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Aug 04, 2024

Pure Storage Q2 2025 Earnings Report

Reported strong financial results with revenue growth and subscription services ARR increase.

Key Takeaways

Pure Storage announced strong financial results for Q2 fiscal year 2025. Total revenue increased by 11% year-over-year, with subscription services ARR growing by 24% year-over-year. The company's platform innovation and ESG leadership were also highlighted.

Total revenue reached $763.8 million, an 11% increase year-over-year.

Subscription services revenue grew to $361.2 million, a 25% increase year-over-year.

Subscription ARR reached $1.5 billion, reflecting a 24% year-over-year growth.

GAAP operating income was $24.9 million, while non-GAAP operating income was $138.6 million.

Total Revenue
$764M
Previous year: $689M
+10.9%
EPS
$0.44
Previous year: $0.34
+29.4%
Gross Profit
$540M
Previous year: $487M
+11.0%
Cash and Equivalents
$965M
Previous year: $409M
+136.0%
Free Cash Flow
$167M
Previous year: $46.5M
+258.1%
Total Assets
$3.78B
Previous year: $3.13B
+20.7%

Pure Storage

Pure Storage

Pure Storage Revenue by Segment

Forward Guidance

Pure Storage provided guidance for Q3 FY25 and full year FY25, including revenue, revenue YoY growth rate, Non-GAAP operating income, and Non-GAAP operating margin.

Positive Outlook

  • Q3 FY25 Revenue: $815M
  • Q3 FY25 Revenue YoY Growth Rate: 6.8%
  • Q3 FY25 Non-GAAP Operating Income: $140M
  • Q3 FY25 Non-GAAP Operating Margin: 17.2%
  • FY25 Revenue: $3.1B

Challenges Ahead

  • FY25 Revenue YoY Growth Rate: 10.5%
  • TCV Sales for Subscription-as-a-Service Offerings: $500M
  • TCV Sales for Subscription-as-a-Service Offerings YoY Growth Rate: Approximately 25%
  • FY25 Non-GAAP Operating Income: $532M
  • FY25 Non-GAAP Operating Margin: 17%

Revenue & Expenses

Visualization of income flow from segment revenue to net income