Company Overview - Khaveen Investments is a global Investment Advisory Firm focused on serving the investment needs of high-net-worth individuals, corporations, associations, and institutions [1] - The firm is a registered investment adviser with the Securities Exchange Commission (SEC) [1] - It offers a range of services including market and security research, business valuation, and wealth management [1] Investment Strategy - The flagship Macroquantamental Hedge Fund maintains a diversified portfolio with exposure to hundreds of investments across various asset classes, geographies, sectors, and industries [1] - The investment approach integrates top-down and bottom-up analysis, blending three core strategies: global macro, fundamental, and quantitative [1] Core Expertise - The company specializes in disruptive technologies that are transforming modern industries, including Artificial Intelligence, Cloud Computing, 5G, Autonomous and Electric Vehicles, FinTech, Augmented and Virtual Reality, and the Internet of Things (IoT) [1]

Company Overview - Khaveen Investments is a global investment advisory firm serving high-net-worth individuals, corporations, associations, and institutions [1] - The firm is a registered investment adviser with the Securities Exchange Commission (SEC) [1] - It offers comprehensive services including market and security research, business valuation, and wealth management [1] Investment Strategy - The flagship Macroquantamental Hedge Fund maintains a diversified portfolio with exposure to hundreds of investments across various asset classes, geographies, sectors, and industries [1] - The investment approach integrates top-down and bottom-up analysis, blending three core strategies: global macro, fundamental, and quantitative [1] Core Expertise - The firm's core expertise lies in disruptive technologies that are reshaping modern industries [1] - Key focus areas include Artificial Intelligence, Cloud Computing, 5G, Autonomous and Electric Vehicles, FinTech, Augmented and Virtual Reality, and the Internet of Things (IoT) [1]

Group 1 - Bert Hochfeld has a strong background in economics and an MBA from Harvard, with extensive experience in the tech industry, having worked for companies like IBM and Raytheon Data Systems [1] - He founded Hochfeld Independent Research Group in 2001, providing research services to major institutions such as Fidelity and SAC Capital, and managed the Hepplewhite Fund, which was recognized as the best performing small-cap fund for five years ending in 2011 [1] - Hochfeld has published over 500 articles on Seeking Alpha, focusing on information technology companies, and ranks in the top 0.1% of Tip Ranks analysts for his stock selections in this sector [1]

Core Insights - Pure Storage (PSTG) has experienced a significant decline since reaching a record high of $100.45 on November 3, with a notable drop of 27.3% following its earnings report on December 3, currently trading at $66.54, approximately 33% below its peak [1] Technical Analysis - The stock is currently supported by its 180-day moving average, which is helping to limit losses [2] - PSTG is within 3% of its 12-month moving average, having closed above this trendline for the past five months. Historically, this signal has led to a higher stock price one month later 80% of the time, with an average gain of 7%. Three months post-signal, the average gain is 25.8%, with 60% of returns being positive [2] Options Market - Options appear to be a favorable strategy for PSTG, as the stock is showing a short-term bullish signal. The current premiums are attractively priced, indicated by a Schaeffer's Volatility Index (SVI) of 45%, which is in the low 17th percentile of its annual range, suggesting low volatility expectations from options traders [4]

