0001474432false00014744322024-05-292024-05-29

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 29, 2024
_____________________________________
Pure Storage, Inc.
(Exact name of Registrant as Specified in Its Charter)
_____________________________________ 
Delaware 001-37570 27-1069557
(State or Other Jurisdiction
of Incorporation)		 (Commission
File Number)		 (IRS Employer Identification No.)
2555 Augustine Dr.
Santa Clara, California 95054
(Address of Principal Executive Offices and Zip Code)
 
(800) 379-7873
(Registrant’s Telephone Number, Including Area Code)
 
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
___________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading symbol(s) Name of each exchange on which registered
Class A Common Stock, $0.0001 par value per share PSTG New York Stock Exchange LLC
________________________________________

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨





Item 2.02. Results of Operations and Financial Condition.
 
On May 29, 2024, Pure Storage, Inc. ("Pure") issued a press release and will hold a conference call regarding its financial results for the quarter ended May 5, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.
 
This information, including the exhibit(s) hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
 
Pure is making reference to non-GAAP financial information in the press release and the conference call. A reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures is contained in the attached press release. These non-GAAP financial measures are reported in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.


Item 9.01. Financial Statements and Exhibits.
 
(d) Exhibits.

The following exhibit is furnished herewith:
 
Exhibit No.  Description
99.1  
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
Pure Storage, Inc.
(Registrant)
  
By: /s/ Kevan Krysler
  Kevan Krysler
  Chief Financial Officer
May 29, 2024






Exhibit 99.1
 
Pure Storage Announces First Quarter Fiscal 2025 Financial Results
Q1 total revenue growth of 18%, year-over-year
Subscription services ARR over $1.4 billion
 
SANTA CLARA, Calif. – May 29, 2024 – Today Pure Storage (NYSE: PSTG), the IT pioneer that delivers the world's most advanced data storage technologies and services, announced financial results for its first quarter fiscal year 2025 ended May 5, 2024.

“Pure Storage is uniquely positioned to integrate fragmented data storage environments, which hinders enterprises from easily deploying artificial intelligence, hybrid cloud, and modern application deployment,” said Charles Giancarlo, Chairman and CEO, Pure Storage. “At our June Accelerate conference, global customers will see how our latest innovations enable enterprises to adapt to rapid technological change with a platform that fuses data centers and cloud environments.”

First Quarter Financial Highlights 

•Revenue $693.5 million, an increase of 18% year-over-year
•Subscription services revenue $346.1 million, up 23% year-over-year
•Subscription annual recurring revenue (ARR) $1.4 billion, up 25% year-over-year
•Remaining performance obligations (RPO) $2.3 billion, up 27% year-over-year
•GAAP gross margin 71.5%; non-GAAP gross margin 73.9%
•GAAP operating loss $(41.8) million; non-GAAP operating income $100.4 million
•GAAP operating margin (6.0%); non-GAAP operating margin 14.5%
•Q1 operating cash flow $221.5 million; free cash flow $172.7 million
•Total cash, cash equivalents, and marketable securities $1.7 billion

“We are pleased with the strong start to our year as Q1 revenue growth of 18 percent and profitability both outperformed,” said Kevan Krysler, Chief Financial Officer, Pure Storage. “We are well positioned with our highly differentiated data storage platform for substantial long-term growth.”

At the Pure//Accelerate annual customer event next month, the company will be delivering industry-first innovations in the Pure data storage platform to address the most pressing topics critical to customers, including AI and Cyber Resiliency.

First Quarter Company Highlights

•Accelerating Enterprise AI: Through integrations with NVIDIA, Pure delivered new validated reference architectures for running generative AI use cases, including a new NVIDIA OVX-ready validated reference architecture, adding more options for customers in addition to the previously announced NVIDIA BasePod certification. As a leader in AI, Pure Storage, in collaboration with NVIDIA, is arming global customers with a proven framework to manage the high-performance data and compute requirements they need to drive successful AI deployments.

•Subscription Services Innovation: New self-service capabilities across its Pure1® storage management platform and Evergreen® portfolio empower customers with more control over their data storage environment via a single management layer, simplifying end-to-end operations.

