MOUNTAIN VIEW, Calif.,
Nov. 24, 2020 /PRNewswire/ -- Pure Storage (NYSE: PSTG),
the IT pioneer that delivers storage as-a-service in a multi-cloud
world, today announced financial results for its third quarter
ended November 1, 2020.
"Our strategy and vision to deliver hybrid and multi-cloud data
services is exciting the industry, our customers and developers
alike," said Charles Giancarlo,
Chairman and CEO of Pure Storage. "Pure made bold moves in the
quarter to deliver on our strategy with the acquisition of Portworx
and the addition of Dominick Delfino
to lead our sales organization."
Third Quarter Financial Highlights
- Revenue $410.6 million, down 4%
year-over-year
- Subscription services revenue $136.1
million, up 29% year-over-year
- GAAP gross margin 67.3%; non-GAAP gross margin 69.1%
- GAAP operating loss $(65.2)
million; non-GAAP operating income $3.4 million
- Operating cash flow was $32.8
million
- Free cash flow was $7.9
million
- Total cash and investments of $1.2
billion
- Deferred revenue $762.8 million,
up 19% year-over-year
- Remaining performance obligations (RPO) exceeding $1.0 billion, up 25% year-over-year
"We are pleased with our financial performance and execution
during the quarter which slightly exceeded our expectations at the
beginning of the quarter," said Kevan
Krysler, CFO of Pure Storage. "Key highlights include
consecutive quarters of strong sales of our Subscription Services,
and record sales during a quarter for our FlashBlade and
FlashArray//C solutions."
Third Quarter Company Highlights
Pure continued setting the pace in the industry by changing
expectations for data and storage management. The technology
momentum in Q3 across the portfolio includes:
- Subscription Services momentum - Pure's Subscription
Services, including Evergreen and unified Pure as-a-Service
offerings, grew 29% year-over-year. Selecting Pure as-a-Service in
Q3, leading organizations, including ME Bank in Australia and The University of Texas Health Science Center,
recognize the flexibility and choice that these offerings provide.
Our unified subscription, Pure-as-a-Service, which includes Cloud
Block Store, enables customers to subscribe to storage in their
data center and the cloud, paying for only what they consume,
making migration to the public cloud possible at any time without
worrying about stranded assets.
- Advancing Pure as-a-Service offerings - Today marks
another milestone and industry first for the Pure as-a-Service
offering with the announcement of the Pure Service Catalog, which
includes a number of new service tiers. The new service tiers
deliver increased transparency and flexibility for customers,
allowing them to choose the right storage service level for each
workload. Pure is also making Pure as-a-Service more accessible by
offering lower cost service tiers.
- Acquisition of Portworx, market leader in Kubernetes
storage - In Q3, Pure acquired Portworx, the leading Kubernetes
data services platform that enterprises trust to run
mission-critical applications in containers in production. By
combining Portworx with Pure's industry-leading data platforms and
Pure Service Orchestrator software, Pure provides a comprehensive
suite of data services that can be deployed in-cloud, on bare
metal, or on enterprise arrays, all natively orchestrated in
Kubernetes.
- FlashArray//C Momentum - FlashArray//C, well into its
second generation, continues to grow at an accelerated pace and
this month, received the Best of Show Award at the Flash Memory
Summit for Most Innovative Flash Memory Technology. The performance
and financial efficiencies delivered by FlashArray//C enable
customers to reduce the cost of running capacity-oriented workloads
so significantly it eliminates the need for hybrid disk
arrays.
- Strong FlashBlade momentum and AWS Outposts Designation
- FlashBlade's unified fast file and object capabilities to
consolidate and modernize unstructured data across a number of use
cases including technical computing, analytics, backup and rapid
restore is validated by strong customer momentum this quarter.
Customers such as The First National Bankers Bank, Louisiana Office
of Technology Services and Sinai Health System demonstrate that
FlashBlade continues to be the leading choice to enable rapid
recovery and defend against ransomware. Also in Q3, FlashBlade
achieved the AWS Outposts Ready designation, delivering a hybrid
cloud solution with all-flash performance, cloud scalability, and
operational simplicity to accelerate modern applications and break
down IT silos.
