Pure Storage: Fiscal 1Q23 Financial Results

Pure Storage, Inc. announced financial results for its fiscal first quarter ended May 8, 2022.

“Pure’s continuing success is the direct result of our consistent focus on innovation and operational excellence,” said Charles Giancarlo, chairman and CEO. “We are delivering industry leading products, building a storage and management platform that is both powerful and easy to use, and providing exceptional customer experiences.”
 
1FQ23 Financial Highlights 
• Revenue $620.4 million, up 50% Y/Y
• Subscription services revenue $219.2 million, up 35% Y/Y
• Subscription Annual Recurring Revenue (ARR) $899.8 million, up 29% Y/Y
• Remaining Performance Obligations (RPO) $1.4 billion, up 26% Y/Y
• GAAP gross margin 68.7%; non-GAAP gross margin 70.6%
• GAAP operating loss $(4.6) million; non-GAAP operating income $85.4 million
• GAAP operating margin (0.7)%; non-GAAP operating margin 13.8%
• Operating cash flow $220.1 million; free cash flow $187.3 million
• Total cash, cash equivalents, and investments $1.3 billion
• Returned approximately $66 million to stockholders through share repurchases

“We are very pleased with our exceptional performance this quarter, marking a strong start to the fiscal year,” said Kevan Krysler, CFO. “Pure’s flash leadership makes us the best choice for customers who prioritize performance, reliability, and reducing their energy consumption. Our solutions make a significant and immediate impact in reducing data center carbon emissions, delivering longer service lifetimes, and reducing e-waste.”

1FQ23 Company Highlights
• Commitment to Sustainability: Released its inaugural Environmental, Social, Governance (ESG) report, providing visibility into the company’s current metrics and setting commitments for making meaningful progress toward a better future for the global community. Key report highlights:

• • Pure enables businesses and organizations to drive out direct energy usage in their storage systems by up to 80% compared to competitive all-flash products and even more compared to disk-based systems.
  • More than 97% of Pure arrays purchased 6 years ago are still in service, and benefiting from continual modernization through Evergreen program.
  • As part of the company’s goal to reduce Scope 3 emissions, is committing to further reducing product emissions by 66% per petabyte by 2030.
• Market-Leading Portfolio Innovation: Pure Fusion and Portworx Data Services are now available, enabling customers to bring infrastructure and applications closer together with cloud-like automation and storage delivery for traditional and cloud-native applications. Additionally, FlashBlade was recognized as a leader in the 2022 IDC MarketScape for Distributed Scale Out File Storage due to its ease of use, consistent performance at scale, metadata architecture, and customer experience.
• Momentum Across Technology Partnerships: Announced new partnerships with Snowflake and Kyndryl, and an expanded partnership with Amazon Web Services (AWS) in 1FQ23 to deliver expertise, mission-critical capabilities, and enablement programs to global enterprises.
• Pure//Accelerate techfest22 will take place in-person in Los Angeles, CA, and virtually on June 8.