Awards and Accolades

•Financial Times The Americas’ Fastest Growing Companies 2024
•Data Breakthrough Awards “Overall Data Storage Company of the Year”
•CRN AI 100 list in the Data Center and Edge category

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Second Quarter and FY25 Guidance

Q2FY25
Revenue$755M
Revenue YoY Growth Rate9.6%
Non-GAAP Operating Income$125M
Non-GAAP Operating Margin16.6%

FY25
Revenue$3.1B
Revenue YoY Growth Rate10.5%
TCV Sales for Evergreen//One & Evergreen//Flex Subscription Service Offerings$600M
TCV Sales for Evergreen//One & Evergreen//Flex Subscription Service Offerings YoY Growth RateApproximately 50%
Non-GAAP Operating Income$532M
Non-GAAP Operating Margin17%

These statements are forward-looking and actual results may differ materially. Refer to the Forward Looking Statements section below for information on the factors that could cause our actual results to differ materially from these statements. Pure has not reconciled its guidance for non-GAAP operating income and non-GAAP operating margin to their most directly comparable GAAP measures because certain items that impact these measures are not within Pure’s control and/or cannot be reasonably predicted. Accordingly, reconciliations of these non-GAAP financial measures guidance to the corresponding GAAP measures are not available without unreasonable effort.

Pure//Accelerate 2024

Register for Pure//Accelerate® 2024 in Las Vegas from June 18-21, 2024 and discover how to embrace the new age of data. Be front and center as we make history, changing the future of storage and the industry. Pure Storage executives and world-leading experts - including Pure Storage CEO, Charles Giancarlo, and World Champion & Mental Health Advocate, Michael Phelps - will share insights, strategies, and their vision for the future.

Conference Call Information

Pure will host a teleconference to discuss the first quarter fiscal 2025 results at 2:00 pm PT today, May 29, 2024. A live audio broadcast of the conference call will be available on the Pure Storage Investor Relations website. Pure will also post its earnings presentation and prepared remarks to this website concurrent with this release.

A replay will be available following the call on the Pure Storage Investor Relations website or for two weeks at 1-800-770-2030 (or 1-647-362-9199 for international callers) with passcode 5667482.

Additionally, Pure is scheduled to participate at the following investor conferences:

Bank of America Global Technology Conference
Date: Tuesday, June 4, 2024
Time: 2:00 p.m. PT / 5:00 p.m. ET
Founder & Chief Visionary Officer John “Coz” Colgrove
Chief Financial Officer Kevan Krysler

William Blair Growth Stock Conference
Date: Thursday, June 6, 2024
Time: 9:20 a.m. PT / 12:20 p.m. ET
Chief Technology Officer Rob Lee

2

Product & Technology-Focused Meeting for Financial Analysts at Pure//Accelerate 2024
Date: Thursday, June 20, 2024
Time: 1:00 p.m. PT / 4:00 p.m. ET

The presentations will be webcast live and archived on Pure's Investor Relations website at investor.purestorage.com.
----

About Pure Storage

Pure Storage (NYSE: PSTG) delivers the industry's best platform to store, manage, and protect the world's data. With a cloud experience across a unified storage operating environment, Pure empowers every organization with the agility to meet evolving data requirements at speed and scale, while reducing total cost of ownership. Pure believes it can make a meaningful impact in reducing data center emissions worldwide by providing a storage platform that enables customers to significantly reduce their carbon and energy footprint. Pure is proud to be a customer-first organization, as evidenced by the highest Net Promoter Score in the industry. For more information, visit www.purestorage.com.

Analyst Recognition

Leader in the 2023 Gartner Magic Quadrant for Primary Storage
Leader in the 2023 Gartner Magic Quadrant for Distributed File Systems & Object Storage

Connect with Pure

Blog
LinkedIn
Twitter
Facebook

Pure Storage, the Pure P Logo, Portworx, and the marks on the Pure Trademark List at www.purestorage.com/legal/productenduserinfo.html are trademarks of Pure Storage, Inc. Other names are trademarks of their respective owners.

