Pure Storage, Inc. (PSTG) SEC Filing 10-Q Quarterly report for the period ending Wednesday, October 31, 2018
Revenue: $372.8 million, up 34% Y/Y, exceeding the high end of our guidance;
Gross margin: 66.8% GAAP; 68.1% non-GAAP, representing an all-time high;
Operating margin: -7.3% GAAP; 9.1% non-GAAP, up 3.4 ppts and 5.4 ppts Y/Y, respectively.
Join the virtual on-demand launch event on November 19 at 1:10 p.m. (PT) featuring 45 minutes of industry-changing insight.
Read the press release for additional details on our products, strategy and availability.
GAAP Quarterly Financial Information
Three Months Ended October 31, 2018
Three Months Ended October 31, 2017
Product Gross Margin
Support Subscription Gross Margin
Net Loss per Share – Basic and Diluted
The following information was filed by Pure Storage, Inc. on Monday, November 19, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
Sentiment Analysis off on
|Filter by Sentiment:||Filter by Category:||
View our Sentiment Analysis Tour
|Filter by Subcategory:|
|Click a sentiment analysis snippet below from Pure Storage, Inc.'s Management Discussions to find these positive and negative remarks within their 10-Q Quarterly report:|
- 18487866_168Revenue - ProductThe net cash inflows from changes in operating assets and liabilities were primarily the result of a $54.2 million increase in deferred revenue, an $11.8 million increase in accounts payable and a $0.4 million increase in accrued compensation and liabilities, partially offset by a $33.6 million increase in net accounts receivable, a $14.3 million increase in inventory, and a $14.0 million increase in deferred commissions.
- 18487866_132Financial - ExpenseThe remainder of the increase was primarily attributable to a $5.6 million increase in outside services to support our growth and international expansion, a $4.7 million increase in travel related expense, a $3.7 million increase in office and facilities-related expenses and a $2.5 million increase in marketing events and brand awareness program costs.
- 18487866_73Revenue - ProductAs a result, we expect that our business and results of operations will fluctuate from quarter to quarter, reflecting seasonally softer revenue and operating margin in the first half of our fiscal year, followed by a stronger second half, the relative impact of which will grow as we operate at a larger scale.
- 18487866_117Financial - EarningsProduct gross margin increased from 66.9% in the three months ended October 31, 2017 to 67.7% in the three months ended October 31, 2018 primarily driven by strong performance across our product lines.
- 18487866_28Revenue - ProductWe also intend to continue to invest in and expand our sales and marketing functions and channel programs, including expanding our global network of channel partners and carrying out associated marketing activities in key geographies.
- 18487866_174Financial - DebtNet cash provided by financing activities during the nine months ended October 31, 2018 of $548.1 million was primarily attributable to $562.1 million in net proceeds from issuance of the Notes, $43.3 million in proceeds from the exercise of employee stock options and $33.4 million in proceeds from issuance of common stock under the employee stock purchase plan (ESPP), partially offset by a $64.6 million payment to purchase Capped Calls, a $20.0 million common stock repurchase in conjunction with the issuance of the Notes and a $6.1 million repayment of debt assumed from the StorReduce acquisition.
- 18487866_122Financial - ExpenseThe remainder of the increase was primarily attributable to a $2.5 million increase in outside services expense and a $1.4 million increase in office and facilities related expenses.
- 18487866_125Financial - ExpenseThe remainder of the increase was primarily attributable to a $4.3 million increase in outside services expense and a $2.9 million increase in office and facilities related expenses.
- 18487866_165Revenue - ProductThe increase in inventory was primarily due to expanding product portfolio and to support revenue growth.
- 18487866_116Financial - EarningsTotal gross margin increased from 65.5% in the three months ended October 31, 2017 to 66.8% in the three months ended October 31, 2018 and increased from 65.6% in the nine months ended October 31, 2017 to 66.3% in the nine months ended October 31, 2018.
- 18487866_37Financial - Shares / EquityIn May 2018, we held Pure//Accelerate, our annual user conference, and introduced a number of new product and service offerings including: New FlashArray//X, delivering 100% NVMe-capable storage across our FlashArray product line, with the ability to unite SAN and DAS into a single, consolidated, shared, and more efficient data-center architecture.
- 18487866_137Financial - IncomeOther Income (Expense), Net nm - not meaningful Other income (expense), net decreased during the three and nine months ended October 31, 2018 compared to the three and nine months ended October 31, 2017 primarily due to interest expense associated with the amortization of debt discount and debt issuance costs in connection with the Notes issued in April 2018, which was $6.7 million and $14.8 million in the three and nine months ended October 31, 2018, and higher net foreign exchange losses in the three and nine months ended October 31, 2018 compared to the three and nine months ended October 31, 2017 as U.S. dollars strengthened relative to certain foreign currencies, partially offset by an increase in interest income of $4.1 million and $8.2 million in the three and nine months ended October 31, 2018 compared to the three and nine months ended October 31, 2017 as our cash, cash equivalents and marketable securities increased.
