PSTG Pure Storage

Sanjot Khurana Vice President of Investor Relations
Charlie Giancarlo Chief Executive Officer
Kevan Krysler Chief Financial Officer
Rob Lee Chief Technology Officer
Pinjalim Bora JP Morgan
Aaron Rakers Wells Fargo
Jeff Rand Deutsche Bank
Wamsi Mohan Bank of America
Simon Leopold Raymond James
Shannon Cross Cross Research
Karl Ackerman Cowen & Company
Rod Hall Goldman Sachs
Amit Daryanani Evercore
Kathy Huberty Morgan Stanley
Nehal Chokshi Northland Capital
Matthew Cabral Credit Suisse
Matt Sheerin Stifel
Call transcript
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Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Pure Storage Second Quarter Fiscal Year 2022 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. At the conclusion of our prepared remarks, there will be a question-and-answer session. [Operator Instructions].

call recorded. this reminder, a is being As I today's conference like to host for introduce your call, would now Mr. Sanjot Khurana. Mr. Khurana, please go ahead.

Sanjot Khurana

Thank the Pure earnings afternoon. Relations at Welcome quarter of Vice good name XXXX Storage. Khurana, My conference you, fiscal call. Investor Sanjot President Pure Storage and second is to

Charlie are Kevan our Krysler; and me today Giancarlo; Lee. Joining our our CEO, CFO, CTO, Rob

to call begin, various management include the we remind prospects, industry during to growth you as update we its we all and which These make advantages, on obligation to are and and facts product of and and undertake I statements, risks operations. like subject offerings, no make our our future uncertainties. statements will COVID-XX this related technology would some pandemic strategy our business today, current sales forward-looking that Any Before disruptions, and are them. and that regarding: trends, competitive, and based assumptions and and statements our forward-looking

Our the differ materially refer an results to is our not performance. results uncertainties the actual of risks results reported to A filings. with we and contained be as future of public business the indication filings relating may of forecasted SEC, should some considered and our and discussion you in from these

and the release During to press comparable directly most provided discuss company's measures non-GAAP our we measures earnings performance, this GAAP will call, and in talking reconciliations in the are slides. about

website the over Pure property that, of turn Storage. is Relations is we CEO, recorded webcast will total This is call for playback on call purposes. Additionally, a Storage archive An the live be and when sales our orders. Giancarlo. the website available cancelable I'll being we Charlie With bookings being exclude on prepared and to the to our Investor mean refer in broadcast IR remarks, Pure of

Charlie Giancarlo

quarter quarter were QX in to exceeded pandemic, existing and you was growing, profitability strategy and performance this of pleased over These and the but past company, this cloud in highest be several we Revenue continuing the new shared today. every and products, also quarter show our for our Pure and investing a record growth years. our sales with that As expanding was extraordinary. our joining the share-taking an our the we profit outstanding everyone, and that These right both and one. of strategy QX! are XX%, investing expect revenue was history. breaking, I especially our us thank had we’ve long-term Sales, line, well Hello the results above of product of large had growth of expectations. enterprise geographically, key capability balance specifically and parts the penetration all into enterprise. our operating

Pure’s QX, are adjusted predicted will an stronger be the growth calls, this to obviously start that that discussed the past environment. would that environment. with results. We As believe We we to even accelerate in-office pleased as estimated return this past businesses and as we COVID in would very our we growth businesses

will transformation. vaccinations continue of return environment office full to the the temporarily, driving effects that to while pandemic to businesses that We only to year. that expect adjust spring and return the digital a do variant normal we Delta ahead, Looking large-scale a slowed the global enable next much to has believe of will by

enables we double current that believe to indicated historical environment with increasing to profitability. us the we last our growth quarter, rates, As digit return

market storage continues data Our and management innovation of to the grow. and leadership

modern modernization and environments; a applications enabling driving all-flash built modern future on on: all containers; focus with strategy a use-cases is Our procurement today’s focused the applications on infrastructure unified cloud data of storage the that operating across delivering and model, will cloud-native demand. and

results. revenue, $XXX company, the any of past more and, of year-over-year at almost highlighted the strong Let’s to enterprise areas compared customers This Pure Subscription up quarter spending comprising our doubled Services more history total. in than sales, strength sales by second over total to in provided a for as-a-Service, the in outstanding which quick success many growing year; the in the prior our growth revenues grow, continues with quarter momentum XX% in look performance, XX% highest XX with of large year; our XX% take top over than million and continued year

