Fiscal 2023 revenue growth of 26%
year-over-year
Subscription services ARR of $1.1 billion, up 30%
year-over-year
Introduction of FlashBlade//E: Delivering
benefits of flash at better economics than disk
MOUNTAIN
VIEW, Calif., March 1,
2023 /PRNewswire/ -- Today Pure Storage (NYSE: PSTG),
the IT pioneer that delivers the world's most advanced data storage
technology and services, announced financial results for its fiscal
fourth quarter and full year 2023 ended February 5,
2023.
"Pure continued to grow faster than the market this year with
the industry's most advanced, reliable, and energy-efficient
products and services," said Charles
Giancarlo, Chairman and CEO, Pure Storage. "Despite current
macro conditions, we remain confident in our ability to execute,
manage costs, and maintain a strong innovation cycle, highlighted
by today's introduction of FlashBlade//E."
Fourth Quarter and Full Year Financial Highlights
- Q4 revenue $810.2 million, up 14%
year-over-year
- Full-year revenue $2.8 billion,
up 26% year-over-year
- Q4 subscription services revenue $265.1
million, up 23% year-over-year
- Full-year subscription services revenue $961.3 million, up 30% year-over-year
- Q4 subscription annual recurring revenue (ARR) $1.1 billion, up 30% year-over-year
- Remaining performance obligations (RPO) $1.8 billion, up 24% year-over-year
- Q4 GAAP gross margin 69.3%; non-GAAP gross margin 70.8%
- Full-year GAAP gross margin 68.9%; non-GAAP gross margin
70.7%
- Q4 GAAP operating income $64.6
million; non-GAAP operating income $158.6 million
- Full-year GAAP operating income $83.5
million; non-GAAP operating income $457.2 million
- Q4 GAAP operating margin 8.0%; non-GAAP operating margin
19.6%
- Full-year GAAP operating margin 3.0%; non-GAAP operating margin
16.6%
- Q4 operating cash flow $233.0
million; free cash flow $172.8
million
- Full-year operating cash flow $767.2
million; free cash flow $609.1
million
- Total cash, cash equivalents, and marketable securities
$1.6 billion
- Returned approximately $67.5
million and $219.0 million in
Q4 and FY23, respectively, to stockholders through share
repurchases of 2.4 million shares and 7.8 million shares,
respectively
- Authorized incremental share repurchases of up to an additional
$250 million under its stock
repurchase program
"Pure delivered strong Q4 financial results growing revenue 14%
and achieving record operating profit and margin," said
Kevan Krysler, CFO, Pure Storage.
"We are confident that we will navigate the current macro backdrop,
while focusing on our commitment to deliver long-term, profitable
growth."
Fourth Quarter and Full Year Company Highlights
- Market-Leading Portfolio Innovation: In June 2022, Pure introduced the new FlashBlade//S
family of products, built with a modular architecture that
leverages a nearly unlimited scalable metadata architecture,
offering more than double the density, performance, and power
efficiency of previous versions. Additionally, Pure made two new
offerings - Pure Fusion and Portworx Data Services - generally
available in FY23. Today, Pure announced the addition of
FlashBlade//E, an unstructured data repository priced under
$0.20 per GB.
- Strong Subscription Services Momentum: In FY23, Pure
extended its as-a-Service model across the full suite of Portworx
offerings and also advanced its portfolio of Evergreen offerings to
include the new fleet-level Evergreen//Flex.
- Leadership in Sustainability: Pure released the first
environmental impact analysis of its portfolio, which found that
Pure's products can use as little as one-fifth the power of
competitive storage offerings. Pure also introduced the
first-of-it's-kind Energy Efficiency SLA guarantee for
Evergreen//One.
- Industry Recognition: Pure was named a leader in the
Gartner Magic Quadrants for both Primary Storage and Distributed
File Systems & Object Storage, marking its 9th consecutive year
as a leader. Pure was also named one of Fortune's Best
Workplaces in Technology.
FY24 Guidance
|
FY24
|
Revenue
|
Mid to High Single
Digit Y/Y Growth
|
Non-GAAP Operating
Margin
|
15 %
|
Q1FY24 Guidance will be provided during the conference call
beginning at 2:00 pm PT today,
March 1, 2023.
