FY24 TCV sales growth of Evergreen//One and
Evergreen//Flex offerings exceeding 100%
Q4 RPO
growing 31% year-over-year
SANTA
CLARA, Calif., Feb. 28,
2024 /PRNewswire/ -- Today Pure Storage
(NYSE: PSTG), the IT pioneer that delivers the world's most
advanced data storage technology and services, announced financial
results for its fiscal fourth quarter and full year 2024 ended
February 4, 2024.
"Our data platform strategy is revolutionizing the storage
industry. It helps enterprises and service providers unify
fragmented data environments into a seamless, modern, and efficient
system—a system performance-ready for artificial intelligence,"
said Charles Giancarlo, Chairman and
CEO, Pure Storage. "And this can all be done now with Flash
reliability, performance and economics, even at hard disk system
price levels."
Fourth Quarter and Full Year Financial Highlights
- Q4 revenue $789.8 million, a
decrease of 3% year-over-year
- Full-year revenue $2.8 billion,
up 3% year-over-year
- Q4 subscription services revenue $328.9
million, up 24% year-over-year
- Full-year subscription services revenue $1.2 billion, up 26% year-over-year
- Q4 subscription annual recurring revenue (ARR) $1.4 billion, up 25% year-over-year
- Remaining performance obligations (RPO) $2.3 billion, up 31% year-over-year
- Q4 GAAP gross margin 72.0%; non-GAAP gross margin 73.7%
- Full-year GAAP gross margin 71.4%; non-GAAP gross margin
73.2%
- Q4 GAAP operating income $57.4
million; non-GAAP operating income $157.8 million
- Full-year GAAP operating income $53.6
million; non-GAAP operating income $458.4 million
- Q4 GAAP operating margin 7.3%; non-GAAP operating margin
20.0%
- Full-year GAAP operating margin 1.9%; non-GAAP operating margin
16.2%
- Q4 operating cash flow $244.4
million; free cash flow $200.9
million
- Full-year operating cash flow $677.7
million; free cash flow $482.6
million
- Total cash, cash equivalents, and marketable securities
$1.5 billion
- Returned approximately $21.4
million and $135.7 million in
Q4 and FY24, respectively, to stockholders through share
repurchases of 0.6 million shares and 4.7 million shares,
respectively.
- Authorized incremental share repurchases of up to an additional
$250 million under its stock
repurchase program.
"We closed FY24 delivering strong RPO growth, and exceeded our
revenue and operating margin guidance in Q4," said Kevan Krysler, Chief Financial Officer, Pure
Storage. "Looking to FY25, we expect double-digit revenue growth
and strong growth of RPO, fueled by our highly differentiated data
storage platform, and strength of our Evergreen and Portworx
consumption and subscription offerings."
Full Year Company Highlights
- Strong Subscription Services Momentum: Pure Storage set
a new industry standard in FY24 with eight total service level
agreements (SLAs) across its Evergreen portfolio, including the
first and only Paid Power & Rack commitment for Evergreen//One
and Evergreen//Flex, in addition to first-of-its-kind energy
efficiency and ransomware recovery guarantees.
- Market-Leading Platform Innovation: In FY24, Pure
Storage introduced the cost-optimized E//Family with FlashBlade//E,
followed by FlashArray//E, enabling customers to leverage flash
storage for any workload. Additionally, Pure delivered its largest
ever performance, efficiency, and security advancements with the
next generation FlashArray//X and FlashArray//C, expanded its
strategic partnership with Microsoft with the introduction of Pure
Cloud Block Store for Azure VMware Solution, and delivered the
first and only native, unified block and file experience
purpose-built for flash storage with the GA of File Services for
FlashArray.
- AI Customer Impact: Among the first enterprise data
storage vendors to receive the NVIDIA DGX BasePOD certification,
and delivering critical validated designs with key alliance
partners, Pure Storage continued to add to its 100+ customers
across a wide variety of AI use cases, including self-driving cars,
financial services, genomics, gaming, manufacturing, and many
more.
