MOUNTAIN VIEW, Calif.,
March 2, 2022 /PRNewswire/
-- Today Pure Storage (NYSE: PSTG), the IT pioneer that
delivers the most advanced data storage technology and services,
announced financial results for its fiscal fourth quarter and full
year ended February 6, 2022.
"By every measure, Pure had an outstanding quarter and fiscal
year," said Charles Giancarlo,
Chairman and CEO, Pure Storage. "As evidenced by the 41% growth in
Q4, our strategy to deliver an innovative portfolio of data storage
and services, with industry-leading customer experiences and
flexible, efficient operations continues to position Pure as the
trusted provider for all organizations."
Fourth Quarter and Full Year Financial
Highlights
- Q4 revenue $708.6 million, up 41%
year-over-year
- Full-year revenue $2.18 billion,
up 29% year-over-year
- Q4 subscription services revenue $216.0
million, up 42% year-over-year
- Full-year subscription services revenue $738.5 million, up 37% year-over-year
- Q4 subscription annual recurring revenue (ARR) $848.8 million, up 31% year-over-year
- Remaining performance obligations (RPO) $1.4 billion, up 29% year-over-year
- Q4 GAAP gross margin 67.2%; non-GAAP gross margin 68.8%
- Full-year GAAP gross margin 67.5%; non-GAAP gross margin
69.4%
- Q4 GAAP operating income $29.8
million; non-GAAP operating income $118.7 million
- Q4 GAAP operating margin 4.2%; non-GAAP operating margin
16.8%
- Full-year GAAP operating loss $(98.4)
million; non-GAAP operating income $235.0 million
- Full-year GAAP operating margin (4.5)%; non-GAAP operating
margin 10.8%
- Q4 operating cash flow $138.2
million; free cash flow $117.2
million
- Full-year operating cash flow $410.1
million; free cash flow $307.8
million
- Total cash, cash equivalents, and investments of $1.41 billion
- Returned approximately $69
million and $200 million in Q4
and FY22, respectively, to stockholders through share repurchases
and completed our Board authorized amount of $200 million
"We are thrilled to be capping off the year in a position of
leadership and strength," said Kevan
Krysler, CFO, Pure Storage. "The momentum we are
experiencing is the year's culmination of relentless focus on
innovating for our customers."
Fourth Quarter and Full Year Company Highlights
- Surpassed the 10,000 Customer Mark: Pure's customer base
further expanded across a wide and balanced range of use cases,
industries, and geographies. In Q4, Meta announced Pure as the
storage partner to deliver robust and scalable storage capabilities
to power its AI Research SuperCluster (RSC).
- Strong Subscription Services Momentum: Pure's
subscription services revenue grew 37% YoY in FY22 and Pure
unveiled two new service offerings to be generally available in Q1
FY23, Pure Fusion and Portworx Data Services.
- Market-Leading Portfolio Innovation: Pure introduced the
new FlashArray//XL to provide unmatched performance and scale to
platinum tier applications and expanded features and functionality
across the FlashArray and FlashBlade platforms with new Purity
software, all available through Pure as-a-Service. Pure also
delivered new releases of Portworx Enterprise and PX-Backup.
- Industry and Customer Recognition: Pure set a high-bar
with an 85.2 third-party certified Net Promoter Score (NPS). Pure
was named a leader in the Gartner Magic Quadrants for both Primary
Storage and Distributed File Systems & Object Storage, marking
its 8th consecutive year as a leader.
- Expansion of Research & Development Centers: Pure
opened a new R&D site in Bangalore,
India, joining global R&D centers in Mountain View, CA, Bellevue, WA, and Vancouver, Canada in North America; and Prague, Czech Republic in EMEA.
First Quarter and FY23 Guidance
|
Q1
FY23
|
FY23
|
Revenue
|
Approx. $520
Million
|
Approx. $2.6
Billion Est. 19%-20% Y/Y
Growth
|
Non-GAAP Operating
Income
|
$16
Million
|
$300
Million
|
Non-GAAP Operating
Margin
|
Approx. 3%
|
Approx.
11.5%
|
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.