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 margin to its 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.
Share Repurchase Authorization
Pure's board of directors has authorized, and its audit
committee has approved, incremental share repurchases of up to an
additional $250 million under its
stock repurchase program. The authorization allows Pure to
repurchase shares of its Class A common stock opportunistically and
will be funded from available working capital. Repurchases may be
made at management's discretion from time to time on the open
market through privately negotiated transactions, transactions
structured through investment banking institutions, block purchase
techniques, 10b5-1 trading plans, or a combination of the
foregoing. The repurchase program does not have an expiration date,
does not obligate Pure to acquire any of its common stock, and may
be suspended or discontinued by the company at any time without
prior notice.
Conference Call Information
Pure will host a teleconference to discuss the fiscal fourth
quarter and full year 2023 results at 2:00
pm PT today, March 1, 2023. 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
following completion of the call.
A replay will be available following the call on the Pure
Storage Investor Relations website or for two weeks at
1-866-813-9403 (or +44 204 525 0658 for international callers) with
passcode 032614.
Upcoming Events
Pure is scheduled to participate at the following investor
conference:
Susquehanna 12th Annual Technology Conference
Date:
Friday, March 3, 2023
Time: 8:00 a.m. PT / 11:00 a.m. ET
Charles Giancarlo, Chairman and CEO
and Kevan Krysler, CFO
The presentation(s) will be webcast live and archived on Pure's
Investor Relations website at investor.purestorage.com.
About Pure Storage
Pure Storage (NYSE: PSTG) uncomplicates data storage, forever.
Pure delivers a cloud experience that empowers every organization
to get the most from their data while reducing the complexity and
expense of managing the infrastructure behind it. Pure's commitment
to providing true storage as-a-service gives customers the agility
to meet changing data needs at speed and scale, whether they are
deploying traditional workloads, modern applications, containers,
or more. Pure believes it can make a significant impact in reducing
data center emissions worldwide through its environmental
sustainability efforts, including designing products and solutions
that enable customers to reduce their carbon and energy footprint.
And with the highest Net Promoter Score in the industry, Pure's
ever-expanding list of customers are among the happiest in the
world. For more information, visit www.purestorage.com.
Analyst Recognition
Leader in the 2022 Gartner Magic
Quadrant for Primary Storage
Leader in the 2022 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
technology and product strategy, specifically customer priorities
around sustainability, our ability to adjust to current macro
conditions and expand market share, our sustainability goals and
benefits, the timing and magnitude of large orders, the impact of
inflation, economic or supply chain disruptions, the pandemic and
its lingering impacts, demand for our products and subscription
services, including Evergreen//One, our expectations regarding our
product and technology differentiation, including FlashBlade//E,
new customer acquisition, the continued success of the Portworx
technology, and other statements regarding our products, business,
operations and results. Forward-looking statements are subject to
known and unknown risks and uncertainties and are based on
potentially inaccurate assumptions that could cause actual results
to differ materially from those expected or implied by the
forward-looking statements.
Actual results may differ materially from the results predicted,
and reported results should not be considered as an indication of
future performance. The potential risks and uncertainties that
could cause actual results to differ from the results predicted
include, among others, those risks and uncertainties included under
the caption "Risk Factors" and elsewhere in our filings and reports
with the U.S. Securities and Exchange Commission, which are
available on our Investor Relations website at
investor.purestorage.com and on the SEC website at www.sec.gov.
