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Pure Storage (PSTG)

Pure Storage gives technologists their time back. Pure delivers a modern data experience that empowers organizations to run their operations as a true, automated, storage as-a-service model seamlessly across multiple clouds. One of the fastest-growing enterprise IT companies in history, Pure helps customers put data to use while reducing the complexity and expense of managing the infrastructure behind it. And with a certified customer satisfaction score in the top one percent of B2B companies, Pure's ever-expanding list of customers are among the happiest in the world.

Company profile

Ticker
PSTG
Exchange
CEO
Charles Giancarlo
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
Former names
Os76, Inc.
SEC CIK
Subsidiaries
Portworx Inc. • Pure Crowns Sweden Holding AB • Pure Storage Australia Pty Ltd • Pure Storage Austria, GmbH • Pure Storage Belgium BVBA • Pure Storage do Brasil Solucoes e Servicos de Armazenamento de Dados Ltda • Pure Storage Canada Limited • Pure Storage Czech Republic s.r.o. • Pure Storage France SARL • Pure Storage Germany GmbH ...

PSTG stock data

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

14 Sep 22
28 Sep 22
5 Feb 23
Quarter (USD) Aug 22 May 22 Feb 22 Oct 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Feb 22 Jan 21 Feb 20 Jan 19
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
20 Sep 22 Ajay Singh Class A Common Stock Payment of exercise Dispose F No No 28.14 16,811 473.06K 345,405
20 Sep 22 Giancarlo Charles H Class A Common Stock Payment of exercise Dispose F No No 28.14 42,716 1.2M 1,566,083
20 Sep 22 John Colgrove Class A Common Stock Payment of exercise Dispose F No No 28.14 17,030 479.22K 7,930,413
20 Sep 22 P. Kevan Krysler Class A Common Stock Payment of exercise Dispose F No No 28.14 30,199 849.8K 538,709
20 Sep 22 Mona Chu Class A Common Stock Payment of exercise Dispose F No No 28.14 2,802 78.85K 180,063
13F holders Current Prev Q Change
Total holders 383 386 -0.8%
Opened positions 64 73 -12.3%
Closed positions 67 49 +36.7%
Increased positions 134 131 +2.3%
Reduced positions 123 129 -4.7%
13F shares Current Prev Q Change
Total value 6.3B 15.98B -60.6%
Total shares 271.02M 268.85M +0.8%
Total puts 1.29M 910.34K +41.2%
Total calls 2.98M 2.61M +14.4%
Total put/call ratio 0.4 0.3 +23.3%
Largest owners Shares Value Change
FMR 36.32M $933.7M +9.8%
Vanguard 27.72M $712.58M +1.3%
Greylock XIII Limited Partnership 26.84M $0 0.0%
TROW T. Rowe Price 17.1M $439.64M -6.7%
BLK Blackrock 14.85M $381.8M +2.6%
Champlain Investment Partners 14.52M $373.42M -0.9%
William Blair Investment Management 7.01M $180.2M -10.8%
First Trust Advisors 6.44M $165.47M -22.3%
Two Sigma Advisers 5.22M $134.2M +6.0%
Disciplined Growth Investors 5.13M $131.85M +1.2%
Largest transactions Shares Bought/sold Change
FMR 36.32M +3.24M +9.8%
Millennium Management 4.82M +3.11M +182.4%
First Trust Advisors 6.44M -1.85M -22.3%
Wellington Management 1.92M -1.29M -40.2%
TROW T. Rowe Price 17.1M -1.22M -6.7%
DB Deutsche Bank AG - Registered Shares 2.8M +1.21M +76.6%
BNS Bank Of Nova Scotia 154.82K -1.08M -87.5%
Holocene Advisors 839.8K -1.07M -56.1%
LMR Partners 1.3M +910.28K +232.0%
STRS Ohio 894.33K -887.26K -49.8%

