Pure Storage: Fiscal 4Q20 Financial Results

Pure Storage, Inc. announced financial results for its fourth quarter and full-year ended February 2, 2020.

“Pure finished the year with the strongest growth and margin profile in the industry,” said Charles Giancarlo, chairman, and CEO. “We are well-positioned for a successful year ahead with a growing and robust technology portfolio, and our strategy to deliver the Modern Data Experience.“

Key Financial Highlights:

• Revenue: $492.0 million for 4FQ20, up 17% Y/Y, $1.643 billion for FY20, up 21% Y/Y
• Gross margin: 4FQ20 GAAP gross margin 70.8%; non-GAAP gross margin 72.1%, FY20 GAAP gross margin 69.0%; non-GAAP gross margin 70.5%
• Operating loss:  4FQ20 GAAP operating loss $0.7 million; non-GAAP operating profit $60.9 million; FY20 GAAP operating loss $191.2 million; non-GAAP operating profit $55.6 million
• Operating margin: 4FQ20 GAAP operating margin -0.1%; non-GAAP operating margin 12.4%; FY20 GAAP operating margin -11.6%; non-GAAP operating margin 3.4%
• Operating cash flow: 4FQ20 operating cash flow at $69.9 million, down -14% Y/Y; FY20 operating cash flow at $189.6 million, up 15% Y/Y
• Free cash flow: 4FQ20 free cash flow at $56.2 million, up 9% Y/Y; FY20 free cash flow at $101.7 million, up 59% Y/Y

“Our 4FQ20 performance was the result of solid execution and growth from our expanding product and subscription services portfolio,” said Kevan Krysler, CFO. “Through expansion of our portfolio, we look forward to continued industry leading growth rates and gross margins.“

Recent company Highlights
Customer Traction: It added more than 500 new customers in the quarter equating to greater than 5 new customers per day, reaching over 7,500 total customers.

Advancing Modern Data Experience:
It announced availability for the third-gen all-NVMe FlashArray//X family that provides customers with higher performance and enables faster time-to-market. With its one-of-a-kind, EvergreenStorage model, customers have access to continuous innovation that includes these and future updates to its product and solutions suite.
It continues to advance its multi-cloud strategy with the beta launch of Cloud Block Store on Microsoft Azure. It also joined Google Cloud’s Anthos Ready Storage Initiative for hybrid cloud environments earlier this month.

Industry Recognition: In 4FQ20, peer review site Gartner Peer Insights recognized FlashArray//X with a Customers’ Choice distinction for Best Primary Storage in 2020.

Guidance
For FY21:

• Revenue of approximately $1.90 billion
• Non-GAAP gross margin of approximately 69.5%
• Non-GAAP operating profit of approximately $60 million

For 1FQ21

• Revenue of approximately $365 million
• Non-GAAP gross margin of approximately 69.5%
• Non-GAAP operating loss of approximately $40 million