Record sales quarter for FlashBlade
portfolio
Doubled subscription sales year-over-year for
Evergreen//One
Increased operating margin annual
guidance
SANTA
CLARA, Calif., Aug. 30,
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 second quarter fiscal 2024 ended August 6,
2023.
"Customers have responded enthusiastically to Pure's new ability
to satisfy all of their data storage needs on a single, consistent,
flash data storage and management platform," said Charles Giancarlo, Chairman and CEO, Pure
Storage. "With the introduction of Pure's //E family of products,
customers can now store cost sensitive bulk data with the benefits
of all flash."
Second Quarter Financial Highlights
- Revenue $688.7 million, an
increase of 6.5% year-over-year
- Subscription services revenue $288.9
million, up 24% year-over-year
- Subscription annual recurring revenue (ARR) $1.2 billion, up 27% year-over-year
- Remaining performance obligations (RPO) $1.9 billion, up 26% year-over-year
- GAAP gross margin 70.7%; non-GAAP gross margin 72.8%
- GAAP operating loss $(6.2)
million; non-GAAP operating income $111.8 million
- GAAP operating margin (0.9)%; non-GAAP operating margin
16.2%
- Operating cash flow $101.6
million; free cash flow $46.5
million
- Total cash, cash equivalents, and marketable securities
$1.2 billion
- Returned approximately $22.0
million in Q2 to stockholders through share repurchases of
0.6 million shares
"We were very pleased with record sales across our FlashBlade
portfolio, and doubling sales of our Evergreen//One subscription
offering this quarter," said Kevan
Krysler, CFO, Pure Storage. "With our Purity software
working directly with raw flash, we have established substantial
differentiated advantages and business value for our customers,
while at the same time expanding our margins."
Second Quarter Company Highlights
- Platform Innovation: Pure expanded the Pure//E™ family
of products with the all-new FlashArray//E™, meeting the needs of
the secondary storage market at prices competitive to 7200 RPM hard
disk systems, with a fraction of the power, space, and operational
costs. Pure introduced a new ransomware SLA guarantee for
Evergreen//One™ and enhanced AIOps capabilities, offering customers
advanced data resilience, enabling organizations to benefit from a
comprehensive data protection strategy. In addition, Pure
introduced the next generation FlashArray//X™ and FlashArray//C™
models, delivering the largest ever performance, efficiency, and
security advancements to customers.
- Awards in AI and Cloud-Native Software: AIRI//S, Pure's
next-gen AI-ready infrastructure, was recognized by AI Breakthrough
Awards as the Best AI Solution for Big Data. Portworx by Pure
Storage was recognized as a leader in kubernetes storage by GigaOm
for the fourth consecutive year.
- New Global Headquarters: Pure opened its new global
corporate headquarters in Santa Clara,
California to provide state-of-the-art support to employees
and customers as the company's industry-leading innovations
continue to drive strong growth. Pure was also recognized by
Fortune's Best Workplaces in the Bay Area and was again certified
as a Great Place to Work®.
Third Quarter and FY24 Guidance
|
Q3FY24
|
FY24
|
Revenue
|
$760M
|
Mid to High Single
Digit Y/Y
Growth
|
Non-GAAP Operating
Income
|
$135M
|
–
|
Non-GAAP Operating
Margin
|
17.8 %
|
15.5 %
|
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,
reconciliations of these non-GAAP financial measures guidance to
the corresponding GAAP measures are not available without
unreasonable effort.
Conference Call Information
Pure will host a teleconference to discuss the second quarter
fiscal 2024 results at 2:00 pm PT
today, August 30, 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
1-800-770-2030 (or +44 647 362 9199 for international callers) with
passcode 5667482.
