$68M
Non-GAAP Operating Margin10%

FY25
Revenue$3.1B
Revenue YoY Growth Rate10.5%
TCV Sales for Evergreen//One & Evergreen//Flex Subscription Service Offerings$600M
TCV Sales for Evergreen//One & Evergreen//Flex Subscription Service Offerings YoY Growth RateApproximately 50%
Non-GAAP Operating Income$532M
Non-GAAP Operating Margin17%

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.

2

Share Repurchase Authorization

Pure's audit committee has approved incremental share repurchases of up to an additional $250 million under its stock repurchase program, in addition to the $145 million remaining under the existing program authorization. The authorization allows Pure to repurchase shares of its Class A common stock opportunistically and will be funded from available working capital. Repurchases may be made at management's discretion from time to time on the open market through privately negotiated transactions, transactions structured through investment banking institutions, block purchase techniques, 10b5-1 trading plans, or a combination of the foregoing. The repurchase program does not have an expiration date, does not obligate Pure to acquire any of its common stock, and may be suspended or discontinued by the company at any time without prior notice.

Conference Call Information

Pure will host a teleconference to discuss the fiscal fourth quarter and full year 2024 results at 2:00 pm PT today, February 28, 2024. 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:

KeyBanc Capital Markets Emerging Technology Summit
Date: Tuesday, March 5, 2024
Time: 11:30 a.m. PT / 2:30 p.m. ET
Chief Financial Officer Kevan Krysler and Chief Technology Officer Rob Lee

Morgan Stanley Technology, Media & Telecom Conference
Date: Wednesday, March 6, 2024
Time: 10:15 a.m. PT / 1:15 p.m. ET
Chairman and CEO Charles Giancarlo and Chief Financial Officer 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






3

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 and business 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 the E//Family, 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 February 28, 2024, and Pure undertakes no duty to update this information unless required by law.

Key Performance 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.

Total Contract Value (TCV) 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.

4

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, restructuring costs related to severance and termination benefits, and costs associated with the impairment and early exit 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.

Contacts

Paul Ziots – Investor Relations, Pure Storage
ir@purestorage.com

Rena Fallstrom – Global Communications, Pure Storage
pr@purestorage.com

###
5


PURE STORAGE, INC.
Condensed Consolidated Balance Sheets
(in thousands, unaudited)
 
At the End of Fiscal
20242023
 
Assets  
Current assets:  
Cash and cash equivalents$702,536 $580,854 
Marketable securities828,557 1,001,352 
    Accounts receivable, net of allowance of $1,060 and $1,057
662,179 612,491 
Inventory42,663 50,152 
Deferred commissions, current88,712 68,617 
Prepaid expenses and other current assets173,407 161,391 
Total current assets2,498,054 2,474,857 
Property and equipment, net352,604 272,445 
Operating lease right-of-use assets129,942 158,912 
Deferred commissions, non-current215,620 177,239 
Intangible assets, net33,012 49,222 
Goodwill361,427 361,427 
Restricted cash9,595 10,544 
Other assets, non-current55,506 38,814 
Total assets$3,655,760 $3,543,460 
Liabilities and stockholders' equity  
Current liabilities:  
Accounts payable$82,757 $67,121 
Accrued compensation and benefits250,257 232,636 
Accrued expenses and other liabilities135,755 123,749 
Operating lease liabilities, current44,668 33,707 
Deferred revenue, current852,247 718,149 
Debt, current— 574,506 
Total current liabilities1,365,684 1,749,868 
Long-term debt100,000 — 
Operating lease liabilities, non-current123,201 142,473 
Deferred revenue, non-current742,275 667,501 
Other liabilities, non-current54,506 42,385 
Total liabilities2,385,666 2,602,227 
Stockholders’ equity:  
Common stock and additional paid-in capital2,749,627 2,493,799 
Accumulated other comprehensive loss(3,782)(15,504)
Accumulated deficit(1,475,751)(1,537,062)
Total stockholders' equity1,270,094 941,233 
Total liabilities and stockholders' equity$3,655,760 $3,543,460 


