MOUNTAIN VIEW, Calif.,
Aug. 25, 2021 /PRNewswire/ -- Today Pure Storage (NYSE: PSTG),
the IT pioneer that delivers storage as-a-service in a multi-cloud
world, announced financial results for its fiscal second quarter
ended August 1, 2021.
"With revenue growth exceeding 23%, and the highest Q2 operating
profit in our history, it's clear that our long-term strategy to
provide customers with modern data services is working," said
Charles Giancarlo, Chairman and CEO,
Pure Storage. "We are in a great innovation cycle with our
portfolio and our sales momentum and execution have never been
stronger."
Second Quarter Financial Highlights
- Revenue $496.8 million, up 23%
year-over-year
- Subscription services revenue $171.9
million, up 31% year-over-year
- GAAP gross margin 68.4%; non-GAAP gross margin 70.5%
- GAAP operating loss $(33.9)
million; non-GAAP operating income $46.6 million
- GAAP operating margin (6.8)%; non-GAAP operating margin
9.4%
- Operating cash flow $123.4
million; free cash flow $95.7
million
- Total cash and investments $1.3
billion
- Deferred revenue $909.8 million, up 26% year-over-year
- Remaining performance obligations (RPO) $1.2 billion, up 25% year-over-year
"Our outstanding financial performance this quarter reflected
strong sales execution and our long standing practice of providing
leading edge solutions and best-in-class services to our
customers," said Kevan Krysler, CFO,
Pure Storage. "We saw strength from both our enterprise and
commercial customers across our entire solutions portfolio."
Second Quarter Company Highlights and Achievements
- Industry Accolades: FlashArray was named a Gartner Peer
Insights Customers' Choice for Primary Storage Arrays. Pure was
named a Kubernetes storage leader in two GigaOm Radar Reports and
recognized as leader in Enterprise Flash Array Storage and Object
Storage categories by TrustRadius for the second consecutive
year.
- Pure achieved the highest total sales for any second quarter in
the history of the company, growing more than 30%
year-over-year.
- The company saw continued strength and momentum in Subscription
Services revenue, up 31% year-over-year with strong growth in Pure
as-a-Service, which almost doubled revenues compared to the prior
year.
- Success in the large enterprise segment continues to grow,
comprising over 50% of sales, with the top 10 customers spending
more than $100 million in total.
Pure will host its next Financial Analyst Day on
Tuesday, September 28, 2021,
beginning at 10:00 am PT /
1:00 pm ET. The event has changed
from in-person to live webcast and will feature presentations by
Pure's executive leadership team, followed by a live Q&A
session.
Details:
- Date: Tuesday, September 28,
2021
- Time: 10:00 am PT / 1:00 pm ET
- To register for the live virtual event, please visit:
https://purestorage.com/company/events/financial-analyst-day-2021.html
The replay of the event and associated presentation materials
will also be available at investor.purestorage.com for at least 90
days following the completion of the event.
Third Quarter and FY22 Guidance
|
Q3
FY22
|
FY22
|
|
Revenue
|
$530
million
|
$2.04
billion
|
|
Non-GAAP Operating
Income
|
$40
million
|
$150
million
|
These statements are forward-looking and actual results may
differ materially. Refer to the Forward Looking Statements section
below for information on the factors that could cause our actual
results to differ materially from these statements. Pure has not
reconciled its guidance for non-GAAP operating income to the most
directly comparable GAAP measure because certain items that impact
this measure are not within Pure's control and/or cannot be
reasonably predicted. Accordingly, a reconciliation of this
non-GAAP financial measure guidance to the corresponding GAAP
measure is not available without unreasonable effort.
Conference Call Information
Pure will host a teleconference to discuss the second quarter
fiscal 2022 results at 1:30 pm PT
today, August 25, 2021. A live audio broadcast of the
conference call will be available at the Pure Storage Investor
Relations website, investor.purestorage.com. Pure will also post
its earnings presentation to this website in advance of the call
and post its prepared remarks to this website within 24 hours of
completion of the call. A replay will be available following the
call on the Pure Storage Investor Relations website and in
addition, for two weeks at (800) 585-8367 (or 416-621-4642 for
international callers) with passcode 5535534.
