MOUNTAIN VIEW, Calif.,
Nov. 23, 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 third
quarter ended October 31, 2021.
"With Q3 revenue up 37% year-over-year and with increasing
profitability, it's clear that Pure continues to set the pace for
the industry," said Charles
Giancarlo, Chairman and CEO, Pure Storage. "We're delighted
to provide cutting edge data services to customers and with our
continued leadership in two Gartner Magic Quadrants."
Third Quarter Financial Highlights
- Revenue $562.7 million, up 37%
year-over-year
- Subscription Services revenue $187.8
million, up 38% year-over-year
- Subscription Annual Recurring Revenue (ARR) $788.3 million, up 30% year-over-year
- Remaining Performance Obligations (RPO) $1.2 billion, up 27% year-over-year
- GAAP gross margin 66.6%; non-GAAP gross margin 68.5%
- GAAP operating loss $(18.1)
million; non-GAAP operating income $69.5 million
- GAAP operating margin (3.2)%; non-GAAP operating margin
12.3%
- Operating cash flow $127.0
million; free cash flow $101.3
million
- Total cash and investments $1.4
billion
"Our strong Q3 performance was fueled by increased customer
demand and execution across the entire business," said Kevan Krysler, CFO, Pure Storage. "We are in a
great innovation cycle with our portfolio."
Third Quarter Company Highlights and Achievements
- Gartner Magic Quadrant: A storage leader for eight consecutive
years
-
- Magic Quadrant for Primary Storage Arrays: Gartner named Pure a
storage leader eight years in a row and the second year in a row
the company has been 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:
Gartner positioned Pure as a leader in the rapidly growing storage
market for unstructured data.
- Net Promoter Score (NPS) of 83.5: For six years running, Pure
continues to maintain a market-leading NPS, taking the top 1% spot
across Medallia benchmarked B2B scores.
- Significant announcements in Q3 bring infrastructure and
applications closer together by enabling cloud-like automation and
delivery of storage:
-
- Pure Fusion™, a self-service, autonomous storage-as-code
platform built for limitless scale, lets customers bring the cloud
operating model anywhere and run, operate, and consume traditional
storage like a cloud service.
- Portworx® Data Services, a Database-as-a-Service
platform for Kubernetes, lets DevOps engineers deploy a managed,
production-grade data service with the click of a button.
Fourth Quarter and FY22 Guidance
|
Q4
FY22
|
FY22
|
Revenue
|
$630
million
|
$2.1
billion
|
Non-GAAP Operating
Income
|
$90
million
|
$206
million
|
Non-GAAP Operating
Margin
|
approx.
14%
|
approx.
10%
|
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 2022 results at 1:30 pm PT
today, November 23, 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 earnings presentation to this website in advance of the call
and post its prepared remarks to this website within 24 hours of
completion of the call. A replay will be available following the
call on the Pure Storage Investor Relations website or for two
weeks at 800-585-8367 (or 416-621-4642 for international callers)
with passcode 9027916.
Upcoming Events
Pure is scheduled to participate at the following investor
conferences:
Wells Fargo Virtual 5th Annual TMT Summit
Date:
Tuesday, November 30, 2021
Time: 11:00 am PST
Pure Presenters: Charles Giancarlo,
Chairman and CEO, Kevan Krysler,
CFO
Pure Participants: Rob Lee, VP and
CTO, Sanjot Khurana, VP, Investor Relations
Credit Suisse 25th Annual Technology Conference
Date:
Wednesday, December 1, 2021
Time: 1:10 pm MST
Pure Presenters: Charles Giancarlo,
Chairman and CEO, Kevan Krysler,
CFO
Pure Participants: Rob Lee, VP and
CTO, Sanjot Khurana, VP, Investor Relations
UBS Virtual Global TMT Conference
Date: Monday, December 6, 2021
Pure Participants: Charles
Giancarlo, Chairman and CEO, Kevan
Krysler, CFO, Rob Lee, VP and
CTO, and Sanjot Khurana, VP, Investor Relations
Barclays Virtual Global Technology, Media and
Telecommunications Conference
Date: Tuesday, December 7, 2021
Pure Participants: Kevan Krysler,
CFO, Rob Lee, VP and CTO, and Sanjot
Khurana, VP, Investor Relations
Raymond James Virtual Technology Investors
Conference
Date: Wednesday, December
8, 2021
Pure Participants: Charles
Giancarlo, Chairman and CEO, Kevan
Krysler, CFO, Rob Lee, VP and
CTO, and Sanjot Khurana, VP, Investor Relations
The presentations will be webcast live and archived on Pure's
Investor Relations website at investor.purestorage.com.
