q3 fiscal 2022 results
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November 23, 2021
Q3 Fiscal 2022 Results
© 2021 Pure Storage,Inc.
2©2021 Pure Storage, Inc.
FORWARD LOOKING STATEMENTSAND NON-GAAP INFORMATION
This presentation contains “forward-looking” statements that are based on our beliefs and assumptions and on information currently available to us. Such forward-looking statements includestatements concerning our possible or expected future financial or operating results, business strategies, product development plans, technical and business advantages, competitive position,industry trends and potential growth opportunities. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,”“could,” “seek,” “estimate,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” or similar expressions and the negatives of those terms.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from anyfuture results, performance or achievements expressed or implied by the forward-looking statements, including risks, uncertainties and other factors relating to our beliefs about financial results,our momentum and growth potential, growth and market position, technological leadership and market opportunity, introduction of new functionality and products, demand for our productsand subscription services, the success of the Portworx acquisition and technology, customer spending priorities, our competitive position and industry dynamics, pricing environment, globaleconomic situation, disruption to our contract manufacturer or other supply arrangements, and relationships with third parties, including partners, customers, suppliers and contractmanufacturers and the duration and scope of the COVID-19 pandemic and related restrictions and its impact on our business, operating results, cash flows and/or financial condition. Additionalrisks, uncertainties and other factors are included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," in our reportspreviously filed with the SEC, which are available on our website at investor.purestorage.com and on the SEC's website at www.sec.gov.
Forward-looking statements represent our beliefs and assumptions only as of the date of this presentation. Except as required by law, we assume no obligation to update these forward-lookingstatements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in thefuture.
This presentation includes certain non-GAAP financial measures as defined by SEC rules. As required by Regulation G, we have provided reconciliations of those measures to the most directlycomparable GAAP measures, which are available in the Appendix. We have not reconciled our guidance regarding non-GAAP operating income (loss) to its most directly comparable GAAPmeasure because items such as stock-based compensation expense and payroll tax expense related to stock-based activities that impact these measures are not within our control and/or cannotbe reasonably predicted. Accordingly, a reconciliation of the non-GAAP operating income (loss) to the corresponding GAAP measure is not available without unreasonable effort.
Company Overview
© 2021 Pure Storage,Inc. 3
4©2021 Pure Storage, Inc.
Pure delivers a modern data experience that helps customers put
data to use and allows them to run their operations as a true, automated, storage as-a-service model seamlessly across multiple clouds.
Who are we?
© 2021 Pure Storage,Inc. 4
5©2021 Pure Storage, Inc. 5© 2021 Pure Storage, Inc.
Pure Storage At A Glance
~34512% Y/Y Growth
Q3 FY22 Customer AdditionsQ3 FY22 RevenueQ3 FY22 Subscription Annual Recurring Revenue (ARR)(1)
$563 M37% Y/Y Growth
Customers
>50%*Of Fortune 500 companies
$788 M30% Y/Y Growth
9,500+*
Global Customers
CustomersFY21 Annual Revenue Leadership
$1.68 BSatisfaction
83.5 NPSTop 1% of B2B Companies
8 Year LeaderGartner Magic Quadrant
(1) Subscription ARR is a key business metric that refers to total annualized contract value of all active subscription agreements, including Evergreen, on the last day of the quarter, plus on-demand revenue for the quarter multiplied by four.
(*) As of the end of Q3 FY22
6©2021 Pure Storage, Inc.
Unified Fast File and Object Storage
Mission-CriticalBlock Storage
All-FlashSecondary Storage
Cloud Block Store
Modernizing Infrastructure All-Flash Storage for Accelerating Traditional
Applications
Delivering the Modern Data Experience
Modernizing Operations Automating Storage to Deliver the Cloud as-a-
Service Experience
Modernizing Applications Delivering the Hybrid Cloud Platform for
Tomorrow’s Data Applications
SaaS-Based, AI-Driven Management & Support
Subscription to Continuous SW + HW Innovation
Unified as-a-Service Subscription
Hybrid Data Management for Kubernetes Applications
Hybrid Mobility for Tier1 Apps
Unified Fast File and Object Storage
Autonomous Self-ServiceStorage as Code
1-Click Deployment ofKubernetes Data Services
7©2021 Pure Storage, Inc.©2021 Pure Storage, Inc.
