Free Research Report as Pure Storage’s Quarterly Revenues Jumped 40.13%

LONDON, UK / ACCESSWIRE / June 21, 2018 / If you want access to our free earnings report on Pure Storage, Inc. (NYSE: PSTG), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=PSTG. The Company reported its financial results on March 21, 2018, for the first quarter of the fiscal year 2019, ended April 30, 2018. The Company surpassed analysts’ estimates for revenues and earnings for Q1 FY19. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Pure Storage most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=PSTG

Earnings Highlights and Summary

Pure Storage adopted ASC 606, the new standard related to revenue recognition, which became effective from February 01, 2018. The Company adjusted the prior period’s financial information in the reported quarter to reflect the adoption of this new standard.

Pure Storage reported total revenues of $255.95 million in Q1 FY19, reflecting an increase of 40.13% from $182.65 million in Q1 FY18, driven by the Company’s innovative business model, first-to-market technology innovations, and focus on customer success. The Company’s total revenues surpassed analysts’ consensus estimates by $4.35 million.

For the quarter under review, Pure Storage’s product revenues advanced 36.82% to $195.45 million on a y-o-y basis, and support subscription revenues increased 52.02% to $60.50 million on a y-o-y basis.

During Q1 FY19, Pure Storage’s cost of revenue advanced 41.04% to $89.63 million from $63.55 million in Q1 FY18. This was led by an increase in product cost of 42.39%, and an increase in support subscription cost of 37.31%. Pure Storage’s gross profit surged 39.65% to $166.32 million in the reported quarter from $119.10 million in the prior year’s same quarter.

Pure Storage incurred operating expenses of $228.19 million in Q1 FY19 compared to $177.29 million in Q1 FY18, reflecting an increase of 28.71%. During the quarter under review, the Company’s research and development (R&D) expenses advanced 19.97% to $78.49 million on a y-o-y basis, while its sales and marketing (S&M) expenses increased 33.35% to $122.37 million on a y-o-y basis. Pure Storage had a loss from operations of $61.87 million in the reported quarter versus $58.19 million in the previous year’s comparable quarter.

For the quarter ended April 30, 2018, Pure Storage reported a net loss of $64.30 million compared to a net loss of $57.16 million in the comparable period of last year. The Company’s loss per share also increased to $0.29 in the reported quarter from $0.28 in the previous year’s corresponding quarter. Pure Storage’s results for the reported quarter included stock-based compensation expenses. Excluding non-recurring items, Pure Storage had a non-GAAP net loss of $16.23 million, or $0.07 loss per share, in Q1 FY19 compared to $24.29 million, or $0.12 loss per share, in Q1 FY18. Market analysts expected the Company to report a loss per share of $0.12 for the reported quarter.

Cash Matters

Pure Storage had cash and cash equivalents of $735.14 million as on April 30, 2018, 201.22% higher than $244.06 million as on January 31, 2018. The Company had a long-term debt balance of $430.25 million at the end of Q1 FY19.

Pure Storage had cash inflow from operating activities of $18.60 million in Q1 FY19 compared to a cash outflow of $14.30 million in Q1 FY18. The Company had a free cash outflow without the employee stock purchase plan (ESPP) impact of $3.70 million in the reported quarter.

Pure Storage spent $22.30 million on purchases of property and equipment in Q1 FY19, 74.61% higher than $12.77 million in Q1 FY18. The Company repurchased common stock worth $20 million in the quarter under review.

Outlook

For the second quarter of the fiscal year 2019, Pure Storage expects revenues to be in the range of $296 million to $304 million. The Company expects non-GAAP gross margin to be between 63.50% and 66.50%, and non-GAAP operating margin to be between -7.0% to -3.0% for Q2 FY19.

For the full fiscal year 2019, Pure Storage expects revenues to be in the band of $1.32 billion to $1.37 billion. The Company expects non-GAAP gross margin to be between 63.50% and 66.50%, and non-GAAP operating margin to be between 0% and 4% for FY19.

Stock Performance Snapshot

June 20, 2018 – At Wednesday’s closing bell, Pure Storage’s stock declined 1.10%, ending the trading session at $24.19.

Volume traded for the day: 2.50 million shares.

Stock performance in the last month – up 2.59%; previous three-month period – up 20.89%; past twelve-month period – up 88.69%; and year-to-date – up 52.52%

After yesterday’s close, Pure Storage’s market cap was at $5.35 billion.

The stock is part of the Technology sector, categorized under the Data Storage Devices industry. This sector was up 0.2% at the end of the session.

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