MOUNTAIN VIEW, Calif.,
Feb. 24, 2021 /PRNewswire/ -- Today Pure Storage (NYSE:
PSTG), the IT pioneer that delivers storage as-a-service in a
multi-cloud world, announced financial results for its fiscal
fourth quarter and full year ended January 31, 2021.
"Pure ended fiscal 2021 with great strength and growth, setting
new revenue and sales records for the quarter and for the full
fiscal year," said Charles
Giancarlo, Chairman and CEO, Pure Storage. "I am confident
in our opportunity, our long-term strategy, and our ability to
accelerate growth. Our Q4 results are a leading indicator of that
acceleration. We saw broad based growth year over year, including
in our subscription services, our enterprise and cloud segments,
our new product lines, and in every theater."
Fourth Quarter and Full Year Financial Highlights
- Q4 revenue $502.7 million, up
2.2% year-over-year
- Full-year revenue $1.684 billion,
up 2.5% year-over-year
- Q4 GAAP gross margin 67.8%; non-GAAP gross margin 69.4%
- Full-year GAAP gross margin 68.2%; non-GAAP gross margin
70.0%
- Q4 GAAP operating loss $46.8
million; non-GAAP operating income $36.7 million
- Full-year GAAP operating loss $261.0
million; non-GAAP operating income $46.0 million
- Q4 operating cash flow $69.0
million; and full-year operating cash flow $187.6 million
- Q4 free cash flow $47.7 million;
and full-year free cash flow $92.7
million
- Total cash and investments $1.25
billion
- Remaining performance obligations (RPO) $1.1 billion, up 24% year-over-year; and deferred
revenue $843.7 million, up 21%
year-over-year
"We are very pleased to be exiting this year on a high note as
sales and revenue have surpassed our expectations with particular
strength from our enterprise customers," said Kevan Krysler, CFO, Pure Storage. "The momentum
we are seeing is the result of our consistent focus on investing in
innovation for our customers."
Fourth Quarter and Full Year Company Highlights and
Achievements
- Leader in the Gartner Magic Quadrant for Primary Storage
Arrays: Pure was named the clear leader, positioned highest on
the ability to execute axis and furthest on the completeness of
vision axis in the 2020 Gartner Magic Quadrant.
- Strong Subscription Services Momentum: Only Pure
delivers true flexible storage consumption, a cloud experience
on-prem, an easy path to move data to the cloud, and aligns spend
with actual consumption. In Q4, Pure expanded the Pure
as-a-Service™ offering with a new Service Catalog
aimed at revolutionizing the industry by publishing transparent
pricing for on-prem and hybrid cloud storage delivered
as-a-Service, providing a seamless purchasing model for
customers.
- Market-Leading Portfolio Innovation: Pure continued its
pace of innovation across the portfolio to enable new use cases and
render hybrid arrays obsolete. Among this year's new offerings,
Pure expanded the industry-defining unified, fast file and object
FlashBlade® with scale-out native SMB support and the
industry's first all-QLC solution with the third generation
FlashArray//C. Both products achieved consecutive record sales
quarters in FY21.
- Extending Kubernetes Market Leadership with Portworx:
With Portworx® fully integrated into Pure, the company
delivers the industry's most complete Kubernetes Data Services
Platform, supporting cloud native applications on any
infrastructure, on-prem or in-cloud. In Q4, we saw significant
growth of in-cloud deployments of Portworx and traction through the
IBM partnership both in-cloud and on-prem via our best-in-class
support for Red Hat OpenShift. In FY21, Portworx was named a leader
in the GigaOm Radar for Data Storage for Kubernetes and for
Kubernetes Data Protection.
Guidance: Q1 FY22 and Annual FY22
|
Q1
FY22
|
FY22
|
Revenue
|
$405
Million
|
14%-15% Y/Y
Growth
|
Non-GAAP Operating
Income (Loss)
|
$(20)
Million
|
~$90
Million
|
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 (loss) to the most directly comparable GAAP measure because
certain items that impact this measure are not within Pure's
control and/or cannot be reasonably predicted. Accordingly, a
reconciliation of this non-GAAP financial measure guidance to the
corresponding GAAP measure is not available without unreasonable
effort.
Conference Call Information
Pure will host a teleconference to discuss the fourth quarter
and full year fiscal 2021 results at 2:00 pm
PT today, February 24, 2021. 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 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 for two weeks at (855) 859-2056 (or
404-537-3406 for international callers) with passcode 6395722.