Share Repurchase Authorization
Pure's board of directors has authorized 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
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 fourth quarter
and full year fiscal 2022 results at 2:30 pm
PT today, March 2, 2022. A
live audio broadcast of the conference call will be available at
the Pure Storage Investor Relations website,
investor.purestorage.com. Pure will also post its earnings
presentation to this website in advance of the call and post its
prepared remarks to this website within 24 hours 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
8379776.
Upcoming Events
Pure is scheduled to participate at the following investor
conferences:
Susquehanna Eleventh Annual Technology
Conference
Date: Friday, March 4,
2022
Pure Participants: Kevan Krysler,
CFO, Rob Lee, CTO, and Sanjot
Khurana, VP, Investor Relations and Treasurer
Morgan Stanley Technology, Media & Telecom
Conference
Date: Monday, March 7,
2022
Time: 11:30 am PST
Pure Presenters: Charles Giancarlo,
Chairman and CEO, and Kevan Krysler,
CFO
Pure Participants: Rob Lee, CTO, and
Sanjot Khurana, VP, Investor Relations and Treasurer
KeyBanc Emerging Technology Summit (ETS)
Date:
Tuesday, March 8, 2022
Pure Participants: Kevan Krysler,
CFO, and Rob Lee, CTO
Raymond James 43rd Annual
Institutional Investors Conference
Date: Wednesday, March 9, 2022
Pure Participants: Ajay Singh, CPO,
and Sanjot Khurana, VP, Investor Relations and Treasurer
The presentation 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
sustainable growth strategy, our continued momentum and growth
potential, particularly within our enterprise customer segment, the
potential for supply chain disruptions, 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, including Pure as-a-Service, our expectations regarding
our product and technology differentiation, new customer
acquisition, the continued success of the Portworx technology, and
other statements regarding our products, business, operations and
results. Forward-looking statements are subject to known and
unknown risks and uncertainties and are based on potentially
inaccurate assumptions that could cause actual results to differ
materially from those expected or implied by the forward-looking
statements.
Actual results may differ materially from the results predicted,
and reported results should not be considered as an indication of
future performance. The potential risks and uncertainties that
could cause actual results to differ from the results predicted
include, among others, those risks and uncertainties included under
the caption "Risk Factors" and elsewhere in our filings and reports
with the U.S. Securities and Exchange Commission, which are
available on our Investor Relations website at
investor.purestorage.com and on the SEC website at www.sec.gov,
including as set forth in our Annual Report on Form 10-K for the
year ended January 31, 2021, quarterly reports on Form 10-Q,
and current reports on Form 8-K. All information provided in this
release and in the attachments is as of March 2, 2022, and
Pure undertakes no duty to update this information unless required
by law.
Key Business Metric
Subscription ARR is a key business metric that refers to total
annualized contract value of all active subscription agreements,
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
Fiscal
|
|
|
2022
|
|
2021
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
466,199
|
|
$
337,147
|
Marketable
securities
|
|
947,073
|
|
916,388
|
Accounts receivable,
net of allowance of $945 and $1,033
|
|
542,144
|
|
460,879
|
Inventory
|
|
38,942
|
|
46,733
|
Deferred commissions,
current
|
|
81,589
|
|
57,183
|
Prepaid expenses and
other current assets
|
|
116,232
|
|
89,836
|
Total current
assets
|
|
2,192,179
|
|
1,908,166
|
Property and
equipment, net
|
|
195,282
|
|
163,041
|
Operating lease
right-of-use assets
|
|
111,763
|
|
134,668
|
Deferred commissions,
non-current
|
|
164,718
|
|
130,741
|
Intangible assets,
net
|
|
62,646
|
|
76,648
|
Goodwill
|
|
358,736
|
|
358,736
|
Restricted
cash
|
|
10,544
|
|
10,544
|
Other assets,
non-current
|
|
39,447
|
|
36,896
|
Total
assets
|
|
$
3,135,315
|
|
$
2,819,440
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
70,704
|
|
$
67,530
|
Accrued compensation
and benefits
|
|
205,431
|
|
160,817
|
Accrued expenses and
other liabilities
|
|
78,511
|
|
61,754
|
Operating lease
liabilities, current
|
|
35,098
|
|
32,231
|
Deferred revenue,
current
|
|
562,576
|
|
438,321
|
Total current
liabilities
|
|
952,320
|
|
760,653
|
Long-term
debt
|
|
786,779
|
|
755,814
|
Operating lease
liabilities, non-current
|
|
93,479
|
|
120,361
|
Deferred revenue,
non-current
|
|
517,296
|
|
405,376
|
Other liabilities,
non-current
|
|
31,105
|
|
27,230
|
Total
liabilities
|
|
2,380,979
|
|
2,069,434
|
Stockholders'
equity:
|
|
|
|
|
Common stock and
additional paid-in capital
|
|
2,470,972
|
|
2,307,608
|
Accumulated other
comprehensive income (loss)
|
|
(8,365)
|
|
7,410
|
Accumulated
deficit
|
|
(1,708,271)
|
|
(1,565,012)
|
Total stockholders'
equity
|
|
754,336
|
|
750,006
|
Total liabilities and
stockholders' equity
|
|
$
3,135,315
|
|
$
2,819,440
|
PURE STORAGE,
INC.
