Pure Storage(PSTG) - 2025 Q2 - Quarterly Results

Financial Performance - Q2 total revenue reached $763.8 million, reflecting an 11% year-over-year growth[1] - Subscription services revenue was $361.2 million, up 25% year-over-year[1] - Subscription annual recurring revenue (ARR) increased to $1.5 billion, a 24% year-over-year growth[1] - Remaining performance obligations (RPO) stood at $2.3 billion, also up 24% year-over-year[1] - Total revenue for Q2 2025 reached $763.8 million, a 10.9% increase from $688.7 million in Q2 2024[19] - Gross profit for Q2 2025 was $540.1 million, compared to $486.6 million in Q2 2024, reflecting a 10.9% increase[19] - Net income for Q2 2025 was $35.7 million, a significant recovery from a net loss of $7.1 million in Q2 2024[19] - Non-GAAP operating income for fiscal 2025 was reported at $138,596, resulting in a non-GAAP operating margin of 18.1%[25] - GAAP net income for the second quarter of fiscal 2025 was $35,674, with a diluted net income per share of $0.10[25] Revenue Guidance - Q3 FY25 revenue guidance is set at $815 million, indicating a 6.8% year-over-year growth rate[4] - FY25 revenue guidance is projected at $3.1 billion, representing a 10.5% year-over-year growth rate[5] - Total contract value (TCV) sales for subscription-as-a-service offerings are expected to reach $500 million, with approximately 25% year-over-year growth[5] Operating Expenses and Cash Flow - Operating expenses totaled $515.2 million, an increase from $492.8 million in the same quarter last year, primarily driven by higher R&D and marketing costs[19] - Cash flows from operating activities were $226.6 million, compared to $101.6 million in Q2 2024, indicating improved operational efficiency[22] - The company experienced a net increase in cash of $69.6 million during the quarter, compared to an increase of $30.6 million in Q2 2024[22] - Free cash flow for the second quarter of fiscal 2025 was $166,562, significantly up from $46,513 in the same quarter of fiscal 2024[27] Stock-Based Compensation and Cash Position - The company reported a total stock-based compensation expense of $104.9 million for Q2 2025, up from $89.4 million in Q2 2024[22] - Cash, cash equivalents, and restricted cash at the end of the period were $979.8 million, up from $418.9 million at the end of Q2 2024[22] - Deferred revenue increased to $22.2 million in Q2 2025, down from $41.4 million in Q2 2024, indicating a shift in revenue recognition[22] Gross Margin and Profitability - GAAP gross margin was 70.7%, while non-GAAP gross margin was 72.8%[1] - Total gross profit for the second quarter of fiscal 2025 was $540,080, with a non-GAAP gross margin of 70.7%[24] - The company reported a GAAP gross profit of $272,872 for product sales, translating to a GAAP gross margin of 67.8%[24] - Subscription services gross profit reached $267,208, with a GAAP gross margin of 74.0%[24] - The non-GAAP gross profit for the second quarter of fiscal 2025 was $555,674, reflecting a non-GAAP gross margin of 72.8%[24] New Developments and Sustainability - New platform capabilities announced include Evergreen//One for AI and enhancements to Pure Fusion, aimed at improving AI deployment and cyber resilience[2] - Pure Storage's platform requires up to 10x less energy than mechanical HDDs and up to 5x less than SSDs, highlighting its sustainability efforts[3]