- Industry Recognition and Accolades: In FY24, Pure
Storage was recognized as a leader for the tenth consecutive year
in the Gartner Magic Quadrant for Primary Storage, and the third
consecutive year in the Gartner Magic Quadrant for Distributed File
Systems and Object Storage. Additionally, Pure Storage was named a
leader in the inaugural IDC MarketSpace: Worldwide Container Data
Management 2023 Vendor Assessment.
First Quarter and FY25 Guidance
Q1 and FY25 revenue and revenue growth rates are reflective of
continuing outperformance and increased momentum in
Evergreen//One
Storage-as-a-Service.
Q1FY25
|
Revenue
|
$680M
|
Revenue YoY Growth
Rate
|
15.4 %
|
Non-GAAP Operating
Income
|
$68M
|
Non-GAAP Operating
Margin
|
10 %
|
|
FY25
|
Revenue
|
$3.1B
|
Revenue YoY Growth
Rate
|
10.5 %
|
TCV Sales for
Evergreen//One &
Evergreen//Flex Subscription Service
Offerings
|
$600M
|
TCV Sales for
Evergreen//One &
Evergreen//Flex Subscription Service
Offerings YoY Growth Rate
|
Approximately
50%
|
Non-GAAP Operating
Income
|
$532M
|
Non-GAAP Operating
Margin
|
17 %
|
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.
Share Repurchase Authorization
Pure's audit committee has approved incremental share
repurchases of up to an additional $250
million under its stock repurchase program, in addition to
the $145 million remaining under the
existing program authorization. The authorization allows Pure to
repurchase shares of its Class A common stock opportunistically and
will be funded from available working capital. Repurchases may be
made at management's discretion from time to time on the open
market through privately negotiated transactions, transactions
structured through investment banking institutions, block purchase
techniques, 10b5-1 trading plans, or a combination of the
foregoing. The repurchase program does not have an expiration date,
does not obligate Pure to acquire any of its common stock, and may
be suspended or discontinued by the company at any time without
prior notice.
Conference Call Information
Pure will host a teleconference to discuss the fiscal fourth
quarter and full year 2024 results at 2:00
pm PT today, February 28, 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:
KeyBanc Capital Markets Emerging Technology
Summit
Date: Tuesday, March 5,
2024
Time: 11:30 a.m. PT / 2:30 p.m. ET
Chief Financial Officer Kevan
Krysler and Chief Technology Officer Rob Lee
Morgan Stanley Technology, Media & Telecom
Conference
Date: Wednesday, March 6,
2024
Time: 10:15 a.m. PT / 1:15 p.m. ET
Chairman and CEO Charles Giancarlo
and Chief Financial Officer Kevan
Krysler
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) uncomplicates data storage, forever.
Pure delivers a cloud experience that empowers every organization
to get the most from their data while reducing the complexity and
expense of managing the infrastructure behind it. Pure's commitment
to providing true storage as-a-service gives customers the agility
to meet changing data needs at speed and scale, whether they are
deploying traditional workloads, modern applications, containers,
or more. Pure believes it can make a significant impact in reducing
data center emissions worldwide through its environmental
sustainability efforts, including designing products and solutions
that enable customers to reduce their carbon and energy footprint.
And with the highest Net Promoter Score in the industry, Pure's
ever-expanding list of customers are among the happiest in the
world. 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, 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,
the continued success of the Portworx technology, 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 5,
2023. All information provided in this release and in the
attachments is as of February 28,
2024, and Pure undertakes no duty to update this information
unless required by law.
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 and expenditures 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.