Additionally, Pure is scheduled to participate at the following
investor conference or event:
Goldman Sachs Communacopia + Technology
Conference
Date: Tuesday, September
5, 2023
Time: 11:30 a.m. PT / 2:30 p.m. ET
Kevan Krysler, CFO and Rob Lee, CTO
The presentation 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, the benefits to our customers of using our
products, 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, 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 5,
2023. All information provided in this release and in the
attachments is as of August 30, 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 issuance costs related to debt, amortization of intangible
assets acquired from acquisitions, acquisition-related transaction
and integration expenses, and costs associated with the exit of
certain operations and closing of certain leased facilities 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
|
|
|
Second Quarter of
Fiscal 2024
|
|
Fiscal
2023
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
408,900
|
|
$
580,854
|
Marketable
securities
|
|
819,777
|
|
1,001,352
|
Accounts receivable,
net of allowance of $1,062 and $1,057
|
|
525,260
|
|
612,491
|
Inventory
|
|
47,498
|
|
50,152
|
Deferred commissions,
current
|
|
71,344
|
|
68,617
|
Prepaid expenses and
other current assets
|
|
168,283
|
|
161,391
|
Total current
assets
|
|
2,041,062
|
|
2,474,857
|
Property and equipment,
net
|
|
325,783
|
|
272,445
|
Operating lease
right-of-use-assets
|
|
133,066
|
|
158,912
|
Deferred commissions,
non-current
|
|
184,073
|
|
177,239
|
Intangible assets,
net
|
|
40,906
|
|
49,222
|
Goodwill
|
|
361,427
|
|
361,427
|
Restricted
cash
|
|
9,960
|
|
10,544
|
Other assets,
non-current
|
|
37,645
|
|
38,814
|
Total
assets
|
|
$
3,133,922
|
|
$
3,543,460
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
98,008
|
|
$
67,121
|
Accrued compensation
and benefits
|
|
165,394
|
|
232,636
|
Accrued expenses and
other liabilities
|
|
128,842
|
|
123,749
|
Operating lease
liabilities, current
|
|
41,697
|
|
33,707
|
Deferred revenue,
current
|
|
769,871
|
|
718,149
|
Debt,
current
|
|
—
|
|
574,506
|
Total current
liabilities
|
|
1,203,812
|
|
1,749,868
|
Long-term
debt
|
|
100,000
|
|
—
|
Operating lease
liabilities, non-current
|
|
132,191
|
|
142,473
|
Deferred revenue,
non-current
|
|
667,172
|
|
667,501
|
Other liabilities,
non-current
|
|
44,419
|
|
42,385
|
Total
liabilities
|
|
2,147,594
|
|
2,602,227
|
Stockholders'
equity:
|
|
|
|
|
Common stock and
additional paid-in capital
|
|
2,610,513
|
|
2,493,799
|
Accumulated other
comprehensive loss
|
|
(12,607)
|
|
(15,504)
|
Accumulated
deficit
|
|
(1,611,578)
|
|
(1,537,062)
|
Total stockholders'
equity
|
|
986,328
|
|
941,233
|
Total liabilities and
stockholders' equity
|
|
$
3,133,922
|
|
$
3,543,460
|
PURE STORAGE,
INC.
Condensed
Consolidated Statements of Operations
(in thousands,
except per share data, unaudited)
|
|
|
Second Quarter of
Fiscal
|
|
First Two Quarters
of Fiscal
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
Product
|
$
399,738
|
|
$
414,603
|
|
$
708,701
|
|
$
815,764
|
Subscription
services
|
288,933
|
|
232,169
|
|
569,277
|
|
451,413
|
Total
revenue
|
688,671
|
|
646,772
|
|
1,277,978
|
|
1,267,177
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Product
(1)
|
120,605
|
|
134,292
|
|
216,818
|
|
