Pure Storage Q2 Revenue Up 11%

By Bobby Samwell • Thursday, August 29 07:57 • Permanent Link

Pure Storage (NYSE: PSTG) has announced its financial results for the second quarter of fiscal year 2025, ended August 4, 2024. The company reported total revenue of $763.8 million, reflecting an 11% increase year-over-year. Subscription services revenue also saw significant growth, reaching $361.2 million, up 25% year-over-year.

Additionally, the subscription annual recurring revenue (ARR) reached $1.5 billion, marking a 24% increase compared to the previous year. The remaining performance obligations (RPO) also saw a substantial uptick, reaching $2.3 billion, up 24% year-over-year.

Pure Storage reported a GAAP gross margin of 70.7% and a non-GAAP gross margin of 72.8%. The company's GAAP operating income was $24.9 million, with a non-GAAP operating income of $138.6 million. The GAAP operating margin was 3.3%, while the non-GAAP operating margin stood at 18.1%.

In terms of cash flow, Pure Storage reported Q2 operating cash flow of $226.6 million and free cash flow of $166.6 million. The company also disclosed a total of $1.8 billion in cash, cash equivalents, and marketable securities.

Looking ahead, Pure Storage provided guidance for the third quarter and fiscal year 2025. For Q3, the company expects revenue of $815 million, representing a year-over-year growth rate of 6.8%. The non-GAAP operating income for Q3 is anticipated to be $140 million, with a non-GAAP operating margin of 17.2%.

For the full fiscal year 2025, Pure Storage projects revenue of $3.1 billion, reflecting a year-over-year growth rate of 10.5%. The total contract value (TCV) sales for subscription-as-a-service offerings are expected to reach $500 million, with a year-over-year growth rate of approximately 25%. The non-GAAP operating income for the fiscal year is estimated to be $532 million, with a non-GAAP operating margin of 17%.

In terms of company highlights, Pure Storage emphasized its platform innovation, ESG leadership, and enterprise AI momentum. The company also received accolades, including being ranked #15 on Fortune's Best Large Workplaces in the Bay Area and #34 on Fortune's Best Workplaces for Millennials.

As a result of these announcements, the company's shares have moved -2.2% on the market, and are now trading at a price of $59.76. For more information, read the company's full 8-K submission here.

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