PURE STORAGE,
INC. Condensed Consolidated Balance Sheets (in
thousands, unaudited)
|
|
|
|
At the End of
Fiscal
|
|
|
2024
|
|
2023
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
702,536
|
|
$
580,854
|
Marketable
securities
|
|
828,557
|
|
1,001,352
|
Accounts receivable, net of allowance of $1,060 and
$1,057
|
|
662,179
|
|
612,491
|
Inventory
|
|
42,663
|
|
50,152
|
Deferred commissions,
current
|
|
88,712
|
|
68,617
|
Prepaid expenses and
other current assets
|
|
173,407
|
|
161,391
|
Total current
assets
|
|
2,498,054
|
|
2,474,857
|
Property and equipment,
net
|
|
352,604
|
|
272,445
|
Operating lease
right-of-use assets
|
|
129,942
|
|
158,912
|
Deferred commissions,
non-current
|
|
215,620
|
|
177,239
|
Intangible assets,
net
|
|
33,012
|
|
49,222
|
Goodwill
|
|
361,427
|
|
361,427
|
Restricted
cash
|
|
9,595
|
|
10,544
|
Other assets,
non-current
|
|
55,506
|
|
38,814
|
Total
assets
|
|
$ 3,655,760
|
|
$ 3,543,460
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
82,757
|
|
$
67,121
|
Accrued compensation
and benefits
|
|
250,257
|
|
232,636
|
Accrued expenses and
other liabilities
|
|
135,755
|
|
123,749
|
Operating lease
liabilities, current
|
|
44,668
|
|
33,707
|
Deferred revenue,
current
|
|
852,247
|
|
718,149
|
Debt,
current
|
|
—
|
|
574,506
|
Total current
liabilities
|
|
1,365,684
|
|
1,749,868
|
Long-term
debt
|
|
100,000
|
|
—
|
Operating lease
liabilities, non-current
|
|
123,201
|
|
142,473
|
Deferred revenue,
non-current
|
|
742,275
|
|
667,501
|
Other liabilities,
non-current
|
|
54,506
|
|
42,385
|
Total
liabilities
|
|
2,385,666
|
|
2,602,227
|
Stockholders'
equity:
|
|
|
|
|
Common stock and
additional paid-in capital
|
|
2,749,627
|
|
2,493,799
|
Accumulated other
comprehensive loss
|
|
(3,782)
|
|
(15,504)
|
Accumulated
deficit
|
|
(1,475,751)
|
|
(1,537,062)
|
Total stockholders'
equity
|
|
1,270,094
|
|
941,233
|
Total liabilities and
stockholders' equity
|
|
$ 3,655,760
|
|
$ 3,543,460
|
PURE STORAGE,
INC. Condensed Consolidated Statements of
Operations (in thousands, except per share data,
unaudited)
|
|
|
|
Fourth Quarter of
Fiscal
|
|
Fiscal Year
Ended
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Product
|
|
$
460,891
|
|
$
545,108
|
|
$ 1,622,869
|
|
$ 1,792,153
|
Subscription
services
|
|
328,914
|
|
265,099
|
|
1,207,752
|
|
961,281
|
Total
revenue
|
|
789,805
|
|
810,207
|
|
2,830,621
|
|
2,753,434
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
Product
(1)
|
|
128,842
|
|
174,471
|
|
472,430
|
|
569,793
|
Subscription services
(1)
|
|
92,459
|
|
74,419
|
|
337,000
|
|
285,995
|
Total cost of
revenue
|
|
221,301
|
|
248,890
|
|
809,430
|
|
855,788
|
Gross profit
|
|
568,504
|
|
561,317
|
|
2,021,191
|
|
1,897,646
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development (1)
|
|
186,841
|
|
185,557
|
|
736,764
|
|
692,528
|
Sales and marketing
(1)
|
|
248,136
|
|
246,480
|
|
945,021
|
|
883,609
|
General and
administrative (1)
|
|
59,299
|
|
64,696
|
|
252,243
|
|
237,996
|
Restructuring,
impairment and other (2)
|
|
16,846
|
|
—
|
|
33,612
|
|
—
|
Total operating
expenses
|
|
511,122
|
|
496,733
|
|
1,967,640
|
|
1,814,133
|
Income from
operations
|
|
57,382
|
|
64,584
|
|