Upcoming IR Events
- Pure will be presenting at the Morgan Stanley Technology, Media
and Telecom Virtual Conference on March
2 at 9:30 am PT.
- Pure will be presenting at the Raymond James Institutional
Investors Virtual Conference on March
3 at 8:40 am 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.
Share Repurchase Authorization
Pure's board of directors has authorized incremental share
repurchases of up to an additional $200
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
common stock, and may be suspended or discontinued by the company
at any time without prior notice.
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. For more information, visit www.purestorage.com.
Analyst Recognition
Pure Storage has been named a Leader in the 2020 Gartner
Magic Quadrant for Primary Storage Arrays.
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 outcomes, our momentum and
growth potential, 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 success 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 January 31, 2021. All information
provided in this release and in the attachments is as of
February 24, 2021, 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, 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, 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.
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
Fiscal
|
|
|
2021
|
|
2020
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
337,147
|
|
|
$
|
362,635
|
|
Marketable
securities
|
|
916,388
|
|
|
936,518
|
|
Accounts receivable,
net of allowance of $1,033 and $542
|
|
460,879
|
|
|
458,643
|
|
Inventory
|
|
46,733
|
|
|
38,518
|
|
Deferred commissions,
current
|
|
57,183
|
|
|
37,148
|
|
Prepaid expenses and
other current assets
|
|
89,836
|
|
|
56,930
|
|
Total current
assets
|
|
1,908,166
|
|
|
1,890,392
|
|
Property and
equipment, net
|
|
163,041
|
|
|
122,740
|
|
Operating lease
right-of-use assets
|
|
134,668
|
|
|
112,854
|
|
Deferred commissions,
non-current
|
|
130,741
|
|
|
102,056
|
|
Intangible assets,
net
|
|
76,648
|
|
|
58,257
|
|
Goodwill
|
|
358,736
|
|
|
37,584
|
|
Restricted
cash
|
|
10,544
|
|
|
15,287
|
|
Other assets,
non-current
|
|
36,896
|
|
|
25,034
|
|
Total
assets
|
|
$
|
2,819,440
|
|
|
$
|
2,364,204
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
67,530
|
|
|
$
|
77,651
|
|
Accrued compensation
and benefits
|
|
160,817
|
|
|
106,592
|
|
Accrued expenses and
other liabilities
|
|
61,754
|
|
|
47,223
|
|
Operating lease
liabilities, current
|
|
32,231
|
|
|
27,264
|
|
Deferred revenue,
current
|
|
438,321
|
|
|
356,011
|
|
Total current
liabilities
|
|
760,653
|
|
|
614,741
|
|
Long-term
debt
|
|
755,814
|
|
|
477,007
|
|
Operating lease
liabilities, non-current
|
|
120,361
|
|
|
92,977
|
|
Deferred revenue,
non-current
|
|
405,376
|
|
|
341,277
|
|
Other liabilities,
non-current
|
|
27,230
|
|
|
8,084
|
|
Total
liabilities
|
|
2,069,434
|
|
|
1,534,086
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock and
additional paid-in capital
|
|
2,307,608
|
|
|
2,107,605
|
|
Accumulated other
comprehensive income
|
|
7,410
|
|
|
5,449
|
|
Accumulated
deficit
|
|
(1,565,012)
|
|
|
(1,282,936)
|
|
Total stockholders'
equity
|
|
750,006
|
|
|
830,118
|
|
Total liabilities and
stockholders' equity
|
|
$
|
2,819,440
|
|
|
$
|
2,364,204
|
|
PURE STORAGE,
INC. Condensed Consolidated Statements of