Upcoming Events
Pure is scheduled to participate virtually at the following
investor conference:
Deutsche Bank Technology Conference 2021
Date:
Friday, September 10, 2021
Pure Presenters: Charles Giancarlo,
Chairman and CEO, Kevan Krysler, CFO
and Rob Lee, CTO
Pure Participants: Sanjot Khurana, VP of Investor Relations
The presentations will be webcast live and archived on Pure's
Investor Relations website at investor.purestorage.com.
About Pure Storage
Pure Storage gives technologists their time back. Pure delivers
a modern data experience that empowers organizations to run their
operations as a true, automated, storage as-a-service model
seamlessly across multiple clouds. Pure helps customers put data to
use while reducing the complexity and expense of managing the
infrastructure behind it. And with a certified customer
satisfaction score in the top one percent of B2B companies, Pure's
ever-expanding list of customers are among the happiest in the
world.
Analyst Recognition
Pure Storage has been named a Leader in the 2020 Gartner Magic
Quadrant for Primary Storage Arrays.
Connect with Pure
Blog
LinkedIn
Twitter
Facebook
Pure Storage, the Pure P Logo, Portworx, and the marks on the
Pure Trademark List at
www.purestorage.com/legal/productenduserinfo.html are trademarks of
Pure Storage, Inc. Other names are trademarks of their respective
owners.
Forward Looking Statements
This press release contains forward-looking statements regarding
our products, business and operations, including but not limited to
our views relating to future period financial results, our
continued momentum and growth potential, the scope and duration of
the COVID-19 pandemic and its impact on our business operations,
liquidity and capital resources, employees, customers, supply
chain, financial results and the economy, our expectations
regarding product and technology differentiation, including our new
offerings, strategy and adoption of subscription services, growing
customer adoption, the continued success of the Portworx
technology, and other statements regarding our products, business,
operations and results. Forward-looking statements are subject to
known and unknown risks and uncertainties and are based on
potentially inaccurate assumptions that could cause actual results
to differ materially from those expected or implied by the
forward-looking statements.
Actual results may differ materially from the results predicted,
and reported results should not be considered as an indication of
future performance. The potential risks and uncertainties that
could cause actual results to differ from the results predicted
include, among others, those risks and uncertainties included under
the caption "Risk Factors" and elsewhere in our filings and reports
with the U.S. Securities and Exchange Commission, which are
available on our Investor Relations website at
investor.purestorage.com and on the SEC website at www.sec.gov.
Additional information is also set forth in our Annual Report on
Form 10-K for the year ended January 31, 2021. All information
provided in this release and in the attachments is as of
August 25, 2021, and Pure undertakes no duty to update this
information unless required by law.
Non-GAAP Financial Measures
To supplement our unaudited condensed consolidated financial
statements, which are prepared and presented in accordance with
GAAP, Pure uses the following non-GAAP financial measures: non-GAAP
gross profit, non-GAAP gross margin, non-GAAP operating income
(loss), non-GAAP operating margin, non-GAAP net income (loss),
non-GAAP net income (loss) per share, and free cash flow.
We use these non-GAAP financial measures for financial and
operational decision-making and as a means to evaluate
period-to-period comparisons. Our management believes that these
non-GAAP financial measures provide meaningful supplemental
information regarding our performance and liquidity by excluding
certain expenses and expenditures such as stock-based compensation
expense, payments to former shareholders of acquired companies,
payroll tax expense related to stock-based activities, amortization
of debt discount and debt issuance costs related to long-term debt,
amortization of intangible assets acquired from acquisitions,
acquisition-related transaction and integration expenses,
restructuring activities, and expenses directly related to the
COVID-19 pandemic that may not be indicative of our ongoing core
business operating results. Pure believes that both management and
investors benefit from referring to these non-GAAP financial
measures in assessing our performance and when analyzing historical
performance and liquidity and planning, forecasting, and analyzing
future periods. The presentation of these non-GAAP financial
measures is not meant to be considered in isolation or as a
substitute for our financial results prepared in accordance with
GAAP, and our non-GAAP measures may be different from non-GAAP
measures used by other companies.