53,551
|
|
83,513
|
Other income (expense),
net
|
|
13,416
|
|
16,705
|
|
37,035
|
|
8,295
|
Income before provision
for income taxes
|
|
70,798
|
|
81,289
|
|
90,586
|
|
91,808
|
Income tax
provision
|
|
5,360
|
|
6,818
|
|
29,275
|
|
18,737
|
Net income
|
|
$ 65,438
|
|
$ 74,471
|
|
$ 61,311
|
|
$ 73,071
|
|
|
|
|
|
|
|
|
|
Net income per share
attributable to common
stockholders, basic
|
|
$
0.21
|
|
$
0.25
|
|
$
0.20
|
|
$
0.24
|
Net income per share
attributable to common
stockholders, diluted
|
|
$
0.20
|
|
$
0.22
|
|
$
0.19
|
|
$
0.23
|
Weighted-average shares
used in computing net
income per
share attributable to common
stockholders, basic
|
|
317,731
|
|
303,614
|
|
311,831
|
|
299,478
|
Weighted-average shares
used in computing net
income per
share attributable to common
stockholders, diluted
|
|
332,014
|
|
339,699
|
|
332,568
|
|
339,184
|
|
(1) Includes
stock-based compensation expense as follows:
|
|
Cost of revenue --
product
|
|
$
2,614
|
|
$
2,791
|
|
$
9,670
|
|
$ 10,245
|
Cost of revenue --
subscription services
|
|
6,065
|
|
5,652
|
|
25,412
|
|
22,630
|
Research and
development
|
|
41,069
|
|
41,212
|
|
167,294
|
|
161,694
|
Sales and
marketing
|
|
18,863
|
|
17,767
|
|
74,746
|
|
72,507
|
General and
administrative
|
|
7,573
|
|
15,081
|
|
54,305
|
|
60,541
|
Total stock-based
compensation expense
|
|
$ 76,184
|
|
$ 82,503
|
|
$
331,427
|
|
$
327,617
|
|
(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.
|
PURE STORAGE,
INC. Condensed Consolidated Statements of Cash
Flows (in thousands, unaudited)
|
|
|
|
Fourth Quarter of
Fiscal
|
|
Fiscal Year
Ended
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Net income
|
|
$
65,438
|
|
$
74,471
|
|
$
61,311
|
|
$
73,071
|
Adjustments to
reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
32,856
|
|
28,164
|
|
124,416
|
|
100,432
|
Stock-based
compensation expense
|
|
76,184
|
|
82,503
|
|
331,427
|
|
327,617
|
Lease impairment and
abandonment charges
|
|
—
|
|
—
|
|
16,766
|
|
—
|
Other
|
|
7,403
|
|
4,882
|
|
1,559
|
|
7,355
|
Changes in operating
assets and liabilities, net of effects of
acquisition:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
(25,728)
|
|
(176,940)
|
|
(49,687)
|
|
(70,724)
|
Inventory
|
|
1,532
|
|
5,722
|
|
6,810
|
|
(10,619)
|
Deferred
commissions
|
|
(39,415)
|
|
(10,724)
|
|
(58,476)
|
|
451
|
Prepaid expenses and
other assets
|
|
(45,355)
|
|
24,584
|
|
(25,669)
|
|
(31,580)
|
Operating lease
right-of-use assets
|
|
8,230
|
|
7,740
|
|
35,499
|
|
33,813
|
Accounts
payable
|
|
(20,376)
|
|
(29,611)
|
|
13,468
|
|
(7,075)
|
Accrued compensation
and other liabilities
|
|
96,074
|
|
89,823
|
|
43,317
|
|
72,084
|
Operating lease
liabilities
|
|
(10,434)
|
|
(5,020)
|
|
(31,891)
|
|
(33,359)
|
Deferred
revenue
|
|
98,016
|
|
137,432
|
|
208,872
|
|
305,768
|
Net cash provided by
operating activities
|
|
244,425
|
|
233,026
|
|
677,722
|
|
767,234
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment(1)
|
|
(43,570)
|
|
(60,229)
|
|
(195,161)
|
|
(158,139)
|
Acquisition, net of
cash acquired
|
|
—
|
|
—
|
|
—
|
|
(1,989)
|
Purchases of
marketable securities
|
|
(119,776)
|
|
(409,306)
|
|
(471,501)
|
|
(501,435)
|
Sales of marketable