Cloud past and both announced part year-over-year services and many particularly small. interested all-flash of Portworx Portworx. over gain subscription fastest here are as-a-Service our with large sales Pure’s for history particular targets. Evergreen providers in highlights: to Portworx, costs. FlashArray//C model, the their to market’s were of data to one-half numerous with very the Every and reliability, offerings. and to As lower but All sales to It of Frankly, year workflows new year both container-based sales Pure tripling to of our service in Pure as-a-Service superlatives Portworx our and Evergreen, customers as and past strong attractiveness existing quarter, new improve been and the Financial FlashArray//C to It in XX% fully both a quarter product Pure, results a tripling year. has deliver Portworx. almost QX, sales. Portworx the Pure’s including and excitement and achieved tremendous our total sales and year together, mentioned, new increased over milestones. sales easily year. in to of too scale we few continued this quarter has their growth, center. making year to show nearly reduce approximately customers both acquisition continues Growth beaten continued remains ability footprint, products new I operational this of over the are new their quarter is use of enabling are customers, This growing enumerate, the last businesses is their approaching subscription from environmental subscription taken are transition an tripled with since These

SafeMode XXX ship instance, on a to is than ransomware to XX traditional millisecond reason fast of space For QX eight-figure Pure. modern begin This performance, compelling to SafeMode. total to and the services superior These infrastructure or our ownership. shares. more won both with to to and to introduction, modernize NFS and a code, their data success power are can high a snapshots have less examples ever they customers an customers strategy solution FlashBlade, a will a based And cost high-performance variety this their copy Microsoft to and immutable another manage the was send Only which recovery. organizations with customers Azure, of disk against takes enabled our turning provide destinations for recent infrastructure, and protection of data advantage small demonstrate AWS, in and win multi-cloud top months for as after over modern FlashArray//C, these of data such why of FlashArray magnetic X take footprint, through data environment. FlashBlade applications, need create hyper-scaler

focus customer these and expanding with new Our been rewarded goals relationships. on has

in virtual fuel of recently chose the Global our For firm, applications a Fortune Pure to financial Hub. core services operating example, subscription a expansion as-a-Service a enterprise of their XXX customers, one

their physical significant FlashRecover object performance, simplicity, They on this reduce contributing their XX% safely. and of solution found Evergreen nearly scale need they significantly ownership performance, ransomware footprint and increasing increases. fast And that to and sustainability securities Gold of While to total growing flexibility will with unified sub-millisecond estimate XX%, environmental firm with have attacks, while they scale and safety this platform, data by global SafeMode a UK-based recovery cost by requirements were Pure’s the providing performance about subscription, goals. their nearly reduce able concerns our file FlashArray now capabilities. the global FlashBlade to they Using platform with in protection an performance

on Our things our the right to on doing strategy founding since focus customers and is things our right. for doing

environmental to customer-first cooling, going environmental means maintenance, for is we around of programs cloud-operating automate be applications. all-flash trends footprint, need less lowest we model their our use for our quantitative the increasing the and in produce data and total companies and management focus own have customers’ services providing our infrastructure; world up have less cloud-native we the lead by Pure sustainability our enable and that industry: less major will that Our advantaged measures on energy, private take of waste. to dovetail cloud we center; a goals data ensuring the and services values. With more hybrid products less advanced tools forward. shift modern our Storage the cost require most less Part products driving designing and ownership in to their space with

and that note the Rob through was would their half especially digital accelerate to of Colgrove, Krysler. entered serve our recovery Congratulations, the service, will to advancements title serve we that Kevan, have as clearly I founder now with our economic am to investment continue whom turn will full time. that as year. in current of momentum Officer. our addition this served are performance and we Coz worked take our I annual Pure Visionary as and Officer. pleased very will QX to to over add products the who that just I uncertainty has Chief sustainable raised One at COVID-XX, momentum. guide in and outlook. Congratulations, continue throughout tirelessly know, want him, created evidenced Coz. title I continue last Rob of and with our like the partners the thank our our customers who past year, period. and of over been would in renewed the evident and Technology Rob will into Lee, we as half great call many to first Pure’s Coz, to will this the customers feel proud Chief you our QX to Rob. deserves his promoted by stated a.k.a. first Pure This support of environment, to great the also to you. In before employees in confident CFO CTO, have Kevan made and to we QX. have transformation our difficult John As announce report who confidence this in Everyone

Kevan Krysler

strong Thank Similar results. execution which more our our the what afternoon. our last be entire with could saw to not sales is sales growth our QX portfolio, across you orders. business, globe and XX%, execution our performance. our financial excluding of contributed reflected We strength saw and we services, including We of good to cancelable pleased quarter Charlie in the subscription

FlashArray//X a year, of high for record and strength across FlashBlade more sales new QX. Public significant Commercial year established FlashArray//C gained tripled business than our customers, core and Our Sector over Enterprise, sales

seven of record we quarters. enterprise reflects quarter. XX% continued highest growth performance RPO, Subscription strength with year-over-year year-over-year its RPO $X.X revenue rate quarter Pure non-cancelable XXX this and revenue to Services, obligations, acquired growth growth, revenue previous the or had We Remaining committed sales including product our our Our as-a-Service. future subscription, unified new XX%. was customers quarter, of and the includes growth growing compared customers which our was billion, strength representing XX% this particular saw new this and

non-GAAP Now to year value in this turning Revenue be very continue end to on total million. revenue States was and Non-GAAP over The the XX.X%. results grew continue gross approximately gross Total XX%. reflected term Product revenue. growing margins of total and and differentiated software revenue $XXX XX% XX% expectations of financial quarter. of XX% for quarter strong XX.X% Services year. represents product approximately quarter. specific grew compared Subscription revenue XX% our to grew the margins be the long of at high grew the revenue to solutions our last XX% United during in year, our International to approximately