Additional information is also set forth in our Annual Report on
Form 10-K for the year ended February 6, 2022. All information
provided in this release and in the attachments is as of
March 1, 2023, 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 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, and costs associated with the exit of certain operations
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
|
|
|
2023
|
|
2022
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
580,854
|
|
$
466,199
|
Marketable
securities
|
|
1,001,352
|
|
947,073
|
Accounts receivable,
net of allowance of $1,057 and $945
|
|
612,491
|
|
542,144
|
Inventory
|
|
52,095
|
|
38,942
|
Deferred commissions,
current
|
|
68,617
|
|
81,589
|
Prepaid expenses and
other current assets
|
|
161,391
|
|
116,232
|
Total current
assets
|
|
2,476,800
|
|
2,192,179
|
Property and equipment,
net
|
|
272,445
|
|
195,282
|
Operating lease
right-of-use assets
|
|
158,912
|
|
111,763
|
Deferred commissions,
non-current
|
|
177,239
|
|
164,718
|
Intangible assets,
net
|
|
49,222
|
|
62,646
|
Goodwill
|
|
361,427
|
|
358,736
|
Restricted
cash
|
|
10,544
|
|
10,544
|
Other assets,
non-current
|
|
38,814
|
|
39,447
|
Total
assets
|
|
$ 3,545,403
|
|
$ 3,135,315
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
67,121
|
|
$
70,704
|
Accrued compensation
and benefits
|
|
232,636
|
|
205,431
|
Accrued expenses and
other liabilities
|
|
125,692
|
|
78,511
|
Operating lease
liabilities, current
|
|
33,707
|
|
35,098
|
Deferred revenue,
current
|
|
718,149
|
|
562,576
|
Debt,
current
|
|
574,506
|
|
—
|
Total current
liabilities
|
|
1,751,811
|
|
952,320
|
Long-term
debt
|
|
—
|
|
786,779
|
Operating lease
liabilities, non-current
|
|
142,473
|
|
93,479
|
Deferred revenue,
non-current
|
|
667,501
|
|
517,296
|
Other liabilities,
non-current
|
|
42,385
|
|
31,105
|
Total
liabilities
|
|
2,604,170
|
|
2,380,979
|
Stockholders'
equity:
|
|
|
|
|
Common stock and
additional paid-in capital
|
|
2,493,799
|
|
2,470,972
|
Accumulated other
comprehensive loss
|
|
(15,504)
|
|
(8,365)
|
Accumulated
deficit
|
|
(1,537,062)
|
|
(1,708,271)
|
Total stockholders'
equity
|
|
941,233
|
|
754,336
|
Total liabilities and
stockholders' equity
|
|
$ 3,545,403
|
|
$ 3,135,315
|
PURE STORAGE,
INC.
|
Condensed
Consolidated Statements of Operations
|
(in thousands,
except per share data, unaudited)
|
|
|
|
Fourth Quarter of
Fiscal
|
|
Fiscal Year
Ended
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Product
|
|
$
545,108
|
|
$
492,602
|
|
$ 1,792,153
|
|
$ 1,442,338
|
Subscription
services
|
|
265,099
|
|
215,968
|
|
961,281
|
|
738,510
|
Total
revenue
|
|
810,207
|
|
708,570
|
|
2,753,434
|
|
2,180,848
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
Product
(1)
|
|
174,471
|
|
167,964
|
|
569,793
|
|
477,899
|
Subscription services
(1)
|
|
74,419
|
|
64,772
|
|
285,995
|
|
230,430
|
Total cost of
revenue
|
|
248,890
|
|
232,736
|
|
855,788
|
|
708,329
|
Gross profit
|
|
561,317
|
|
475,834
|
|
1,897,646
|
|
1,472,519
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development (1)
|
|
185,557
|
|
162,639
|
|
692,528
|
|
581,935
|
Sales and marketing
(1)
|
|
246,480
|
|
231,947
|
|
883,609
|
|
799,001
|