For a reconciliation of these non-GAAP financial measures to
GAAP measures, please see the tables captioned "Reconciliations of
non-GAAP results of operations to the nearest comparable GAAP
measures" and "Reconciliation from net cash provided by operating
activities to free cash flow," included at the end of this
release.
|
PURE STORAGE,
INC.
Condensed
Consolidated Balance Sheets
(in thousands,
unaudited)
|
|
|
|
|
|
At the End
of
|
|
|
Second Quarter
of
Fiscal 2022
|
|
Fiscal
2021
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
340,252
|
|
|
$
|
337,147
|
|
|
Marketable
securities
|
|
944,285
|
|
|
916,388
|
|
|
Accounts receivable,
net of allowance of $960 and $1,033
|
|
358,460
|
|
|
460,879
|
|
|
Inventory
|
|
47,169
|
|
|
46,733
|
|
|
Deferred commissions,
current
|
|
58,003
|
|
|
57,183
|
|
|
Prepaid expenses and
other current assets
|
|
111,390
|
|
|
89,836
|
|
|
Total current
assets
|
|
1,859,559
|
|
|
1,908,166
|
|
|
Property and
equipment, net
|
|
184,048
|
|
|
163,041
|
|
|
Operating lease
right-of-use-assets
|
|
122,638
|
|
|
134,668
|
|
|
Deferred commissions,
non-current
|
|
137,962
|
|
|
130,741
|
|
|
Intangible assets,
net
|
|
68,279
|
|
|
76,648
|
|
|
Goodwill
|
|
358,736
|
|
|
358,736
|
|
|
Restricted
cash
|
|
10,544
|
|
|
10,544
|
|
|
Other assets,
non-current
|
|
41,918
|
|
|
36,896
|
|
|
Total
assets
|
|
$
|
2,783,684
|
|
|
$
|
2,819,440
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
|
54,686
|
|
|
$
|
67,530
|
|
|
Accrued compensation
and benefits
|
|
126,589
|
|
|
160,817
|
|
|
Accrued expenses and
other liabilities
|
|
53,043
|
|
|
61,754
|
|
|
Operating lease
liabilities, current
|
|
34,482
|
|
|
32,231
|
|
|
Deferred revenue,
current
|
|
485,927
|
|
|
438,321
|
|
|
Total current
liabilities
|
|
754,727
|
|
|
760,653
|
|
|
Long-term
debt
|
|
770,662
|
|
|
755,814
|
|
|
Operating lease
liabilities, non-current
|
|
106,693
|
|
|
120,361
|
|
|
Deferred revenue,
non-current
|
|
423,887
|
|
|
405,376
|
|
|
Other liabilities,
non-current
|
|
30,271
|
|
|
27,230
|
|
|
Total
liabilities
|
|
2,086,240
|
|
|
2,069,434
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Common stock and
additional paid-in capital
|
|
2,388,446
|
|
|
2,307,608
|
|
|
Accumulated other
comprehensive income
|
|
3,481
|
|
|
7,410
|
|
|
Accumulated
deficit
|
|
(1,694,483)
|
|
|
(1,565,012)
|
|
|
Total stockholders'
equity
|
|
697,444
|
|
|
750,006
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
2,783,684
|
|
|
$
|
2,819,440
|
|
|
PURE STORAGE,
INC.