About Pure Storage
Pure Storage 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. 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
Leader in the 2021 Gartner Magic Quadrant for Primary Storage
Arrays
Leader in the 2021 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
continued momentum and growth potential, supply chain constraints,
the scope and duration of the COVID-19 pandemic and its impact on
our business operations, liquidity and capital resources,
employees, customers, financial results and the economy, demand for
our products and subscription services, our expectations regarding
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 January 31, 2021. All information
provided in this release and in the attachments is as of
November 23, 2021, 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,
including Evergreen, 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,
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
|
|
|
Third Quarter
of
Fiscal 2022
|
|
Fiscal
2021
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
404,692
|
|
|
$
|
337,147
|
|
Marketable
securities
|
|
958,180
|
|
|
916,388
|
|
Accounts receivable,
net of allowance of $965 and $1,033
|
|
354,179
|
|
|
460,879
|
|
Inventory
|
|
44,036
|
|
|
46,733
|
|
Deferred commissions,
current
|
|
63,422
|
|
|
57,183
|
|
Prepaid expenses and
other current assets
|
|
102,117
|
|
|
89,836
|
|
Total current
assets
|
|
1,926,626
|
|
|
1,908,166
|
|
Property and
equipment, net
|
|
193,141
|
|
|
163,041
|
|
Operating lease
right-of-use-assets
|
|
115,731
|
|
|
134,668
|
|
Deferred commissions,
non-current
|
|
144,898
|
|
|
130,741
|
|
Intangible assets,
net
|
|
66,992
|
|
|
76,648
|
|
Goodwill
|
|
358,736
|
|
|
358,736
|
|
Restricted
cash
|
|
10,544
|
|
|
10,544
|
|
Other assets,
non-current
|
|
39,088
|
|
|
36,896
|
|
Total
assets
|
|
$
|
2,855,756
|
|
|
$
|
2,819,440
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
48,708
|
|
|
$
|
67,530
|
|
Accrued compensation
and benefits
|
|
122,969
|
|
|
160,817
|
|
Accrued expenses and
other liabilities
|
|
73,884
|
|
|
61,754
|
|
Operating lease
liabilities, current
|
|
35,061
|
|
|
32,231
|
|
Deferred revenue,
current
|
|
499,176
|
|
|
438,321
|
|
Total current
liabilities
|
|
779,798
|
|
|
760,653
|
|
Long-term
debt
|
|
778,366
|
|
|
755,814
|
|
Operating lease
liabilities, non-current
|
|
99,031
|
|
|
120,361
|
|
Deferred revenue,
non-current
|
|
450,574
|
|
|
405,376
|
|
Other liabilities,
non-current
|
|
23,563
|
|
|
27,230
|
|
Total
liabilities
|
|
2,131,332
|
|
|
2,069,434
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock and
additional paid-in capital
|
|
2,447,945
|
|
|
2,307,608
|
|
Accumulated other
comprehensive (loss) income
|
|
(307)
|
|
|
7,410
|
|
Accumulated
deficit
|
|
(1,723,214)
|
|
|
(1,565,012)
|
|
Total stockholders'
equity
|
|
724,424
|
|
|
750,006
|
|
Total liabilities and
stockholders' equity
|
|
$
|
2,855,756
|
|
|
$
|
2,819,440
|
|
PURE STORAGE,
INC. Condensed Consolidated Statements of
Operations (in thousands, except per share data,
unaudited)
|
|
|
Third Quarter of
Fiscal
|
|
First Three
Quarters of Fiscal
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
Product
|
$
|
374,913
|
|
|
$
|
274,470
|
|
|
$
|
949,736
|
|
|
$
|
793,718
|
|
Subscription
services
|
187,827
|
|
|