General and
administrative (1)
|
|
64,696
|
|
51,481
|
|
237,996
|
|
189,981
|
Total operating
expenses
|
|
496,733
|
|
446,067
|
|
1,814,133
|
|
1,570,917
|
Income (loss) from
operations
|
|
64,584
|
|
29,767
|
|
83,513
|
|
(98,398)
|
Other income (expense),
net
|
|
16,705
|
|
(10,008)
|
|
8,295
|
|
(30,098)
|
Income (loss) before
provision for income taxes
|
|
81,289
|
|
19,759
|
|
91,808
|
|
(128,496)
|
Income tax
provision
|
|
6,818
|
|
4,816
|
|
18,737
|
|
14,763
|
Net income
(loss)
|
|
$ 74,471
|
|
$ 14,943
|
|
$ 73,071
|
|
$ (143,259)
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share attributable to common
stockholders,
basic
|
|
$
0.25
|
|
$
0.05
|
|
$
0.24
|
|
$
(0.50)
|
Net income (loss) per
share attributable to common
stockholders,
diluted
|
|
$
0.22
|
|
$
0.05
|
|
$
0.23
|
|
$
(0.50)
|
Weighted-average shares
used in computing net
income (loss)
per share attributable to common
stockholders,
basic
|
|
303,614
|
|
291,351
|
|
299,478
|
|
285,882
|
Weighted-average shares
used in computing net
income (loss)
per share attributable to common
stockholders,
diluted
|
|
339,699
|
|
317,268
|
|
339,184
|
|
285,882
|
|
(1) Includes
stock-based compensation expense as follows:
|
|
Cost of revenue --
product
|
|
$
2,791
|
|
$
1,787
|
|
$ 10,245
|
|
$
6,334
|
Cost of revenue --
subscription services
|
|
5,652
|
|
6,142
|
|
22,630
|
|
21,240
|
Research and
development
|
|
41,212
|
|
39,921
|
|
161,694
|
|
142,264
|
Sales and
marketing
|
|
17,767
|
|
17,122
|
|
72,507
|
|
71,439
|
General and
administrative
|
|
15,081
|
|
14,228
|
|
60,541
|
|
45,686
|
Total stock-based
compensation expense
|
|
$ 82,503
|
|
$ 79,200
|
|
$
327,617
|
|
$
286,963
|
PURE STORAGE,
INC.
|
Condensed
Consolidated Statements of Cash Flows
|
(in thousands,
unaudited)
|
|
|
|
Fourth Quarter of
Fiscal
|
|
Fiscal Year
Ended
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
74,471
|
|
$
14,943
|
|
$
73,071
|
|
$
(143,259)
|
Adjustments to
reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
28,164
|
|
23,546
|
|
100,432
|
|
83,151
|
Amortization of debt
discount and debt issuance costs
|
|
804
|
|
8,566
|
|
3,210
|
|
31,577
|
Stock-based
compensation expense
|
|
82,503
|
|
79,200
|
|
327,617
|
|
286,963
|
Impairment of
long-lived assets
|
|
—
|
|
—
|
|
—
|
|
471
|
Other
|
|
4,078
|
|
4,499
|
|
4,145
|
|
13,075
|
Changes in operating
assets and liabilities, net of effects of
acquisition:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
(176,940)
|
|
(188,035)
|
|
(70,724)
|
|
(81,247)
|
Inventory
|
|
3,779
|
|
4,080
|
|
(12,562)
|
|
4,118
|
Deferred
commissions
|
|
(10,724)
|
|
(37,988)
|
|
451
|
|
(58,383)
|
Prepaid expenses and
other assets
|
|
24,584
|
|
(13,505)
|
|
(31,580)
|
|
(25,788)
|
Operating lease
right-of-use assets
|
|
7,740
|
|
7,891
|
|
33,813
|
|
29,952
|
Accounts
payable
|
|
(29,611)
|
|
20,967
|
|
(7,075)
|
|
6,711
|
Accrued compensation
and other liabilities
|
|
91,766
|
|
94,212
|
|
74,027
|
|
58,961
|
Operating lease
liabilities
|
|
(5,020)
|
|
(10,257)
|
|
(33,359)
|
|
(32,351)
|
Deferred
revenue
|
|
137,432
|
|
130,122
|
|
305,768
|
|
236,176
|
Net cash provided by
operating activities
|
|
233,026
|
|
138,241
|
|
767,234
|
|
410,127