Condensed
Consolidated Statements of Operations
(in thousands,
except per share data, unaudited)
|
|
|
|
Fourth Quarter of
Fiscal
|
|
Fiscal Year
Ended
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Product
|
|
$
492,602
|
|
$
350,380
|
|
$
1,442,338
|
|
$
1,144,098
|
Subscription
services
|
|
215,968
|
|
152,338
|
|
738,510
|
|
540,081
|
Total
revenue
|
|
708,570
|
|
502,718
|
|
2,180,848
|
|
1,684,179
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
Product
(1)
|
|
167,964
|
|
112,310
|
|
477,899
|
|
352,987
|
Subscription services
(1)
|
|
64,772
|
|
49,551
|
|
230,430
|
|
182,268
|
Total cost of
revenue
|
|
232,736
|
|
161,861
|
|
708,329
|
|
535,255
|
Gross
profit
|
|
475,834
|
|
340,857
|
|
1,472,519
|
|
1,148,924
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development (1)
|
|
162,639
|
|
130,388
|
|
581,935
|
|
480,467
|
Sales and marketing
(1)
|
|
231,947
|
|
198,865
|
|
799,001
|
|
716,014
|
General and
administrative (1)
|
|
51,481
|
|
50,414
|
|
189,981
|
|
182,477
|
Restructuring and
other (2)
|
|
—
|
|
8,009
|
|
—
|
|
30,999
|
Total operating
expenses
|
|
446,067
|
|
387,676
|
|
1,570,917
|
|
1,409,957
|
Income (loss) from
operations
|
|
29,767
|
|
(46,819)
|
|
(98,398)
|
|
(261,033)
|
Other income
(expense), net
|
|
(10,008)
|
|
(2,427)
|
|
(30,098)
|
|
(9,127)
|
Income (loss) before
provision for income taxes
|
|
19,759
|
|
(49,246)
|
|
(128,496)
|
|
(270,160)
|
Income tax
provision
|
|
4,816
|
|
3,047
|
|
14,763
|
|
11,916
|
Net income
(loss)
|
|
$
14,943
|
|
$
(52,293)
|
|
$
(143,259)
|
|
$
(282,076)
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share attributable to common
stockholders, basic and diluted
|
|
$
0.05
|
|
$
(0.19)
|
|
$
(0.50)
|
|
$
(1.05)
|
Weighted-average
shares used in computing net
income
(loss) per share attributable to common
stockholders, basic
|
|
291,351
|
|
274,421
|
|
285,882
|
|
267,824
|
Weighted-average
shares used in computing net
income
(loss) per share attributable to common
stockholders, diluted
|
|
317,268
|
|
274,421
|
|
285,882
|
|
267,824
|
|
(1) Includes stock-based compensation
expense as follows:
|
|
Cost of revenue --
product
|
|
$
1,787
|
|
$
988
|
|
$
6,334
|
|
$
4,001
|
Cost of revenue --
subscription services
|
|
6,142
|
|
4,018
|
|
21,240
|
|
14,979
|
Research and
development
|
|
39,921
|
|
29,450
|
|
142,264
|
|
117,220
|
Sales and
marketing
|
|
17,122
|
|
17,230
|
|
71,439
|
|
65,248
|
General and
administrative
|
|
14,228
|
|
10,903
|
|
45,686
|
|
40,896
|
Total stock-based
compensation expense
|
|
$
79,200
|
|
$
62,589
|
|
$
286,963
|
|
$
242,344
|
|
(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
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
14,943
|
|
$
(52,293)
|
|
$
(143,259)
|
|
$
(282,076)
|
Adjustments to
reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
23,546
|
|
20,231
|
|
83,151
|
|
70,042
|
Amortization of debt
discount and debt issuance costs
|
|
8,566
|
|
7,545
|
|