XX.X%. margins We services expect continue our delivering improving non-GAAP subscription sales product outperformance efficiency and to offerings on and operating depending mix were gross scale. product margin strong million. to Revenue will that profits newer of contributed Non-GAAP as fluctuate margins $XX.X

billion $X.XX to approximately and a slightly Capital quarter. COVID contributed lower high $XXX the X.X from expenses We of expenditures resulting leverage. improved our capital to cash reduced with X,XXX ended this million travel the operating due repurchase and on-going $XX hiring achieved strong $XXX environment during also operations slower-than-planned Continued shares quarter. from the in linearity collections million million quarter part operating flow during and employees. share quarter Cash the of of record We repurchase over well as million, as approximately program. were $XX returned over million as increasing to

Now guidance. turning to

We momentum are with very efficiencies. sustained and operational pleased our improving

growing We revenue expect approximately XX%. be $XXX QX to million, almost

sale revenue of connection we with recognize includes top guide one to QX the hyper-scalers. the FlashArray//C expect XX for in Our revenue to of

I that be non-GAAP million. annual mentioned expect would our also will previous view. be We operating in updating $XX not we quarters have profit approximately

given updated quarters, outlook now our several billion, view. of growing that we financial However, QX, the our XX% $X our last the business approximately billion. for year We annual the revenue strong for performance strong including over expect will have also to $X.XX surpass

that expect operating approximately time will is an Pure. at million. also We This be $XXX income exciting

compelling us your also Day operator a turn really and on With on questions. service am increasing our at it are focus partners. for you looking strategy, our our all of revenue and executing Our and and get Analyst we over we growth join September to that, with is the forward profitability. I to having innovation virtual I you accelerating can to Thank so XX. to employees customers will


comes question Pinjalim from of your [Operator Morgan. first Instructions] JP line with And


super you here. maybe anything of just it going quarter have Probably struggle short solid one lead times, in share? to the surprise at partners helping think A tend lot relatively Pure would highest Do you doing you if think Seems times. love did lead a was high gain competitors the see we of like backward. with that in to can Charlie highlighted were the checks? quarter continues you longer I continues quarter the I to that be Anything looking a -- that to level, beats at when surprised know? while is to


base. gain we've why lot a preparing so quarter done are enterprise while as support developing our all sales COVID of why crisis, during customer accustomed on focus a in And share really as second of I we been and the was the portfolio capabilities, that our of set well as hitting think there's of that the and that is become portfolio that coming to the COVID disruption good within customers products, together to none. to in beginning products environment, But was reason have our continue a being finally stride. and with of both it's the course, the operating

And this company be you forward. so we growth we very the will, expect for go as beginning, no, evident of to the if


inflationary as fair were follow-up that. able it pricing competitors the that pressures Thank you my maintain comments. seems if for correctly, One the Strong It to for Despite gross Kevan. I sequentially, did you margin math better been kind the that inflation like less creeping in have the presumably say a price component you the is discounting do made saw up, to of environment maybe field? quickly.


is One Well, math hey, is, right. Pinjalim. -- I the think your

So absolutely, held And things. of really we testament I margins. that's think a couple a gross on to

our do to think continues an operations outstanding team I job.

sales of very did in the to are our hold of performance your saw continuing we the yes, why I saw. with suppliers and that that to And to we attribute discounting gross answer us. execution Our work and question, a lot specifically, team, margin really discipline and closely terms


Fargo. Rakers from comes of question of Wells Aaron next Your line


I for a I the question solid is you've for that, have forward? and the referenced fact more customer tied offerings the sounds that usage? XX the that it the And that -- question. Thanks of customer, to cloud traction taking hyperscale going results now today's expect beginning guess you their be And that for Throughout call, like hyperscale guide. of on on got you Yes. FlashArray//C company this or to the follow-up. Also is product. for is do top potential kind the congrats internal a


of a overall it’s operations. Yes, their part

the of look a And, that customers in hyperscale we question this both continuing from sense that beginning So is similarly think other I this it's as we with as you the answer flash feel of situated seeing well the starting think at do as customer, to the asked. is real affirmative sustainable alternative.

think within disk. kind have this on store, structure. compete As that is of they breaking the market. the their They hyperscalars, the storage the performance bit most of flash disk. disk we know, they may on the can you majority the of price a have vast most but servers, may finally beginning little We all for store of part, what And of that is in really


Very then up question helpful. XX%. a -- Pure combined on if was referenced the got the follow-up that actually revenue, subscription I on correctly that. believe And the to revenue close I Evergreen think Portworx as-a-Service, you up basis, is you and wanted mentioned subscription to year-over-year XX% I I

Services as growing I three wasn't So, of as what line curious -- guess, that I'm that other that is Subscription fast mentioned? you in other the combined maybe is what


Hey, Aaron, this a this is clarification. is Kevan. And just

really sales and think towards with revenue I the there's is then lag XX% the and a obviously bookings and the reference revenue.

here different to. two referring metrics So, that we're


to majority, line of the Portworx and Pure if Evergreen, so the services not in P&L? the clear, Okay, are be as-a-Service just basically all


That's correct.


