Pure Storage Stocks Surges On Solid Q1 Results, Guides FY23 Above Consensus

Pure Storage Inc PSTG reported first-quarter revenue growth of 50% year-over-year to $620.4 million, beating the consensus of $521.99 million.
Q1 Subscription services revenue was $219.2 million (+35% Y/Y), and Subscription Annual Recurring Revenue (ARR) was $899.8 million (+29% Y/Y).
Remaining Performance Obligations (RPO) increased 26% Y/Y to $1.4 billion.
The gross margin expanded by 45 bps to 68.7%, and the adjusted gross margin was 70.6%, up by 10 bps.
PSTG recorded an adjusted operating income of $85.4 million and a margin of 13.8%.
Adjusted EPS was $0.25, beating the consensus of $0.04.
Pure Storage generated cash from operating activities in Q1 of $220.13 million, compared to $21.45 million a year ago. Free cash flow of $187.32 million.
At the end of the quarter, the company held cash, cash equivalents, and investments of $1.3 billion. It returned ~$66 million to stockholders through share repurchases.
2Q23 Outlook: PSTG expects revenue of ~$635 million vs. a consensus of $606.28 million, adjusted operating income of $75 million, and Adjusted operating margin of ~11.8%.
FY23 Outlook: PSTG expects revenue of ~$2.66 billion vs. a consensus of $2.59 billion, adjusted operating income of $320 million, and an Adjusted operating margin of ~12%.
Price Action: PSTG shares are trading higher by 8.70% at $26.10 during the post-market session on Wednesday.

Momentum20.75

Growth97.15

QualityNot Available

Value10.72

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