Revenue Growth - Total revenue increased by $104.2 million, or 18%, in Q1 FY2025 compared to Q1 FY2024, driven by sales to new and existing enterprise customers [151]. - Product revenue rose to $347.4 million, a 12% increase from $308.9 million in Q1 FY2024, primarily due to strong demand for FlashBlade solutions [151][152]. - Subscription services revenue grew by 23% to $346.1 million, up from $280.3 million in Q1 FY2024, largely driven by Evergreen subscription services [151][153]. - Subscription Annual Recurring Revenue (ARR) reached $1.45 billion, reflecting a year-over-year growth of 25% [156]. Financial Performance - Total remaining performance obligations (RPO) stood at $2.3 billion, with an expectation to recognize approximately 48% over the next 12 months [157]. - Total gross margin improved to 71% in Q1 FY2025, up from 70% in Q1 FY2024 [160]. - Net cash provided by operating activities increased to $221.5 million in Q1 FY2025 from $173.2 million in Q1 FY2024, driven by improved sales collections [182]. Expenses - Cost of revenue increased by $21.8 million, or 12%, during Q1 FY2025, with product cost of revenue at $100.8 million and subscription services cost at $97.0 million [160]. - Research and development expenses increased by $8.5 million, or 5%, in Q1 FY2025, primarily due to stock-based compensation adjustments [164]. - Sales and marketing expenses increased by $18.5 million, or 8%, in Q1 FY2025 compared to Q1 FY2024, primarily due to a $22.8 million increase in employee compensation [166]. - General and administrative expenses rose by $9.4 million, or 14%, in Q1 FY2025 compared to Q1 FY2024, driven by additional stock-based compensation [168]. - The company recognized $15.9 million in restructuring and impairment costs during Q1 FY2025, including $9.5 million in severance and termination benefits [169]. Cash and Investments - Cash, cash equivalents, and marketable securities totaled $1.7 billion at the end of Q1 FY2025, sufficient to fund operating and capital needs for at least the next 12 months [174]. - Net cash used in investing activities was $48.4 million in Q1 FY2025, primarily for capital expenditures related to new product innovation [184]. - The share repurchase authorization increased to $395.4 million, with no repurchases made during Q1 FY2025 [180]. Market Risks - A hypothetical 1.00% increase in interest rates could decrease the fair value of marketable securities by approximately $9.3 million [196]. - The company assessed a potential adverse change of 10% in foreign currency exchange rates, which could impact loss before income taxes by approximately $6.9 million [198]. - The company has not engaged in derivative or hedging transactions for foreign currency exchange risks due to their historical insignificance [197]. - The company’s sales contracts are primarily in U.S. dollars, with a small proportion in foreign currencies, exposing it to currency fluctuations [197]. - The company incurs a portion of its operating expenses in foreign currencies, which may lead to transaction gains and losses [197]. - The company may consider entering into hedging transactions in the future if foreign currency exposure increases significantly [197]. - The company is exposed to market risks from fluctuations in interest rates affecting interest income and investment values [195]. Operational Developments - The company introduced new self-service capabilities in March 2024, enhancing customer control over their data storage environment [138]. - Operating expenses as a percentage of total revenue decreased from 31% in Q1 FY2024 to 28% in Q1 FY2025 [164].

Pure Storage, Inc. (PSTG) is making a strategic investment in visual AI tech company, LandingAI. The investment is aimed at boosting the advancement of AI vision models. Headquartered in Palo Alto, CA, LandingAI was founded by Andrew Ng. It is guided by a data-centric AI approach to aid business organizations with limited data sets to comprehend the business value of AI and transfer AI projects from proof-of-concept to full-scale production. LandingAI's key product is LandingLens, a computer vision cloud pl ...

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Strategic Investment - Pure Storage has made a strategic investment in LandingAI to advance the future of vision AI [1] - The partnership aims to leverage LandingAI's multi-modal Large Vision Model (LVM) solutions to enhance vision AI capabilities for Pure Storage's enterprise customers [2] Industry and Technology Focus - Enterprises increasingly require solutions to apply generative AI to diverse data types, including text, images, and videos [3] - LandingAI specializes in visual AI solutions, enabling companies to transition AI projects from proof-of-concept to production with limited data sets [4] - LandingAI's flagship product, LandingLens™, is a computer vision cloud platform that facilitates quick and efficient deployment of computer vision solutions [4] - LandingAI is a pioneer in domain-specific Large Vision Models (LVMs), which improve the processing and understanding of visual data at scale [4] Company Profiles - Pure Storage provides a leading data storage platform that supports AI initiatives at any stage, offering agility and reduced total cost of ownership [5] - Pure Storage is committed to reducing data center emissions worldwide by enabling customers to lower their carbon and energy footprint [5] - LandingAI, founded by Andrew Ng, is uniquely positioned to democratize AI technology, making it accessible and beneficial to a broader audience [4] Market Recognition - Pure Storage is recognized as a leader in the 2023 Gartner Magic Quadrant for Primary Storage and Distributed File Systems & Object Storage [7]

The new report, "The Voice of Kubernetes Experts Report 2024: The Data Trends Driving the Future of the Enterprise," explores the top priorities and trends in the cloud-native landscape, including modern virtualization, cloud-native database and AI/ML adoption using Kubernetes, and the rise of platform engineering. The report surfaces proven best practices from advanced platform leaders, serving as a roadmap for enterprises seeking to scale Kubernetes initiatives. Survey Highlights: The survey, representing ...