Operations (in thousands, except per share data,
unaudited)
|
|
|
|
Fourth Quarter of
Fiscal
|
|
Fiscal Year
Ended
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Product
|
|
$
|
350,380
|
|
|
$
|
376,517
|
|
|
$
|
1,144,098
|
|
|
$
|
1,238,654
|
|
Subscription
services
|
|
152,338
|
|
|
115,487
|
|
|
540,081
|
|
|
404,786
|
|
Total
revenue
|
|
502,718
|
|
|
492,004
|
|
|
1,684,179
|
|
|
1,643,440
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
Product
(1)
|
|
112,310
|
|
|
103,510
|
|
|
352,987
|
|
|
362,970
|
|
Subscription services
(1)
|
|
49,551
|
|
|
40,284
|
|
|
182,268
|
|
|
146,916
|
|
Total cost of
revenue
|
|
161,861
|
|
|
143,794
|
|
|
535,255
|
|
|
509,886
|
|
Gross
profit
|
|
340,857
|
|
|
348,210
|
|
|
1,148,924
|
|
|
1,133,554
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development (1)
|
|
130,388
|
|
|
114,904
|
|
|
480,467
|
|
|
433,662
|
|
Sales and marketing
(1)
|
|
198,865
|
|
|
190,389
|
|
|
716,014
|
|
|
728,022
|
|
General and
administrative (1)
|
|
50,414
|
|
|
43,611
|
|
|
182,477
|
|
|
163,153
|
|
Restructuring and
other (2)
|
|
8,009
|
|
|
—
|
|
|
30,999
|
|
|
—
|
|
Total operating
expenses
|
|
387,676
|
|
|
348,904
|
|
|
1,409,957
|
|
|
1,324,837
|
|
Loss from
operations
|
|
(46,819)
|
|
|
(694)
|
|
|
(261,033)
|
|
|
(191,283)
|
|
Other income
(expense), net
|
|
(2,427)
|
|
|
(924)
|
|
|
(9,127)
|
|
|
(3,383)
|
|
Loss before provision
for income taxes
|
|
(49,246)
|
|
|
(1,618)
|
|
|
(270,160)
|
|
|
(194,666)
|
|
Income tax
provision
|
|
3,047
|
|
|
3,033
|
|
|
11,916
|
|
|
6,321
|
|
Net loss
|
|
$
|
(52,293)
|
|
|
$
|
(4,651)
|
|
|
$
|
(282,076)
|
|
|
$
|
(200,987)
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common
stockholders, basic and diluted
|
|
$
|
(0.19)
|
|
|
$
|
(0.02)
|
|
|
$
|
(1.05)
|
|
|
$
|
(0.79)
|
|
Weighted-average
shares used in computing net
loss per share attributable to common
stockholders, basic and diluted
|
|
274,421
|
|
|
259,218
|
|
|
267,824
|
|
|
252,820
|
|
|
(1) Includes stock-based compensation
expense as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue --
product
|
|
$
|
988
|
|
|
$
|
889
|
|
|
$
|
4,001
|
|
|
$
|
3,732
|
|
Cost of revenue --
subscription services
|
|
4,018
|
|
|
3,302
|
|
|
14,979
|
|
|
14,403
|
|
Research and
development
|
|
29,450
|
|
|
26,726
|
|
|
117,220
|
|
|
107,658
|
|
Sales and
marketing
|
|
17,230
|
|
|
16,389
|
|
|
65,248
|
|
|
67,560
|
|
General and
administrative
|
|
10,903
|
|
|
8,857
|
|
|
40,896
|
|
|
33,352
|
|
Total stock-based
compensation expense
|
|
$
|
62,589
|
|
|
$
|
56,163
|
|
|
$
|
242,344
|
|
|
$
|
226,705
|
|
|
(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)
|
|
|
|
Fourth Quarter of
Fiscal
|
|
Fiscal Year
Ended
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(52,293)
|
|
|
$
|
(4,651)
|
|
|
$
|
(282,076)
|
|
|
$
|
(200,987)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
20,231
|
|
|
22,925
|
|
|
70,042
|
|
|
89,710
|
|
Amortization of debt
discount and debt issuance costs
|
|
7,545
|
|
|
6,993
|
|
|
29,070
|
|
|
27,179
|
|
Stock-based
compensation expense
|
|
62,589
|
|
|
56,163
|
|
|
242,344
|
|
|
226,705
|
|
Impairment of
long-lived assets
|
|
—
|
|
|
—
|
|
|
7,505
|
|
|
—
|
|
Other
|
|
3,229
|
|
|
1,819
|
|
|
7,340
|
|
|
1,336
|
|
Changes in operating
assets and liabilities, net of effects of acquisitions:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
