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Pure Storage Q1 2023 Revenue Rises to $620.4M, up 50.3% YoY

The News: Pure Storage’s Q1 2023 revenue hit $620.4 million as the automated storage-as-a-service vendor reported its latest fiscal quarter earnings on June 1, up 50.3 percent from $412.7 million one year ago. Pure Storage also reported non-GAAP net income of $79.2 million, compared to a $360,000 net loss for the same quarter one year ago. Read here for the full Pure Storage Press Release.

Pure Storage Q1 2023 Revenue Rises to $620.4M, up 50.3% YoY

Analyst Take: This was a solid quarter for Pure Storage as the automated storage-as-a-service vendor showed positive signs in its latest earnings report, particularly compared to a year ago when a non-GAAP net loss of $360,000 took some wind out of the company’s sails.

Here are the Pure Storage Q1 2023 fiscal earnings by the numbers:

  • Q1 20223 revenue of $620.4 million, up 50.3 percent from $412.7 million year-over-year.
  • Q1 2023 non-GAAP net income of $79.2 million, compared to a $360,000 net loss in the same quarter one year ago.
  • Q1 2023 non-GAAP diluted earnings per share of $0.25 per share, compared to non-GAAP diluted earnings per share of $0.00 per share a year ago.
  • Q1 2023 subscription annual recurring revenue (ARR) of $899.8 million, up 29 percent from one year ago.

Remaining performance obligations of $1.4 billion, an increase of 26 percent over the same quarter in 2021.

Pure Storage’s Q1 2023 50.3 percent revenue jump was a highlight of the company’s performance for the quarter, giving it traction for the rest of the year. This positive performance is solid and we believe indicative of customer confidence in the company’s products, services, and value in the market. The enterprise data storage market has some big players and massive competition, including IBM, HPE, Dell EMC and NetApp, so this is not an easy market in which to do business.

What helps set Pure Storage apart from its competitors is its acute focus on the customer experience, which is evidenced by its leading Net Promoter Scores (NPS) across the B2B space. Those NPS scores are no accident, and we are bullish on those investments playing out positively over time.

Notably, Pure Storage’s Q1 2023 total revenue was bolstered by significant increases in both the company’s product and subscription services revenue segments.

Product revenue for the quarter reached $401.2 million, up 60.5 percent from $249.8 million in 2021, while subscription services revenue hit $219.2 million, up 34.6 percent from $162.8 million a year ago. Those are healthy increases for Pure Storage and are great numbers from which to build even more growth and customer satisfaction in the storage-as-a-service segment.

Pure Storage Provides Full Year 2023 Revenue Outlook

For the second quarter of 2023, Pure Storage provided a revenue estimate of about $635 million, and a revenue estimate for the full year of 2023 at about $2.66 billion. The company’s non-GAAP operating income for Q2 is estimated to be about $75 million, while its non-GAAP operating income for the full year is estimated to be about $320 million. Also provided was an estimated Q2 non-GAAP operating margin of about 11.8 percent, as well as a non-GAAP operating margin for the full year at about 12 percent.

Pure Storage Outlook

Pure Storage is also continuing to make smart product moves to better serve its customers, which is always a good strategy for growth and increased revenue. In May, the company unveiled a series of updates to its Portworx Data Services, including general availability of Portworx Data Services, the next generation of Portworx Enterprise, and the general availability of Portworx Backup-as-a-service. As we see enterprise architectures evolve, these innovations will serve its customer base well to enable data availability using modernized IT strategies—an important innovation given the current investments being made in the datacenter.

It will be interesting to watch this innovative storage-as-a-service vendor as it continues its growth and development in the critical data storage marketplace. Pure Storage delivered a strong beat this quarter and is continuing to make show progress and revenue growth while also maximizing the high value subscription business that investors love to see.

Disclosure: Futurum Research is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.

Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of Futurum Research as a whole.

Other insights from Futurum Research:

Pure Storage Expands Portworx Portfolio to Make Kubernetes More Rewarding for Developers

Pure Storage Unveils Expanded AI Efforts At Accelerate

Pure Storage Quietly Crushed its Q4 Showing Big Promise for 2020

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About the Authors

Daniel Newman is the Principal Analyst of Futurum Research and the CEO of Broadsuite Media Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise. Read Full Bio

Todd is an experienced Analyst with over 21 years of experience as a technology journalist in a wide variety of tech focused areas.