Pure Storage (PSTG) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Shares of this data storage company have returned +15.4% over the past month versus the Zacks S&P 500 composite's +5.1% change. The Zacks Computer- Storage Devices industry, to which Pure Storage belongs, has gained 3.4% over this period. Now the key question is: Where could the stock be headed in the near term ...

Vladimir_Timofeev/iStock via Getty Images Pure Storage reported a strong Q1 quarter recently, with both top and bottom-line beats. The company reported revenue of $694 million (+18% YoY), beating consensus by $13 million. Non-GAAP EPS was $0.32, a $0.11 beat. The company also maintained its FY 2025 guidance of $3.1 billion. See below the results: PSTG price performance (Seeking Alpha) Pure Storage Q1 earnings (Seeking Alpha) Market Opportunity - Pure Storage Gaining Share The ESS market size is worth around ...

Key Points PSTG Pure Storage stock is moving higher after the company delivered a solid earnings report that included raised guidance for the rest of the year. The company's flash memory-based server storage solutions with advanced management software are becoming a complement or alternative to traditional data centers. Analysts are bidding PSTG stock higher, and there could be as much as 28% upside for the stock. 5 stocks we like better than Pure Storage Pure Storage Inc. NYSE: PSTG delivered a stellar fir ...

Pure Storage (PSTG) reported non-GAAP earnings per share (EPS) of 32 cents in first-quarter fiscal 2024, which beat the Zacks Consensus Estimate by 45.5%. The company reported non-GAAP EPS of 8 cents in the prior-year quarter. Total revenues surged 18% from the year-ago quarter to $693.5 million and beat the Zacks Consensus Estimate by 1.8%. The top-line performance was driven by higher sales to new and existing enterprise customers across the data storage platform. Robust demand for FlashBlade solutions, i ...

Financial Data and Key Metrics Changes - The company reported a return to double-digit revenue growth in Q1, with revenue increasing by 18% year-over-year [56][57] - Total contract value (TCV) sales for storage-as-a-service offerings were $56 million, with expectations of 50% growth for the fiscal year [43][100] - Gross margin strength was reported at 73.9%, with product gross margin at 72.8% and subscription services gross margin at 74.9% [45][56] - Operating profit was $100 million, resulting in an operating margin of 14.5% [46][56] - Cash flow from operations was $222 million, with capital expenditures at $49 million, representing approximately 7% of revenue [47] Business Line Data and Key Metrics Changes - The company is seeing strong demand for its FlashBlade solutions, particularly in AI workloads, contributing to broader adoption across geographies [36][57] - Subscription services annual recurring revenue (ARR) grew by 25% to over $1.4 billion, with total remaining performance obligations (RPO) growing by 27% year-over-year to $2.3 billion [58][59] - The //E family solutions and FlashArray//C are driving competition in secondary and lower storage tiers [45][90] Market Data and Key Metrics Changes - U.S. revenue for Q1 was $489 million, while international revenue was $204 million [44] - The company serves 61% of the Fortune 500, having acquired 262 new customers during the quarter [44][56] - The company is positioned to benefit from the ongoing trends in data storage, moving away from commoditized storage to high-technology data storage systems [29] Company Strategy and Development Direction - The company is focusing on AI opportunities, including high-performance data storage for GPU farms and enterprise inference engines [22][23] - The unified Purity platform allows the company to address multiple storage needs without requiring different operating systems [23] - The company aims to simplify data access and management, eliminating data silos to enable easier access for AI applications [24][25] Management's Comments on Operating Environment and Future Outlook - Management noted that while AI spending is still in early stages, the company is well-positioned as demand for data storage accelerates [50] - The overall macro environment has not significantly changed, but there is enthusiasm for AI opportunities [55] - Management reiterated guidance for fiscal year 2025, expecting continued growth despite the seasonal nature of Q1 [50][114] Other Important Information - The company has a strong balance sheet with $1.7 billion in cash and investments at the end of Q1 [47] - Headcount decreased slightly to approximately 5,500 employees, reflecting a focus on quality over quantity in customer acquisition [47][96] Q&A Session Summary Question: Can you provide insights on the cloud opportunity for Pure going forward? - The company views AI, cloud, and hyperscaler segments as distinct but interrelated, with AI presenting immediate opportunities while also driving upgrades in data storage [65][76] Question: How do you see NAND prices affecting gross margins? - Management indicated that rising NAND prices generally do not significantly impact gross margins, as they are more influenced by customer budgets [68][90] Question: What is the current customer concentration like? - The company disclosed that customer concentration remains consistent, with no significant changes in the 10% customer mix [116] Question: Can you elaborate on the design win discussions with hyperscalers? - Management noted that discussions with multiple hyperscalers have advanced, with both testing and commercial discussions taking place [95] Question: How is the adoption of Evergreen//One tracking? - Adoption was slightly lower than expected, but the company remains confident in achieving its $600 million target for Evergreen//One this year [137]