Condensed
Consolidated Statements of Operations
(in thousands,
except per share data, unaudited)
|
|
|
|
|
|
Second Quarter of
Fiscal
|
|
First Two Quarters
of Fiscal
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Product
|
$
|
324,935
|
|
|
$
|
272,309
|
|
|
$
|
574,823
|
|
|
$
|
519,248
|
|
|
Subscription
services
|
171,896
|
|
|
131,414
|
|
|
334,715
|
|
|
251,594
|
|
|
Total
revenue
|
496,831
|
|
|
403,723
|
|
|
909,538
|
|
|
770,842
|
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
Product
(1)
|
101,150
|
|
|
84,731
|
|
|
180,214
|
|
|
154,016
|
|
|
Subscription
services(1)
|
55,654
|
|
|
44,266
|
|
|
107,431
|
|
|
85,275
|
|
|
Total cost of
revenue
|
156,804
|
|
|
128,997
|
|
|
287,645
|
|
|
239,291
|
|
|
Gross
profit
|
340,027
|
|
|
274,726
|
|
|
621,893
|
|
|
531,551
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development (1)
|
140,107
|
|
|
114,652
|
|
|
271,488
|
|
|
227,098
|
|
|
Sales and marketing
(1)
|
190,386
|
|
|
171,434
|
|
|
373,882
|
|
|
344,867
|
|
|
General and
administrative (1)
|
43,464
|
|
|
44,471
|
|
|
86,610
|
|
|
85,596
|
|
|
Restructuring and
other (2)
|
—
|
|
|
8,288
|
|
|
—
|
|
|
22,990
|
|
|
Total operating
expenses
|
373,957
|
|
|
338,845
|
|
|
731,980
|
|
|
680,551
|
|
|
Loss from
operations
|
(33,930)
|
|
|
(64,119)
|
|
|
(110,087)
|
|
|
(149,000)
|
|
|
Other income
(expense), net
|
(7,410)
|
|
|
1,603
|
|
|
(12,137)
|
|
|
(1,813)
|
|
|
Loss before provision
for income taxes
|
(41,340)
|
|
|
(62,516)
|
|
|
(122,224)
|
|
|
(150,813)
|
|
|
Income tax
provision
|
3,925
|
|
|
2,451
|
|
|
7,247
|
|
|
4,748
|
|
|
Net loss
|
$
|
(45,265)
|
|
|
$
|
(64,967)
|
|
|
$
|
(129,471)
|
|
|
$
|
(155,561)
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common
stockholders, basic and diluted
|
$
|
(0.16)
|
|
|
$
|
(0.25)
|
|
|
$
|
(0.46)
|
|
|
$
|
(0.59)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares used in computing net
loss per share attributable to common stockholders,
basic and diluted
|
283,931
|
|
|
264,799
|
|
|
282,147
|
|
|
263,867
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
stock-based compensation expense as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue --
product
|
$
|
1,566
|
|
|
$
|
990
|
|
|
$
|
2,913
|
|
|
$
|
1,986
|
|
|
Cost of revenue --
subscription services
|
5,137
|
|
|
3,686
|
|
|
9,543
|
|
|
7,078
|
|
|
Research and
development
|
35,125
|
|
|
29,839
|
|
|
65,546
|
|
|
58,550
|
|
|
Sales and
marketing
|
18,358
|
|
|
16,848
|
|
|
35,166
|
|
|
33,120
|
|
|
General and
administrative
|
10,243
|
|
|
10,089
|
|
|
18,595
|
|
|
19,412
|
|
|
Total stock-based
compensation expense
|
$
|
70,429
|
|
|
$
|
61,452
|
|
|
$
|
131,763
|
|
|
$
|
120,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Includes expenses
related to restructuring and incremental expenses directly related
to COVID-19
|
|
PURE STORAGE,
INC.