Revenue Performance - Product revenue for Q3 FY2026 was $534.8 million, an 18% increase from $454.7 million in Q3 FY2025[172] - Subscription services revenue for Q3 FY2026 was $429.7 million, a 14% increase from $376.3 million in Q3 FY2025[172] - Total revenue for Q3 FY2026 reached $964.5 million, a 16% increase from $831.1 million in Q3 FY2025[172] - Subscription Annualized Recurring Revenue (ARR) at the end of Q3 FY2026 was $1.84 billion, reflecting a 17% year-over-year growth[178] - Total remaining performance obligations (RPO) at the end of Q3 FY2026 were $2.9 billion, indicating a 24% year-over-year growth[179] - Revenue in the United States grew 22% in Q3 FY2026, from $561.9 million to $683.2 million[175] - Revenue from the rest of the world grew 4% in Q3 FY2026, from $269.2 million to $281.3 million[175] Product Development and Expenses - The introduction of new products at Pure//Accelerate included the general availability of Pure Storage Cloud Azure Native and FlashArray//X R5[157] - The company expects research and development expenses to increase in absolute dollars to support product development and operational scale[165] - Sales and marketing expenses are anticipated to rise as the company invests in capturing growth opportunities, particularly in the enterprise market[166] - Total product cost of revenue decreased by $2,964 thousand (2%) in Q3 2026 compared to Q3 2025, while total subscription services cost of revenue increased by $21,890 thousand (23%) in the same period[182] - Product gross margin improved to 72% in Q3 2026 from 66% in Q3 2025, driven by royalties from hyperscaler shipments and a favorable product mix[182] - Research and development expenses increased by $56,278 thousand (28%) in Q3 2026 compared to Q3 2025, primarily due to higher employee compensation and related costs[186] - Sales and marketing expenses rose by $37,987 thousand (15%) in Q3 2026 compared to Q3 2025, mainly due to increased employee compensation and travel costs[188] - General and administrative expenses increased by $25,959 thousand (39%) in Q3 2026 compared to Q3 2025, driven by higher employee compensation and related costs[192] Financial Position and Cash Flow - Cash, cash equivalents, and marketable securities totaled $1.5 billion at the end of Q3 2026, sufficient to fund operating and capital needs for at least the next 12 months[197] - A $500 million revolving credit facility was established in June 2025, replacing a prior $300 million facility, with proceeds available for general corporate purposes[199] - The company may pursue acquisitions or investments in complementary businesses and technologies to support growth opportunities[198] - U.S. Dollar denominated borrowings under the Credit Facility bear interest at a base rate with a margin ranging from 0% to 0.50% or the term SOFR rate with a margin from 0.875% to 1.50%[200] - As of the end of Q3 fiscal 2026, there were no outstanding borrowings, and the company was in compliance with all covenants under the Credit Facility, maintaining a Consolidated Net Leverage Ratio of 3.5:1[201] - Outstanding letters of credit increased from $7.2 million at the end of fiscal 2025 to $13.5 million at the end of Q3 fiscal 2026[202] - The company repurchased approximately 0.6 million shares at an average price of $87.23 per share for a total of $53.3 million during Q3 fiscal 2026, and 3.9 million shares for $215.4 million in the first three quarters of fiscal 2026[203] - Net cash provided by operating activities increased from $545.1 million in the first three quarters of fiscal 2025 to $612.1 million in fiscal 2026, driven by higher net income and stock-based compensation[205] - Capital expenditures in the first three quarters of fiscal 2026 amounted to $197.8 million, supporting the Evergreen//One offering and data center expansion[208] - Net cash used in financing activities during the first three quarters of fiscal 2026 was $449.966 million, primarily due to share repurchases and tax withholding remittances[210] - The company had cash, cash equivalents, and marketable securities totaling $1.5 billion at the end of Q3 fiscal 2026, with a potential $7.0 million decrease in fair value due to a hypothetical 1.00% increase in interest rates[219][220] Foreign Currency and Other Income - Adverse changes in foreign currency exchange rates of 10% could have resulted in an approximate $8.8 million impact on income before income taxes at the end of Q3 fiscal 2026[222] - Other income increased by $38,461 thousand in the first three quarters of fiscal 2026 compared to the same period in fiscal 2025, primarily due to gains from the sale of equity securities[195]

Core Insights - Pure Storage has announced an incremental share repurchase authorization of up to $400 million, marking the largest-ever share repurchase authorization for the company [1][3] - This new authorization is in addition to the approximately $20 million remaining from the previously announced $250 million share repurchase program initiated in February 2025 [2][3] - The share repurchase will be funded from available cash on the balance sheet and will be executed at management's discretion through various methods, without an expiration date [3] Financial Position - The CFO of Pure Storage emphasized that this decision reflects the company's strategic value, long-term trajectory, and strong financial position [3] - The company remains committed to disciplined capital allocation and enhancing shareholder value while continuing to invest in technology innovation [3] Repurchase Program Details - The repurchase program allows for opportunistic buybacks of Class A common stock and can be suspended or discontinued at any time without prior notice [3] - Various approaches for repurchases include open market transactions, privately negotiated transactions, and structured transactions through investment banking institutions [3]

Core Insights - The discussion features Pure Storage, with Rob Lee serving as the Chief Technology Officer, indicating a focus on technological advancements and company strategy [1]. Company Overview - Pure Storage is participating in the UBS Tech Conference, highlighting its engagement with investors and the tech community [1]. - The company has made forward-looking statements based on current expectations, which suggests a proactive approach to communicating its future outlook [2]. Regulatory Compliance - Pure Storage references its recent SEC filings (Forms 10-Q, 10-K, and 8-K), indicating adherence to regulatory requirements and transparency in financial reporting [2].