Bank. Your next of from question line with Deutsche the Sidney Ho comes


Hi, this kind this the the I close us hyperscalers, the cloud on compared better just pricing to more idea to about Rand is Or is can Sidney. on has Jeff how HDDs? the for wanted of an for need follow-up gotten you providers? by of the FlashArray//C give performance into


I take Rob. that jump in, is first. and one will This

such when relative attributes very actually But all of seeing think So, price price look some at, able the disk centers. without FlashArray//C the them go footprint with we're look savings, we at XX% example, have competitive, the we systems can large advantage speaking, meet with, is benefits especially what all right? seeing, that, cases. at to was hyperscaler price we're meaningful, across this new equation competing been of this so, having the But that being product needs, super the power, the build FlashArray//C are generally data only and to I FlashArray//C those as as one deal become up hyperscale, -- as in bring for super, their savings, element and flash, they is And very cooling other meaningful board. but its to we price to from hybrid such are the performance, customer,


Great, just update on chain your as you. in prepared follow give And if then supply chain you missing us remarks, an revenue anything constraints? to didn't up, on supply mention thank my any new you're out on you can that,


just great changed quarter. saw be we're the obviously, operations focused suppliers. hasn't perspective our again, team, think results job a with in Yes, Obviously, no, the our print. our you doing We we partnership to what our environment, from in from it. on I see much continue And with last

this so area that focus value half. And again, testament our sales value, will We'll associated be to selling an through the second a solutions. will we But continue to continue especially manage software on to with our that. the team


Your Wamsi one question next comes of of Bank from of America. Mohan


Yes, you. thank

easier for quarter But next Your from compares. be sort growth. can XX XX% close acceleration XX explained that guidance really all to that to be of explained can calls from to for

the seeing, traction, one Charlie hand, gains. On you're good share about you very spoke

as are sort for essentially this outlook of better reiterating You the well. full-year

trying organic acceleration, further is on aren’t Just backdrop why being we acceleration Delta why further transitory? reconcile XX%, when a not I'm a XX% think somewhat top? of especially wouldn't seeing good, but the really comments maybe about the see saying to around you you


the year are compare two take year, over company your two over compares growth the does year-over-year but frankly not of we -- last explained gain a XX% rate a year significant sure terms Wamsi, last obviously year, would it rate being growth year, in even year rate. just last I -- at I'm it's rate substantial if growth by not as the we not of a math and follow anomalous represent because easier over just but a compare entirely with over looking and at

both the is was what it's this environment. as raise, given think our as forward a for course look annual guide appropriate And we entire it of quarter, coming suitably from So, well a consensus. to

we feel an do that So, it's appropriate raise.


driving the we're are with XX% of the that, the FlashArray//C. growth year, with seeing QX next outlook We what terms highlighted almost we're very pleased in idea opportunity on we and

we've that guide that. with come actually with the We're pleased think out is strong. I very quite QX So,


of the think profit improvement heard hire say dollar of I Okay, Kevan I I would great. a maybe think for operating Can you. fast to. not on operating about you that? elaborate few function versus you next you margin the terms you in some maybe the of have could, much improvement, just little the bit to are as liked we a was If Thank How able that, as that hiring? target quarters? behind trajectory should How of


with what only the but organization. really with Yes, really coming that's absolutely. not And coming the quarter the that's driving, growth the it. top-line I from again, And really operating pleased with, was leverage we're that sales was

that We the on saw the seeing are strong remainder primarily and that we the sales discipline, increased year. through QX we're outlook seeing really and leverage come the productivity efficiency and operating for of and for frankly

when I sales, COVID leverage, tailwind increasing in execution the bit as And a team. first And then, at yes, terms think we've we're of of look operating from well what the as little doing on environment. about would so, sales of performance, I the the outperforming margin gross got

As at I that points to view points we quarter. between X I would of that QX, X this X saw of the kind look

even the are that quite the contributors, though more line So a of side, Participation in not on there on managing bit saw rates, managers. we're are but great And, sales tailwind, rates in first hiring sales of participation tremendous. such tailwind a well. some to yes, a They got great growth as doing we're just we the a Obviously job well QX. seeing that terms a for significant as is on productivity. We're side. individual both do

So, like see we what there.