259,776
|
Subscription services
(1)
|
81,473
|
|
68,912
|
|
161,220
|
|
137,407
|
Total cost of
revenue
|
202,078
|
|
203,204
|
|
378,038
|
|
397,183
|
Gross profit
|
486,593
|
|
443,568
|
|
899,940
|
|
869,994
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development (1)
|
182,492
|
|
165,690
|
|
367,823
|
|
326,963
|
Sales and marketing
(1)
|
232,732
|
|
206,836
|
|
465,178
|
|
424,989
|
General and
administrative (1)
|
60,831
|
|
56,679
|
|
128,215
|
|
108,246
|
Impairment and other
(2)
|
16,766
|
|
—
|
|
16,766
|
|
—
|
Total operating
expenses
|
492,821
|
|
429,205
|
|
977,982
|
|
860,198
|
Income (loss) from
operations
|
(6,228)
|
|
14,363
|
|
(78,042)
|
|
9,796
|
Other income (expense),
net
|
6,686
|
|
585
|
|
18,435
|
|
(5,596)
|
Income (loss) before
provision for income taxes
|
458
|
|
14,948
|
|
(59,607)
|
|
4,200
|
Income tax
provision
|
7,573
|
|
4,026
|
|
14,909
|
|
4,813
|
Net income
(loss)
|
$
(7,115)
|
|
$
10,922
|
|
$
(74,516)
|
|
$
(613)
|
|
|
|
|
|
|
|
|
Net income (loss) per
share attributable to common stockholders, basic
|
$
(0.02)
|
|
$
0.04
|
|
$
(0.24)
|
|
$
(0.00)
|
Net income (loss) per
share attributable to common stockholders, diluted
|
$
(0.02)
|
|
$
0.03
|
|
$
(0.24)
|
|
$
(0.00)
|
Weighted-average shares
used in computing net income (loss) per share
attributable to common
stockholders, basic
|
309,510
|
|
297,475
|
|
307,687
|
|
296,659
|
Weighted-average shares
used in computing net income (loss) per share
attributable to common
stockholders, diluted
|
309,510
|
|
312,720
|
|
307,687
|
|
296,659
|
|
(1) Includes
stock-based compensation expense as follows:
|
|
|
|
|
|
|
|
|
Cost of revenue --
product
|
$
2,958
|
|
$
2,607
|
|
$
5,613
|
|
$
4,470
|
Cost of revenue --
subscription services
|
6,851
|
|
5,808
|
|
12,498
|
|
11,164
|
Research and
development
|
44,085
|
|
41,575
|
|
82,317
|
|
78,092
|
Sales and
marketing
|
19,493
|
|
17,954
|
|
36,674
|
|
36,299
|
General and
administrative
|
16,060
|
|
15,620
|
|
30,175
|
|
28,110
|
Total stock-based
compensation expense
|
$
89,447
|
|
$
83,564
|
|
$
167,277
|
|
$
158,135
|
|
(2) Lease impairment
and abandonment charges associated with cease-use of our former
corporate headquarters
|
PURE STORAGE,
INC.
Condensed
Consolidated Statements of Cash Flows
(in thousands,
unaudited)
|
|
|
Second Quarter of
Fiscal
|
|
First Two Quarters
of Fiscal
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
(7,115)
|
|
$
10,922
|
|
$
(74,516)
|
|
$
(613)
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
30,223
|
|
23,886
|
|
59,913
|
|
46,549
|
Stock-based
compensation expense
|
89,447
|
|
83,564
|
|
167,277
|
|
158,135
|
Lease impairment and
abandonment charges
|
16,766
|
|
—
|
|
16,766
|
|
—
|
Other
|
(1,225)
|
|
2,084
|
|
(3,029)
|
|
3,031
|
Changes in operating
assets and liabilities, net of effect of acquisition:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
(133,974)
|
|
(56,122)
|
|
87,231
|
|
140,007
|
Inventory
|
4,152
|
|
(10,793)
|
|
4,460
|
|
(12,492)
|
Deferred
commissions
|
(7,229)
|
|
(4,683)
|
|
(9,560)
|
|
10,626
|
Prepaid expenses and
other assets
|
5,737
|
|
(3,821)
|
|
(358)
|
|
(15,563)
|
Operating lease
right-of-use assets
|
8,634
|
|
9,071
|
|
19,635
|
|
16,820
|
Accounts
payable
|
30,304
|
|
890
|
|
26,311
|
|
(6,529)
|
Accrued compensation
and other liabilities
|
31,558
|
|
51,139
|
|
