Pure Storage: Fiscal 2Q17 Financial ResultsRevenue skyrocketing, but huge net loss desperately continuing
This is a Press Release edited by StorageNewsletter.com on 2016.08.29
|(in $ million)||2Q16||2Q17||6 mo. 16||6 mo. 17|
|Net income (loss)||(63.8)||(59.6)||(113.0)||(123.3)|
- Record revenue of $163.2 million, up 92.8% Y/Y
- Strong operating margin improvement of 51% Y/Y GAAP and 68% Y/Y non-GAAP
- Breaks new ground in unstructured data market with first FlashBlade systems shipped
Pure Storage, Inc. announced financial results for its fiscal second quarter ended July 31, 2016.
Key financial highlights include:
• Quarterly revenue: $163.2 million, up 92.8% Y/Y, and ahead of the guidance range of $153 million to $157 million.
• Quarterly gross margin: 65.2% GAAP; 66.3% non-GAAP, up 6.7 ppts and 7.1 ppts Y/Y, respectively, and in line with non-GAAP gross margin guidance of 65-68%.
• Quarterly operating margin: -36.4% GAAP; -19.3% non-GAAP, up 38.5 ppts and 41.7 ppts Y/Y, respectively, and ahead of non-GAAP operating margin guidance of -30% to -26%.
"We are delighted to report another great quarter with record revenue," CEO Scott Dietzen said. "We are very pleased with the growth of the business in the July quarter, driven by solid repeat purchase rates, by partnering with the channel to accelerate our go-to-market, by healthy demand from cloud customers - which accounts for more than 25% of our business - and by growing sales to international customers, who made up 25% of revenue."
In the quarter, the company began shipping FlashBlade, the company's second major product line.
"While we aren't planning on FlashBlade materially impacting revenue this year," Dietzen said. "We're excited about the expanded range of possibilities that FlashBlade is already offering customers in chip design, genomics and life sciences, big data analytics, software development, IoT, machine learning and film production."
"We continue to execute well against our operating plan," CFO Tim Riitters said. "While driving rapid growth, we also improved operating margin year over year. We nearly doubled our business over the last year, while at the same time cutting our operating losses almost 40%."
In the quarter, the vendor added more than 350 new customers, increasing the total to more than 2,300 organizations, including nearly 20% of the Fortune 500. New customer wins in the quarter include: British Airways, The University of Tokyo, NIFTY Corporation and Sally Beauty Supply. Also in the second quarter, Baylor Miraca Genetics Labs purchased FlashBlade to transform its genetics research pipeline, and the Farm Bureau of Michigan purchased FlashBlade to deliver high performance infrastructure.
Additionally, for the third straight year, the flash player is positioned in the Gartner Magic Quadrant for Solid State Arrays furthest along the 'Completeness of Vision' axis.
Third Quarter Fiscal 2017 Guidance:
- Revenue in the range of $187 million to $195 million (consensus $190.7 million)
- Non-GAAP gross margin in the range of 64% to 67%
- Non-GAAP operating margin in the range of -17.5% to -13.5%