for Your from Enders comes on Keybanc. of Steven question next


Delta COVID sort but a past, variant new mentioned as we've constraint just from coming bit to if you've I a close an back. is to my this George on on the us the that, update and wanted ask on things seen logos. Hi, of And your then out could ability give the Steven. you for then open Thanks and the reiterate question then of congrats in taking for quarter. up

update you. on that Thank you So, where from stand perspective. an just


saw things past growth open more, delayed a as XX% the the Despite obviously years, believe Delta do We We opened more. being course, opened new pleased this of expect next, logo bit as in year-over-year, that we up working year, more things actually penetrate of to because continuation offices deeper that, improve we early gains. were net late the of that's but to our deeper and people is saw new constraint just but a our meantime, been logo we But, really on existing accounts, that, that to at bit not in with that penetrate deeper enterprise, growth. of logo feel might bit net point up variant, well and deeper actually home, net we Yes. quite new a and our in course into I was strong. the gains enterprise out a as into

commercial gains because there commercial accounts. so So swamp the might many as imagine, logo you were more

actually net this of logos, was net be healthy. tend enterprise net logos to quite actually new terms dominated quarter In new past but logos gain by of new commercial, our


outperformance quarter. helpful. A you. operating line Great. very Thank nice long you're update this the versus it's follow-up. That's you on leverage quick over give Obviously, about driving growth thinking how an Can you. a bottom term? Thank us


by Yes, We're be double that we're operating seeing going at improvements growth given as well point margins. time, the in our able we're our deliver given in portfolio deliver quarter quarter to and going the like product we both. continued digit profit to feel continued sales productivity both able to to force, be from this as

quite So, confident yes, that. in no, we're


of of Raymond Leopold James. question the line from next comes Simon Our


comp sort could you now taking just about sort how you XX%, exceeding Because if you for exceeding to XX% trajectory the up update about for and of question. wanted put prior your term Charlie, longer about some guiding But which mentioned the to you're Thank you're maybe overall the how comments first easy and growth of check in feel thinking trajectory? XX%? there's on to you past, us it. growth XX% the relative on I you've


exceeding Yes. the that that future. be foreseeable feel because commentary the comfortable we in No, will we've we for quite past XX% made

we're predicting think we which wanes. to right COVID not have think grow that that probably of feel that now I XX%. right I COVID to But as this now, type to of XX%. stick is comfortable is going we But again, point exceeding we to that us. at can that room over beyond a for do grow all that environment errand in continue fool's do


And on our as Simon, provide on some well Day. virtual color we'll more Analyst that

So of longer term in our forward terms we growth look rate.

to forward well. as look those So conversations having


then And follow-up. a Great. just as

You were revenue helpful maybe to way in of contribution. terms recurring, bucketing your talking segment about another but

help the If consider off what what little revenue Block like and hybrid you storage for Azure, AWS? could you're into the fits would premise? doing doing you better model? talk with bit about of you with what's portion of the and Cloud you're trajectory that So revenue get with a us cloud Could a things what assessment how that


much. very Yes,

cloud all, revenues plus. in past XX% has stated been the that, about of we've first So

calculated But the trending generally about. really be it to same. for haven't We quarter talking it's this

we Of SaaS on environments, us, and go in the you're consumer either can as time cloud we're right FlashArray//C customers actually over the and we we scale. cloud. to hope and continues as that continue disk actually And cloud the cloud area because feel course, focused as the for more is more mostly data environments to that center, with that our workloads and very in now -- bastion seeing the area all-flash it's an increase of last an is to especially belief center data

for it opportunity us. represents so a And great


line Cross the Cross Research. of Shannon from comes question next of Your


questions. of couple a Just

off Obviously, a you stock. follow-up. have a year cash cash The you're when announced first, thinking other buying flow. free you Curious Portworx. flow, were back strength how in about you're about Then I uses, acquisitions and


for continue isn't there us that for really provide for we're a we And We right customers enhances even Shannon, potential a cloud ability quarter model a the you, be the believe to M&A. is company. goes not focused. investigating our investigating thank week M&A where Yes, combinations to way operating be or our that for that to opportunities by

area be to continues M&A us. active for of So investigation an


well. strong operating great the kind -- three think really cash would focus drove from One were come quarter. operating collection were that saw a record I operating that the think some for comment tremendous through thing, linearity this that the areas the I is quarter, with saw really on as And And obviously, do this that this And to other benefits I of I again, we there flows, just have we're that we which team the I sales efforts. want on company company. attribute improves seeing which was flows quarter. we good continued And that to cash and leverage, the that the as


Okay, then the know environment, just increased also thinking costs cetera, some thanks. curious, et you given about things well, inflationary an given coming remains I'm what you're of just, and perspective? environment But are about thinking I least and you're the we're inflationary are component from the seeing? that term costs longer how positive. how Thank of And managing pricing you. headcount, you fairly part this, at seeing


a it's question. Yes, great

in we into about -- a more. component increased have a is you deflationary about component on two really you items it an increase, mentioned. probably XX% longer this we Let start, me might year component have costs, seen environment the term I But live average, in of that course, costs. would on One Kevan, separate costs. which on

next we environment. long-term price so, view in the having to to a and really that that exists the should in temporary standard phenomenon So, chain curve shortages, do reduction come or supply that where back with year that as to

signs side, flip and be the to starting wages. of there's -- already an we're going absolutely, to around inflationary environment see the On

you evident. guides speak Our becoming that take into forecast account, but what and certainly, is of


look we folks at the an when us is, other the look us, NAND be really, to to component cost are in management to sourcing to sourced highlight to our leveraging And leveraging some approach too, enable SSDs as make one of of time really advantage just beneficial who I back would for raw and for capabilities really this well. things continues our NAND is software sure

So I think that’s an important comment.


