MOUNTAIN VIEW, Calif. – May 21, 2019 — / — Pure Storage (PSTG), the data solutions leader that helps innovators build a better world with data, today announced financial results for its first quarter ended April 30, 2019.

“Pure continues to gain market share with innovation, a differentiated business model and our laser focus on customer delight,” said Charles Giancarlo, Chairman and CEO, Pure Storage. “As enterprises embark on their hybrid cloud journeys, Pure is excited to play a role in modernizing their business.”

Q1 Key Business and Financial Highlights:

  • Revenue: $326.7 million, up 28% year over year
  • Gross margin: GAAP 66.2%; non-GAAP 68.1%
  • Operating margin: GAAP -29.8%; non-GAAP -9.6%

Recent Company Highlights:
During Pure’s first quarter of fiscal year 2020, the Company:

  • Announced the acquisition of Compuverde - a leading developer of file software solutions for enterprises and cloud providers. The acquisition will expand Pure Storage’s file capabilities by providing a unified storage offering, as well as empowering customers to implement true hybrid architectures.
  • Released ObjectEngine™ for General Availability - the industry’s first data protection platform purpose-built for flash and cloud. ObjectEngine unifies cloud and on-premises with seamless, rapid backup and recovery across both on-prem and the cloud and enables customers to modernize their entire data protection strategy to a “flash-to-flash-to-cloud” model.
  • Announced expansion of Evergreen™ Storage Service (ES2) - to enable a unified subscription model across hybrid environments. This allows organizations to leverage Pure’s best-in-class storage-as-a-service model on-premises, hosted and in the cloud, without the need to manage multiple subscriptions or purchase separate or overlapping capacity.

“Q1 was a solid beginning of the year for Pure,” said Tim Riitters, CFO, Pure Storage. “We continued to demonstrate strong growth, industry-leading margins, and innovation across our product portfolio.”

First Quarter Fiscal 2020 Financial Highlights
The following tables summarize our consolidated financial results for the fiscal quarters ended April 30, 2019 and 2018 (in millions except percentages, per share amounts and headcount, unaudited):

GAAP Quarterly Financial Information
Three Months Ended
April 30, 2019
Three Months Ended
April 30, 2018
Y/Y Change
Revenue $326.7 $255.9 28%
Gross Margin 66.2% 65.0% 1.2 ppts
Product Gross Margin 67.9% 66.0% 1.9 ppts
Support Subscription Gross Margin 61.7% 61.6% 0.1 ppts
Operating Loss $(97.4) $(61.9) $(35.5)
Operating Margin -29.8% -24.2% -5.6 ppts
Net Loss $(100.3) $(64.3) $(36.0)
Net Loss per Share – Basic and Diluted $(0.41) $(0.29) $(0.12)
Weighted-Average Shares 245.3 223.8 21.5
Headcount >3,150 >2,300 ~850
Non-GAAP Quarterly Financial Information
Three Months Ended
April 30, 2019
Three Months Ended
April 30, 2018
Y/Y Change
Gross Margin 68.1% 66.3% 1.8 ppts
Product Gross Margin 68.7% 66.3% 2.4 ppts
Support Subscription Gross Margin 66.3% 66.3% 0.0 ppts
Operating Loss $(31.2) $(15.3) $(15.9)
Operating Margin -9.6% -6.0% -3.6 ppts
Net Loss $(27.6) $(16.2) $(11.4)
Net Loss per Share $(0.11) $(0.07) $(0.04)
Weighted-Average Shares 245.3 223.8 21.5

A reconciliation between GAAP and non-GAAP information is provided at the end of this release.

