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Pure Storage Announces Second Quarter 2023 Financial Results

Pure announces Q2 revenue growth of 30% year-over-year.

1Pure Storage Announces SecondQuarter Fiscal 2023Financial ResultsQ2 revenue growth of 30% year-over-year, record Q2 operating profitSubscription services ARR $955 million, up 31% year-over-yearRaised FY23 revenue outlook to $2.75 billionMOUNTAIN VIEW, Calif. –August31, 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 secondquarter ended August7, 2022."Pure saw continued growth and solid market share gains as our expanding portfolio of industry leading products and services are recognized and embraced by more and more enterprises around the world," said Charles Giancarlo, Chairman and CEO, Pure Storage."Customers struggling with their ability to manage their exploding volumes of data look to Pure for simple, automated solutions."SecondQuarter Financial Highlights•Revenue $646.8 million, up 30%year-over-year•Subscription services revenue $232.2 million, up 35%year-over-year•Subscription Annual Recurring Revenue (ARR) $955.3 million, up 31%year-over-year•Remaining Performance Obligations (RPO) $1.5billion, up 25%year-over-year•GAAP gross margin 68.6%; non-GAAP gross margin 70.4%•GAAP operating income $14.4 million; non-GAAP operating income $106.0 million•GAAP operating margin 2.2%; non-GAAP operating margin 16.4%•Operating cash flow $159.4 million; free cash flow $134.2 million•Total cash, cash equivalents, and marketable securities $1.4 billion•Returned approximately $61millionin Q2 to stockholders, repurchased 2.4millionshares"We are pleased to again deliver strong revenue growth and profitability in Q2," said Kevan Krysler, CFO, Pure Storage."We are helping our customers navigate a dynamic and challenging environment as we continue our track record of delivering highly performant solutions within our normal lead times, requiring less energy and space than other data storage alternatives."SecondQuarter Company Highlights•Market-Leading Portfolio Innovation: Pure introduced the new FlashBlade//S family of products, built with amodular architecture that shares components with Pure’s industry leading FlashArray. The highly flexible, all-QLCsystem combines performance and cost effectiveness to address the demands of unstructured data and modernapplication growth. Pure also delivered AIRI//S, the next generation of its complete AI-ready infrastructuredeveloped with NVIDIA.•Expanded Storage Flexibilityand as-a-Service Offerings:Pure advanced its portfolio of Evergreen offerings,including the new fleet-level Evergreen//Flex, extending leadership in Storage-as-a-Service (STaaS) whilesupporting customers where they are in their journey to embracing flexible delivery models.•General Availability of Pure Fusion:Pure Fusion enables enterprises and MSPs to automate and orchestratetheir data storage environment and offer storage services to customers and developers through APIs, dramaticallyaccelerating developer workflow.•Kubernetes Leadership Recognition:Portworx was named a leader and outperformer in the GigaOm RadarReports for Enterprise Kubernetes Storage and Cloud-Native Kubernetes Data Storage for the third consecutive

2year. Additionally, in Q2, Portworx Data Services (PDS) became generally available and the company introduced portfolio advancements to its suiteof Portworx offerings.Third Quarter and FY23 GuidanceQ3 FY23FY23RevenueApprox. $670 MillionApprox. $2.75 BillionNon-GAAP Operating Income$85 Million$390 MillionNon-GAAP Operating MarginApprox. 12.7%Approx. 14%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 secondquarter fiscal 2023results at 1:30 pm PT today, August31, 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 367923.Upcoming EventsPure is scheduled to participate at the following investor conferences:Deutsche Bank’s 2022 Technology ConferenceDate: Thursday, September 1, 2022Fireside Chat Time: 1:15 pm PDTPure Presenters: Ajay Singh, Chief Product Officer and Sanjot Khurana, VP, Investor Relations & TreasurerEvercore ISI 2nd Annual TMT ConferenceDate: Wednesday, September 7, 2022Pure Participant: Sanjot Khurana, VP, Investor Relations & TreasurerCiti’s 2022 Global Technology ConferenceDate: Thursday, September 8, 2022Pure Participant: Sanjot Khurana, VP, Investor Relations & TreasurerGoldman Sachs Communacopia + Technology ConferenceDate: Monday, September 12, 2022Fireside Chat Time: 4:30 pm -5:10 pm PDTPure Presenters: Charles Giancarlo, Chairman and CEO and Kevan Krysler, CFOPure Participants: Sanjot Khurana, VP, Investor Relations & TreasurerThe presentation(s) will be webcast live and archived on Pure's Investor Relations website at investor.purestorage.com.