Karl from with comes Company. line and next Your question Ackerman of Cowen


digit -- fiscal EBIT results now Yes, range the then in it good is that's certainly, Portworx accretive some you're can able discuss skeptics to operational of that's record beginning improvement sustainable good. you. quarterly And profit double the XXXX. The line tripling you best since maybe is, grow? the improvement in That’s operating year-over-year, XXXX operating really may would With do, with to can exiting Thank revenue is the gentlemen. suggest that second, the low while exiting question the year income? and afternoon, argue you


been Yes. minds. people's that's for question Karl, on Well, thanks the

by and felt grow to to we obviously productivity over plan years that which the address has on Focusing decided than few a achieve productivity enhancement been It was maybe customer investing of base. a very our focused help greater set large growth, we've our ability XX% their only COVID again to COVID, share were improvement; long-term with wallet to part and the was obviously we way, in much only needs, we invest much broad penetrate areas particular, continue operational improvement, could of today company in important bit, to be the that. and been to into we very where our last enterprise, of several board in it's on of is across penetrate productivity, in us years. because products, wider to us storage invest able ago scale back the something to in and two, portfolio to

over already are top-line be what to productivity change these was the year companies, for we're quarters are gains the was in the as continue next able ways. it with we inside And for that many parts to as going discussed, maintain be organization. last we've Again, the but different the in anomaly, our So, of several we company. that productivity our to anticipation the strongly quite look gains going know forward different to

the meant now For that on see to return continued we're investment until productivity wouldn't our we or see that us, it the improve. And the that. started to economy sales that starting


great -- as points of strides for you driving see percentage the of operating bit, Charlie revenue. Yes, to the made for add this I is none leverage. that We're onto in actually surprise mind. just don't terms costs making terms this the let at is making. increasing me us you their and go-to-markets all little Look, of a if think in -- we've that a of due And expenses

to that's continue. I think going

our obviously over and side, gross we'll see on scale more on be subscription over time, margin margins unified benefits subscription as to on And on some I well. continue think the seen and gross we'll also we product that We've R&D gross get can margins, our believe strong. get improvement as-a-Service as time, Pure scales.

upward our absolutely is I believe operating there leverage. to So, trajectory


comes Goldman from question a next Your Sachs. of Rod of Hall line


how Charlie can FlashArray//C that got are more opportunity hyperscalers like pipeline to us of by guess that hyperscaler. and use and Just And for like, question. pipeline as for color what on in big is that wonder with that you wanted the an I similar customers? And does really intrigued a Thanks very give looks case look this with opportunity. types what I any I've with those there I'm use start if, cases? sale your Yes. maybe to the you I then follow-up. other



we is not the So a that their inside of individual opportunity will general it. -- continue think it for a one-off, environments first one a is as very key it's you of as It we itself the purpose a implementation all, It's organization. of go as large can understand application forward, something opportunity.

further extraordinary But much really than go can't a or not I So, is much, environment. that it's in something that. hyperscale unusual

to sold significant and that hyperscalers do other to quarter It's is well. the something we've way, that we can easily expand the of one we hyperscalers that into. it just It's So, -- other as is transferable by to continue not a for something XX that top that's the hyperscalers. not this it's the is believe first single FlashArray//C


Look, be this to that growth strength guide. rate, a with just QX plus the that we when clear seeing terms excluding hyperscaler, too, in XX And we're FlashArray//C top we're opportunity. opportunity we're in great of in XX%, year-over-year XX% exclude in seeing comfortable our our still

of the about think opportunity, the as portfolio. but FlashArray//C I note the across and excited in that's the We're to is is important seeing. really we're across well terms strength, business So the to incremental strength it's really


in And of XX it's that months. I helpful. Okay, wage kind inflation. next then XX, how great. this know to on tough that. made the also for out Thanks might play was comment That's you I over guess interested

