Pure Storage CEO talks quarterly results as stock slides on subscription revenue miss

Financial Performance - Pure Storage sees fourth quarter revenue of $102 billion to $104 billion, slightly ahead of estimates [1] - Subscription business accounts for approximately 46% of total revenue and continues to grow annually [3] - Storage as a service business grew 25% year-over-year, outpacing overall company growth [3] Market Trends and Opportunities - Hyperscale business is performing well and expected to expand to other hyperscalers [6] - Strong demand in the hyperscale market presents a new opportunity for penetration [7] - Overall demand is increasing in both subscription and product sectors, driven largely by the AI opportunity [13] Technological Advantages and Competitive Landscape - Pure Storage's direct flash technology offers performance advantages and significantly reduces power, space, and cooling requirements compared to hard disks (approximately one-tenth) [8] - In hyperscale environments, Pure Storage faces competition primarily from SSDs and hard disk drives [7] - Pure Storage technology can reduce storage power consumption in data centers from 25% to less than 5%, freeing up 20% for other uses like AI [10] Supply Chain and Macro Concerns - The entire industry faces supply chain constraints due to high demand, largely driven by the AI opportunity [13] - Hyperscalers are already experiencing power constraints, incentivizing them to upgrade data centers and replace existing storage with more efficient solutions [9][10][11]