- 18487866_4Other - OtherFactors that could cause or contribute to such differences include, but are not limited to, those identified herein, and those discussed in the section titled "Risk Factors", set forth in Part II, Item 1A of this Form 10-Q and in our other SEC filings.
- 18487866_14Other - OtherSince launching in May 2012, our customer base has grown to over 5,450 customers, including over 35% of the Fortune 500.
- 18487866_119Financial - EarningsSupport subscription gross margin increased from 58.9% in the three months ended October 31, 2017 to 63.4% in the three months ended October 31, 2018 and increased from 58.0% in the nine months ended October 31, 2017 to 63.0% in the nine months ended October 31, 2018, primarily attributable to a continued increase in amortization of ongoing support subscription contracts as a result of our growing installed base, our continued efforts at driving operational efficiencies in our support organization and timing of renewal bookings during the period.
- 18487866_145Revenue - ProductOur future capital requirements will depend on many factors including our growth rate, the timing and extent of spending to support development efforts, the expansion of sales and marketing and international operation activities, the timing of new product introductions, the continuing market acceptance of our products and services, and the timing and settlement election of the Notes.
- 18487866_20Revenue - ProductWe have continued to experience substantial growth, with revenue for the three months ended October 31, 2017 and 2018 of $277.6 million and $372.8 million, representing year-over-year growth of 34%.
- 18487866_107Revenue - ProductThe increase in product revenue was primarily driven by higher FlashBlade and FlashArray revenue, due to both repeat purchases from existing customers and a growing number of customers.
- 18487866_21Revenue - ProductFor the nine months ended October 31, 2017 and 2018 our revenue was $684.9 million and $937.6 million, representing year-over-year growth of 37%.
- 18487866_154Financial - Shares / EquityThe Notes are convertible for up to 21,884,155 shares of our common stock at an initial conversion rate of approximately 38.0594 shares of common stock per $1,000 principal amount, which is equal to an initial conversion price of approximately $26.27 per share of common stock, subject to adjustment.
- 18487866_86Financial - ExpenseCost of support subscription revenue primarily includes personnel costs associated with our customer support organization and parts replacement costs, as well as allocated overhead costs.
- 18487866_106Revenue - ProductTotal revenue increased by $95.2 million, or 34%, during the three months ended October 31, 2018 compared to the three months ended October 31, 2017 and increased by $252.7 million, or 37%, during the nine months ended October 31, 2018 compared to the nine months ended October 31, 2017.
- 18487866_90Financial - ExpenseOperating expenses also include allocated overhead costs for employee benefits and facilities-related costs.
- 18487866_69Revenue - ProductIn order to capture long-term strategic opportunities, we intend to continue to target new customers, including large enterprises, service providers and government organizations, by continuing to invest in our field sales force and extending our relationships with key channel partners.
- 18487866_99Financial - ExpenseGeneral and administrative expense consists primarily of compensation and related expenses for administrative functions including finance, legal, human resources, IT and fees for third-party professional services as well as amortization of intangible assets pertaining to defensive technology patents and allocated overhead.
- 18487866_92Financial - ExpenseResearch and development expense consists primarily of employee compensation and related expenses, prototype expenses, depreciation associated with assets acquired for research and development, third-party engineering and contractor support costs, as well as allocated overhead.
- 18487866_163Revenue - ProductThe net cash inflows from changes in operating assets and liabilities were primarily the result of an $87.0 million increase in deferred revenue, an $11.8 million increase in accounts payable, a $7.6 million increase in accrued compensation and other liabilities and a $2.0 million decrease in prepaid expenses and other assets, partially offset by a $62.6 million increase in net accounts receivable, a $17.1 million increase in inventory, and a $9.1 million increase in deferred commissions.
- 18487866_97Revenue - ProductWe expect our sales and marketing expense to increase in absolute dollars and it may decrease as a percentage of revenue, as we expand our sales force and increase our marketing resources, expand into new markets and further develop our channel program.
- 18487866_2Other - OtherThese statements are often identified by the use of words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate," or "continue," and similar expressions or variations.
- 18487866_27Other - OtherBy investing in research and development, we believe we will be well positioned to continue our rapid growth and take advantage of our large market opportunity.
- 18487866_46Revenue - ProductThis joint sales approach provides us with the benefit of direct relationships with substantially all of our customers and expands our reach through the relationships of our channel partners.
- 18487866_68Other - OtherTo the extent more organizations recognize the benefits of all-flash storage and the adoption of all-flash storage increases, our target customer base will expand, and demand for all-flash storage will rise.