securities
|
|
6,558
|
|
6,155
|
|
59,053
|
|
6,155
|
Maturities of
marketable securities and other
|
|
114,956
|
|
81,700
|
|
610,855
|
|
433,995
|
Net cash provided by
(used in) investing activities
|
|
(41,832)
|
|
(381,680)
|
|
3,246
|
|
(221,413)
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Net proceeds from
exercise of stock options
|
|
6,866
|
|
5,647
|
|
39,770
|
|
24,778
|
Proceeds from issuance
of common stock under employee stock
purchase plan
|
|
—
|
|
—
|
|
45,089
|
|
39,965
|
Proceeds from
borrowings
|
|
—
|
|
—
|
|
106,890
|
|
—
|
Principal payments on
borrowings and finance lease obligations
|
|
(1,617)
|
|
(1,095)
|
|
(586,199)
|
|
(257,240)
|
Tax withholding on
equity awards
|
|
(13,402)
|
|
(3,471)
|
|
(29,984)
|
|
(19,601)
|
Repurchases of common
stock
|
|
(21,460)
|
|
(67,504)
|
|
(135,801)
|
|
(219,068)
|
Net cash used in
financing activities
|
|
(29,613)
|
|
(66,423)
|
|
(560,235)
|
|
(431,166)
|
Net increase (decrease)
in cash and cash equivalents and
restricted cash
|
|
172,980
|
|
(215,077)
|
|
120,733
|
|
114,655
|
Cash, cash equivalents
and restricted cash, beginning of period
|
|
539,151
|
|
806,475
|
|
591,398
|
|
476,743
|
Cash, cash equivalents
and restricted cash, end of period
|
|
$ 712,131
|
|
$ 591,398
|
|
$ 712,131
|
|
$ 591,398
|
|
(1) Includes
capitalized internal-use software costs of $3.7 million and $3.2
million for the fourth quarter of fiscal 2024 and 2023 and $19.4
million and $13.7 million for fiscal 2024 and 2023.
|
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):
|
Fourth Quarter of
Fiscal
|
|
Fourth Quarter of
Fiscal
|
|
2024
|
|
2023
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 2,614
|
(c)
|
|
|
|
|
|
|
|
|
$ 2,791
|
(c)
|
|
|
|
|
|
|
|
|
58
|
(d)
|
|
|
|
|
|
|
|
|
37
|
(d)
|
|
|
|
|
|
|
|
|
177
|
(e)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
292
|
(f)
|
|
|
|
|
|
|
|
|
3,306
|
(g)
|
|
|
|
|
|
|
|
|
3,306
|
(g)
|
|
|
|
Gross profit
--
product
|
$
332,049
|
|
72.0 %
|
|
$ 6,155
|
|
$
338,204
|
|
73.4 %
|
|
$
370,637
|
|
68.0 %
|
|
$ 6,426
|
|
$
377,063
|
|
69.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 6,065
|
(c)
|
|
|
|
|
|
|
|
|
$ 5,652
|
(c)
|
|
|
|
|
|
|
|
|
276
|
(d)
|
|
|
|
|
|
|
|
|
159
|
(d)
|
|
|
|
|
|
|
|
|
985
|
(e)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
306
|
(f)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
16
|
(h)
|
|
|
|
Gross profit
--
subscription
services
|
$
236,455
|
|
71.9 %
|
|
$ 7,326
|
|
$
243,781
|
|
74.1 %
|
|
$
190,680
|
|
71.9 %
|
|
$ 6,133
|
|
$
196,813
|
|
74.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 8,679
|
(c)
|
|
|
|
|
|
|
|
|
$ 8,443
|
(c)
|
|
|
|
|
|
|
|
|
334
|
(d)
|
|
|
|
|
|
|
|
|
196
|
(d)
|
|
|
|
|
|
|
|
|
1,162
|
(e)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
598
|
(f)
|
|
|
|
|
|
|
|
|
3,306
|
(g)
|
|
|
|
|
|
|
|
|
3,306
|
(g)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
16
|
(h)
|
|
|
|
Total gross
profit
|
$
568,504
|
|
72.0 %
|
|
$
13,481
|
|
$
581,985
|
|
73.7 %
|
|
$
561,317
|
|
69.3 %
|
|
$
12,559
|
|
$
573,876
|
|
70.8 %
|
|
(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
duplicate lease costs during the transition of our corporate
headquarters.