Guidance
Consistent with the prior quarter, Pure is sharing its internal
expectations of Q4 business outlook, but will not provide formal
guidance due to the resurgence and continued uncertainty of
COVID-19.
Pure's current internal view of fiscal Q4 outcomes, which should
not be viewed as guidance, is that total revenue for Q4 will be
$480 million, a decline of two
percent year-over-year. With the current view of
revenue, Pure believes non-GAAP operating profit will be
approximately $26 million in Q4.
Conference Call Information
Pure will host a teleconference to discuss the third quarter
fiscal 2021 results at 2:00 p.m. PT
on November 24, 2020. A live audio broadcast of the conference
call will be available at the Pure Storage Investor Relations
website at investor.purestorage.com. Pure will also post its
supplemental earnings presentation and prepared conference call
remarks to the Investor Relations website in advance of the call
for reference. A replay will be available following the call on the
Pure Storage Investor Relations website or for two weeks at (855)
859-2056 (or 404-537-3406 for international callers) with passcode
2343447.
Upcoming IR Events
- Pure will be presenting at the Credit Suisse 24th Annual
Technology Virtual Conference on November
30 at 10:40 a.m. PT.
- Wells Fargo Technology, Media and Telecom Virtual Summit on
December 2 at 9:00 a.m. PT.
- Barclays Global Technology, Media and Telecommunications
Virtual Conference on December 9 at
1:00 p.m. PT.
The presentations from these events will be webcast live, and
all information will be available on the Investor Relations website
at investor.purestorage.com.
About Pure Storage
Pure Storage (NYSE: PSTG) gives technologists their time back.
Pure delivers a Modern Data Experience that empowers organizations
to run their operations as a true, automated, storage as-a-service
model seamlessly across multiple clouds. One of the fastest-growing
enterprise IT companies in history, Pure helps customers put data
to use while reducing the complexity and expense of managing the
infrastructure behind it. 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.
Analyst Recognition: Pure Storage has been named a Leader
in the 2019 Gartner Magic Quadrant for Primary Storage.
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 outcomes, the scope and
duration of the COVID-19 pandemic and its impact on our business
operations, liquidity and capital resources, employees, customers,
supply chain, financial results and the economy, our expectations
regarding product and technology differentiation, including our new
offerings, strategy and adoption of subscription services, the
impact of the Portworx acquisition and 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 captions "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 2, 2020. All
information provided in this release and in the attachments is as
of November 24, 2020, and Pure undertakes no duty to update
this information unless required by law.
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, free cash flow and free cash
flow as a percentage of revenue.
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, amortization of
intangible assets acquired from acquisitions, acquisition-related
transaction and integration expenses, restructuring activities, and
expenses directly related to the COVID-19 pandemic 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.
The non-GAAP operating profit for Q4 above also excludes the
expenses and expenditures consistent with the non-GAAP financial
measures described above. Non-GAAP operating profit is not
reconciled to GAAP operating profit as the items that impact this
measure are not within our control and/or cannot be reasonably
predicted. Accordingly, a reconciliation is not available without
unreasonable effort.