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment(1)
|
|
(60,229)
|
|
(21,070)
|
|
(158,139)
|
|
(102,287)
|
Acquisition, net of
cash acquired
|
|
—
|
|
—
|
|
(1,989)
|
|
—
|
Purchases of
marketable securities
|
|
(409,306)
|
|
(114,605)
|
|
(501,435)
|
|
(617,043)
|
Sales of marketable
securities
|
|
6,155
|
|
53,548
|
|
6,155
|
|
200,482
|
Maturities of
marketable securities
|
|
81,700
|
|
63,007
|
|
433,995
|
|
366,165
|
Other
|
|
—
|
|
—
|
|
—
|
|
(600)
|
Net cash used in
investing activities
|
|
(381,680)
|
|
(19,120)
|
|
(221,413)
|
|
(153,283)
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Net proceeds from
exercise of stock options
|
|
5,647
|
|
14,966
|
|
24,778
|
|
48,709
|
Proceeds from issuance
of common stock under employee stock
purchase plan
|
|
—
|
|
—
|
|
39,965
|
|
36,641
|
Principal payments on
borrowings and finance lease obligations
|
|
(1,095)
|
|
(853)
|
|
(257,240)
|
|
(2,137)
|
Tax withholding on
vesting of equity awards
|
|
(3,471)
|
|
(2,165)
|
|
(19,601)
|
|
(10,835)
|
Repurchases of common
stock
|
|
(67,504)
|
|
(69,562)
|
|
(219,068)
|
|
(200,170)
|
Net cash used in
financing activities
|
|
(66,423)
|
|
(57,614)
|
|
(431,166)
|
|
(127,792)
|
Net increase (decrease)
in cash and cash equivalents and
restricted cash
|
|
(215,077)
|
|
61,507
|
|
114,655
|
|
129,052
|
Cash, cash equivalents
and restricted cash, beginning of period
|
|
806,475
|
|
415,236
|
|
476,743
|
|
347,691
|
Cash, cash equivalents
and restricted cash, end of period
|
|
$ 591,398
|
|
$ 476,743
|
|
$ 591,398
|
|
$ 476,743
|
|
(1) Includes
capitalized internal-use software costs of $3.2 million and $2.5
million for the fourth quarter of fiscal 2023 and 2022 and $13.7
million and $8.8 million for fiscal 2023 and 2022.
|
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
|
|
2023
|
|
2022
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 2,791
|
(c)
|
|
|
|
|
|
|
|
|
$ 1,787
|
(c)
|
|
|
|
|
|
|
|
|
37
|
(d)
|
|
|
|
|
|
|
|
|
42
|
(d)
|
|
|
|
|
|
|
|
|
292
|
(e)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
3,306
|
(f)
|
|
|
|
|
|
|
|
|
3,462
|
(f)
|
|
|
|
Gross profit
--
product
|
$
370,637
|
|
68.0 %
|
|
$ 6,426
|
|
$
377,063
|
|
69.2 %
|
|
$
324,638
|
|
65.9 %
|
|
$ 5,291
|
|
$
329,929
|
|
67.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 5,652
|
(c)
|
|
|
|
|
|
|
|
|
$ 6,142
|
(c)
|
|
|
|
|
|
|
|
|
159
|
(d)
|
|
|
|
|
|
|
|
|
253
|
(d)
|
|
|
|
|
|
|
|
|
306
|
(e)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
16
|
(g)
|
|
|
|
|
|
|
|
|
24
|
(g)
|
|
|
|
Gross profit
--
subscription
services
|
$
190,680
|
|
71.9 %
|
|
$ 6,133
|
|
$
196,813
|
|
74.2 %
|
|
$
151,196
|
|
70.0 %
|
|
$ 6,419
|
|
$
157,615
|
|
73.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 8,443
|
(c)
|
|
|
|
|
|
|
|
|
$ 7,929
|
(c)
|
|
|
|
|
|
|
|
|
196
|
(d)
|
|
|
|
|
|
|
|
|
295
|
(d)
|
|
|
|
|
|
|
|
|
598
|
(e)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
3,306
|
(f)
|
|
|
|
|
|
|
|
|
3,462
|
(f)
|
|
|
|
|
|
|
|
|
16
|
(g)
|
|
|
|
|
|
|
|
|
24
|
(g)
|
|
|
|
Total gross
profit
|
$
561,317
|
|
69.3 %
|
|
$
12,559
|
|
$
573,876
|
|
70.8 %
|
|
$
475,834
|
|
67.2 %
|
|
$
11,710
|
|
$
487,544
|
|
68.8 %
|
|
(a) GAAP gross margin
is defined as GAAP gross profit divided by revenue.