Are if inflation of what any you think curious percentage just have be Or sort you incur? you there? any we So kind talking on might quantification guys about? points talking of about thoughts few we'd thoughts on


it -- want percentage to going what to to I points. don't our over be don't thinking few want go is it's But might be. a I overestimate


line comes with the Daryanani from Amit of Your question Evercore. next


two. have I

the of growth fairly investors bit. just to impressive. obviously that which think metrics XX%, at looking one, number with First a subscription is are going I And struggle

of then So how the coming much I of quantify am also are that of existing growth could line? wondering, think is is there subscription customers versus customers? And a size to about well some the components this new way you in from the


into going Yes. on get whole We're that. to lot detail not a of

obviously Portworx, with Day, highlighted. as-a-Service Now, color our subscription some so find terms baseline, for of at strategic year. We've our perspective, financial still our -- on continues is helpful to largest but momentum. changed on our we'll that this looking nothing's virtual momentum terms piece, of for Pure from Analyst got the in excellent. significantly. what it's we've that you'll us obviously, And great important a hopefully unified provide subscription very our the And performance in bread is and we're be Evergreen butter, look, from

for the that more look out Analyst would But So we details we'll that as to get on to be now. Day. all


just that be then the guide And October the enough. looking full the implication year, will quarter if year-over-year. up, XX% at I is and if October providing obviously you're that growth could follow XX%, Fair up for I'm

a that sort I decelerate really going good the a at pull implications but I are think helpful. number, like quarter XX%. in bit. understand the [implied] just deceleration, That'd Jan a being of then quarter, why XX%, that's you numbers? for Jan to touched of seeing a on your You've it’s But bit you would love are conservative or to I mean, be to


seeing But to it's with what the sequentially that's more we're year-over-year top to Well, XX large talking strength been look, it's hyperscaler on for on I'm QX, exceeding QX XX%. that the sequentially, important putting the some close I the FlashArray//C outlook -- guide. our about even think we've pleased annual QX with XX% hyperscaler,

So the overall, with when I FlashArray//C or in digest it pleased opportunity think our really with quite Don't QX a we're view opportunity. that decel, to expect it. about larger digesting as especially


Huberty And of your line Morgan next Kathy question Stanley. the comes with from


material was that that your for from expecting outlook? fourth revenue contribution the the contribution quarter? be original Kevan, customer just into baked a any was you third from the in that -- comeback to Hyperscaler contribution quarter account, from that are the And the would customer revenue


That's contemplated. the that it's a to fair guide great at question. say have beginning, Look, at the when we we looking no, were annual wouldn't

and So come not part how annual of We'd we're in at both to for significant QX. piece through a it's our an it the looking QX. larger QX. expect beat, amount we're from perspective expecting And in


function then maybe more step And away Charlie, for of I if XQ, we the you. slower assume is hiring the foreseeable just follow-up, stronger the thank are XX% a growth for Okay, from to which in the a hiring north future? seeing, tight of quarters the how sustain support to demand in and intention coming market, thinking you you're about the rates labor


our want of question, to we momentum sustain Kathy. It's and strength Obviously, capability. a the great sales

develop teams, high able internationally, then support So, focus U.S. sales sales. of on being a infrastructure both to degree continuing to to develop and our further and --

but So, IT, areas going I the growth, to would on the focus sales that large say supports of areas largely, largest other sales sustaining be the -- is momentum.


question with Chokshi Your from of the line next Capital. comes Nehal Northland



though? did clear top very contribute during be XX it how scalar now, So going this what QX, QX was revenue just clear, contribution for hyper much to, but to


Nehal. didn't We impact QX, an have for


QX. for impact No

Okay. but Great. said Paas about revenue in PaaS then doubled bookings? And you year-over-year, that what


So PaaS tripled, bookings Yes. almost year-over-year. almost tripled



of model have in Day. correct? now. your Okay. quarters the you your update And that then couple hope because That's Investor listed upcoming Is that's you Presumably, long-term very finally, then. at for a presentation impressive to


correct. That's


Your of next Suisse. line Cabralwith question Matt Credit comes from


want to thank little Cloud very dig you the I a more Store. Yes, much. Block bit into

I think you went guys it's six five, since months on GA Azure.

Azure you ramp to the AWS has around? so And way the like and what Just ramp what time on compare saw looked compared contrast there what to on there's been curious first any far? the has


part in been customers And already it's Cloud Pure companies some very Block some set was of that use. that absolutely. as-a-Service Pure their very XX Azure. overall several of Pure in our Yes, they to said, determine doubt, want hyperscalers as-a-Service, growth instrumental driving Store, with it many which had we've deals, no Fortune as of of of as-a-Service certainly on our the sights fundamental subscription. large, in past Well critical as the the part And

very Blocks, standpoint, most he's tied actually Cloud Rob one that strong. from that And the So, to actual that's respect been it. into to because on I'm going let then, take with deployment



we're providers, from that and Azure that but of over really there, deployments, Blocks customers starting to both AWS deploying see the Store Pure-as-a-Service So, right? come But Portworx unified customers are really subscription seen we the on Cloud backbone Azure, as bit forming across as strong, I on available with it, and demand one if think So Azure or time. portfolio now later a on-premise, we've are Cloud from step board and and we a we well Portworx be and cloud -- in with Azure growing on for then combination, day back our tends customers multiple Block transitioning little really would now cloud the I seeing has deploying AWS and strength in look both stronger. cloud with are as across into say at the

across of motions environments. strategy as cloud as that's both to just that see the prem, that and we think hybrid, the so, to able thesis uniformity And multi-cloud continue those and we're well deliver and I validates customers flexibility our value


environment And a Cloud as But rarely to then into a some recovery it it are go just subscription. to using they to see of it's subscription. part start say, far for to their using do the customers for see Store And from is unified more on thoughts Block arrays will capabilities, test Block able We -- the just -- whether to cloud. or other way a off as Cloud cloud the they customers on-prem have we Store I on-prem. them without be that, unified that therefore starts Block migrate although our disaster will fundamental finalize it having Cloud into transition Store.