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 2021
|
|
Fiscal
2020
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
263,702
|
|
|
$
|
362,635
|
|
Marketable
securities
|
|
937,718
|
|
|
936,518
|
|
Accounts receivable,
net of allowance of $558 and $542
|
|
378,193
|
|
|
458,643
|
|
Inventory
|
|
43,152
|
|
|
38,518
|
|
Deferred commissions,
current
|
|
42,728
|
|
|
37,148
|
|
Prepaid expenses and
other current assets
|
|
77,813
|
|
|
56,930
|
|
Total current
assets
|
|
1,743,306
|
|
|
1,890,392
|
|
Property and
equipment, net
|
|
158,200
|
|
|
122,740
|
|
Operating lease
right-of-use-assets
|
|
137,856
|
|
|
112,854
|
|
Deferred commissions,
non-current
|
|
109,361
|
|
|
102,056
|
|
Intangible assets,
net
|
|
81,075
|
|
|
58,257
|
|
Goodwill
|
|
360,997
|
|
|
37,584
|
|
Restricted
cash
|
|
11,349
|
|
|
15,287
|
|
Other assets,
non-current
|
|
50,851
|
|
|
25,034
|
|
Total
assets
|
|
$
|
2,652,995
|
|
|
$
|
2,364,204
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
89,369
|
|
|
$
|
77,651
|
|
Accrued compensation
and benefits
|
|
83,163
|
|
|
106,592
|
|
Accrued expenses and
other liabilities
|
|
47,939
|
|
|
47,223
|
|
Operating lease
liabilities, current
|
|
30,902
|
|
|
27,264
|
|
Deferred revenue,
current
|
|
408,086
|
|
|
356,011
|
|
Total current
liabilities
|
|
659,459
|
|
|
614,741
|
|
Long-term
debt
|
|
748,422
|
|
|
477,007
|
|
Operating lease
liabilities, non-current
|
|
124,382
|
|
|
92,977
|
|
Deferred revenue,
non-current
|
|
354,678
|
|
|
341,277
|
|
Other liabilities,
non-current
|
|
30,973
|
|
|
8,084
|
|
Total
liabilities
|
|
1,917,914
|
|
|
1,534,086
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock and
additional paid-in capital
|
|
2,238,741
|
|
|
2,107,605
|
|
Accumulated other
comprehensive income
|
|
9,059
|
|
|
5,449
|
|
Accumulated
deficit
|
|
(1,512,719)
|
|
|
(1,282,936)
|
|
Total stockholders'
equity
|
|
735,081
|
|
|
830,118
|
|
Total liabilities and
stockholders' equity
|
|
$
|
2,652,995
|
|
|
$
|
2,364,204
|
|
PURE STORAGE,
INC. Condensed Consolidated Statements of
Operations (in thousands, except per share data,
unaudited)
|
|
|
Third Quarter of
Fiscal
|
|
First Three
Quarters of Fiscal
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
Product
|
$
|
274,470
|
|
|
$
|
323,268
|
|
|
$
|
793,718
|
|
|
$
|
862,137
|
|
Subscription
services
|
136,149
|
|
|
105,141
|
|
|
387,743
|
|
|
289,299
|
|
Total
revenue
|
410,619
|
|
|
428,409
|
|
|
1,181,461
|
|
|
1,151,436
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Product
(1)
|
86,661
|
|
|
89,998
|
|
|
240,677
|
|
|
259,460
|
|
Subscription
services(1)
|
47,442
|
|
|
37,773
|
|
|
132,717
|
|
|
106,632
|
|
Total cost of
revenue
|
134,103
|
|
|
127,771
|
|
|
373,394
|
|
|
366,092
|
|
Gross
profit
|
276,516
|
|
|
300,638
|
|
|
808,067
|
|
|
785,344
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development (1)
|
122,981
|
|
|
106,663
|
|
|
350,079
|
|
|
318,758
|
|
Sales and marketing
(1)
|
172,282
|
|
|
184,819
|
|
|
517,149
|
|
|
537,633
|
|
General and
administrative (1)
|
46,467
|
|
|
37,416
|
|
|
132,063
|
|
|
119,542
|
|
Restructuring and
other (2)
|
—
|
|
|
—
|
|
|
22,990
|
|
|
—
|
|
Total operating
expenses
|
341,730
|
|
|
328,898
|
|
|
1,022,281
|
|
|
975,933
|
|
Loss from
operations
|
(65,214)
|
|
|
(28,260)
|
|
|
(214,214)
|
|
|
(190,589)
|
|
Other income
(expense), net