Forward Looking Statements

This press release contains forward-looking statements regarding our products, business and operations, including but not limited to our views relating to future period financial and business results, demand for our products and subscription services, including Evergreen//One, our technology and product strategy, specifically customer priorities around sustainability, the benefits to our customers of using our products, our ability to perform during current macro conditions and expand market share, our sustainability goals and benefits, our ability to capture storage workloads for AI environments and hyperscalers, the timing and magnitude of large orders, the impact of inflation, economic or supply chain disruptions, our expectations regarding our product and technology differentiation, including the E//Family, new customer acquisition, and other statements regarding our products, business, operations and results. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements.

Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption "Risk Factors" and elsewhere in our filings and reports with the U.S. Securities and Exchange Commission, which are available on our Investor Relations website at investor.purestorage.com and on the SEC website at www.sec.gov. Additional information is also set forth in our Annual Report on Form 10-K for the year ended February 4, 2024. All information provided in this release and in the attachments is as of May 29, 2024, and Pure undertakes no duty to update this information unless required by law.

3

Key Performance Metrics

Subscription ARR is a key business metric that refers to total annualized contract value of all active subscription agreements on the last day of the quarter, plus on-demand revenue for the quarter multiplied by four.

Total Contract Value (TCV) Sales, or bookings, of Pure's Evergreen//One and Evergreen//Flex offerings is an operating metric, representing the value of orders received and/or expected to be received during the fiscal year.

Non-GAAP Financial Measures

To supplement our unaudited condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, Pure uses the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share, and free cash flow.

We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses such as stock-based compensation expense, payments to former shareholders of acquired companies, payroll tax expense related to stock-based activities, amortization of debt issuance costs related to debt, amortization of intangible assets acquired from acquisitions, acquisition-related transaction and integration expenses, restructuring costs related to severance and termination benefits, and costs associated with the impairment and early exit of certain leased facilities that may not be indicative of our ongoing core business operating results. Pure believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and planning, forecasting, and analyzing future periods. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.

For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables captioned "Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures" and "Reconciliation from net cash provided by operating activities to free cash flow," included at the end of this release.

Contacts

Paul Ziots -- Investor Relations, Pure Storage
ir@purestorage.com
 
Rena Fallstrom -- Global Communications, Pure Storage
pr@purestorage.com

###
4


PURE STORAGE, INC.
Condensed Consolidated Balance Sheets
(in thousands, unaudited)
 
At the End of
First Quarter of Fiscal 2025
Fiscal 2024
 
Assets 
Current assets: 
Cash and cash equivalents$900,615 $702,536 
Marketable securities823,397 828,557 
Accounts receivable, net of allowance of $965 and $1,060
423,454 662,179 
Inventory40,674 42,663 
Deferred commissions, current85,386 88,712 
Prepaid expenses and other current assets174,238 173,407 
Total current assets2,447,764 2,498,054 
Property and equipment, net368,153 352,604 
Operating lease right-of-use-assets126,435 129,942 
Deferred commissions, non-current211,240 215,620 
Intangible assets, net29,156 33,012 
Goodwill361,427 361,427 
Restricted cash 9,595 9,595 
Other assets, non-current69,840 55,506 
Total assets$3,623,610 $3,655,760 
Liabilities and Stockholders' Equity 
Current liabilities: 
Accounts payable$55,709 $82,757 
Accrued compensation and benefits137,669 250,257 
Accrued expenses and other liabilities127,885 135,755 
Operating lease liabilities, current44,819 44,668 
Deferred revenue, current860,221 852,247 
Total current liabilities1,226,303 1,365,684 
Long-term debt100,000 100,000 
Operating lease liabilities, non-current120,709 123,201 
Deferred revenue, non-current741,255 742,275 
Other liabilities, non-current61,370 54,506 
Total liabilities2,249,637 2,385,666 
Stockholders’ equity: 
Common stock and additional paid-in capital2,890,317 2,749,627 
Accumulated other comprehensive loss(5,584)(3,782)
Accumulated deficit(1,510,760)(1,475,751)
Total stockholders' equity1,373,973 1,270,094 
Total liabilities and stockholders' equity$3,623,610 $3,655,760 

5

PURE STORAGE, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share data, unaudited)
 