Top 10 Reasons Customers Buy Pure
Simplicity - Easy to buy, install and operate
Innovation – 8x leader in Gartner Magic Quadrant
Reliability - Six 9s of reliability
Leadership - 1st flash that costs less than hybrid disk arrays
Flexibility - Differentiated unified as-a-service offering
Trust - Top 1% of NPS of industry B2B scores
Enterprise Proven - Expanding in Global F500 & key verticals
Cloud Chosen - Trusted by the largest and most demanding
Green - Evergreen Storage = less waste
Fair - Transparency & pay as you go
8©2021 Pure Storage, Inc.
>9,500CUSTOMERS TO-DATE
~345NEW CUSTOMER ADDITIONS
IN Q3 FY22
>50%OF FORTUNE 500
~$2*Incremental purchases from all
customers within 24 months of initial purchase of $1
~$11*Incremental purchases from top 25
customers within 18 months of initial purchase of $1
(*) Note: Incremental Purchases exclude Evergreen and Unified Subscription Services purchases
TOTAL AND NEW CUSTOMERS
>7,000>8,000
>9,500
06012018024030036042048054060066072078084090096010201080114012001260132013801440150015601620168017401800186019201980204021002160222022802340240024602520258026402700276028202880294030003060312031803240330033603420348035403600366037203780384039003960402040804140420042604320438044404500456046204680474048004860492049805040510051605220528053405400546055205580564057005760582058805940600060606120618062406300636064206480654066006660672067806840690069607020708071407200726073207380744075007560762076807740780078607920798080408100816082208280834084008460852085808640870087608820888089409000
FY20 Q3 FY21 Q3 FY22 Q3
~12%New Customer Additions
Q3 FY22 Y/Y
Financial Overview
© 2021 Pure Storage,Inc. 9
10©2021 Pure Storage, Inc.
KEY HIGHLIGHTS
1
2
3
4
5
Q3 revenue growth of 37% Y/Y with balanced contributions across our entire portfolio, key geographies, and market segments
Leadership positions in both of Gartner’s Storage Magic Quadrants, recognizing our execution and vision in primary storage and in the rapidly-growing file and object market for unstructured data
Subscription ARR(1) achieved $788 million exiting the quarter, growth of 30% Y/Y
Strong non-GAAP operating profit* of $69 million or approximately 12.3% non-GAAP operating margin*, driven by increasing revenue growth, improving sales efficiency, and effects of the COVID environment
Raised FY22 revenue outlook to $2.1 billion, growing approximately 25% Y/Y, and non-GAAP operating profit outlook to $206 million or approximately 10% non-GAAP operating margin
(1) Subscription ARR is a key business metric that refers to the total annualized contract value of all active subscription agreements, including Evergreen, on the last day of the quarter, plus on-demand revenue for the quarter multiplied by four.
(*) See GAAP to non-GAAP reconciliation in our Appendix.
11©2021 Pure Storage, Inc.
Q3 FY22 FINANCIAL SUMMARY
Financial Metrics Guidance Actuals Y/Y
Revenue $ 530 Million $ 563 Million +37%
Subscription ARR(1) $ 788 Million +30%
Remaining Performance Obligations (RPO) $ 1,248 Million +27%
Non-GAAP Operating Income * $ 40 Million $ 69 Million
Non-GAAP Operating Margin * 12.3%
(1) Subscription ARR is a key business metric that refers to total annualized contract value of all active subscription agreements, including Evergreen, on the last day of the quarter, plus on-demand revenue for the quarter multiplied by four.
(*) See GAAP to non-GAAP reconciliation in our Appendix.
12©2021 Pure Storage, Inc.
TOTAL REVENUE
$1,076 $1,239 $1,144
$284
$405$540
250
750
1250
1750
FY19 FY20 FY21
Product Revenue (Millions) Subscription Services Revenue (Millions)
$323 $275 $375
$105
$136
$188
50
110
170
230
290
350
410
470
530
FY20 Q3 FY21 Q3 FY22 Q3
+18%Total Revenue 3-Year CAGR*
+37%Total Revenue
Q3 FY22 Y/Y Growth
+42% Subscription Services
3-Year CAGR*
$1,360
$1,643$1,684
$428$411
$563
+38% Subscription Services Q3
FY22 Y/Y Growth
Annual Revenue Third Quarter Revenue
(*) Represents compounded annual growth rate from end of FY18 to end of FY21
13©2021 Pure Storage, Inc.
