Pure Storage(US:PSTG)2024-12-03 21:07Revenue Performance - Revenue for Q3 FY2025 was $831.1 million, representing a 9% year-over-year increase[4] - Subscription services revenue reached $376.4 million, up 22% year-over-year[4] - Subscription annual recurring revenue (ARR) was $1.6 billion, also up 22% year-over-year[4] - Remaining performance obligations (RPO) totaled $2.4 billion, reflecting a 16% year-over-year increase[4] - Q4 FY2025 revenue guidance is set at $867 million, with a year-over-year growth rate of 9.7%[9] - FY2025 revenue guidance is projected at $3.15 billion, indicating an 11.5% year-over-year growth rate[9] - Total revenue for Q3 2025 reached $831,072,000, a 9% increase from $762,838,000 in Q3 2024[26] - Product revenue was $454,735,000, slightly up from $453,277,000 in the same quarter last year[26] - Subscription services revenue increased to $376,337,000, compared to $309,561,000 in Q3 2024, marking a 21.6% growth[26] Profitability and Margins - GAAP gross margin was 70.1%, while non-GAAP gross margin was 71.9%[4] - Gross profit for Q3 2025 was $582,922,000, up from $552,747,000 in Q3 2024, reflecting a gross margin improvement[26] - Non-GAAP gross profit for product sales was $299.765 million with a gross margin of 65.9% in Q3 2025, compared to $326.507 million and 72.0% in Q3 2024[32] - Non-GAAP gross profit for subscription services was $283.157 million with a gross margin of 75.2% in Q3 2025, compared to $226.240 million and 73.1% in Q3 2024[32] - GAAP operating income for Q3 Fiscal 2025 was $59,687, with a GAAP operating margin of 7.2%[35] - Non-GAAP operating income for Q3 Fiscal 2025 was $107,599, resulting in a non-GAAP operating margin of 20.1%[35] - Net income for Q3 2025 was $63,639,000, down from $70,389,000 in Q3 2024, resulting in a net income per share of $0.19[26] Cash Flow and Liquidity - Operating cash flow for Q3 was $97.0 million, with free cash flow at $35.2 million[4] - Cash and cash equivalents increased to $894,569,000 from $702,536,000 year-over-year, indicating improved liquidity[24] - Total net cash provided by operating activities was $96.993 million in Q3 2025, down from $158.432 million in Q3 2024, a decrease of about 38.7%[30] - Cash, cash equivalents, and restricted cash at the end of the period were $907.335 million, compared to $539.151 million at the end of Q3 2024, an increase of approximately 68.5%[30] - Net cash used in financing activities was $(208.856) million in Q3 2025, compared to $(256.381) million in Q3 2024, showing a decrease in cash outflow[30] - The company reported a net cash provided by investing activities of $39.391 million in Q3 2025, compared to $(37.227) million in Q3 2024, indicating a positive cash flow shift[30] Shareholder Returns and Equity - The company returned approximately $182 million to stockholders through share repurchases of 3.6 million shares[4] - Stockholders' equity rose to $1,410,586,000, compared to $1,270,094,000 at the end of fiscal 2024, reflecting a stronger balance sheet[24] Expenses and Investments - Operating expenses totaled $523,235,000, an increase from $478,536,000 in Q3 2024, driven by higher R&D and marketing costs[26] - The company reported stock-based compensation expense of $101.072 million in Q3 2025, up from $87.966 million in Q3 2024, indicating an increase of about 14%[30] - Purchases of property and equipment in Q3 Fiscal 2025 amounted to $61,788[37] Balance Sheet and Financial Position - Total assets grew to $3,854,465,000, up from $3,655,760,000 at the end of fiscal 2024[24] - Total liabilities increased to $2,443,879,000 from $2,385,666,000, primarily due to higher current liabilities[24] - The company experienced a significant increase in accounts receivable, net, which was $(161.723) million in Q3 2025, compared to $(111.190) million in Q3 2024[30] Future Outlook - The company achieved an industry-first design win for its DirectFlash technology with a top-four hyperscaler, enhancing its market position[5] - The company anticipates continued growth in operating income and margins in future quarters[35]