Condensed
Consolidated Statements of Cash Flows
(in thousands,
unaudited)
|
|
|
|
|
|
Second Quarter of
Fiscal
|
|
First Two Quarters
of Fiscal
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(45,265)
|
|
|
$
|
(64,967)
|
|
|
$
|
(129,471)
|
|
|
$
|
(155,561)
|
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
19,273
|
|
|
16,464
|
|
|
38,099
|
|
|
31,597
|
|
|
Amortization of debt
discount and debt issuance costs
|
7,751
|
|
|
7,189
|
|
|
15,154
|
|
|
14,125
|
|
|
Stock-based
compensation expense
|
70,429
|
|
|
61,452
|
|
|
131,763
|
|
|
120,146
|
|
|
Impairment of
long-lived assets
|
—
|
|
|
7,505
|
|
|
—
|
|
|
7,505
|
|
|
Other
|
3,895
|
|
|
267
|
|
|
6,516
|
|
|
1,972
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
(30,874)
|
|
|
(17,545)
|
|
|
102,506
|
|
|
91,896
|
|
|
Inventory
|
266
|
|
|
3,105
|
|
|
(3,242)
|
|
|
1,735
|
|
|
Deferred
commissions
|
(10,090)
|
|
|
(2,324)
|
|
|
(8,041)
|
|
|
(5,483)
|
|
|
Prepaid expenses and
other assets
|
5,452
|
|
|
(20,091)
|
|
|
(24,955)
|
|
|
(26,389)
|
|
|
Operating lease
right-of-use assets
|
7,237
|
|
|
7,475
|
|
|
14,818
|
|
|
14,181
|
|
|
Accounts
payable
|
15,087
|
|
|
(6,796)
|
|
|
(9,267)
|
|
|
(21,090)
|
|
|
Accrued compensation
and other liabilities
|
43,885
|
|
|
46,426
|
|
|
(40,952)
|
|
|
(3,217)
|
|
|
Operating lease
liabilities
|
(7,308)
|
|
|
(6,145)
|
|
|
(14,205)
|
|
|
(13,071)
|
|
|
Deferred
revenue
|
43,654
|
|
|
18,691
|
|
|
66,117
|
|
|
27,463
|
|
|
Net cash provided by
operating activities
|
123,392
|
|
|
50,706
|
|
|
144,840
|
|
|
85,809
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
(27,670)
|
|
|
(24,994)
|
|
|
(55,499)
|
|
|
(48,776)
|
|
|
Purchases of
marketable securities
|
(145,808)
|
|
|
(193,076)
|
|
|
(317,371)
|
|
|
(291,237)
|
|
|
Sales of marketable
securities
|
28,501
|
|
|
73,694
|
|
|
114,038
|
|
|
91,351
|
|
|
Maturities of
marketable securities
|
104,030
|
|
|
110,799
|
|
|
169,770
|
|
|
206,174
|
|
|
Net cash used in
investing activities
|
(40,947)
|
|
|
(33,577)
|
|
|
(89,062)
|
|
|
(42,488)
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Net proceeds from
exercise of stock options
|
3,147
|
|
|
12,383
|
|
|
11,163
|
|
|
21,658
|
|
|
Proceeds from issuance
of common stock under employee stock purchase plan
|
—
|
|
|
—
|
|
|
17,726
|
|
|
16,021
|
|
|
Proceeds from
borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
4,950
|
|
|
Repayments of
borrowings
|
(261)
|
|
|
—
|
|
|
(605)
|
|
|
—
|
|
|
Tax withholding on
vesting of equity awards
|
(1,514)
|
|
|
(1,467)
|
|
|
(6,564)
|
|
|
(2,841)
|
|
|
Repurchases of common
stock
|
(44,373)
|
|
|
(20,024)
|
|
|
(74,393)
|
|
|
(90,143)
|
|
|
Net cash used in
financing activities
|
(43,001)
|
|
|
(9,108)
|
|
|
(52,673)
|
|
|
(50,355)
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
39,444
|
|
|
8,021
|
|
|
3,105
|
|
|
(7,034)
|
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
311,352
|
|
|
362,867
|
|
|
347,691
|
|
|
377,922
|
|
