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May 05, 2024

Pure Storage Q1 2025 Earnings Report

Reported strong Q1 2025 financial results with revenue growth and profitability outperforming expectations.

Key Takeaways

Pure Storage announced strong first quarter fiscal 2025 results, with revenue increasing by 18% year-over-year to $693.5 million. Subscription services ARR reached over $1.4 billion, and the company is well-positioned for long-term growth with its data storage platform.

Total revenue reached $693.5 million, an 18% increase year-over-year.

Subscription services revenue grew to $346.1 million, up 23% year-over-year.

Subscription annual recurring revenue (ARR) increased to $1.4 billion, a 25% year-over-year increase.

The company reported Q1 operating cash flow of $221.5 million and free cash flow of $172.7 million.

Total Revenue
$693M
Previous year: $589M
+17.7%
EPS
$0.32
Previous year: $0.08
+300.0%
Gross Profit
$496M
Previous year: $413M
+19.9%
Cash and Equivalents
$901M
Previous year: $378M
+138.1%
Free Cash Flow
$173M
Previous year: $122M
+41.8%
Total Assets
$3.62B
Previous year: $2.96B
+22.5%

Pure Storage

Pure Storage

Pure Storage Revenue by Segment

Forward Guidance

Pure Storage provided guidance for Q2 FY25 and full year FY25. Q2 revenue is expected to be $755 million, representing a 9.6% year-over-year growth rate, with non-GAAP operating income of $125 million and a non-GAAP operating margin of 16.6%. For FY25, revenue is projected to be $3.1 billion, a 10.5% year-over-year growth rate, with TCV sales for Evergreen//One & Evergreen//Flex subscription service offerings of $600M and non-GAAP operating income of $532 million, resulting in a 17% non-GAAP operating margin.

Positive Outlook

  • Q2 FY25 Revenue is expected to be $755 million, representing a 9.6% year-over-year growth rate.
  • Q2 FY25 Non-GAAP Operating Income is expected to be $125 million.
  • Q2 FY25 Non-GAAP Operating Margin is expected to be 16.6%.
  • FY25 Revenue is projected to be $3.1 billion, a 10.5% year-over-year growth rate.
  • FY25 Non-GAAP Operating Income is expected to be $532 million, resulting in a 17% non-GAAP operating margin.

Revenue & Expenses

Visualization of income flow from segment revenue to net income