6

PURE STORAGE, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share data, unaudited)
 
 Fourth Quarter of FiscalFiscal Year Ended
 2024202320242023
 
Revenue:    
Product$460,891 $545,108 $1,622,869 $1,792,153 
Subscription services328,914 265,099 1,207,752 961,281 
Total revenue789,805 810,207 2,830,621 2,753,434 
Cost of revenue:
Product (1)
128,842 174,471 472,430 569,793 
Subscription services (1)
92,459 74,419 337,000 285,995 
Total cost of revenue221,301 248,890 809,430 855,788 
Gross profit568,504 561,317 2,021,191 1,897,646 
Operating expenses:
Research and development (1)
186,841 185,557 736,764 692,528 
Sales and marketing (1)
248,136 246,480 945,021 883,609 
General and administrative (1)
59,299 64,696 252,243 237,996 
Restructuring, impairment and other (2)
16,846 — 33,612 — 
Total operating expenses511,122 496,733 1,967,640 1,814,133 
Income from operations57,382 64,584 53,551 83,513 
Other income (expense), net13,416 16,705 37,035 8,295 
Income before provision for income taxes70,798 81,289 90,586 91,808 
Income tax provision5,360 6,818 29,275 18,737 
Net income$65,438 $74,471 $61,311 $73,071 
Net income per share attributable to common
   stockholders, basic		$0.21 $0.25 $0.20 $0.24 
Net income per share attributable to common
   stockholders, diluted		$0.20 $0.22 $0.19 $0.23 
Weighted-average shares used in computing net
   income per share attributable to common
   stockholders, basic		317,731 303,614 311,831 299,478 
Weighted-average shares used in computing net
   income per share attributable to common
   stockholders, diluted		332,014 339,699 332,568 339,184 

(1) Includes stock-based compensation expense as follows:
 
Cost of revenue -- product$2,614 $2,791 $9,670 $10,245 
Cost of revenue -- subscription services6,065 5,652 25,412 22,630 
Research and development41,069 41,212 167,294 161,694 
Sales and marketing18,863 17,767 74,746 72,507 
General and administrative7,573 15,081 54,305 60,541 
Total stock-based compensation expense$76,184 $82,503 $331,427 $327,617 

(2) Includes expenses for severance and termination benefits related to workforce realignment and lease impairment and abandonment charges associated with cease-use of our former corporate headquarters.
7