Financial Outlook
Second quarter fiscal 2020 guidance:

  • Revenue in the range of $389 million to $401 million, or $395 million at the midpoint
  • Non-GAAP gross margin in the range of 65.0% to 68.0%, or 66.5% at the midpoint
  • Non-GAAP operating margin in the range of -5.0% to -1.0%, or -3.0% at the midpoint

Full year fiscal 2020 guidance:

  • Revenue in the range of $1.70 billion to $1.77 billion, or $1.735 billion at the midpoint
  • Non-GAAP gross margin in the range of 65.5% to 68.0%, or 66.75% at the midpoint
  • Non-GAAP operating margin in the range of 1.5% to 5.5%, or 3.5% at the midpoint

All forward-looking non-GAAP financial measures contained in this section titled “Financial Outlook” exclude stock-based compensation expense, payroll tax expense related to stock-based activities, amortization of debt discount and debt issuance costs, amortization of intangible assets acquired from acquisitions, any applicable anti-dilutive share count impact of our convertible debt hedge agreements and, as applicable, other special items. We have not reconciled guidance for non-GAAP gross margin and non-GAAP operating margin to their most directly comparable GAAP measures because the items that impact these measures are not within our control and/or cannot be reasonably predicted. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measures is not available without unreasonable effort.

Conference Call Information
Pure Storage will host a teleconference to discuss the first quarter fiscal 2020 results at 2:00 p.m. (PT) on May 21, 2019. Pure Storage will post its supplemental earnings presentation to the investor relations website at following the conference call.

Teleconference details are as follows:

  • To Listen via Telephone: (866) 393-4306 or (734) 385-2616 (for international callers) with passcode 4955207.
  • To Listen via the Internet: A live and replay audio broadcast of the conference call with corresponding slides will be available at
  • Replay: A telephone playback of this conference call is scheduled to be available two hours after the call ends on Tuesday, May 21, 2019, through June 4, 2019. The replay will be accessible by calling (855) 859-2056 or (404) 537-3406 (for international callers), with conference ID 4955207.

Upcoming Events
Management will participate in upcoming financial Q&A discussions at the Bank of America Global Technology Conference on June 4th at 3:50 pm PT, the William Blair 2019 Growth Stock Conference on June 6th at 6 am PT, and the Stifel Cross Sector Insights Conference on June 11th at 12:35 pm PT. Pure Storage will post a link to each session on the investor relations website at for both live and archived events.

About Pure Storage
Pure Storage (PSTG) helps innovators build a better world with data. Pure’s data solutions enable SaaS companies, cloud service providers, and enterprise and public sector customers to deliver real-time, secure data to power their mission-critical production, DevOps, and modern analytics environments in a multi-cloud environment. One of the fastest growing enterprise IT companies in history, Pure Storage enables customers to quickly adopt next-generation technologies, including artificial intelligence and machine learning, to help maximize the value of their data for competitive advantage. And with a certified NPS customer satisfaction score in the top one percent of B2B companies, Pure’s ever-expanding list of customers are among the happiest in the world.

Pure Storage, DirectFlash, Evergreen, FlashBlade, FlashStack, ObjectEngine and the “P” Logo mark are trademarks of Pure Storage, Inc. All other trademarks or names referenced in this document are the property of their respective owners.

Forward Looking Statements
This press release contains forward-looking statements regarding our products, business and operations, including our growth prospects and expectations regarding product and technology differentiation, and our outlook for the second quarter and full year fiscal 2020, and 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 captions “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 and on the SEC website at Additional information is also set forth in our Annual Report on Form 10-K for the year ended January 31, 2019. All information provided in this release and in the attachments is as of May 21, 2019, and we undertake no duty to update this information unless required by law.

Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, we use 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, free cash flow, free cash flow as a percentage of revenue, free cash flow without ESPP impact, and free cash flow without ESPP impact as a percentage of revenue.

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, amortization of debt discount and debt issuance costs, and amortization of intangible assets acquired from acquisitions that may not be indicative of our ongoing core business operating results. We believe 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 and free cash flow without ESPP impact,” included at the end of this release.

For detailed financial report, visit

Matthew Danzinger
Investor Relations
Pure Storage

Rena Fallstrom
Public Relations
Pure Storage

Source: Pure Storage




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