(57,524)
|
|
(37,824)
|
Operating lease
liabilities
|
(7,033)
|
|
(12,962)
|
|
(13,133)
|
|
(21,442)
|
Deferred
revenue
|
41,373
|
|
66,205
|
|
51,392
|
|
98,807
|
Net cash provided by
operating activities
|
101,618
|
|
159,380
|
|
274,865
|
|
379,512
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
Purchases of property
and equipment (1)
|
(55,105)
|
|
(25,184)
|
|
(106,529)
|
|
(57,994)
|
Acquisition, net of
cash acquired
|
—
|
|
(1,989)
|
|
—
|
|
(1,989)
|
Purchases of
marketable securities
|
(117,829)
|
|
—
|
|
(246,617)
|
|
(17,251)
|
Sales of marketable
securities
|
5,708
|
|
—
|
|
48,748
|
|
—
|
Maturities of
marketable securities
|
98,330
|
|
124,818
|
|
386,703
|
|
240,993
|
Net cash provided by
(used in) investing activities
|
(68,896)
|
|
97,645
|
|
82,305
|
|
163,759
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
Net proceeds from
exercise of stock options
|
25,218
|
|
3,859
|
|
29,848
|
|
15,264
|
Proceeds from issuance
of common stock under employee stock purchase plan
|
—
|
|
—
|
|
21,219
|
|
19,396
|
Principal payments on
borrowings and finance lease obligations
|
(287)
|
|
(182)
|
|
(577,067)
|
|
(251,577)
|
Proceeds from
borrowings
|
—
|
|
—
|
|
100,000
|
|
—
|
Tax withholding on
vesting of equity awards
|
(5,068)
|
|
(2,793)
|
|
(11,827)
|
|
(12,987)
|
Repurchases of common
stock
|
(21,970)
|
|
(60,579)
|
|
(91,881)
|
|
(126,999)
|
Net cash used in
financing activities
|
(2,107)
|
|
(59,695)
|
|
(529,708)
|
|
(356,903)
|
Net increase (decrease)
in cash, cash equivalents and restricted cash
|
30,615
|
|
197,330
|
|
(172,538)
|
|
186,368
|
Cash, cash equivalents
and restricted cash, beginning of period
|
388,245
|
|
465,781
|
|
591,398
|
|
476,743
|
Cash, cash equivalents
and restricted cash, end of period
|
$
418,860
|
|
$
663,111
|
|
$
418,860
|
|
$
663,111
|
|
(1) Includes
capitalized internal-use software costs of $5.3 million and
$3.9 million for the second quarter of fiscal 2024 and 2023 and
$10.6 million and $6.8 million for the first two quarters of
fiscal 2024 and 2023.
|
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):
|
|
Second Quarter of Fiscal
2024
|
|
Second Quarter of Fiscal
2023
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 2,958
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$ 2,607
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
135
|
|
(d)
|
|
|
|
|
|
|
|
|
|
64
|
|
(d)
|
|
|
|
|
|
|
|
|
|
|
402
|
|
(e)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
3,306
|
|
(f)
|
|
|
|
|
|
|
|
|
|
3,252
|
|
(f)
|
|
|
|
|
Gross profit
--
product
|
|
$
279,133
|
|
69.8 %
|
|
$ 6,801
|
|
|
|
$ 285,934
|
|
71.5 %
|
|
$
280,311
|
|
67.6 %
|
|
$ 5,923
|
|
|
|
$
286,234
|
|
69.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 6,851
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$ 5,808
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
481
|
|
(d)
|
|
|
|
|
|
|
|
|
|
265
|
|
(d)
|
|
|
|
|
|
|
|
|
|
|
413
|
|
(e)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
5
|
|
(g)
|
|
|
|
|
|
|
|
|
|
24
|
|
(g)
|
|
|
|
|
Gross profit
--
subscription
services
|
|
$
207,460
|
|
71.8 %
|
|
$ 7,750
|
|
|
|
$ 215,210
|
|
74.5 %
|
|
$
163,257
|
|
70.3 %
|
|
$ 6,097
|
|
|
|
$
169,354
|
|
72.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 9,809
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$ 8,415
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