|
Cash, cash
equivalents and restricted cash, end of period
|
$
|
350,796
|
|
|
$
|
370,888
|
|
|
$
|
350,796
|
|
|
$
|
370,888
|
|
Reconciliations of non-GAAP results of operations to the
nearest comparable GAAP measures
The following table presents non-GAAP gross margins by revenue
source before certain items (in thousands except percentages,
unaudited):
|
|
Second Quarter of
Fiscal 2022
|
|
Second Quarter of
Fiscal 2021
|
|
|
GAAP
results
|
|
GAAP
gross
margin (a)
|
|
Adjustment
|
|
|
|
Non-
GAAP
results
|
|
Non-
GAAP
gross
margin (b)
|
|
GAAP
results
|
|
GAAP
gross
margin (a)
|
|
Adjustment
|
|
|
|
Non-
GAAP
results
|
|
Non-
GAAP
gross
margin (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,566
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$
|
990
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
63
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
15
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
297
|
|
|
(e)
|
|
|
|
|
|
|
|
|
|
|
3,067
|
|
|
(f)
|
|
|
|
|
|
|
|
|
|
2,003
|
|
|
(f)
|
|
|
|
|
|
Gross profit
--
product
|
|
$
|
223,785
|
|
|
68.9
|
%
|
|
$
|
4,696
|
|
|
|
|
$
|
228,481
|
|
|
70.3
|
%
|
|
$
|
187,578
|
|
|
68.9
|
%
|
|
$
|
3,305
|
|
|
|
|
$
|
190,883
|
|
|
70.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,137
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$
|
3,686
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
196
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
47
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
|
24
|
|
|
(g)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
Gross profit
--
subscription
services
|
|
$
|
116,242
|
|
|
67.6
|
%
|
|
$
|
5,357
|
|
|
|
|
$
|
121,599
|
|
|
70.7
|
%
|
|
$
|
87,148
|
|
|
66.3
|
%
|
|
$
|
3,733
|
|
|
|
|
$
|
90,881
|
|
|
69.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,703
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$
|
4,676
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
259
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
62
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
297
|
|
|
(e)
|
|
|
|
|
|
|
|
|
|
|
3,067
|
|
|
(f)
|
|
|
|
|
|
|
|
|
|
2,003
|
|
|
(f)
|
|
|
|
|
|
|
|
|
|
|
24
|
|
|
(g)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
Total gross
profit
|
|
$
|
340,027
|
|
|
68.4
|
%
|
|
$
|
10,053
|
|
|
|
|
$
|
350,080
|
|
|
70.5
|
%
|
|
$
|
274,726
|
|
|
68.0
|
%
|
|
$
|
7,038
|
|
|
|
|
$
|
281,764
|
|
|
69.8
|
%
|
|
(a) GAAP gross margin
is defined as GAAP gross profit divided by revenue.
|
|
(b) Non-GAAP gross
margin is defined as non-GAAP gross profit divided by
revenue.
|
|
(c) To eliminate
stock-based compensation expense.
|
|
(d) To eliminate
payroll tax expense related to stock-based activities.
|
|
(e) To eliminate
hazard pay premiums directly related to COVID-19
pandemic.
|
|
(f) To eliminate
amortization expense of acquired intangible assets.
|
|
(g) To eliminate
payments to former shareholders of acquired company.