|
(b) Non-GAAP gross
margin is defined as non-GAAP gross profit divided by
revenue.
|
(c) To eliminate
stock-based compensation expense.
|
(d) To eliminate
payroll tax expense related to stock-based activities.
|
(e) To eliminate
duplicate lease costs during the transition of our corporate
headquarters.
|
(f) To eliminate
amortization expense of acquired intangible assets.
|
(g) 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
|
|
2023
|
|
GAAP
results
|
|
GAAP gross
margin (a)
|
|
Adjustment
|
|
|
|
Non-
GAAP
results
|
|
Non-
GAAP
gross
margin (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
10,245
|
|
(c)
|
|
|
|
|
|
|
|
|
|
335
|
|
(d)
|
|
|
|
|
|
|
|
|
|
543
|
|
(e)
|
|
|
|
|
|
|
|
|
|
13,063
|
|
(f)
|
|
|
|
|
Gross profit --
product
|
$
1,222,360
|
|
68.2 %
|
|
$
24,186
|
|
|
|
$
1,246,546
|
|
69.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
22,630
|
|
(c)
|
|
|
|
|
|
|
|
|
|
1,210
|
|
(d)
|
|
|
|
|
|
|
|
|
|
575
|
|
(e)
|
|
|
|
|
|
|
|
|
|
135
|
|
(g)
|
|
|
|
|
|
|
|
|
|
88
|
|
(h)
|
|
|
|
|
Gross profit --
subscription services
|
$ 675,286
|
|
70.2 %
|
|
$
24,638
|
|
|
|
$ 699,924
|
|
72.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
32,875
|
|
(c)
|
|
|
|
|
|
|
|
|
|
1,545
|
|
(d)
|
|
|
|
|
|
|
|
|
|
1,118
|
|
(e)
|
|
|
|
|
|
|
|
|
|
13,063
|
|
(f)
|
|
|
|
|
|
|
|
|
|
135
|
|
(g)
|
|
|
|
|
|
|
|
|
|
$
88
|
|
(h)
|
|
|
|
|
Total gross
profit
|
$
1,897,646
|
|
68.9 %
|
|
$
48,824
|
|
|
|
$
1,946,470
|
|
70.7 %
|
|
(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
duplicate lease costs during the transition of our corporate
headquarters.
|
(f) To eliminate
amortization expense of acquired intangible assets.
|
(g) To eliminate costs
associated with the exit of certain operations.
|
(h) 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
|
|
2023
|
|
2022
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
82,503
|
(c)
|
|
|
|
|
|
|
|
|
$
79,200
|
(c)
|
|
|
|
|
|
|
|
|
888
|
(d)
|
|
|
|
|
|
|
|
|
3,390
|
(d)
|
|
|
|
|
|
|
|
|
1,799
|
(e)
|
|
|
|
|
|
|
|
|
2,302
|
(e)
|
|
|
|
|
|
|
|
|
3,839
|
(f)
|
|
|
|
|
|
|
|
|
4,034
|
(f)
|
|
|
|
|
|
|
|
|
5,004
|
(g)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
Operating
income
|
$
64,584
|
|
8.0 %
|
|
$
94,033
|
|
$
158,617
|
|
19.6 %
|
|
$ 29,767
|
|
4.2 %
|
|
$
88,926
|
|
$
118,693
|
|
16.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
82,503
|
(c)
|
|
|
|
|
|
|
|
|
$
79,200
|
(c)
|
|
|
|
|
|
|
|
|
888
|
(d)
|
|
|
|
|
|
|
|
|
3,390
|
(d)
|
|
|
|
|
|
|
|
|
1,799
|
(e)
|
|
|
|
|
|
|
|
|
2,302
|
(e)
|
|
|
|
|
|
|
|
|
3,839
|
(f)
|
|
|
|
|
|
|
|
|
4,034
|
(f)
|
|
|
|
|
|
|
|
|
5,004
|
(g)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
804
|
(h)
|
|
|
|
|
|
|
|
|
8,566
|
(h)
|
|
|
|
|
|
|
|
|
357
|
(i)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
Net
income
|
$
74,471
|
|
|
|
$
95,194
|
|
$
169,665
|
|
|
|
$ 14,943
|
|
|
|
$
97,492
|
|
$
112,435
|
|
|
Net income
per share --
diluted
|
$ 0.22
|
|
|
|
|
|
$ 0.53
|
|
|
|
$ 0.05
|
|
|
|
|
|
$ 0.36
|
|
|
Weighted-
average
shares used in
per share
calculation --
diluted
|
339,699
|
|
|
|
(21,884)
|
(j)
|
317,815
|
|
|
|
317,268
|
|
|
|
(2,357)
|
(j)
|
314,911
|
|
|
|
(a) GAAP operating
margin is defined as GAAP operating income divided by
revenue.