 
First Quarter of Fiscal
 20252024
 
Revenue:
Product$347,384 $308,963 
Subscription services346,095 280,344 
Total revenue693,479 589,307 
Cost of revenue: 
Product (1)
100,753 96,213 
Subscription services (1)
97,020 79,747 
Total cost of revenue197,773 175,960 
Gross profit495,706 413,347 
Operating expenses:
Research and development (1)
193,820 185,331 
Sales and marketing (1)
250,972 232,446 
General and administrative (1)
76,787 67,384 
Restructuring and impairment (2)
15,901 — 
Total operating expenses537,480 485,161 
Loss from operations(41,774)(71,814)
Other income (expense), net14,091 11,749 
Loss before provision for income taxes(27,683)(60,065)
Income tax provision7,326 7,336 
Net loss$(35,009)$(67,401)
Net loss per share attributable to common stockholders, basic and diluted$(0.11)$(0.22)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted322,589 305,863 

(1) Includes stock-based compensation expense as follows:
Cost of revenue -- product$2,782 $2,655 
Cost of revenue -- subscription services8,871 5,647 
Research and development50,294 38,232 
Sales and marketing23,519 17,181 
General and administrative27,528 14,115 
Total stock-based compensation expense$112,994 $77,830 
(2) Includes expenses for severance and termination benefits related to workforce realignment and lease impairment and abandonment charges associated with cease-use of our former corporate headquarters.

6

PURE STORAGE, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
 
 
First Quarter of Fiscal
 20252024
 
Cash flows from operating activities
Net loss$(35,009)$(67,401)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization33,943 29,690 
Stock-based compensation expense112,994 77,830 
Lease impairment and abandonment charges6,375 — 
Other2,343 (1,804)
Changes in operating assets and liabilities:
Accounts receivable, net238,768 221,205 
Inventory2,406 308 
Deferred commissions7,707 (2,331)
Prepaid expenses and other assets(9,219)(6,095)
Operating lease right-of-use assets8,122 11,001 
Accounts payable(26,581)(3,993)
Accrued compensation and other liabilities(116,716)(89,082)
Operating lease liabilities (10,587)(6,100)
Deferred revenue6,954 10,019 
Net cash provided by operating activities221,500 173,247 
Cash flows from investing activities
Purchases of property and equipment (1)
(48,818)(51,424)
Purchases of marketable securities and other(165,123)(128,788)
Sales of marketable securities37,689 43,040 
Maturities of marketable securities127,857 288,373 
Net cash provided by (used in) investing activities(48,395)151,201 
Cash flows from financing activities
Net proceeds from exercise of stock options13,223 4,630 
Proceeds from issuance of common stock under employee stock purchase plan25,328 21,219 
Principal payments on borrowings and finance lease obligations(1,099)(576,780)
Proceeds from borrowing— 100,000 
Tax withholding on vesting of equity awards(12,478)(6,759)
Repurchases of common stock— (69,911)
Net cash provided by (used in) financing activities24,974 (527,601)
Net increase (decrease) in cash, cash equivalents and restricted cash198,079 (203,153)
Cash, cash equivalents and restricted cash, beginning of period712,131 591,398 
Cash, cash equivalents and restricted cash, end of period$910,210 $388,245 

(1) Includes capitalized internal-use software costs of $4.5 million and $5.3 million for the first quarter of fiscal 2025 and 2024.
7




Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures
The following table presents non-GAAP gross margins by revenue source before certain items (in thousands except percentages, unaudited):
 
First Quarter of Fiscal 2025
First Quarter of Fiscal 2024
 GAAP
results		GAAP
gross
margin (a)		Adjustment Non-
GAAP
results		Non-
GAAP
gross
margin (b)		GAAP
results		GAAP
gross
margin (a)		Adjustment Non-
GAAP
results		Non-
GAAP
gross
margin (b)
$2,782 (c)$2,655 (c)
296 (d)147 (d)
20 (e)— 
3,306 (f)3,306 (f)
Gross profit --product$246,631 71.0 %$6,404 $253,035 72.8 %$212,750 68.9 %$6,108 $218,858 70.8 %
 $8,871 (c)$5,647 (c)
867 (d)338 (d)
309 (e)— 
— 13 (g)
Gross profit -- subscription services$249,075 72.0 %$10,047 $259,122 74.9 %$200,597 71.6 %$5,998 $206,595 73.7 %
 $11,653 (c)$8,302 (c)
1,163 (d)485 (d)
329 (e)— 
3,306 (f)3,306 (f)
— 13 (g)
Total gross profit$495,706 71.5 %$16,451  $512,157 73.9 %$413,347 70.1 %$12,106 $425,453 72.2 %