31,577
|
|
29,070
|
Stock-based
compensation expense
|
|
79,200
|
|
62,589
|
|
286,963
|
|
242,344
|
Impairment of
long-lived assets
|
|
—
|
|
—
|
|
471
|
|
7,505
|
Other
|
|
4,499
|
|
3,229
|
|
13,075
|
|
7,340
|
Changes in operating
assets and liabilities, net of effects of
acquisition:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
(188,035)
|
|
(82,810)
|
|
(81,247)
|
|
410
|
Inventory
|
|
4,080
|
|
(3,966)
|
|
4,118
|
|
(8,690)
|
Deferred
commissions
|
|
(37,988)
|
|
(35,836)
|
|
(58,383)
|
|
(48,721)
|
Prepaid expenses and
other assets
|
|
(13,505)
|
|
3,624
|
|
(25,788)
|
|
(33,982)
|
Operating lease
right-of-use assets
|
|
7,891
|
|
7,370
|
|
29,952
|
|
28,804
|
Accounts
payable
|
|
20,967
|
|
(22,930)
|
|
6,711
|
|
(14,364)
|
Accrued compensation
and other liabilities
|
|
94,212
|
|
86,709
|
|
58,961
|
|
76,972
|
Operating lease
liabilities
|
|
(10,257)
|
|
(6,874)
|
|
(32,351)
|
|
(27,318)
|
Deferred
revenue
|
|
130,122
|
|
82,445
|
|
236,176
|
|
140,305
|
Net cash provided by
operating activities
|
|
138,241
|
|
69,033
|
|
410,127
|
|
187,641
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment(1)
|
|
(21,070)
|
|
(21,332)
|
|
(102,287)
|
|
(94,975)
|
Acquisition, net of
cash acquired
|
|
—
|
|
165
|
|
—
|
|
(339,641)
|
Purchases of
marketable securities
|
|
(114,605)
|
|
(119,568)
|
|
(617,043)
|
|
(573,959)
|
Sales of marketable
securities
|
|
53,548
|
|
39,323
|
|
200,482
|
|
171,530
|
Maturities of
marketable securities
|
|
63,007
|
|
99,156
|
|
366,165
|
|
423,936
|
Other
|
|
—
|
|
—
|
|
(600)
|
|
(5,000)
|
Net cash used in
investing activities
|
|
(19,120)
|
|
(2,256)
|
|
(153,283)
|
|
(418,109)
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Net proceeds from
exercise of stock options
|
|
14,966
|
|
33,695
|
|
48,709
|
|
59,372
|
Proceeds from issuance
of common stock under employee stock
purchase plan
|
|
—
|
|
—
|
|
36,641
|
|
32,439
|
Proceeds from
borrowings, net of issuance costs
|
|
—
|
|
—
|
|
—
|
|
251,892
|
Repayments of
borrowing
|
|
(267)
|
|
(33)
|
|
(1,137)
|
|
(33)
|
Principal payments on
finance lease obligations
|
|
(586)
|
|
—
|
|
(1,000)
|
|
—
|
Tax withholding on
vesting of equity awards
|
|
(2,165)
|
|
(4,178)
|
|
(10,835)
|
|
(8,258)
|
Repurchases of common
stock
|
|
(69,562)
|
|
(23,621)
|
|
(200,170)
|
|
(135,175)
|
Net cash (used in)
provided by financing activities
|
|
(57,614)
|
|
5,863
|
|
(127,792)
|
|
200,237
|
Net increase
(decrease) in cash and cash equivalents and
restricted cash
|
|
61,507
|
|
72,640
|
|
129,052
|
|
(30,231)
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
415,236
|
|
275,051
|
|
347,691
|
|
377,922
|
Cash, cash
equivalents and restricted cash, end of period
|
|
$
476,743
|
|
$
347,691
|
|
$
476,743
|
|
$
347,691
|
|
(1)
Includes capitalized internal-use software costs of $2.5 million
and $2.0 million for the fourth quarter of fiscal 2022 and 2021 and
$8.8 million and $2.3 million for fiscal 2022 and 2021.