136,149
|
|
|
522,542
|
|
|
387,743
|
|
Total
revenue
|
562,740
|
|
|
410,619
|
|
|
1,472,278
|
|
|
1,181,461
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Product
(1)
|
129,721
|
|
|
86,661
|
|
|
309,935
|
|
|
240,677
|
|
Subscription
services(1)
|
58,227
|
|
|
47,442
|
|
|
165,658
|
|
|
132,717
|
|
Total cost of
revenue
|
187,948
|
|
|
134,103
|
|
|
475,593
|
|
|
373,394
|
|
Gross
profit
|
374,792
|
|
|
276,516
|
|
|
996,685
|
|
|
808,067
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development (1)
|
147,808
|
|
|
122,981
|
|
|
419,296
|
|
|
350,079
|
|
Sales and marketing
(1)
|
193,172
|
|
|
172,282
|
|
|
567,054
|
|
|
517,149
|
|
General and
administrative (1)
|
51,890
|
|
|
46,467
|
|
|
138,500
|
|
|
132,063
|
|
Restructuring and
other (2)
|
—
|
|
|
—
|
|
|
—
|
|
|
22,990
|
|
Total operating
expenses
|
392,870
|
|
|
341,730
|
|
|
1,124,850
|
|
|
1,022,281
|
|
Loss from
operations
|
(18,078)
|
|
|
(65,214)
|
|
|
(128,165)
|
|
|
(214,214)
|
|
Other income
(expense), net
|
(7,953)
|
|
|
(4,887)
|
|
|
(20,090)
|
|
|
(6,700)
|
|
Loss before provision
for income taxes
|
(26,031)
|
|
|
(70,101)
|
|
|
(148,255)
|
|
|
(220,914)
|
|
Income tax
provision
|
2,700
|
|
|
4,121
|
|
|
9,947
|
|
|
8,869
|
|
Net loss
|
$
|
(28,731)
|
|
|
$
|
(74,222)
|
|
|
$
|
(158,202)
|
|
|
$
|
(229,783)
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders, basic and diluted
|
$
|
(0.10)
|
|
|
$
|
(0.28)
|
|
|
$
|
(0.56)
|
|
|
$
|
(0.87)
|
|
Weighted-average
shares used in computing net loss per share attributable to common
stockholders, basic and diluted
|
287,462
|
|
|
269,144
|
|
|
283,918
|
|
|
265,626
|
|
|
(1) Includes
stock-based compensation expense as follows:
|
|
Cost of revenue --
product
|
$
|
1,634
|
|
|
$
|
1,027
|
|
|
$
|
4,547
|
|
|
$
|
3,013
|
|
Cost of revenue --
subscription services
|
5,555
|
|
|
3,883
|
|
|
15,098
|
|
|
10,961
|
|
Research and
development
|
36,797
|
|
|
29,220
|
|
|
102,343
|
|
|
87,770
|
|
Sales and
marketing
|
19,151
|
|
|
14,898
|
|
|
54,317
|
|
|
48,018
|
|
General and
administrative
|
12,863
|
|
|
10,581
|
|
|
31,458
|
|
|
29,993
|
|
Total stock-based
compensation expense
|
$
|
76,000
|
|
|
$
|
59,609
|
|
|
$
|
207,763
|
|
|
$
|
179,755
|
|
|
(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
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
Net loss
|
$
|
(28,731)
|
|
|
$
|
(74,222)
|
|
|
$
|
(158,202)
|
|
|
$
|
(229,783)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
21,506
|
|
|
18,214
|
|
|
59,605
|
|
|
49,811
|
|
Amortization of debt
discount and debt issuance costs
|
7,857
|
|
|
7,400
|
|
|
23,011
|
|
|
21,525
|
|
Stock-based
compensation expense
|
76,000
|
|
|
59,609
|
|
|
207,763
|
|
|
179,755
|
|
Impairment of
long-lived assets
|
471
|
|
|
—
|
|
|
471
|
|
|
7,505
|
|
Other
|
2,060
|
|
|
2,139
|
|
|
8,576
|
|
|
4,111
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
4,282
|
|
|
(8,676)
|
|
|
106,788
|
|
|
83,220
|
|
Inventory
|
3,280
|
|
|
(6,459)
|
|
|
38
|
|
|
(4,724)
|
|
Deferred
commissions
|
(12,354)
|
|
|
(7,402)
|
|
|
(20,395)
|
|
|
(12,885)
|
|
Prepaid expenses and
other assets
|
12,672
|
|
|
(11,217)
|
|
|
(12,283)
|
|
|
(37,606)
|
|
Operating lease
right-of-use assets
|
7,243
|
|
|
7,253
|
|
|
22,061
|
|
|
21,434
|
|
Accounts
payable
|
(4,989)
|
|
|
29,656
|
|
|
(14,256)
|
|