Core Viewpoint - Pure Storage Inc (NYSE:PSTG) experienced a significant post-earnings selloff, dropping 27.3% after reaching a record high of $100.59 on November 3, but is currently attempting to recover with a 1.5% increase to $69.90 [1] Group 1: Stock Performance and Historical Signals - The stock is currently within 3% of its 12-month moving average, having remained above it for the last five months, which historically indicates a bullish trend [2] - This signal has occurred five times in the past two decades, with the stock rising 80% of the time one month later, averaging a 7% gain, suggesting a potential recovery above $74 by early 2026 [2] Group 2: Short Interest and Options Market - Short interest in PSTG has increased by 40.9% over the past two reporting periods, with 9.29 million shares representing 3% of the stock's available float, indicating nearly three days' worth of buying power [3] - The stock's Schaeffer's Volatility Index (SVI) is at 55%, which is higher than 31% of readings from the past year, suggesting that near-term option traders are anticipating relatively low volatility [3] Group 3: Volatility Score - PSTG's Schaeffer's Volatility Scorecard (SVS) is rated at 86 out of 100, indicating that the stock has consistently experienced higher-than-expected volatility over the past 12 months [4]

Summary of Pure Storage Conference Call Company Overview - **Company**: Pure Storage - **Industry**: Technology, specifically data storage solutions Key Financial Performance - **Earnings Performance**: Pure Storage reported a strong quarter, beating both revenue and earnings expectations, continuing a trend of strength observed throughout the year [4][5] - **Hyperscaler Shipments**: The company surpassed its previously anticipated full-year shipments to hyperscalers, indicating robust demand in this segment [4][5] Core Business Insights - **Broad-Based Strength**: The company is experiencing broad-based strength across its enterprise business and newer product areas, such as Portworx [4][5] - **Incremental Financial Benefits**: Discussions highlighted the financial benefits from the hyperscaler business and the potential for new business models tailored to different hyperscaler environments [5][7] Business Model and Strategy - **Software Licensing Model**: The existing business model primarily revolves around software licenses or royalty revenue, with no hardware components provided to customers [8][9] - **Tailored Business Models**: There is a focus on tailoring business models to fit the needs of hyperscaler customers, with potential for gross margin profiles to align more closely with company averages over time [10][39] Technological Differentiation - **DirectFlash Technology**: The major differentiator for Pure Storage is its DirectFlash technology, which includes both hardware and software components, enabling higher performance and reliability [42][44] - **Efficiency Gains**: The technology allows hyperscalers to meet data needs with a smaller footprint, consuming less space and power, which is critical in the current market [52][56] Market Dynamics - **Demand Trends**: There is broad-based strength in the storage market, particularly in enterprise segments, driven by a focus on modern virtualization and selective repatriation of workloads from the cloud [67][70] - **Enterprise Data Cloud**: The Enterprise Data Cloud offering is gaining traction, allowing for more strategic conversations with C-suite executives, enhancing the company's market position [81][85] Supply Chain and Commodity Pricing - **Supply Chain Management**: Pure Storage has a strong track record in navigating supply chain challenges, leveraging structural advantages to maintain competitive pricing [90][104] - **Commodity Price Impact**: The company typically prices at a premium to competitors, which allows for disciplined discounting strategies even in fluctuating commodity price environments [88][90] Growth Opportunities - **Multiple Growth Vectors**: The company is pursuing various growth opportunities across hyperscalers, enterprise data cloud, and modern virtualization, indicating a diversified growth strategy [108][109] - **Intellectual Property Leverage**: Pure Storage has built a rich stack of intellectual property that enables it to adapt and meet the needs of multiple market segments, including AI and cloud-native environments [109][110] Conclusion - Pure Storage is positioned for continued growth through its innovative technology, strategic business models, and strong market demand across various sectors. The company is focused on leveraging its intellectual property to expand its market share and enhance customer relationships.

Core Viewpoint - Shares of Pure Storage experienced a significant drop of 26% intra-day despite meeting earnings expectations and slightly exceeding revenue forecasts [1] Financial Performance - Pure Storage reported adjusted EPS of $0.58, aligning with analyst estimates [1] - Revenue reached $964.5 million, surpassing the consensus of $955.03 million and reflecting a 16% year-over-year increase [1] - Subscription services revenue grew by 14% to $429.7 million [1] Operating Margins and Guidance - The company achieved a non-GAAP operating margin of 20.3%, slightly above the 20.1% from the same quarter last year [2] - For the fourth quarter, Pure Storage projected revenue between $1.02 billion and $1.04 billion, indicating annual growth of 16.5% to 17.6% [2] - Full-year revenue expectations were raised to a range of $3.63 billion to $3.64 billion, up from the previous range of $3.60 billion to $3.63 billion [2] Income Forecast - Pure Storage increased its full-year non-GAAP operating income forecast to between $629 million and $639 million, compared to earlier guidance of $605 million to $625 million, representing year-over-year growth of 12.4% to 14.2% [3]