(82,810)
|
|
|
(96,521)
|
|
|
410
|
|
|
(79,442)
|
|
Inventory
|
|
(3,966)
|
|
|
(329)
|
|
|
(8,690)
|
|
|
2,393
|
|
Deferred
commissions
|
|
(35,836)
|
|
|
(16,073)
|
|
|
(48,721)
|
|
|
(24,231)
|
|
Prepaid expenses and
other assets
|
|
3,624
|
|
|
(18,198)
|
|
|
(33,982)
|
|
|
(16,734)
|
|
Operating lease
right-of-use assets
|
|
7,370
|
|
|
6,549
|
|
|
28,804
|
|
|
26,511
|
|
Accounts
payable
|
|
(22,930)
|
|
|
16,388
|
|
|
(14,364)
|
|
|
(18,856)
|
|
Accrued compensation
and other liabilities
|
|
86,709
|
|
|
47,059
|
|
|
76,972
|
|
|
20,296
|
|
Operating lease
liabilities
|
|
(6,874)
|
|
|
(6,357)
|
|
|
(27,318)
|
|
|
(25,377)
|
|
Deferred
revenue
|
|
82,445
|
|
|
54,091
|
|
|
140,305
|
|
|
161,071
|
|
Net cash provided by
operating activities
|
|
69,033
|
|
|
69,858
|
|
|
187,641
|
|
|
189,574
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(21,332)
|
|
|
(13,641)
|
|
|
(94,975)
|
|
|
(87,847)
|
|
Acquisitions, net of
cash acquired
|
|
165
|
|
|
—
|
|
|
(339,641)
|
|
|
(51,594)
|
|
Purchase of intangible
assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,000)
|
|
Purchases of
marketable securities
|
|
(119,568)
|
|
|
(155,556)
|
|
|
(573,959)
|
|
|
(795,580)
|
|
Sales of marketable
securities
|
|
39,323
|
|
|
83,733
|
|
|
171,530
|
|
|
200,251
|
|
Maturities of
marketable securities
|
|
99,156
|
|
|
73,402
|
|
|
423,936
|
|
|
419,059
|
|
Other
|
|
—
|
|
|
—
|
|
|
(5,000)
|
|
|
—
|
|
Net cash used in
investing activities
|
|
(2,256)
|
|
|
(12,062)
|
|
|
(418,109)
|
|
|
(324,711)
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Net proceeds from
exercise of stock options
|
|
33,695
|
|
|
17,095
|
|
|
59,372
|
|
|
42,899
|
|
Proceeds from issuance
of common stock under employee stock purchase plan
|
|
—
|
|
|
7
|
|
|
32,439
|
|
|
43,298
|
|
Proceeds from
borrowings, net of issuance costs
|
|
—
|
|
|
—
|
|
|
251,892
|
|
|
—
|
|
Repayment of
borrowings
|
|
(33)
|
|
|
—
|
|
|
(33)
|
|
|
—
|
|
Repayment of debt
assumed from acquisition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,555)
|
|
Tax withholding on
vesting of equity awards
|
|
(4,178)
|
|
|
(1,592)
|
|
|
(8,258)
|
|
|
(10,379)
|
|
Repurchases of common
stock
|
|
(23,621)
|
|
|
(15,017)
|
|
|
(135,175)
|
|
|
(15,017)
|
|
Net cash provided by
financing activities
|
|
5,863
|
|
|
493
|
|
|
200,237
|
|
|
49,246
|
|
Net increase
(decrease) in cash and cash equivalents and restricted
cash
|
|
72,640
|
|
|
58,289
|
|
|
(30,231)
|
|
|
(85,891)
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
275,051
|
|
|
319,633
|
|
|
377,922
|
|
|
463,813
|
|
Cash, cash
equivalents and restricted cash, end of period
|
|
$
|
347,691
|
|
|
$
|
377,922
|
|
|
$
|
347,691
|
|
|
$
|
377,922
|
|
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
Fiscal
|
|
Fourth Quarter of
Fiscal
|
|
2021
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
988
|
|
(c)
|
|
|
|
|
|
|
|
|
$
|
889
|
|
(c)
|
|
|
|
|
|
|
|
|
18
|
|
(d)
|
|
|
|
|
|
|
|
|
14
|
|
(d)
|
|
|
|
|
|
|
|
|
3,062
|
|
(e)
|
|
|
|
|
|
|
|
|
2,074
|
|
(e)
|
|
|
|
Gross profit
--
product
|
$
|
238,070
|
|
|
67.9
|
%
|
|
$
|
4,068
|
|
|
$
|
242,138
|
|
|
69.1
|
%
|
|
$
|
273,007
|
|
|
72.5
|
%
|
|
$
|
2,977
|
|
|
$
|
275,984
|
|
|
73.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,018
|
|
(c)
|
|
|
|
|
|
|
|
|
$
|
3,302
|
|
(c)
|
|
|
|
|