|
8,566
|
|
Accrued compensation
and other liabilities
|
5,701
|
|
|
(6,520)
|
|
|
(35,251)
|
|
|
(9,737)
|
|
Operating lease
liabilities
|
(7,889)
|
|
|
(7,373)
|
|
|
(22,094)
|
|
|
(20,444)
|
|
Deferred
revenue
|
39,937
|
|
|
30,397
|
|
|
106,054
|
|
|
57,860
|
|
Net cash provided by
operating activities
|
127,046
|
|
|
32,799
|
|
|
271,886
|
|
|
118,608
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
(25,718)
|
|
|
(24,867)
|
|
|
(81,217)
|
|
|
(73,643)
|
|
Acquisition, net of
cash acquired
|
—
|
|
|
(339,806)
|
|
|
—
|
|
|
(339,806)
|
|
Purchase of strategic
investment
|
—
|
|
|
(5,000)
|
|
|
—
|
|
|
(5,000)
|
|
Purchases of
marketable securities
|
(185,667)
|
|
|
(163,154)
|
|
|
(503,038)
|
|
|
(454,391)
|
|
Sales of marketable
securities
|
32,896
|
|
|
40,856
|
|
|
146,934
|
|
|
132,207
|
|
Maturities of
marketable securities
|
133,388
|
|
|
118,606
|
|
|
303,158
|
|
|
324,780
|
|
Net cash used in
investing activities
|
(45,101)
|
|
|
(373,365)
|
|
|
(134,163)
|
|
|
(415,853)
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
Net proceeds from
exercise of stock options
|
22,580
|
|
|
4,019
|
|
|
33,743
|
|
|
25,677
|
|
Proceeds from issuance
of common stock under employee stock purchase plan
|
18,915
|
|
|
16,418
|
|
|
36,641
|
|
|
32,439
|
|
Proceeds from
borrowings, net of issuance costs
|
—
|
|
|
246,942
|
|
|
—
|
|
|
251,892
|
|
Repayments of
borrowings
|
(265)
|
|
|
—
|
|
|
(870)
|
|
|
—
|
|
Principal payments on
finance lease obligations
|
(414)
|
|
|
—
|
|
|
(414)
|
|
|
—
|
|
Tax withholding on
vesting of equity awards
|
(2,106)
|
|
|
(1,239)
|
|
|
(8,670)
|
|
|
(4,080)
|
|
Repurchases of common
stock
|
(56,215)
|
|
|
(21,411)
|
|
|
(130,608)
|
|
|
(111,554)
|
|
Net cash (used in)
provided by financing activities
|
(17,505)
|
|
|
244,729
|
|
|
(70,178)
|
|
|
194,374
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
64,440
|
|
|
(95,837)
|
|
|
67,545
|
|
|
(102,871)
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
350,796
|
|
|
370,888
|
|
|
347,691
|
|
|
377,922
|
|
Cash, cash
equivalents and restricted cash, end of period
|
$
|
415,236
|
|
|
$
|
275,051
|
|
|
$
|
415,236
|
|
|
$
|
275,051
|
|
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 2022
|
|
Third Quarter of
Fiscal 2021
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,634
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$
|
1,027
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
42
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
13
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
|
3,207
|
|
|
(e)
|
|
|
|
|
|
|
|
|
|
2,396
|
|
|
(e)
|
|
|
|
|
Gross profit
--product
|
|
$
|
245,192
|
|
|
65.4
|
%
|
|
$
|
4,883
|
|
|
|
|
$
|
250,075
|
|
|
66.7
|
%
|
|
$
|
187,809
|
|
|
68.4
|
%
|
|
$
|
3,436
|
|
|
|
|
$
|
191,245
|
|
|
69.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,555
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$
|
3,883
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
279
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
59
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
|
24
|
|
|
(f)
|
|
|
|
|
|
|
|
|
|
7
|
|
|
(f)
|
|
|
|
|
Gross profit
--subscription services
|
|
$
|
129,600
|
|
|
69.0
|
%
|
|
$
|
5,858
|
|
|
|
|
$
|
135,458
|
|
|
72.1
|
%
|
|
$
|
88,707
|
|
|
65.2
|
%
|
|
$
|
3,949
|
|
|