|
The following table presents certain non-GAAP consolidated
results before certain items (in thousands, except per share
amounts and percentages, unaudited):
|
Second Quarter of
Fiscal 2022
|
|
Second Quarter of
Fiscal 2021
|
|
GAAP
results
|
|
GAAP
operating
margin (a)
|
|
Adjustment
|
|
|
|
Non-
GAAP
results
|
|
Non-
GAAP
operating
margin (b)
|
|
GAAP
results
|
|
GAAP
operating
margin (a)
|
|
Adjustment
|
|
|
Non-
GAAP
results
|
|
Non-
GAAP
operating
margin (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
70,429
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$
|
61,452
|
|
|
(c)
|
|
|
|
|
|
|
|
|
4,229
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
2,009
|
|
|
(d)
|
|
|
|
|
|
|
|
|
2,081
|
|
|
(e)
|
|
|
|
|
|
|
|
|
|
1,259
|
|
|
(e)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
306
|
|
|
(f)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
8,279
|
|
|
(g)
|
|
|
|
|
|
|
|
|
3,600
|
|
|
(h)
|
|
|
|
|
|
|
|
|
|
2,003
|
|
|
(h)
|
|
|
|
|
|
|
|
|
171
|
|
|
(i)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
Operating
Income (loss)
|
$
|
(33,930)
|
|
|
-6.8
|
%
|
|
$
|
80,510
|
|
|
|
|
$
|
46,580
|
|
|
9.4
|
%
|
|
$
|
(64,119)
|
|
|
-15.9
|
%
|
|
$
|
75,308
|
|
|
|
$
|
11,189
|
|
|
2.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
70,429
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
$
|
61,452
|
|
|
(c)
|
|
|
|
|
|
|
|
|
4,229
|
|
|
(d)
|
|
|
|
|
|
|
|
|
|
2,009
|
|
|
(d)
|
|
|
|
|
|
|
|
|
2,081
|
|
|
(e)
|
|
|
|
|
|
|
|
|
|
1,259
|
|
|
(e)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
306
|
|
|
(f)
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
8,279
|
|
|
(g)
|
|
|
|
|
|
|
|
|
3,600
|
|
|
(h)
|
|
|
|
|
|
|
|
|
|
2,003
|
|
|
(h)
|
|
|
|
|
|
|
|
|
171
|
|
|
(i)
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
7,751
|
|
|
(j)
|
|
|
|
|
|
|
|
|
|
7,189
|
|
|
(j)
|
|
|
|
|
Net income
(loss)
|
$
|
(45,265)
|
|
|
|
|
$
|
88,261
|
|
|
|
|
$
|
42,996
|
|
|
|
|
$
|
(64,967)
|
|
|
|
|
$
|
82,497
|
|
|
|
$
|
17,530
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per
share -- diluted
|
$
|
(0.16)
|
|
|
|
|
|
|
|
|
$
|
0.14
|
|
|
|
|
$
|
(0.25)
|
|
|
|
|
|
|
|
$
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-
average
shares used in
per share
calculation --
diluted
|
283,931
|
|
|
|
|
16,286
|
|
|
(k)
|
|
300,217
|
|
|
|
|
264,799
|
|
|
|
|
17,698
|
|
|
(k)
|
282,497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) GAAP operating
margin is defined as GAAP operating loss divided by
revenue.
|
|
(b) Non-GAAP
operating margin is defined as non-GAAP operating loss divided by
revenue.
|
|
(c) To eliminate
stock-based compensation expense.
|
|
(d) To eliminate
payments to former shareholders of acquired companies.
|
|
(e) To eliminate
payroll tax expense related to stock-based activities.
|
|
(f) To eliminate
marketing commitments no longer deemed to have value and hazard pay
premiums directly related to COVID-19 pandemic.
|
|
(g) To eliminate
restructuring expenses related to (1) impairment of long-lived
assets associated with the cease-use of certain facilities and (2)
workforce reduction.
|
|
(h) To eliminate
amortization expense of acquired intangible assets.
|
|
(i) To eliminate
acquisition-related integration expenses.
|
|
(j) To eliminate
amortization expense of debt discount and debt issuance costs
related to our long-term debt.
|
|
(k) To include effect
of dilutive securities (employee stock options, restricted stock,
and shares from employee stock purchase plan).
|
Reconciliation from net cash provided by operating activities
to free cash flow (in thousands except percentages,
unaudited):
|
Second Quarter of
Fiscal
|
|
2022
|
|
2021
|
|
Net cash provided by
operating activities
|
$
|
123,392
|
|
|
$
|
50,706
|
|
|
Less: purchases of
property and equipment
|
(27,670)
|
|
|
(24,994)
|
|
|
Free cash flow
(non-GAAP)
|
$
|
95,722
|
|
|
$
|
25,712
|
|
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SOURCE Pure Storage