|
(4,887)
|
|
|
9
|
|
|
(6,700)
|
|
|
(2,459)
|
|
Loss before provision
for income taxes
|
(70,101)
|
|
|
(28,251)
|
|
|
(220,914)
|
|
|
(193,048)
|
|
Income tax
provision
|
4,121
|
|
|
1,731
|
|
|
8,869
|
|
|
3,288
|
|
Net loss
|
$
|
(74,222)
|
|
|
$
|
(29,982)
|
|
|
$
|
(229,783)
|
|
|
$
|
(196,336)
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders, basic and diluted
|
$
|
(0.28)
|
|
|
$
|
(0.12)
|
|
|
$
|
(0.87)
|
|
|
$
|
(0.78)
|
|
Weighted-average
shares used in computing net loss per share attributable to common
stockholders, basic and diluted
|
269,144
|
|
|
255,047
|
|
|
265,626
|
|
|
250,618
|
|
|
(1) Includes
stock-based compensation expense as follows:
|
|
|
|
|
|
|
|
|
Cost of revenue --
product
|
$
|
1,027
|
|
|
$
|
912
|
|
|
$
|
3,013
|
|
|
$
|
2,843
|
|
Cost of revenue --
subscription services
|
3,883
|
|
|
3,517
|
|
|
10,961
|
|
|
11,101
|
|
Research and
development
|
29,220
|
|
|
27,827
|
|
|
87,770
|
|
|
85,180
|
|
Sales and
marketing
|
14,898
|
|
|
16,802
|
|
|
48,018
|
|
|
51,171
|
|
General and
administrative
|
10,581
|
|
|
5,171
|
|
|
29,993
|
|
|
24,495
|
|
Total stock-based
compensation expense
|
$
|
59,609
|
|
|
$
|
54,229
|
|
|
$
|
179,755
|
|
|
$
|
174,790
|
|
|
(2) Includes expenses
related to restructuring and incremental expenses directly related
to COVID-19
|
PURE STORAGE,
INC. Condensed Consolidated Statements of Cash
Flows (in thousands, unaudited)
|
|
|
|
|
|
Third Quarter of
Fiscal
|
|
First Three
Quarters of Fiscal
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
Net loss
|
$
|
(74,222)
|
|
|
$
|
(29,982)
|
|
|
$
|
(229,783)
|
|
|
$
|
(196,336)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
18,214
|
|
|
23,194
|
|
|
49,811
|
|
|
66,785
|
|
Amortization of debt
discount and debt issuance costs
|
7,400
|
|
|
6,896
|
|
|
21,525
|
|
|
20,186
|
|
Stock-based
compensation expense
|
59,609
|
|
|
54,229
|
|
|
179,755
|
|
|
174,790
|
|
Impairment of
long-lived assets
|
—
|
|
|
—
|
|
|
7,505
|
|
|
—
|
|
Other
|
2,139
|
|
|
(810)
|
|
|
4,111
|
|
|
(483)
|
|
Changes in operating
assets and liabilities, net of effects of acquisitions:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
(8,676)
|
|
|
(9,474)
|
|
|
83,220
|
|
|
17,079
|
|
Inventory
|
(6,459)
|
|
|
(4,130)
|
|
|
(4,724)
|
|
|
2,722
|
|
Deferred
commissions
|
(7,402)
|
|
|
(4,563)
|
|
|
(12,885)
|
|
|
(8,158)
|
|
Prepaid expenses and
other assets
|
(11,217)
|
|
|
2,099
|
|
|
(37,606)
|
|
|
1,464
|
|
Operating lease
right-of-use assets
|
7,253
|
|
|
6,524
|
|
|
21,434
|
|
|
19,962
|
|
Accounts
payable
|
29,656
|
|
|
(4,417)
|
|
|
8,566
|
|
|
(35,244)
|
|
Accrued compensation
and other liabilities
|
(6,520)
|
|
|
(5,307)
|
|
|
(9,737)
|
|
|
(31,011)
|
|
Operating lease
liabilities
|
(7,373)
|
|
|
(5,937)
|
|
|
(20,444)
|
|
|
(19,020)
|
|
Deferred
revenue
|
30,397
|
|
|
35,935
|
|
|
57,860
|
|
|
106,980
|
|
Net cash provided by
operating activities
|
32,799
|
|
|
64,257
|
|
|
118,608
|
|
|
119,716
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
(24,867)
|
|
|
(20,977)
|
|
|
(73,643)
|
|
|
(74,206)
|
|
Acquisitions, net of
cash acquired
|
(339,806)
|
|
|
(3,713)
|
|
|
(339,806)
|
|
|
(51,594)
|
|
Purchase of intangible
assets
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,000)
|
|
Purchase of strategic
investment
|
(5,000)
|
|
|
—
|
|
|
(5,000)
|
|
|
—
|
|
Purchases of