|
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
|
|
2022
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
1,787
|
(c)
|
|
|
|
|
|
|
|
|
$
988
|
(c)
|
|
|
|
|
|
|
|
|
42
|
(d)
|
|
|
|
|
|
|
|
|
18
|
(d)
|
|
|
|
|
|
|
|
|
3,462
|
(e)
|
|
|
|
|
|
|
|
|
3,062
|
(e)
|
|
|
|
Gross profit
--
product
|
$ 324,638
|
|
65.9
%
|
|
$
5,291
|
|
$ 329,929
|
|
67.0
%
|
|
$ 238,070
|
|
67.9
%
|
|
$
4,068
|
|
$ 242,138
|
|
69.1
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
6,142
|
(c)
|
|
|
|
|
|
|
|
|
$
4,018
|
(c)
|
|
|
|
|
|
|
|
|
253
|
(d)
|
|
|
|
|
|
|
|
|
64
|
(d)
|
|
|
|
|
|
|
|
|
24
|
(f)
|
|
|
|
|
|
|
|
|
25
|
(f)
|
|
|
|
Gross profit
--
subscription services
|
$ 151,196
|
|
70.0
%
|
|
$
6,419
|
|
$ 157,615
|
|
73.0
%
|
|
$ 102,787
|
|
67.5
%
|
|
$
4,107
|
|
$ 106,894
|
|
70.2
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
7,929
|
(c)
|
|
|
|
|
|
|
|
|
$
5,006
|
(c)
|
|
|
|
|
|
|
|
|
295
|
(d)
|
|
|
|
|
|
|
|
|
82
|
(d)
|
|
|
|
|
|
|
|
|
3,462
|
(e)
|
|
|
|
|
|
|
|
|
3,062
|
(e)
|
|
|
|
|
|
|
|
|
24
|
(f)
|
|
|
|
|
|
|
|
|
25
|
(f)
|
|
|
|
Total gross
profit
|
$ 475,834
|
|
67.2
%
|
|
$
11,710
|
|
$ 487,544
|
|
68.8
%
|
|
$ 340,857
|
|
67.8
%
|
|
$
8,175
|
|
$ 349,032
|
|
69.4
%
|
|
(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
|
|
2022
|
|
GAAP
results
|
|
GAAP gross
margin (a)
|
|
Adjustment
|
|
|
Non-
GAAP
results
|
|
Non-
GAAP
gross
margin (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
6,334
|
(c)
|
|
|
|
|
|
|
|
|
|
225
|
(d)
|
|
|
|
|
|
|
|
|
|
12,803
|
(e)
|
|
|
|
|
Gross profit --
product
|
$
964,439
|
|
66.9 %
|
|
$
19,362
|
|
|
$
983,801
|
|
68.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
21,240
|
(c)
|
|
|
|
|
|
|
|
|
|
971
|
(d)
|
|
|
|
|
|
|
|
|
|
96
|
(f)
|
|
|
|
|
Gross profit --
subscription services
|
$
508,080
|
|
68.8 %
|
|
$
22,307
|
|
|
$
530,387
|
|
71.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
27,574
|
(c)
|
|
|
|
|
|
|
|
|
|
1,196
|
(d)
|
|
|
|
|
|
|
|
|
|
12,803
|
(e)
|
|
|
|
|
|
|
|
|
|
96
|
(f)
|
|
|
|
|
Total gross
profit
|
$
1,472,519
|
|
67.5 %
|
|
$
41,669
|
|
|
$
1,514,188
|
|
69.4 %
|
|
(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):
|
|
Fourth Quarter of
Fiscal
|
|
Fourth Quarter of
Fiscal
|
|
2022
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
79,200
|
(c)
|
|
|
|
|
|
|
|
|
$
62,589
|
(c)
|
|
|
|
|
|
|
|
|
3,390
|
(d)
|
|
|
|
|
|
|
|
|
6,435
|
(d)
|
|
|
|
|
|
|
|
|
2,302
|
(e)
|
|
|
|
|
|
|
|
|
2,024
|
(e)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
7,977
|
(f)
|
|
|
|
|
|
|
|
|
4,034
|
(g)
|
|
|
|
|
|
|
|
|
3,594
|
(g)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
921
|
(h)
|
|
|