$643$697 $706 $724 $763
$844 $866 $910 $950
$168 $183 $206
$232 $222 *
$250 $263 $285
$298
$811 $880
$912 $956 $985 *
$1,094 $1,129
$1,195$1,248
FY20 Q3 FY20 Q4 FY21 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY22 Q1 FY22 Q2 FY22 Q3
Axis TitleDeferred Revenue (Millions) Unbilled Remaining Performance Obligations (Millions)
REMAINING PERFORMANCE OBLIGATIONS
(*) Previously reported amount was reduced by $25 million arising from the expiration of a non-PaaS reseller contract.
+27%RPO
Q3 FY22 Y/Y Growth
14©2021 Pure Storage, Inc.
$307$284
$386
71.7%
69.1% 68.5%
FY20 Q3 FY21 Q3 FY22 Q3
GROSS PROFIT & MARGINNon-GAAP as a Percentage of Revenue
See GAAP to non-GAAP reconciliation in our appendix
$919
$1,159 $1,179
67.6%
70.5% 70.0%
FY19 FY20 FY21
LONG-TERMGM TARGET
70%
65%
Non-GAAP Gross Profit (Millions)
Annual Gross Profit & Margin Third Quarter Gross Profit & Margin
Gross Profit Margin
15©2021 Pure Storage, Inc.
7.4%
$51
7.8%
$56
8.2%
$4637.8% 40.0% 38.5%
18.7%19.3% 20.6%
07.5%
$29
8.3% $3 6.7%
$6939.1% 38.1%30.7%
18.3% 21.9%
18.8%
-25
3.7% 3.4% 2.7%
6.8%
0.8%
12.3%
OPERATING INCOME & MARGINNon-GAAP as a Percentage of Revenue
63.9%*
FY19 FY20 FY21
64.9%* 68.3%*
56.2%*
67.1%* 67.3%*
G&A S&M R&D Operating Income (Millions) Non-GAAP Operating Margin
Annual Operating Income & Margin Third Quarter Operating Income & Margin
FY20 Q3 FY21 Q3 FY22 Q3
(*) Non-GAAP operating expenses as a percentage of revenue
See GAAP to non-GAAP reconciliation in our appendix
16©2021 Pure Storage, Inc.
$43 $8 $101
$21
$25
$26
-41
19
79
139
$64 $102 $93
$100
$88$95
50
110
170
FY19 FY20 FY21FY19 FY20 FY21
Capital Expenditures (Millions) Free Cash Flow (Millions)
CASH FLOW
See GAAP to non-GAAP reconciliation in our appendix
$164
$190 $188
$64
$33
$127
-FY20 Q3 FY21 Q3 FY22 Q3
(5.6% ofrevenue)
(5.3% ofrevenue)
(7.4% ofrevenue)
(4.9% of revenue)
(6.1% ofrevenue)
(4.6% ofrevenue)
Annual Operating Cash Flow (Millions) Third Quarter Operating Cash Flow (Millions)
17©2021 Pure Storage, Inc.
Guidance
(1) We have not reconciled guidance for non-GAAP operating income and non-GAAP operating margin to their most directly comparable GAAP measures because items such as stock-based compensation expense and payroll tax expense related to stock-based activities that impact these measures are not within our control and/or cannot be reasonably predicted. Accordingly, a reconciliation of these non-GAAP financial measures guidance to their corresponding GAAP measures is not available without unreasonable effort.
. Q4 FY22 FY22
Revenue $ 630 Million $ 2.1 Billion
Non-GAAP Operating Income(1) $ 90 Million $ 206 Million
Non-GAAP Operating Margin(1) approx. 14% approx. 10%
Appendix
© 2021 Pure Storage,Inc. 18
19©2021 Pure Storage, Inc.
GROSS PROFIT & MARGINGAAP TO NON-GAAP RECONCILIATION
20©2021 Pure Storage, Inc.
OPERATING EXPENSESGAAP TO NON-GAAP RECONCILIATION
21©2021 Pure Storage, Inc.
FREE CASH FLOWGAAP TO NON-GAAP RECONCILIATION
OPERATING INCOME (LOSS) & MARGINGAAP TO NON-GAAP RECONCILIATION
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