Financial report summary

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Risks
  • Our business, operating results, and cash flows may be adversely impacted by a rising rate of inflation.
  • We rely on contract manufacturers to manufacture our products, and if we fail to manage our relationships with our contract manufacturers successfully, our business could be negatively impacted.
  • We rely on a limited number of suppliers, and in some cases single-source suppliers, and any disruption or termination of our supply arrangements could delay shipments of our products and could harm our relationships with current and prospective customers.
  • If we do not manage the supply of our products and their components efficiently, our results of operation could be adversely affected.
  • Our business, operating results, cash flows and financial condition have been affected by the COVID-19 pandemic, including the resulting global economic uncertainty and measures taken in response to the pandemic, the impacts of which will depend on ongoing and future developments, which are highly uncertain and difficult to predict.
  • The rapidly evolving market for data storage products makes it difficult to forecast demand for our products.
  • Our business may be harmed by trends in the overall external storage market.
  • We face intense competition from established companies and new entrants.
  • Many of our competitors have long-standing relationships with key decision makers at current and prospective customers, which may inhibit our ability to compete.
  • Our brand name and our business may be harmed by the marketing strategies of our competitors.
  • If we fail to successfully maintain or grow our relationships with partners, our business, operating results and financial condition could be harmed.
  • Our sales cycles can be long, unpredictable and expensive, making it difficult for us to predict future sales.
  • Sales to U.S. federal, state, local and foreign governments are subject to a number of challenges and risks that may adversely impact our business.
  • If we fail to develop and introduce new or enhanced products successfully, our ability to attract and retain customers could be harmed.
  • If we fail to execute our transition to subscription offerings successfully, our revenues and results of operation may be harmed.
  • Our products are highly technical and may contain defects or bugs, which could cause data unavailability, loss, breach or corruption that might, in turn, result in liability and harm to our reputation and business.
  • If we are unable to ensure that our products interoperate with third party operating systems, software applications and hardware, we may lose or fail to increase our market share.
  • Our products must conform to industry standards in order to be accepted by customers in our markets.
  • Our ability to successfully market and sell our products is dependent in part on ease of use and the quality of our support offerings, and any failure to offer high-quality installation and technical support could harm our business.
  • We intend to continue focusing on revenue growth and increasing our market penetration and international presence by investing heavily in our business, which may put pressure on near-term profitability.
  • Our gross margins are impacted by a variety of factors and vary from period to period, making them difficult to predict with certainty.
  • Our operating results may fluctuate significantly, which could make our future results difficult to predict and could cause our operating results to fall below expectations.
  • The sales prices of our products and services may fluctuate or decline, which may reduce our gross profits, revenue growth, and adversely impact our financial results.
  • We have experienced growth in prior periods, and we may not be able to sustain future growth effectively or at all.
  • If we are unable to sell renewals of our subscription services to our customers, our future revenue and operating results will be harmed.
  • We expect that revenue from subscription services will increase as a percentage of total revenue over time, and because we recognize this revenue over the term of the relevant contract period, downturns or upturns in sales of subscription services are not immediately reflected in full in our results of operations.
  • We may require additional capital to support business growth, and this capital might not be available on acceptable terms, or at all.
  • We are exposed to the credit risk of some of our customers, which could harm our business, operating results and financial condition.
  • If our security measures, or those maintained on our behalf, are compromised now, or in the future, or the security, confidentiality, integrity or availability of our information technology, software, services, networks, products, communications or data is compromised, limited, or fails, our business could experience a material adverse impact, including without limitation, a material interruption to our operations, harm to our reputation, a loss of customers, significant fines, penalties and liabilities, or breach or triggering of data protection laws, privacy policies or other obligations.
  • If we are unable to attract, motivate and retain sales, engineering and other key personnel, including our management team, we may not be able to increase our revenue and our business, operating results and financial condition could be harmed.
  • If we fail to adequately expand and optimize our sales force, our growth will be impeded.
  • Our company culture has contributed to our success, and if we cannot maintain this culture as we grow, we could lose the innovation, creativity and teamwork fostered by our culture, and our business may be harmed.
  • Our long-term success depends, in part, on sales outside of the United States, which subjects us to costs and risks associated with international operations.
  • Our international operations, as well as tax law changes, could expose us to potentially adverse tax consequences.
  • Third-party claims that we infringe their intellectual property rights could be costly and harm our business.
  • The success of our business depends in part on our ability to protect and enforce our intellectual property rights.
  • Our use of open source software could impose limitations on our ability to commercialize our products.
  • Failure to comply with governmental laws and regulations could harm our business.
  • Governmental regulations affecting the import or export of products could negatively affect our revenue.
  • We may acquire other businesses which could require significant management attention, disrupt our business, dilute stockholder value, and adversely affect our operating results.
  • Restrictive covenants in the agreement governing our senior secured revolving credit facility may restrict our ability to pursue business strategies.
  • We may be required to expend a significant amount of funds to settle conversions of the Notes or to repurchase the Notes upon a fundamental change, and our future debt may contain limitations on our ability to pay cash upon conversion or repurchase of the Notes.
  • Servicing our debt will require a significant amount of cash.
  • We may still incur substantially more debt or take other actions that would diminish our ability to make payments on the Notes when due.
  • The conditional conversion feature of the Notes, if triggered, may adversely affect our financial condition and operating results.
  • The capped call transactions may affect the value of the Notes and our common stock.
  • The trading price of our common stock has been and may continue to be highly volatile, and an active, liquid, and orderly market for our common stock may not be sustained.
  • We cannot guarantee that our share repurchase program will enhance shareholder value, and share repurchases could affect the price of our common stock.
  • If securities analysts do not publish research or reports about our business, or if they downgrade our stock, the price of our stock could decline.
  • We have never paid dividends on our common stock and we do not anticipate paying any cash dividends in the foreseeable future.
  • Provisions in our amended and restated certificate of incorporation and amended and restated bylaws and under Delaware law might discourage, delay or prevent a change of control of our company or changes in our management and, therefore, depress the price of our common stock.
  • Our amended and restated certificate of incorporation provides that the Court of Chancery of the State of Delaware will be exclusive forum for substantially all disputes between us and our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.
  • Adverse economic conditions may harm our revenues and profitability.
  • Our business is subject to the risks of earthquakes, fires, floods and other natural catastrophic events, and to interruption by man-made factors such as war, computer viruses or terrorism or by the impact of public health epidemics or pandemics, such as the COVID-19 pandemic.
Management Discussion
  • Total revenue increased by $149.9 million, or 30%, during the second quarter of fiscal 2023 compared to the second quarter of fiscal 2022, and increased by $357.6 million, or 39%, during the first two quarters of fiscal 2023 compared to the first two quarters of fiscal 2022. The increase in revenue during these periods was driven by demand from enterprise, commercial and public sector customers across our entire product and solutions portfolio and key geographies.
  • The increase in product revenue during these periods was driven by sales from our entire portfolio of FlashArray and FlashBlade products, including FlashBlade//S, and sales to existing customers. In addition, we recognized approximately $60 million of revenue during the first quarter of fiscal 2023 relating to orders with several of our larger enterprise customers in the U.S. that we had forecasted to occur later in our fiscal year. The increase in subscription services revenue during these periods was largely driven by increases in sales of both our Evergreen Storage subscription services, including Evergreen//One, as well as increased recognition of deferred subscription services revenue contracts.
  • During the second quarter of fiscal 2023 compared to the second quarter of fiscal 2022, total revenue in the United States grew 31% from $353.2 million to $462.1 million and total rest of the world revenue grew 29% from $143.6 million to $184.6 million. During the first two quarters of fiscal 2023 compared to the first two quarters of fiscal 2022, total revenue in the United states grew 43% from $648.3 million to $926.7 million and total rest of the world revenue grew 30% from $261.3 million to $340.5 million. For further details on revenue by geography, see Note 14 of Part I, Item 1 of this Quarterly Report on Form 10-Q.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. junior Good
New words: abatement, bargain, dramatically, escalation, experimental, fifteen, Fusion, IRC, macro, orchestrating, Pennsylvania, predetermined, rent, stronger, Supplemental, system, workflow, Yen
Removed: compensatory, density, reform, unified

