Summary of Everpure (NYSE:PSTG) FY Conference Call - February 26, 2026 Company Overview - **Company Name Change**: Pure Storage has rebranded to Everpure to reflect its expanded capabilities in the enterprise storage industry [11][14] - **Acquisition**: The company acquired 1touch to enhance its data management capabilities, allowing for better context and usability of stored data [13][19] Financial Performance - **Quarterly Earnings**: Everpure reported its first billion-dollar quarter with revenues of approximately $1.06 billion, marking a 16% year-over-year growth for the full year and a 20% growth in Q4 compared to the previous year [15][16] - **Future Guidance**: The company anticipates a 28% growth in Q1 year-over-year and a 19% growth for the entire year [15][16] - **Competitor Comparison**: Competitors are experiencing low single-digit growth rates, indicating Everpure's strong market position [16] Industry Dynamics - **NAND Flash Supply Chain**: Everpure has begun selling to hyperscalers, significantly increasing its responsibility for NAND flash supply. The company has long-term contracts in place but acknowledges the volatility in the spot market due to high demand and supply shortages [22][23][24] - **NAND Pricing**: The company noted that NAND prices have seen dramatic increases, with some products doubling in price within four months [23][24][90][96] - **Transition from HDD to Flash**: Everpure predicts that by 2028, virtually no new HDD enterprise data center systems will be sold, despite HDDs currently representing around 80% of gigabytes in hyperscalers [45][60] Competitive Positioning - **DirectFlash Technology**: Everpure's DirectFlash technology offers a 30%-40% price performance improvement over traditional SSDs, positioning the company uniquely in the market [66][67] - **Power and Cooling Efficiency**: Everpure's solutions require significantly less power, space, and cooling compared to HDDs and SSDs, making them attractive to hyperscalers [67][71] Market Trends - **AI and Data Management**: The company is focusing on making data more manageable and useful for analytics and AI, addressing the need for real-time data processing [135][136] - **Hyperscaler Demand**: Hyperscalers are currently price insensitive due to their urgent need for capacity, which is driving demand for Everpure's solutions [116][117] Strategic Partnerships - **Nutanix Partnership**: Everpure is seeing increased demand for alternatives to VMware, with Nutanix being a key partner in providing solutions for customers looking to transition away from VMware [172][173] Key Takeaways - **Market Share Growth**: Everpure is experiencing significant growth in its core business, with expectations to capture more market share in a $40 billion industry [187] - **Focus on Core Business**: The company emphasizes that the core business, which is growing rapidly, should receive more attention than the smaller AI segment, which currently contributes less than 10% of revenues [188][190] Conclusion - Everpure is positioned strongly in the enterprise storage market with innovative technology, robust financial performance, and strategic acquisitions. The company is navigating industry challenges effectively while focusing on long-term growth and market share expansion.

Financial Data and Key Metrics Changes - The company reported a 13% year-over-year growth and remains strongly profitable in the last quarter [6] - The percentage of revenue from subscriptions is expected to remain around 40% throughout the year [6] - The company is now spending as much on R&D as its competitors, indicating a significant investment in innovation [5] Business Line Data and Key Metrics Changes - The company is focusing on a unified data plane that supports various types of data, including block, file, and object storage [17] - The introduction of the Fusion capability allows for a more integrated approach to data management across different applications [18] Market Data and Key Metrics Changes - The company is positioning itself to capitalize on the growing demand for AI and cloud-based solutions, indicating a shift in market focus [20] - The enterprise data cloud architecture is designed to address the challenges of data silos and improve data accessibility for analytics and AI [20] Company Strategy and Development Direction - The company aims to bring a cloud operating model to enterprise storage, emphasizing automation and standardization [16] - The focus is on creating a unified data plane that enhances customer experience and operational efficiency [17][25] - The company is committed to continuous improvement and innovation through its Evergreen architecture, which allows for non-disruptive upgrades [57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continuing to outperform the market and highlighted the importance of R&D spending for future growth [4][5] - The shift towards AI and data-driven solutions is seen as a significant opportunity for the company [20] - Management acknowledged the challenges of changing long-standing architectures in organizations but believes progress is being made [25] Other Important Information - The company has launched several new products aimed at enhancing its data management capabilities and addressing various customer needs [21] - The FlashBlade Exa product is highlighted as a flexible architecture that can handle high-performance metadata and data storage needs [23] Q&A Session Summary Question: What are the key advantages of Pure Storage's technology? - The company highlighted its unique approach to software designed specifically for flash, avoiding the inefficiencies of SSD architectures [32][36] - The integration of hardware and software is central to the company's Evergreen promise, allowing for seamless upgrades and scalability [34][38] Question: How does the company plan to address the needs of hyperscalers? - The company is focusing on providing storage solutions that integrate well with hyperscalers' existing management systems and hardware [44] - DirectFlash software is emphasized as a key enabler for improving the transition from hard disk drives to flash storage [44]