marketable securities
|
(163,154)
|
|
|
(151,527)
|
|
|
(454,391)
|
|
|
(640,024)
|
|
Sales of marketable
securities
|
40,856
|
|
|
56,150
|
|
|
132,207
|
|
|
116,518
|
|
Maturities of
marketable securities
|
118,606
|
|
|
74,901
|
|
|
324,780
|
|
|
345,657
|
|
Net cash used in
investing activities
|
(373,365)
|
|
|
(45,166)
|
|
|
(415,853)
|
|
|
(312,649)
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
Net proceeds from
exercise of stock options
|
4,019
|
|
|
6,544
|
|
|
25,677
|
|
|
25,804
|
|
Proceeds from issuance
of common stock under employee stock purchase plan
|
16,418
|
|
|
11,249
|
|
|
32,439
|
|
|
43,291
|
|
Proceeds from
borrowings, net of issuance costs
|
246,942
|
|
|
—
|
|
|
251,892
|
|
|
—
|
|
Repayment of debt
assumed from acquisition
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,555)
|
|
Tax withholding on
vesting of restricted stock
|
(1,239)
|
|
|
(1,614)
|
|
|
(4,080)
|
|
|
(8,787)
|
|
Repurchases of common
stock
|
(21,411)
|
|
|
—
|
|
|
(111,554)
|
|
|
—
|
|
Net cash provided by
financing activities
|
244,729
|
|
|
16,179
|
|
|
194,374
|
|
|
48,753
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
(95,837)
|
|
|
35,270
|
|
|
(102,871)
|
|
|
(144,180)
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
370,888
|
|
|
284,363
|
|
|
377,922
|
|
|
463,813
|
|
Cash, cash
equivalents and restricted cash, end of period
|
$
|
275,051
|
|
|
$
|
319,633
|
|
|
$
|
275,051
|
|
|
$
|
319,633
|
|
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 2021
|
|
Third Quarter of
Fiscal 2020
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,027
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$
|
912
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
13
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
21
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
|
2,396
|
|
|
(e)
|
|
|
|
|
|
|
|
|
|
1,933
|
|
|
(e)
|
|
|
|
|
Gross profit
--
product
|
|
$
|
187,809
|
|
|
68.4
|
%
|
|
$
|
3,436
|
|
|
|
|
$
|
191,245
|
|
|
69.7
|
%
|
|
$
|
233,270
|
|
|
72.2
|
%
|
|
$
|
2,866
|
|
|
|
|
$
|
236,136
|
|
|
73.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,883
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$
|
3,517
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
59
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
96
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
|
7
|
|
|
(f)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
Gross profit --
subscription services
|
|
$
|
88,707
|
|
|
65.2
|
%
|
|
$
|
3,949
|
|
|
|
|
$
|
92,656
|
|
|
68.1
|
%
|
|
$
|
67,368
|
|
|
64.1
|
%
|
|
$
|
3,613
|
|
|
|
|
$
|
70,981
|
|
|
67.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,910
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$
|
4,429
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
72
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
117
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
|
2,396
|
|
|
(e)
|
|
|
|
|
|
|
|
|
|
1,933
|
|
|
(e)
|
|
|
|
|
|
|
|
|
|
|
7
|
|
|
(f)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
Total gross
profit
|
|
$
|
276,516
|
|
|
67.3
|
%
|
|
$
|
7,385
|
|
|
|
|
$
|
283,901
|
|
|
69.1
|
%
|
|
$
|
300,638
|
|
|
70.2
|
%
|
|
$
|
6,479
|
|
|
|
|
$
|
307,117
|
|
|
71.7
|
%
|
|
|
(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
amortization expense of acquired intangible assets.