(a) GAAP gross margin is defined as GAAP gross profit divided by revenue.
(b) Non-GAAP gross margin is defined as non-GAAP gross profit divided by revenue.
(c) To eliminate stock-based compensation expense.
(d) To eliminate payroll tax expense related to stock-based activities.
(e) To eliminate expenses for severance and termination benefits related to workforce realignment.
(f) To eliminate amortization expense of acquired intangible assets.
(g) To eliminate payments to former shareholders of acquired company.















8



The following table presents certain non-GAAP consolidated results before certain items (in thousands, except per share amounts and percentages, unaudited):
 
First Quarter of Fiscal 2025
First Quarter of Fiscal 2024
 GAAP
results		GAAP
operating
margin (a)		Adjustment Non-
GAAP
results		Non-
GAAP
operating
margin (b)		GAAP
results		GAAP
operating
margin (a)		Adjustment Non-
GAAP
results		Non-
GAAP
operating
margin (b)
$112,994 (c)$77,830 (c)
— 885 (d)
9,400 (e)4,815 (e)
— 4,070 (f)
3,536 (g)3,839 (g)
9,855 (h)— 
6,375 (i)— 
Operating income (loss)$(41,774)-6.0 %$142,160 $100,386 14.5 %$(71,814)-12.2 %$91,439 $19,625 3.3 %
 $112,994 (c)$77,830 (c)
— 885 (d)
 9,400 (e)4,815 (e)
— 4,070 (f)
3,536 (g)3,839 (g)
9,855 (h)— 
6,375 (i)— 
153 (j)647 (j)
Net income (loss)$(35,009)$142,313 $107,304 $(67,401)$92,086 $24,685 
Net income (loss) per share -- diluted $(0.11)$0.32 $(0.22)$0.08 
Weighted-average shares used in per share calculation -- diluted322,589 15,959 (k)338,548 305,863 11,134 (k)316,997 

(a) GAAP operating margin is defined as GAAP operating loss divided by revenue.
(b) Non-GAAP operating margin is defined as non-GAAP operating income divided by revenue.
(c) To eliminate stock-based compensation expense.
(d) To eliminate payments to former shareholders of acquired company.
(e) To eliminate payroll tax expense related to stock-based activities.
(f) To eliminate duplicate lease costs during the transition of our corporate headquarters.
(g) To eliminate amortization expense of acquired intangible assets.
(h) To eliminate expenses for severance and termination benefits related to workforce realignment.
(i) To eliminate lease impairment and abandonment charges associated with cease-use of our former corporate headquarters.
(j) To eliminate amortization expense of debt issuance costs related to our debt.
(k) To include effect of dilutive securities (employee stock options, restricted stock, and shares from employee stock purchase plan).
9

Reconciliation from net cash provided by operating activities to free cash flow (in thousands except percentages, unaudited):

 
First Quarter of Fiscal
 20252024
Net cash provided by operating activities$221,500 $173,247 
Less: purchases of property and equipment (1)
(48,818)(51,424)
Free cash flow (non-GAAP)$172,682 $121,823 

(1) Includes capitalized internal-use software costs of $4.5 million and $5.3 million for the first quarter of fiscal 2025 and 2024.
10
v3.24.1.1.u2
Cover
May 29, 2024
Cover Page [Abstract]  
Document Type 8-K
Document Period End Date May 29, 2024
Entity Registrant Name Pure Storage, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-37570
Entity Tax Identification Number 27-1069557
Entity Address, Address Line One 2555 Augustine Dr.
Entity Address, City or Town Santa Clara
Entity Address, State or Province CA
Entity Address, Postal Zip Code 95054
City Area Code 800
Local Phone Number 379-7873
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Class A Common Stock, $0.0001 par value per share
Trading Symbol PSTG
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001474432
Amendment Flag false
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