|
|
|
|
64
|
|
(d)
|
|
|
|
|
|
|
|
|
88
|
|
(d)
|
|
|
|
|
|
|
|
|
25
|
|
(f)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
Gross profit
--
subscription services
|
$
|
102,787
|
|
|
67.5
|
%
|
|
$
|
4,107
|
|
|
$
|
106,894
|
|
|
70.2
|
%
|
|
$
|
75,203
|
|
|
65.1
|
%
|
|
$
|
3,390
|
|
|
$
|
78,593
|
|
|
68.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,006
|
|
(c)
|
|
|
|
|
|
|
|
|
$
|
4,191
|
|
(c)
|
|
|
|
|
|
|
|
|
82
|
|
(d)
|
|
|
|
|
|
|
|
|
102
|
|
(d)
|
|
|
|
|
|
|
|
|
3,062
|
|
(e)
|
|
|
|
|
|
|
|
|
2,074
|
|
(e)
|
|
|
|
|
|
|
|
|
25
|
|
(f)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
Total gross
profit
|
$
|
340,857
|
|
|
67.8
|
%
|
|
$
|
8,175
|
|
|
$
|
349,032
|
|
|
69.4
|
%
|
|
$
|
348,210
|
|
|
70.8
|
%
|
|
$
|
6,367
|
|
|
$
|
354,577
|
|
|
72.1
|
%
|
|
|
(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 non-GAAP gross margins by revenue
source before certain items (in thousands except percentages,
unaudited):
|
Fiscal Year
Ended
|
|
2021
|
|
GAAP
results
|
|
GAAP gross margin
(a)
|
|
Adjustment
|
|
|
|
Non-
GAAP
results
|
|
Non-
GAAP
gross
margin (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,001
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
84
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
735
|
|
|
(e)
|
|
|
|
|
|
|
|
|
|
9,465
|
|
|
(f)
|
|
|
|
|
Gross profit --
product
|
$
|
791,111
|
|
|
69.1
|
%
|
|
$
|
14,285
|
|
|
|
|
$
|
805,396
|
|
|
70.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
14,979
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
267
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
190
|
|
|
(e)
|
|
|
|
|
|
|
|
|
|
32
|
|
|
(g)
|
|
|
|
|
Gross profit --
subscription services
|
$
|
357,813
|
|
|
66.3
|
%
|
|
$
|
15,468
|
|
|
|
|
$
|
373,281
|
|
|
69.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
18,980
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
351
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
925
|
|
|
(e)
|
|
|
|
|
|
|
|
|
|
9,465
|
|
|
(f)
|
|
|
|
|
|
|
|
|
|
32
|
|
|
(g)
|
|
|
|
|
Total gross
profit
|
$
|
1,148,924
|
|
|
68.2
|
%
|
|
$
|
29,753
|
|
|
|
|
$
|
1,178,677
|
|
|
70.0
|
%
|
|
|
(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
directly related to COVID-19 pandemic including hazard pay
premiums.
|
(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):
|
Fourth Quarter of
Fiscal
|
|
Fourth Quarter of
Fiscal
|
|
2021
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
62,589
|
|
(c)
|
|
|
|
|
|
|
|
|
$
|
56,163
|
|
(c)
|
|
|
|
|
|
|
|
|
6,435
|
|
(d)
|
|
|
|
|
|
|
|
|
1,935
|
|
(d)
|
|
|
|
|
|
|
|
|
2,024
|
|
(e)
|
|
|
|
|
|
|
|
|
1,401
|
|
(e)
|
|
|
|
|
|
|
|
|
7,977
|
|
(f)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
3,594
|
|
(g)
|
|
|
|
|
|
|
|
|
2,074
|
|
(g)
|
|
|
|
|
|
|
|
|
921
|
|
(h)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
Operating income
(loss)
|
$
|
(46,819)
|
|
|
-9.3
|
%
|
|
$
|
83,540
|
|
|
$
|
36,721
|
|
|
7.3
|
%
|
|
$
|
(694)
|
|
|
-0.1
|
%
|
|
$
|
61,573
|
|
|
$
|
60,879
|
|
|
12.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
62,589
|
|
(c)
|
|
|
|
|
|
|
|
|
$
|
56,163
|
|
(c)
|
|
|
|
|
|
|
|
|
6,435
|
|
(d)
|
|
|
|
|
|
|
|
|
1,935
|
|
(d)
|
|
|
|
|
|
|
|
|
2,024
|
|
(e)
|
|
|
|
|
|
|
|
|
1,401
|
|
(e)
|
|
|
|
|
|
|
|
|
7,977
|
|
(f)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
3,594
|
|
(g)
|
|