|
(g) To eliminate
amortization expense of acquired intangible assets.
|
(h) To eliminate
payments to former shareholders of acquired company.
|
The following table presents non-GAAP gross margins by revenue
source before certain items (in thousands except percentages,
unaudited):
|
Fiscal Year
Ended
|
|
2024
|
|
GAAP
results
|
|
GAAP gross
margin (a)
|
|
Adjustment
|
|
|
|
Non-
GAAP
results
|
|
Non-
GAAP
gross
margin (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
9,670
|
|
(c)
|
|
|
|
|
|
|
|
|
|
415
|
|
(d)
|
|
|
|
|
|
|
|
|
|
402
|
|
(e)
|
|
|
|
|
|
|
|
|
|
177
|
|
(f)
|
|
|
|
|
|
|
|
|
|
13,224
|
|
(g)
|
|
|
|
|
Gross profit --
product
|
$
1,150,439
|
|
70.9 %
|
|
$
23,888
|
|
|
|
$
1,174,327
|
|
72.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
25,412
|
|
(c)
|
|
|
|
|
|
|
|
|
|
1,424
|
|
(d)
|
|
|
|
|
|
|
|
|
|
413
|
|
(e)
|
|
|
|
|
|
|
|
|
|
985
|
|
(f)
|
|
|
|
|
|
|
|
|
|
18
|
|
(h)
|
|
|
|
|
Gross profit --
subscription services
|
$ 870,752
|
|
72.1 %
|
|
$
28,252
|
|
|
|
$ 899,004
|
|
74.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
35,082
|
|
(c)
|
|
|
|
|
|
|
|
|
|
1,839
|
|
(d)
|
|
|
|
|
|
|
|
|
|
815
|
|
(e)
|
|
|
|
|
|
|
|
|
|
1,162
|
|
(f)
|
|
|
|
|
|
|
|
|
|
13,224
|
|
(g)
|
|
|
|
|
|
|
|
|
|
$
18
|
|
(h)
|
|
|
|
|
Total gross
profit
|
$
2,021,191
|
|
71.4 %
|
|
$
52,140
|
|
|
|
$
2,073,331
|
|
73.2 %
|
|
(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
duplicate lease costs during the transition of our corporate
headquarters.
|
(f) To eliminate
expenses for severance and termination benefits related to
workforce realignment.
|
(g) To eliminate
amortization expense of acquired intangible assets.
|
(h) To eliminate
payments to former shareholders of acquired company.