|
(f) 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 2021
|
|
Third Quarter of
Fiscal 2020
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
59,609
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$
|
52,335
|
|
(c)
|
|
|
|
|
|
|
|
|
3,533
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
1,894
|
|
(d)
|
|
|
|
|
|
|
|
|
1,166
|
|
|
(e)
|
|
|
|
|
|
|
|
|
|
1,160
|
|
(e)
|
|
|
|
|
|
|
|
|
2,573
|
|
|
(f)
|
|
|
|
|
|
|
|
|
|
1,933
|
|
(f)
|
|
|
|
|
|
|
|
|
1,762
|
|
|
(g)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
Operating Income
(loss)
|
$
|
(65,214)
|
|
|
-15.9
|
%
|
|
$
|
68,643
|
|
|
|
|
$
|
3,429
|
|
|
0.8
|
%
|
|
$
|
(28,260)
|
|
|
-6.6
|
%
|
|
$
|
57,322
|
|
|
$
|
29,062
|
|
|
6.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
59,609
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$
|
52,335
|
|
(c)
|
|
|
|
|
|
|
|
|
3,533
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
1,894
|
|
(d)
|
|
|
|
|
|
|
|
|
1,166
|
|
|
(e)
|
|
|
|
|
|
|
|
|
|
1,160
|
|
(e)
|
|
|
|
|
|
|
|
|
2,573
|
|
|
(f)
|
|
|
|
|
|
|
|
|
|
1,933
|
|
(f)
|
|
|
|
|
|
|
|
|
1,762
|
|
|
(g)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
7,400
|
|
|
(h)
|
|
|
|
|
|
|
|
|
|
6,896
|
|
(h)
|
|
|
|
Net income
(loss)
|
$
|
(74,222)
|
|
|
|
|
$
|
76,043
|
|
|
|
|
$
|
1,821
|
|
|
|
|
$
|
(29,982)
|
|
|
|
|
$
|
64,218
|
|
|
$
|
34,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per share -- basic and diluted
|
$
|
(0.28)
|
|
|
|
|
|
|
|
|
$
|
0.01
|
|
|
|
|
$
|
(0.12)
|
|
|
|
|
|
|
$
|
0.13
|
|
|
|
Weighted-average
shares used in per share calculation -- basic
and
diluted
|
269,144
|
|
|
|
|
15,677
|
|
|
(i)
|
|
284,821
|
|
|
|
|
255,047
|
|
|
|
|
17,161
|
|
(i)
|
272,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) GAAP operating
margin is defined as GAAP operating loss divided by
revenue.
|
(b) Non-GAAP
operating margin is defined as non-GAAP operating loss divided by
revenue.
|
(c) To eliminate
stock-based compensation expense.
|
(d) To eliminate
payments to former shareholders of acquired companies.
|
(e) To eliminate
payroll tax expense related to stock-based activities.
|
(f) To eliminate
amortization expense of acquired intangible assets.
|
(g) To eliminate
acquisition-related transaction and integration
expenses.
|
(h) To eliminate
amortization expense of debt discount and debt issuance costs
related to our long-term 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
|
|
Change
|
|
2021
|
|
2020
|
|
$
|
Net cash provided by
operating activities
|
$
|
32,799
|
|
|
$
|
64,257
|
|
|
$
|
(31,458)
|
|
Less: purchases of
property and equipment
|
(24,867)
|
|
|
(20,977)
|
|
|
(3,890)
|
|
Free cash flow
(non-GAAP)
|
$
|
7,932
|
|
|
$
|
43,280
|
|
|
$
|
(35,348)
|
|
|
|
|
|
|
|
Free cash flow as %
of revenue
|
1.9
|
%
|
|
10.1
|
%
|
|
|
View original
content:http://www.prnewswire.com/news-releases/pure-storage-announces-third-quarter-fiscal-2021-financial-results-301180053.html
SOURCE Pure Storage