Patents

Utility
Copying a cloud-based storage system
27 Sep 22
Cloning storage systems in a cloud computing environment, including: receiving a request to create a cloud-based storage system; retrieving, from cloud-based object storage, one or more objects to include in the cloud-based storage system; and creating the cloud-based storage system, including storing, in block storage of the cloud-based storage system, data contained in the one or more objects retrieved from the cloud-based object storage.
Utility
Batch building for deep learning training workloads
27 Sep 22
Batch building for artificial intelligence workflows, including: issuing, responsive to a request for a batch of data objects, requests to a data repository for multiple data objects stored among one or more directories; selecting, in accordance with a batch building policy, a subset of data objects based on one or more responses to the requests; and providing, to the artificial intelligence workflow, a batch of data objects that includes the subset of data objects.
Utility
Storage layer data obfuscation
27 Sep 22
Storage layer data obfuscation, including: determining a subset of a dataset to obfuscate in accordance with a security policy; generating, based at least in part on the security policy, an obfuscated snapshot of the dataset that is representative of the dataset with the subset of the dataset obfuscated; and sending, to a target computer system, the obfuscated snapshot from which a restored version of the dataset includes the subset of the dataset obfuscated.
Utility
Utilizing Metadata Storage Trees in a Vast Storage Network
22 Sep 22
A method includes receiving data for storage and encoding the data to produce a plurality of data slices.
Utility
Memory Aligned Copy Operation Execution
22 Sep 22
Optimizing copy operations in a storage array, includes combining, in dependence upon a metadata optimization policy, a plurality of copy operations into a single copy operation and splitting the single copy operation into an optimized set of executable copy operations that copy data based on memory alignment.