|
The following table presents certain non-GAAP consolidated
results before certain items (in thousands, except per share
amounts and percentages, unaudited):
|
Fourth Quarter of
Fiscal
|
|
Fourth Quarter of
Fiscal
|
|
2024
|
|
2023
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
76,184
|
(c)
|
|
|
|
|
|
|
|
|
$
82,503
|
(c)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
888
|
(d)
|
|
|
|
|
|
|
|
|
2,722
|
(e)
|
|
|
|
|
|
|
|
|
1,799
|
(e)
|
|
|
|
|
|
|
|
|
3,536
|
(f)
|
|
|
|
|
|
|
|
|
3,839
|
(f)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
5,004
|
(g)
|
|
|
|
|
|
|
|
|
18,009
|
(h)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
Operating
income
|
$
57,382
|
|
7.3 %
|
|
$
100,451
|
|
$
157,833
|
|
20.0 %
|
|
$ 64,584
|
|
8.0 %
|
|
$
94,033
|
|
$
158,617
|
|
19.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
76,184
|
(c)
|
|
|
|
|
|
|
|
|
$
82,503
|
(c)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
888
|
(d)
|
|
|
|
|
|
|
|
|
2,722
|
(e)
|
|
|
|
|
|
|
|
|
1,799
|
(e)
|
|
|
|
|
|
|
|
|
3,536
|
(f)
|
|
|
|
|
|
|
|
|
3,839
|
(f)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
5,004
|
(g)
|
|
|
|
|
|
|
|
|
18,009
|
(h)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
154
|
(i)
|
|
|
|
|
|
|
|
|
804
|
(i)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
357
|
(j)
|
|
|
|
Net
income
|
$
65,438
|
|
|
|
$
100,605
|
|
$
166,043
|
|
|
|
$ 74,471
|
|
|
|
$
95,194
|
|
$
169,665
|
|
|
Net income
per share --
diluted
|
$ 0.20
|
|
|
|
|
|
$ 0.50
|
|
|
|
$ 0.22
|
|
|
|
|
|
$ 0.53
|
|
|
Weighted-
average
shares used in
per share
calculation --
diluted
|
332,014
|
|
|
|
—
|
|
332,014
|
|
|
|
339,699
|
|
|
|
(21,884)
|
(k)
|
317,815
|
|
|
|
(a) GAAP operating
margin is defined as GAAP operating income 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
amortization expense of acquired intangible assets.
|
(g) To eliminate
duplicate lease costs during the transition of our corporate
headquarters.
|
(h) To eliminate
expenses for severance and termination benefits related to
workforce realignment.
|
(i) To eliminate
amortization expense of debt issuance costs related to our
debt.
|
(j) To eliminate net
loss from legal settlement in connection with a facility abandoned
in the second quarter of fiscal 2021.
|
(k) To exclude the
dilutive effect from convertible note due to the related capped
call hedge.
|
The following table presents certain non-GAAP consolidated
results before certain items (in thousands, except per share
amounts and percentages, unaudited):
|
Fiscal Year
Ended
|
|
2024
|
|
GAAP
results
|
|
GAAP
operating
margin (a)
|
|
Adjustment
|
|
Non- GAAP
results
|
|
Non- GAAP
operating
margin (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 331,427
|
(c)
|
|
|
|
|
|
|
|
|
2,341
|
(d)
|
|
|
|
|
|
|
|
|
14,648
|
(e)
|
|
|
|
|
|
|
|
|
6,687
|
(f)
|
|
|
|
|
|
|
|
|
16,766
|
(g)
|
|
|
|
|
|
|
|
|
18,009
|
(h)
|
|
|
|
|
|
|
|
|
$
14,930
|
(i)
|
|
|
|
Operating
income
|
$
53,551
|
|
1.9 %
|
|
$ 404,808
|
|
$ 458,359
|
|
16.2 %
|
|
(a) GAAP operating
margin is defined as GAAP operating income 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 lease
impairment and abandonment charges associated with cease-use of our
former corporate headquarters.
|
(h) To eliminate
expenses for severance and termination benefits related to
workforce realignment.
|
(i) To eliminate
amortization expense of acquired intangible assets.
|
Reconciliation from net cash provided by operating activities
to free cash flow (in thousands except percentages,
unaudited):
|
|
Fourth Quarter of
Fiscal
|
|
Fiscal Year
Ended
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Net cash provided by
operating activities
|
|
$
244,425
|
|
$
233,026
|
|
$
677,722
|
|
$
767,234
|
Less: purchases of
property and equipment(1)
|
|
(43,570)
|
|
(60,229)
|
|
(195,161)
|
|
(158,139)
|
Free cash flow
(non-GAAP)
|
|
$
200,855
|
|
$
172,797
|
|
$
482,561
|
|
$
609,095
|
|
(1) Includes
capitalized internal-use software costs of $3.7 million and $3.2
million for the fourth quarter of fiscal 2024 and 2023 and $19.4
million and $13.7 million for fiscal 2024 and 2023.
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SOURCE Pure Storage