Financial Data and Key Metrics Changes - Q1 revenue grew 12% year-over-year, reaching $830 million, with operating profit of $83 million and an operating margin of 10.6% [23][26] - Subscription services revenue increased 17% to $406 million, representing over half of total revenue, while annual recurring revenue (ARR) grew 18% to $1.7 billion [25][26] - Total remaining performance obligations (RPO) grew 17% to $2.7 billion, indicating strong renewals and new commitments [25][26] - Total gross margin improved to 70.9%, with subscription services margin at 77.2% [26][27] Business Line Data and Key Metrics Changes - Storage as a Service (SaaS) solutions saw a 70% increase in total contract value (TCV) sales, reaching $95 million, driven by large Evergreen One deals [23][25] - Product margin rose 1.1 points sequentially to 64%, with expectations for mid-60s product gross margin for the year [27] Market Data and Key Metrics Changes - U.S. revenue grew 9% to $531 million, while international revenue increased 21% to $248 million year-over-year [26] - The company added 235 new customers, achieving a penetration rate of 62% within the Fortune 500 [26] Company Strategy and Development Direction - The company is focused on modernizing IT infrastructure and breaking down data silos, with a strong emphasis on AI and high-performance computing solutions [10][15] - A major partnership with Nutanix was announced to integrate their cloud platform with Pure Storage, aimed at enhancing virtualization solutions [12][15] - The company is expanding its cloud block store integration into a fully managed service available through Azure VMware service [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties while maintaining strong performance [18][30] - The company anticipates continued growth in the second half of the year, with a revenue forecast of $845 million for Q2, representing a 10.6% year-over-year increase [30] Other Important Information - The CFO, Kevan Krysler, will be leaving the company after more than five years, with a smooth transition planned [20][21] - The company has a strong balance sheet with $1.6 billion in cash and investments, and Q1 operating cash flow was $284 million [28] Q&A Session Summary Question: Update on hyperscale opportunity with Meta - Management indicated that the evaluation and testing process with Meta is on track, with expectations for significant progress in the second half of the year [39][40] Question: Size of the newly announced AXA offering - The opportunity is seen as niche but substantial, targeting markets like government and large-scale GPU clusters, with expected margins at or above company standards [45][46] Question: Changes in buyer behavior during macro uncertainty - Management noted no significant changes in customer sentiment or purchasing behavior in Q1, with broad-based strength across traditional sales and Evergreen One [51][54] Question: Clarification on subscription margins amid tariff costs - Management stated that they can absorb any potential tariff costs without significantly impacting subscription gross margins [94] Question: Revenue contribution from Meta's one to two exabytes - Some de minimis revenue contribution has been contemplated in the annual guide, expected to be recognized in the second half [72][73] Question: Time to close larger deals - Management reported that larger deals are tracking as expected, with solid momentum in both larger and higher velocity transactions [78]