|
|
|
|
|
|
|
2,074
|
|
(g)
|
|
|
|
|
|
|
|
|
921
|
|
(h)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
7,545
|
|
(i)
|
|
|
|
|
|
|
|
|
6,993
|
|
(i)
|
|
|
|
Net income
(loss)
|
$
|
(52,293)
|
|
|
|
|
$
|
91,085
|
|
|
$
|
38,792
|
|
|
|
|
$
|
(4,651)
|
|
|
|
|
$
|
68,566
|
|
|
$
|
63,915
|
|
|
|
Net income (loss)
per share -- diluted
|
$
|
(0.19)
|
|
|
|
|
|
|
$
|
0.13
|
|
|
|
|
$
|
(0.02)
|
|
|
|
|
|
|
$
|
0.23
|
|
|
|
Weighted-average
shares used in per share calculation -- diluted
|
274,421
|
|
|
|
|
22,786
|
|
(j)
|
297,207
|
|
|
|
|
259,218
|
|
|
|
|
17,984
|
|
(j)
|
277,202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
GAAP operating margin
is defined as GAAP operating 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 companies.
|
(e)
|
To eliminate payroll
tax expense related to stock-based activities.
|
(f)
|
To eliminate
restructuring expenses related to (1) workforce reductions and (2)
the cease-use of certain facilities.
|
(g)
|
To eliminate
amortization expense of acquired intangible assets.
|
(h)
|
To eliminate
acquisition-related transaction and integration
expenses.
|
(i)
|
To eliminate
amortization expense of debt discount and debt issuance costs
related to our long-term debt.
|
(j)
|
To include effect of
dilutive securities (employee stock options, restricted stock, and
shares from employee stock purchase plan).
|
The following table presents certain non-GAAP consolidated
results before certain items (in thousands, except per share
amounts and percentages, unaudited):
|
Fiscal Year
Ended
|
|
2021
|
|
GAAP
results
|
|
GAAP
operating
margin (a)
|
|
Adjustment
|
|
Non- GAAP
results
|
|
Non- GAAP
operating
margin (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
242,344
|
|
(c)
|
|
|
|
|
|
|
|
|
13,849
|
|
(d)
|
|
|
|
|
|
|
|
|
6,040
|
|
(e)
|
|
|
|
|
|
|
|
|
9,869
|
|
(f)
|
|
|
|
|
|
|
|
|
22,055
|
|
(g)
|
|
|
|
|
|
|
|
|
10,174
|
|
(h)
|
|
|
|
|
|
|
|
|
2,683
|
|
(i)
|
|
|
|
Operating income
(loss)
|
$
|
(261,033)
|
|
|
-15.5
|
%
|
|
$
|
307,014
|
|
|
$
|
45,981
|
|
|
2.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
GAAP operating margin
is defined as GAAP operating 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 companies.
|
(e)
|
To eliminate payroll
tax expense related to stock-based activities.
|
(f)
|
To eliminate expenses
directly related to COVID-19 pandemic. These expenses included
marketing commitments no longer deemed to have value and hazard pay
premiums.
|
(g)
|
To eliminate
restructuring expenses related to (1) workforce reductions and (2)
the cease-use of certain facilities.
|
(h)
|
To eliminate
amortization expense of acquired intangible assets.
|
(i)
|
To eliminate
acquisition-related transaction and integration
expenses.
|
Reconciliation from net cash provided by operating activities
to free cash flow (in thousands except percentages,
unaudited):
|
|
Fourth Quarter of
Fiscal
|
|
Fiscal Year
Ended
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net cash provided by
operating activities
|
|
$
|
69,033
|
|
|
$
|
69,858
|
|
|
$
|
187,641
|
|
|
$
|
189,574
|
|
Less: purchases of
property and equipment
|
|
(21,332)
|
|
|
(13,641)
|
|
|
(94,975)
|
|
|
(87,847)
|
|
Free cash flow
(non-GAAP)
|
|
$
|
47,701
|
|
|
$
|
56,217
|
|
|
$
|
92,666
|
|
|
$
|
101,727
|
|
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SOURCE Pure Storage