616
|
|
(d)
|
|
|
|
|
|
|
|
|
|
329
|
|
(d)
|
|
|
|
|
|
|
|
|
|
|
815
|
|
(e)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
3,306
|
|
(f)
|
|
|
|
|
|
|
|
|
|
3,252
|
|
(f)
|
|
|
|
|
|
|
|
|
|
|
5
|
|
(g)
|
|
|
|
|
|
|
|
|
|
24
|
|
(g)
|
|
|
|
|
Total
gross
profit
|
|
$
486,593
|
|
70.7 %
|
|
$
14,551
|
|
|
|
$ 501,144
|
|
72.8 %
|
|
$
443,568
|
|
68.6 %
|
|
$
12,020
|
|
|
|
$
455,588
|
|
70.4 %
|
|
(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
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 certain non-GAAP consolidated
results before certain items (in thousands, except per share
amounts and percentages, unaudited):
|
Second Quarter of Fiscal
2024
|
|
Second Quarter of Fiscal
2023
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 89,447
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$ 83,564
|
|
(c)
|
|
|
|
|
|
|
|
|
876
|
|
(d)
|
|
|
|
|
|
|
|
|
|
1,780
|
|
(d)
|
|
|
|
|
|
|
|
|
4,507
|
|
(e)
|
|
|
|
|
|
|
|
|
|
2,518
|
|
(e)
|
|
|
|
|
|
|
|
|
3,837
|
|
(f)
|
|
|
|
|
|
|
|
|
|
3,785
|
|
(f)
|
|
|
|
|
|
|
|
|
2,617
|
|
(g)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
16,766
|
|
(h)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
Operating
income
(loss)
|
$
(6,228)
|
|
-0.9 %
|
|
$
118,050
|
|
|
|
$
111,822
|
|
16.2 %
|
|
$
14,363
|
|
2.2 %
|
|
$ 91,647
|
|
|
$
106,010
|
|
16.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 89,447
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$ 83,564
|
|
(c)
|
|
|
|
|
|
|
|
|
876
|
|
(d)
|
|
|
|
|
|
|
|
|
|
1,780
|
|
(d)
|
|
|
|
|
|
|
|
|
4,507
|
|
(e)
|
|
|
|
|
|
|
|
|
|
2,518
|
|
(e)
|
|
|
|
|
|
|
|
|
3,837
|
|
(f)
|
|
|
|
|
|
|
|
|
|
3,785
|
|
(f)
|
|
|
|
|
|
|
|
|
2,617
|
|
(g)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
16,766
|
|
(h)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
153
|
|
(i)
|
|
|
|
|
|
|
|
|
|
802
|
|
(i)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
(1,767)
|
|
(j)
|
|
|
|
Net
income
(loss)
|
$
(7,115)
|
|
|
|
$
118,203
|
|
|
|
$
111,088
|
|
|
|
$
10,922
|
|
|
|
$ 90,682
|
|
|
$
101,604
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
(loss)
per
share --
diluted
|
$ (0.02)
|
|
|
|
|
|
|
|
$ 0.34
|
|
|
|
$ 0.03
|
|
|
|
|
|
|
$ 0.32
|
|
|
Weighted-
average
shares used
in
per
share
calculation
--
diluted
|
309,510
|
|
|
|
17,060
|
|
(k)
|
|
326,570
|
|
|
|
312,720
|
|
|
|
—
|
|
|
312,720
|
|
|
|
(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 company.
|
(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 lease
impairment and abandonment charges associated with cease-use of our
former corporate headquarters.
|
(i) To eliminate
amortization expense of debt issuance costs related to our
debt.
|
(j) To eliminate net
gain from legal settlements in connection with facilities abandoned
in the second quarter of fiscal 2021.
|
(k) 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):
|
Second Quarter of
Fiscal
|
|
2024
|
|
2023
|
Net cash provided by
operating activities
|
$
101,618
|
|
$
159,380
|
Less: purchases of
property and equipment (1)
|
(55,105)
|
|
(25,184)
|
Free cash flow
(non-GAAP)
|
$
46,513
|
|
$
134,196
|
|
(1) Includes
capitalized internal-use software costs of $5.3 million and
$3.9 million for the second quarter of fiscal 2024 and
2023.
|
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SOURCE Pure Storage