PURE STORAGE, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
 
 Fourth Quarter of FiscalFiscal Year Ended
 2024202320242023
 
Cash flows from operating activities    
Net income$65,438 $74,471 $61,311 $73,071 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization32,856 28,164 124,416 100,432 
Stock-based compensation expense76,184 82,503 331,427 327,617 
Lease impairment and abandonment charges— — 16,766 — 
Other7,403 4,882 1,559 7,355 
Changes in operating assets and liabilities, net of effects of acquisition:
Accounts receivable, net(25,728)(176,940)(49,687)(70,724)
Inventory1,532 5,722 6,810 (10,619)
Deferred commissions(39,415)(10,724)(58,476)451 
Prepaid expenses and other assets(45,355)24,584 (25,669)(31,580)
Operating lease right-of-use assets8,230 7,740 35,499 33,813 
Accounts payable(20,376)(29,611)13,468 (7,075)
Accrued compensation and other liabilities96,074 89,823 43,317 72,084 
Operating lease liabilities(10,434)(5,020)(31,891)(33,359)
Deferred revenue98,016 137,432 208,872 305,768 
Net cash provided by operating activities244,425 233,026 677,722 767,234 
Cash flows from investing activities
Purchases of property and equipment(1)
(43,570)(60,229)(195,161)(158,139)
Acquisition, net of cash acquired— — — (1,989)
Purchases of marketable securities(119,776)(409,306)(471,501)(501,435)
Sales of marketable securities6,558 6,155 59,053 6,155 
Maturities of marketable securities and other114,956 81,700 610,855 433,995 
Net cash provided by (used in) investing activities(41,832)(381,680)3,246 (221,413)
Cash flows from financing activities
Net proceeds from exercise of stock options6,866 5,647 39,770 24,778 
Proceeds from issuance of common stock under employee stock purchase plan— — 45,089 39,965 
Proceeds from borrowings— — 106,890 — 
Principal payments on borrowings and finance lease obligations(1,617)(1,095)(586,199)(257,240)
Tax withholding on equity awards(13,402)(3,471)(29,984)(19,601)
Repurchases of common stock(21,460)(67,504)(135,801)(219,068)
Net cash used in financing activities(29,613)(66,423)(560,235)(431,166)
Net increase (decrease) in cash and cash equivalents and restricted cash172,980 (215,077)120,733 114,655 
Cash, cash equivalents and restricted cash, beginning of period539,151 806,475 591,398 476,743 
Cash, cash equivalents and restricted cash, end of period$712,131 $591,398 $712,131 $591,398 

(1) Includes capitalized internal-use software costs of $3.7 million and $3.2 million for the fourth quarter of fiscal 2024 and 2023 and $19.4 million and $13.7 million for fiscal 2024 and 2023.
8

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):

 Fourth Quarter of FiscalFourth Quarter of Fiscal
20242023
 GAAP
results		GAAP
gross
margin  (a)		Adjustment Non-
GAAP
results		Non-
GAAP
gross
margin  (b)		GAAP
results		GAAP
gross
margin  (a)		AdjustmentNon-
GAAP
results		Non-
GAAP
gross
margin  (b)
$2,614 (c)$2,791 (c)
58 (d)37 (d)
177 (e)— 
— 292 (f)
3,306 (g)3,306 (g)
Gross profit --
   product		$332,049 72.0 %$6,155 $338,204 73.4 %$370,637 68.0 %$6,426 $377,063 69.2 %
   
$6,065 (c)$5,652 (c)
276 (d)159 (d)
985 (e)— 
— 306 (f)
— 16 (h)
Gross profit --
  subscription services		$236,455 71.9 %$7,326  $243,781 74.1 %$190,680 71.9 %$6,133  $196,813 74.2 %
   $8,679 (c)$8,443 (c)
334 (d)196 (d)
1,162 (e)— 
— 598 (f)
3,306 (g)3,306 (g)
— 16 (h)
Total gross profit$568,504 72.0 %$13,481  $581,985 73.7 %$561,317 69.3 %$12,559  $573,876 70.8 %

(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 expenses for severance and termination benefits related to workforce realignment.
(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 payments to former shareholders of acquired company.














9



The following table presents non-GAAP gross margins by revenue source before certain items (in thousands except percentages, unaudited):

Fiscal Year Ended
2024
GAAP resultsGAAP gross margin (a)AdjustmentNon-
GAAP
results		Non-
GAAP
gross
margin (b)
$9,670 (c)
415 (d)
402 (e)
177 (f)
13,224 (g)
Gross profit -- product$1,150,439 70.9 %$23,888 $1,174,327 72.4 %
$25,412 (c)
1,424 (d)
413 (e)
985 (f)
18 (h)
Gross profit -- subscription services$870,752 72.1 %$28,252 $899,004 74.4 %
$35,082 (c)
1,839 (d)
815 (e)
1,162 (f)
13,224 (g)
$18 (h)
Total gross profit$2,021,191 71.4 %$52,140 $2,073,331 73.2 %


(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 expenses for severance and termination benefits related to workforce realignment.
(g) To eliminate amortization expense of acquired intangible assets.
(h) To eliminate payments to former shareholders of acquired company.


