|
Operating
income (loss)
|
$ 29,767
|
|
4.2
%
|
|
$
88,926
|
|
$
118,693
|
|
16.8
%
|
|
$
(46,819)
|
|
-9.3
%
|
|
$
83,540
|
|
$ 36,721
|
|
7.3
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
79,200
|
(c)
|
|
|
|
|
|
|
|
|
$
62,589
|
(c)
|
|
|
|
|
|
|
|
|
3,390
|
(d)
|
|
|
|
|
|
|
|
|
6,435
|
(d)
|
|
|
|
|
|
|
|
|
2,302
|
(e)
|
|
|
|
|
|
|
|
|
2,024
|
(e)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
7,977
|
(f)
|
|
|
|
|
|
|
|
|
4,034
|
(g)
|
|
|
|
|
|
|
|
|
3,594
|
(g)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
921
|
(h)
|
|
|
|
|
|
|
|
|
8,566
|
(i)
|
|
|
|
|
|
|
|
|
7,545
|
(i)
|
|
|
|
Net income
(loss)
|
$ 14,943
|
|
|
|
$
97,492
|
|
$
112,435
|
|
|
|
$
(52,293)
|
|
|
|
$
91,085
|
|
$ 38,792
|
|
|
Net income
(loss) per
share --
diluted
|
$
0.05
|
|
|
|
|
|
$
0.36
|
|
|
|
$
(0.19)
|
|
|
|
|
|
$
0.13
|
|
|
Weighted-
average
shares used in
per share
calculation --
diluted
|
317,268
|
|
|
|
(2,357)
|
(j)
|
314,911
|
|
|
|
274,421
|
|
|
|
22,786
|
(k)
|
297,207
|
|
|
|
(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 exclude
the dilutive effect from convertible note under treasury stock
method.
|
(k) To include effect
of dilutive securities (employee stock options, restricted stock,
and shares from employees 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
|
|
2022
|
|
GAAP
results
|
|
GAAP
operating
margin (a)
|
|
Adjustment
|
|
Non- GAAP
results
|
|
Non- GAAP
operating
margin (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
286,963
|
(c)
|
|
|
|
|
|
|
|
|
17,524
|
(d)
|
|
|
|
|
|
|
|
|
10,805
|
(e)
|
|
|
|
|
|
|
|
|
551
|
(f)
|
|
|
|
|
|
|
|
|
14,973
|
(g)
|
|
|
|
|
|
|
|
|
2,596
|
(h)
|
|
|
|
Operating income
(loss)
|
$
(98,398)
|
|
-4.5
%
|
|
$
333,412
|
|
$
235,014
|
|
10.8
%
|
|
(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
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.
|
Reconciliation
from net cash provided by operating activities to free cash flow
(in thousands except percentages, unaudited):
|
|
|
|
Fourth Quarter of
Fiscal
|
|
Fiscal Year
Ended
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net cash provided by
operating activities
|
|
$
138,241
|
|
$
69,033
|
|
$
410,127
|
|
$
187,641
|
Less: purchases of
property and equipment(1)
|
|
(21,070)
|
|
(21,332)
|
|
(102,287)
|
|
(94,975)
|
Free cash flow
(non-GAAP)
|
|
$
117,171
|
|
$
47,701
|
|
$
307,840
|
|
$
92,666
|
|
(1) Includes capitalized
internal-use software costs of $2.5 million and $2.0 million for
the fourth quarter of fiscal 2022 and 2021 and $8.8 million and
$2.3 million for fiscal 2022 and 2021.
|
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SOURCE Pure Storage