- 18487866_138Financial - IncomeIncome Tax Provision (Benefit) nm - not meaningful The increase in income tax benefit during the three months ended October 31, 2018 compared to the three months ended October 31, 2017 and the decrease in income tax provision during the nine months ended October 31, 2018 compared to the nine months ended October 31, 2017 were both attributable to a $3.7 million U.S. valuation allowance release related to the StorReduce acquisition, partially offset by higher foreign income taxes.
- 18487866_175Other - OtherNet cash provided by financing activities during the nine months ended October 31, 2017 was $37.9 million primarily attributable to $22.1 million in proceeds from issuance of common stock under ESPP and $15.8 million in proceeds from the exercise of employee stock options.
- 18487866_84Financial - ExpenseAllocated overhead costs consist of certain employee benefits and facilities-related costs.
- 18487866_63Revenue - ProductWe continue to make significant investments in our business to enable data-centric architecture to support today and tomorrow?s volume and velocity of data and to ensure the performance and reliability required for new data-driven applications, while substantially reducing costs and complexity for our customers.
- 18487866_104Other - OtherWe expect to maintain this full valuation allowance for the foreseeable future as it is more likely than not that the deferred tax assets will not be realized based on our history of losses.
- 18487866_71Other - OtherConsistent with the seasonality of enterprise IT as a whole, we generally experience the lowest demand for our products and services in the first quarter of our fiscal year and the greatest demand for our products and services in the last quarter of our fiscal year.
- 18487866_65Other - OtherData-centric architecture supports a wide range of classic business applications as well as modern webscale-architecture applications so that our customers can manage their existing applications more efficiently while they modernize their applications both on-premise and on the cloud.
- 18487866_66Other - OtherOrganizations are increasingly replacing traditional disk-based systems with all-flash storage systems, including those based on NVMe technologies, due to their higher performance, reliability and efficiency.
- 18487866_109Revenue - ProductThe increase in support subscription revenue was primarily driven by an increase in support subscription agreements sold with increased product sales, as well as increased recognition of deferred support subscription revenue contracts.
- 18487866_172MA - OtherNet cash used in investing activities during the nine months ended October 31, 2018 of $468.1 million resulted from net purchases of marketable securities of $383.4 million, capital expenditures of $70.8 million, and StorReduce acquisition payment of $13.9 million.
- 18487866_30Other - OtherIn addition, we intend to expand and continue to invest in our international operations, which we believe will be an important factor in our continued growth.
- 18487866_52Other - OtherWe do not charge separately for software, meaning that when a customer buys a FlashArray, FlashBlade, FlashStack, or AIRI, all Pure Storage array software functionality is included in the base purchase price, and the customer is entitled to updates and new features as long as the customer maintains an active support subscription agreement.
- 18487866_8Other - OtherAs the demand for data and the need for real-time analytics increase, we are focused on delivering software-defined all-flash solutions that are uniquely fast and cloud-capable, enabling customers to implement a data-centric architecture, maximize the value of data, gain competitive advantage and keep pace with cutting edge developments.
- 18487866_121Financial - ExpenseThe increase was primarily driven by an $18.2 million increase in employee compensation and related costs, including a $6.6 million increase in stock-based compensation expense, as headcount increased 20% from October 31, 2017 to October 31, 2018.
- 18487866_124Financial - ExpenseThe increase was primarily driven by a $43.2 million increase in employee compensation and related costs, including a $16.3 million increase in stock-based compensation expense, as headcount increased 20% from October 31, 2017 to October 31, 2018.
Please wait while we load the requested 10-Q Quarterly Report. If it does not load, please click the link below:https://www.last10k.com/sec-filings/report/1474432/000162828018014872/pstg-q3fy2019x10q.htm
Companies may provide additional information to their SEC Filings as exhibits. Click a link below to view an exhibit that was filed with this report:
Please wait while we load the requested exhibit. If it does not load, please click the link below:https://www.last10k.com/sec-filings/report/1474432/000162828018014872/ex-311q3fy2019.htm
Please wait while we load the requested exhibit. If it does not load, please click the link below:https://www.last10k.com/sec-filings/report/1474432/000162828018014872/ex-312q3fy2019.htm
Please wait while we load the requested exhibit. If it does not load, please click the link below:https://www.last10k.com/sec-filings/report/1474432/000162828018014872/ex-321q3fy2019.htm
- Form Type: Quarterly
- Number of times amended: 0
- Accession Number: 0001628280-18-014872
- Submitted to the SEC: Thursday, December 6, 2018 4:23:55 PM EST
- Accepted by the SEC: Thursday, December 6, 2018
- Period ending: October 2018
- Industry: Computer Storage Devices
Positive and negative sentiment analysis is available in these filings:
Pure Storage, Inc.
Intrinsic Value, Financial Stability and Ratios