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2Q 2020 Financial Results

Access 2Q 2020 financial results from Pure Storage.

1Pure Storage Announces Second Quarter Fiscal 2020 Financial ResultsMOUNTAIN VIEW, Calif., August 21, 2019 – Pure Storage (NYSE: PSTG), the data solutions leader that helps innovators build a better world with data, today announced financial results for its second quarter ended July 31, 2019.“Our significant growth this quarter and continued market share gains are the result of creating a modern data experience for our customers,” said Charles Giancarlo, Chairman and CEO, Pure Storage. “Pure frees enterprises to leverage their data rather than locking it away.”Key Financial Highlights: • Revenue: $396.3 million, up 28%Year-over-Year• Gross margin: GAAP67.7%; non-GAAP69.4%• Operating margin: GAAP-16.4%; non-GAAP-0.8% Recent Company Highlights:Pure’s second quarter yielded strong momentum as customers are selecting Pure’s modern approach that enables organizations to better utilize all data today and for the future direction of their hybrid IT environments.• Customer Traction: Added more than 450 new customers in Q2, the highest number in any Q2 of our history.• Technology Momentum: The subscription-based Cloud Block Store beta as part of Pure Cloud Data Services, is oversubscribed and early customer feedback has been overwhelmingly positive.• Repurchase Program: Pure’s board of directors authorized a $150 million share buy-back program.“Pure’s strong growth in Q2 has separated us from the legacy vendors,” said Tim Riitters, CFO, Pure Storage. “Our fundamentals remain strong, and our innovative product cycle is helping customers leverage their data in a powerful way.”Organizational UpdateChief Financial Officer Tim Riitters will be departing the company this year after a successful five-year tenure. Riitters will remain on into the Fall as the company undergoes the search for a replacement CFO. Riitters first joined Pure in August 2014, assuming leadership of the company’s worldwide financial and accounting operations. In that time, he has helped drive an increase in revenue of nearly 10x, while also helping the company achieve profitability.“Tim has been an integral part of the Pure Storage leadership team for the last five years. As our CFO, the success of his tenure is in the numbers and the numbers speak for themselves,” said Giancarlo. “Everyone at Pure has the utmost respect for what Tim has accomplished and we wish him well.”

2Second Quarter Fiscal 2020 Financial HighlightsThe following tables summarize our consolidated financial results for the fiscal quarters ended July 31, 2019and 2018(in millions except percentages, per share amounts and headcount, unaudited):GAAP Quarterly Financial InformationThree Months EndedJuly 31, 2019Three Months EndedJuly 31, 2018Y/Y ChangeRevenue$396.3$308.928%Gross Margin67.7%66.7%1.0 pptsProduct Gross Margin69.1%67.5%1.6 pptsSupport Subscription Gross Margin63.5%63.9%-0.4 pptsOperating Loss$(64.9)$(55.2)$(9.7)Operating Margin-16.4%-17.9%1.5 pptsNet Loss$(66.0)$(60.1)$(5.9)Net Loss per Share – Basic and Diluted$(0.26)$(0.26)—Weighted-Average Shares251.3229.421.9Headcount>3,300>2,450~850Non-GAAP Quarterly Financial InformationThree Months EndedJuly 31, 2019Three Months EndedJuly 31, 2018Y/Y ChangeGross Margin69.4%68.0%1.4 pptsProduct Gross Margin70.0%67.9%2.1 pptsSupport Subscription Gross Margin67.4%68.4%-1.0 pptsOperating Income (Loss)$(3.2)$0.9$(4.1)Operating Margin-0.8%0.3%-1.1 pptsNet Income$2.5$2.4$0.1Net Income per Share$0.01$0.01—Weighted-Average Shares270.8262.68.2A reconciliation between GAAP and non-GAAP information is provided at the end of this release.Financial OutlookThird quarter fiscal 2020guidance:• Revenue in the range of $434 million to $446 million, or $440 million at the midpoint• Non-GAAP gross margin in the range of 66.0% to 69.0%, or 67.5% at the midpoint• Non-GAAP operating margin in the range of 3.0% to 7.0%, or 5.0% at the midpointFull year fiscal 2020guidance:• Revenue in the range of $1.645 billion to $1.715 billion, or $1.680 billion at the midpoint• Non-GAAP gross margin in the range of 67.0% to 69.0%, or 68.0% at the midpoint• Non-GAAP operating margin in the range of 2.25% to 4.75%, or 3.5% at the midpointAll forward-looking non-GAAPfinancial measures contained in this section titled “Financial Outlook” exclude stock-based compensation expense, payroll tax expense related to stock-based activities, amortization of debt discount and debt issuance costs, amortization of intangible assets acquired from acquisitions, any applicable anti-dilutive share count impact of our convertible debt hedge agreements and, as applicable, other special items. We have not reconciled guidance for non-GAAPgross margin and non-GAAPoperating margin to their most directly comparable GAAPmeasures because the items that