|
|
$
|
92,656
|
|
|
68.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
7,189
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$
|
4,910
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
321
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
72
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
|
3,207
|
|
|
(e)
|
|
|
|
|
|
|
|
|
|
2,396
|
|
|
(e)
|
|
|
|
|
|
|
|
|
|
|
24
|
|
|
(f)
|
|
|
|
|
|
|
|
|
|
7
|
|
|
(f)
|
|
|
|
|
Total gross
profit
|
|
$
|
374,792
|
|
|
66.6
|
%
|
|
$
|
10,741
|
|
|
|
|
$
|
385,533
|
|
|
68.5
|
%
|
|
$
|
276,516
|
|
|
67.3
|
%
|
|
$
|
7,385
|
|
|
|
|
$
|
283,901
|
|
|
69.1
|
%
|
|
|
(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 certain non-GAAP consolidated results before certain items
(in thousands, except per share amounts and percentages,
unaudited):
|
|
|
Third Quarter of
Fiscal 2022
|
|
Third Quarter of
Fiscal 2021
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
76,000
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$
|
59,609
|
|
|
(c)
|
|
|
|
|
|
|
|
|
4,230
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
3,533
|
|
|
(d)
|
|
|
|
|
|
|
|
|
2,631
|
|
|
(e)
|
|
|
|
|
|
|
|
|
|
1,166
|
|
|
(e)
|
|
|
|
|
|
|
|
|
551
|
|
|
(f)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
3,739
|
|
|
(g)
|
|
|
|
|
|
|
|
|
|
2,573
|
|
|
(g)
|
|
|
|
|
|
|
|
|
382
|
|
|
(h)
|
|
|
|
|
|
|
|
|
|
1,762
|
|
|
(h)
|
|
|
|
Operating
Income (loss)
|
$
|
(18,078)
|
|
|
-3.2
|
%
|
|
$
|
87,533
|
|
|
|
|
$
|
69,455
|
|
|
12.3
|
%
|
|
$
|
(65,214)
|
|
|
-15.9
|
%
|
|
$
|
68,643
|
|
|
|
$
|
3,429
|
|
|
0.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
76,000
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$
|
59,609
|
|
|
(c)
|
|
|
|
|
|
|
|
|
4,230
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
3,533
|
|
|
(d)
|
|
|
|
|
|
|
|
|
2,631
|
|
|
(e)
|
|
|
|
|
|
|
|
|
|
1,166
|
|
|
(e)
|
|
|
|
|
|
|
|
|
551
|
|
|
(f)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
3,739
|
|
|
(g)
|
|
|
|
|
|
|
|
|
|
2,573
|
|
|
(g)
|
|
|
|
|
|
|
|
|
382
|
|
|
(h)
|
|
|
|
|
|
|
|
|
|
1,762
|
|
|
(h)
|
|
|
|
|
|
|
|
|
7,857
|
|
|
(i)
|
|
|
|
|
|
|
|
|
|
7,400
|
|
|
(i)
|
|
|
|
Net income
(loss)
|
$
|
(28,731)
|
|
|
|
|
$
|
95,390
|
|
|
|
|
$
|
66,659
|
|
|
|
|
$
|
(74,222)
|
|
|
|
|
$
|
76,043
|
|
|
|
$
|
1,821
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per share -- diluted
|
$
|
(0.10)
|
|
|
|
|
|
|
|
|
$
|
0.22
|
|
|
|
|
$
|
(0.28)
|
|
|
|
|
|
|
|
$
|
0.01
|
|
|
|
Weighted-average
shares used in per share calculation --
diluted
|
287,462
|
|
|
|
|
20,835
|
|
|
(j)
|
|
308,297
|
|
|
|
|
269,144
|
|
|
|
|
15,677
|
|
|
(j)
|
284,821
|
|
|
|
|
|
(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
impairment of right-of-use assets associated with cease-use of a
certain facility.
|
(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).
|
Reconciliation
from net cash provided by operating activities to free cash flow
(in thousands except percentages, unaudited):
|
|
|
Third Quarter of
Fiscal
|
|
2022
|
|
2021
|
Net cash provided by
operating activities
|
$
|
127,046
|
|
|
$
|
32,799
|
|
Less: purchases of
property and equipment
|
(25,718)
|
|
|
(24,867)
|
|
Free cash flow
(non-GAAP)
|
$
|
101,328
|
|
|
$
|
7,932
|
|
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SOURCE Pure Storage