Pure it subscription. the element of So to secondly, the to be, all, But engagement tends taken the advantage as-a-Service. to on subsequent unified attractive an first of


strength. bigger that to if the within footprint is how any little new or way just the And momentum And All existing more momentum past? helpful. just wins I'm times being just contributors bit a then just they some into bit you little of enterprise remarks that Q&A. really curious if net in about there But those landscape, biggest bigger you it. quick on drivers versus follow-up, the of much in you Got several is wondering, and customers out that's think the and prepared a maybe times competitive a called versus were couple spend can a than getting to in


the all actually It's above. of Yes.

want rest broader new gets I an We Until customer. a of within significant for you a to customers. this customer, enterprise years certain customer is having and allows their those very first inside existing number a have, talk percentage because their a enterprise had necessary enterprise all, ago of joined when customers four that's what relationships. and customer. to lot address you our more only certainly we portfolio or you whether a they partner didn't First portfolio a you're It can you respect certain so deals Why customers, are a footprint?” customers. first the to response but an compete we they also to of footprint, scale me be having this to banking of even then true an is, can't build to to us, “Pure cover can good for that was a products actually And broad with environment. reach great, specialized want storage use larger for And of

of support. sales, to back broadening -- how own the investment of enterprise our It's the been maturing capabilities, as investment been organization the work because question, of we've the product of with it's it's enterprise about So terms your really been in going both the that well customers. -- into so breadth made in beginning as then line, and to

to have those of enterprise success in ability business. and to our seen that -- expanding all we've So, contributed our our


I Just portfolio we of us of too back of think the portfolio, really the large FlashBlade. think the to about that, or talked add today, about, broadening it's our all well I where in terms the reflective a in a sets. great strength these in together talked to in of And Having capabilities and FlashBlade. FlashArray//C, the we breadth that that's just having in we onto saw, invested FlashBlade FlashArray//X that's And the and Charlie's And quite deals. whether portfolio, did enterprise of one feature point, capabilities that which opportunities. areas bit we've much extremely is just example go prosecute haven't enterprise getting broadening helps


And with your Matt line Stifel. comes Sheerin last question of from the


a to heard in of in from Charlie, opening talked well. customers slowdown your certainly remarks you office that seeing about return and somewhat other companies as on-prem we've as --

strong deal. for hyperscaler guidance quarter Your the is without that even

you projects? hearing color And us about of perhaps what better you're because more partners give weaker that? or on So it visibility, in from could your is customers of timing and


I visibility has our into their No, has. excellent. think really It been build-outs

want only would I share months the -- we've then to it the they office -- there's remember, slowed very they some people to say they planning us. a openly and take got a about when there that Obviously, so of away. -- down couple share outs do share of right So with been returning returns build time, was openly.

up COVID seeing a the the over because of we're the not things of summer. most environment, working So is tremendously in improvement from improvement freed

might the does So on reflects if do very that, -- guide we to even be world not just better I it as that see open way today, just our as would when on based the think see the mentioned performance a say networking, not anything, definitely opening expected We we'll some be, projects build-out whatever timelines customers' further it environments. before, all customer we saw -- is up. on of metals, for up, sheet power small I we any to move clear. because world did it other COVID, their supplies, basis out of in what see was because get out, bit some products a push was with servers, ability

bodes that well but -- future I the us all in improve. So things for as think


the seeing Again, other picking up. Are base. the out Okay. strengths to Thank as you lot last about commercial talked you're called a up? enterprise there? seeing quarter you. customer And finally continuing that signs hold you any you from Is


time. it did did hold but last any It up, it more didn't than improve

for. So that's waiting what we're

hold COVID up and improves, through up it think As we certainly commercial it this this hold even will we last quarter. pick more. But did expect up through quarter to



I well. fantastic a coming impressive. obviously I quarter on commercial I such think quarter pretty did last strength, is to then think that business off the and really mean, holding

we commercial. and impressed So were with both enterprise


concludes to time, this Giancarlo turn the back this session. Charlie over question-and-answer the closing And for At I'll call remarks.

Charlie Giancarlo

and deliver stronger. all we strong strategy sales of you you, recognize the from that a portfolio on Thank everyone's delivering because and execution for great been exciting and evident results a also customers. hard evening. our quarter quarter. leading our Well, do our we're technology Thank at Pure, and this customer been never strong QX highly with as become in have and focused I we've want had execution Pure again, partners, singularly at our and experience. work a business our to really momentum all have is our fantastic very cycle a time It's operator. chosen has differentiated the employees good has collaboration with of our Pure and a Pure for best-in-class being our innovation


call. conference today's concludes This

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