Pure Storage, Inc. has recently released its 10-Q report, detailing its financial performance and operations. The company provides data storage and management technologies, products, and services globally. Its offerings include the Purity software, FlashArray integrated hardware systems, FlashBlade integrated hardware systems, cloud-native storage solutions, and Pure Fusion, a Software-as-a-Service (SaaS) management plane.
In the first quarter of fiscal 2025, Pure Storage reported total revenue of $693.5 million, an 18% increase from the first quarter of fiscal 2024. The product revenue increased by 12% to $347.4 million, driven by strong customer demand for FlashBlade solutions. Subscription services revenue grew by 23% to $346.1 million, primarily due to increases in sales of Evergreen subscription services.
The company's Subscription Annual Recurring Revenue (ARR) reached $1.45 billion in the first quarter of fiscal 2025, reflecting a 25% year-over-year growth. Additionally, Pure Storage's Total remaining performance obligations (RPO) stood at $2.3 billion, including non-cancelable product orders, with approximately 48% expected to be recognized over the next 12 months.
Cost of revenue increased by 12% to $197.8 million in the first quarter of fiscal 2025, with product gross margin at 71% and subscription services gross margin at 72%. Operating expenses, including research and development, amounted to $193.8 million, representing 28% of total revenue.
Pure Storage's research and development expenses decreased by 2% to $143.5 million, primarily driven by additional stock-based compensation related to a modification of fiscal 2024 performance restricted stock units (PRSUs). The company's total expenses increased by 5% to $193.8 million, reflecting the impact of the modification of fiscal 2024 PRSUs.
Following these announcements, the company's shares moved 1.6%, and are now trading at a price of $67.99. If you want to know more, read the company's complete 10-Q report here.