10


The following table presents certain non-GAAP consolidated results before certain items (in thousands, except per share amounts and percentages, unaudited):

 Fourth Quarter of FiscalFourth Quarter of Fiscal
20242023
 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)
$76,184 (c)$82,503 (c)
— 888 (d)
2,722 (e)1,799 (e)
3,536 (f)3,839 (f)
— 5,004 (g)
18,009 (h)— 
Operating income$57,382 7.3 %$100,451  $157,833 20.0 %$64,584 8.0 %$94,033  $158,617 19.6 %
   $76,184 (c)   $82,503 (c) 
— 888 (d)
2,722 (e)1,799 (e)
3,536 (f)3,839 (f)
— 5,004 (g)
18,009 (h)— 
154 (i)804 (i)
— 357 (j)
Net income$65,438  $100,605  $166,043  $74,471  $95,194  $169,665  
Net income per share -- diluted$0.20    $0.50  $0.22    $0.53  
Weighted-average shares used in per share calculation -- diluted332,014 —332,014 339,699  (21,884)(k)317,815 

(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 amortization expense of acquired intangible assets.
(g) To eliminate duplicate lease costs during the transition of our corporate headquarters.
(h) To eliminate expenses for severance and termination benefits related to workforce realignment.
(i) To eliminate amortization expense of debt issuance costs related to our debt.
(j) To eliminate net loss from legal settlement in connection with a facility abandoned in the second quarter of fiscal 2021.
(k) To exclude the dilutive effect from convertible note due to the related capped call hedge.









11


The following table presents certain non-GAAP consolidated results before certain items (in thousands, except per share amounts and percentages, unaudited):

Fiscal Year Ended
2024
GAAP resultsGAAP operating margin (a)AdjustmentNon- GAAP resultsNon- GAAP operating margin (b)
$331,427 (c)
2,341 (d)
14,648 (e)
6,687 (f)
16,766 (g)
18,009 (h)
$14,930 (i)
Operating income$53,551 1.9 %$404,808 $458,359 16.2 %


(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 lease impairment and abandonment charges associated with cease-use of our former corporate headquarters.
(h) To eliminate expenses for severance and termination benefits related to workforce realignment.
(i) To eliminate amortization expense of acquired intangible assets.


































12




Reconciliation from net cash provided by operating activities to free cash flow (in thousands except percentages, unaudited):

 Fourth Quarter of FiscalFiscal Year Ended
 2024202320242023
Net cash provided by operating activities$244,425 $233,026 $677,722 $767,234 
Less: purchases of property and equipment(1)
(43,570)(60,229)(195,161)(158,139)
Free cash flow (non-GAAP)$200,855 $172,797 $482,561 $609,095 

(1) Includes capitalized internal-use software costs of $3.7 million and $3.2 million for the fourth quarter of fiscal 2024 and 2023 and $19.4 million and $13.7 million for fiscal 2024 and 2023.
13
v3.24.0.1
Cover Document
Feb. 28, 2024
Cover Page [Abstract]  
Document Type 8-K
Document Period End Date Feb. 28, 2024
Entity Registrant Name Pure Storage, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-37570
Entity Tax Identification Number 27-1069557
Entity Address, Address Line One 2555 Augustine Dr.
Entity Address, City or Town Santa Clara
Entity Address, State or Province CA
Entity Address, Postal Zip Code 95054
City Area Code 800
Local Phone Number 379-7873
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Class A Common Stock, $0.0001 par value per share
Trading Symbol PSTG
Security Exchange Name NYSE
Entity Emerging Growth Company false
v3.24.0.1
Cover Non-Printing
Feb. 28, 2024
Cover Page [Abstract]  
Entity Central Index Key 0001474432
Amendment Flag false
Pure Storage (NYSE:PSTG)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Pure Storage Charts.
Pure Storage (NYSE:PSTG)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Pure Storage Charts.