|
(b) Non-GAAP operating
margin is defined as non-GAAP operating income divided by
revenue.
|
(c) To eliminate
stock-based compensation expense.
|
(d) To eliminate
payments to former shareholders of acquired companies.
|
(e) To eliminate
payroll tax expense related to stock-based activities.
|
(f) To eliminate
amortization expense of acquired intangible assets.
|
(g) To eliminate
duplicate lease costs during the transition of our corporate
headquarters.
|
(h) To eliminate
amortization expense of debt discount and debt issuance costs
related to our long-term debt.
|
(i) To eliminate
net loss from legal settlement in connection with a facility
abandoned in the second quarter of fiscal 2021.
|
(j) To exclude
the dilutive effect from convertible note due to the related capped
call hedge.
|
The following table presents certain non-GAAP consolidated
results before certain items (in thousands, except per share
amounts and percentages, unaudited):
|
Fiscal Year
Ended
|
|
2023
|
|
GAAP
results
|
|
GAAP
operating
margin (a)
|
|
Adjustment
|
|
Non-GAAP
results
|
|
Non-GAAP
operating
margin (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 327,617
|
(c)
|
|
|
|
|
|
|
|
|
5,947
|
(d)
|
|
|
|
|
|
|
|
|
13,412
|
(e)
|
|
|
|
|
|
|
|
|
2,868
|
(f)
|
|
|
|
|
|
|
|
|
8,680
|
(g)
|
|
|
|
|
|
|
|
|
15,192
|
(h)
|
|
|
|
Operating
income
|
$
83,513
|
|
3.0 %
|
|
$ 373,716
|
|
$ 457,229
|
|
16.6 %
|
|
(a) GAAP operating
margin is defined as GAAP operating income divided by
revenue.
|
(b) Non-GAAP operating
margin is defined as non-GAAP operating income divided by
revenue.
|
(c) To eliminate
stock-based compensation expense.
|
(d) To eliminate
payments to former shareholders of acquired companies.
|
(e) To eliminate
payroll tax expense related to stock-based activities.
|
(f) To eliminate
costs primarily associated with the exit of certain
operations.
|
(g) To eliminate
duplicate lease costs during the transition of our corporate
headquarters.
|
(h) To eliminate
amortization expense of acquired intangible assets.
|
Reconciliation from net cash provided by operating activities
to free cash flow (in thousands except percentages,
unaudited):
|
|
Fourth Quarter of
Fiscal
|
|
Fiscal Year
Ended
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net cash provided by
operating activities
|
|
$
233,026
|
|
$
138,241
|
|
$
767,234
|
|
$
410,127
|
Less: purchases of
property and equipment(1)
|
|
(60,229)
|
|
(21,070)
|
|
(158,139)
|
|
(102,287)
|
Free cash flow
(non-GAAP)
|
|
$
172,797
|
|
$
117,171
|
|
$
609,095
|
|
$
307,840
|
|
(1) Includes capitalized internal-use
software costs of $3.2 million and $2.5 million for the fourth
quarter of fiscal 2023 and 2022 and $13.7 million and $8.8 million
for fiscal 2023 and 2022.
|
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SOURCE Pure Storage