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.

Posted In: BriefsEarningsNewsGuidance

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.