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Pure Storage Announces Third Quarter Fiscal 2023 Financial Results

Q3 revenue growth of 20% year-over-year, subscription services ARR exceeded $1 billion, increased FY23 non-GAAP operating income guidance.

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1Pure Storage Announces ThirdQuarter Fiscal 2023Financial ResultsQ3 revenue growth of 20% year-over-yearSubscription services ARR exceeded $1 billionIncreased FY23 non-GAAP operating income guidanceMOUNTAIN VIEW, Calif. –November30, 2022–Today Pure Storage (NYSE: PSTG), the IT pioneer that delivers the world's most advanced data storage technology and services, announced financial results for its fiscal thirdquarter ended November6, 2022.“An ever growing number of customers around the world trust Pure to provide the most advanced, reliable, and energy-efficient technology to satisfy their mission-critical data storage and management needs,” said Charles Giancarlo, Chairman and CEO, Pure Storage. “With the power of our unique Flash-optimized technology and differentiated business model, we look forward to managing increasingly more of their data storage requirements.”ThirdQuarter Financial Highlights•Revenue $676.0 million, up 20%year-over-year•Subscription Services revenue $244.8 million, up 30%year-over-year•Subscription Annual Recurring Revenue (ARR) $1.0billion, up 30%year-over-year•Remaining Performance Obligations (RPO) $1.6billion, up 26%year-over-year•GAAP gross margin 69.0%; non-GAAP gross margin 70.9%•GAAP operating income $9.1 million; non-GAAP operating income $107.2 million•GAAP operating margin 1.4%; non-GAAP operating margin 15.9%•Operating cash flow $154.7 million; free cash flow $114.8 million•Total cash, cash equivalents, and marketable securities $1.5 billion•Returned approximately $24.5millionin Q3 to stockholders, repurchased 888thousandshares“Through solid execution, we delivered strong financial results in Q3 by growing revenue 20 percent and increasing our operating profits,” said Kevan Krysler, CFO, Pure Storage. “Our leadership in Flash management, enabled with our software, and declining cost of Flash is accelerating our progress in replacing traditional disk solutions and substantially reducing data center energy consumption.”ThirdQuarter Company Highlights•Extending Leadership in Sustainability: Pureintroduced advancements in its sustainability efforts,helpingcustomers dramatically reduce their energy use and environmental footprint. The Pure1® Sustainability Assessmentgives customers visibility on their environmental impact and proactively suggests optimization opportunities,including power savings analysis and a greenhouse gas emissions monitor.•Portworx, Delivered as-a-Service:Pure announced a new fully managed service for Portworx® Enterpriseto bringa Kubernetes-ready data plane to every developer that works on containerized applications. Now, the full suite ofPortworx offerings can be consumed as a fully managed service. This provides ease of use and faster deploymentof Kubernetes data on any cloud or on-premises storage, enabling DevOps and platform teams to operate and scalecontainerized apps into production in seconds.•Gartner Magic Quadrant: A leader for nine consecutive years:◦Magic Quadrant for Primary Storage Arrays:Pure positioned highest on the ability to execute axis andfurthest on the completeness of vision axis.

2◦Magic Quadrant for Distributed File Systems and Object Storage:Pure named a leader in the rapidly growingstorage market for unstructured data.Fourth Quarter and FY23 GuidanceQ4 FY23 (Approx.)FY23 (Approx.)Revenue$810 Million$2.75 BillionNon-GAAP Operating Income$130 Million$430 MillionNon-GAAP Operating Margin16.0%15.6%These statements are forward-looking and actual results may differ materially. Refer to the Forward Looking Statements section below for information on the factors that could cause our actual results to differ materially from these statements. Pure has notreconciled its guidance for non-GAAP operating income and non-GAAP operating margin to their most directly comparable GAAP measures because certain items that impact these measures are not within Pure’s control and/or cannot be reasonably predicted. Accordingly, a reconciliation of these non-GAAP financial measures guidance to the corresponding GAAP measures is not available without unreasonable effort.Conference Call InformationPure will host a teleconference to discuss the thirdquarter fiscal 2023results at 2:00 pm PT today, November30, 2022. A live audio broadcast of the conference call will be available at the Pure Storage Investor Relations website, investor.purestorage.com. Pure will also post its earnings presentation to this website in advance of the call and post its prepared remarks to this website within 24 hours following completion of the call.A replay will be available following the call on the Pure Storage Investor Relations website or for two weeks at 1-866-813-9403 (or +44 204 525 0658 for international callers) with passcode 884841.Upcoming EventsPure is scheduled to participate at the following investor conferences:Credit Suisse 26th Annual Technology ConferenceDate: Thursday, December 1, 2022Time: 6:35 a.m. PT/ 9:35 a.m. ETAjay Singh, Chief Product Officer (CPO)Wells Fargo 6th Annual TMT SummitDate: Thursday, December 1, 2022Time: 11:20 a.m. PT/ 2:20 p.m. ETRob Lee, Chief Technology Officer (CTO)UBS Global TMT ConferenceDate: Tuesday, December 6, 2022Time: 8:40 a.m. PT/ 11:40 a.m. ETCharles Giancarlo, Chairman and CEO and Kevan Krysler, CFORaymond James Technology Investors ConferenceDate: Tuesday, December 6, 2022Time: 10:40a.m. PT/ 1:40 p.m. ETCharles Giancarlo, Chairman and CEO and Kevan Krysler, CFOBarclays Global TMT Conference