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Oct 31, 2021

Pure Storage Q3 2022 Earnings Report

Pure Storage's financial performance exceeded expectations, driven by strong revenue growth and increasing profitability.

Key Takeaways

Pure Storage reported a strong Q3 with revenue up 37% year-over-year and increasing profitability. The company raised its FY22 revenue outlook to $2.1 billion.

Revenue reached $562.7 million, a 37% increase year-over-year.

Subscription Services revenue grew to $187.8 million, up 38% year-over-year.

Subscription Annual Recurring Revenue (ARR) was $788.3 million, a 30% increase year-over-year.

The company was positioned as a leader in Gartner Magic Quadrants for Primary Storage Arrays and Distributed File Systems and Object Storage.

Total Revenue
$563M
Previous year: $411M
+37.0%
EPS
$0.22
Previous year: $0.01
+2100.0%
Gross Profit
$375M
Previous year: $277M
+35.5%
Cash and Equivalents
$405M
Previous year: $264M
+53.5%
Free Cash Flow
$101M
Previous year: $7.93M
+1177.5%
Total Assets
$2.86B
Previous year: $2.65B
+7.6%

Pure Storage

Pure Storage

Pure Storage Revenue by Segment

Forward Guidance

The company provided guidance for Q4 FY22 with revenue of $630 million and non-GAAP operating income of $90 million and for FY22 with revenue of $2.1 billion and non-GAAP operating income of $206 million.

Positive Outlook

  • Q4 revenue guidance of $630 million.
  • FY22 revenue outlook of $2.1 billion.
  • Q4 non-GAAP operating income guidance of $90 million.
  • FY22 non-GAAP operating income outlook of $206 million.
  • Q4 non-GAAP operating margin approximately 14%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income