SANTA CLARA, Calif. - Pure Storage (NYSE:PSTG), a leader in data storage technology and services, reported a robust fiscal fourth quarter, surpassing Wall Street's revenue expectations and providing an optimistic outlook for the first quarter and full fiscal year of 2025. The company's shares surged 12.18% following the announcement, indicating a positive investor response to the higher-than-anticipated guidance and revenue figures.
For the fourth quarter, Pure Storage posted earnings of $0.20 per share, which was below the analyst consensus of $0.44. However, the company's revenue outperformed expectations, coming in at $789.8 million against the predicted $784.21 million. This represents a 3% decrease from the same period last year, reflecting a challenging comparison despite the revenue beat.
Looking ahead, Pure Storage's guidance for the first quarter of fiscal 2025 is set at $680 million, exceeding the analyst forecast of $667.3 million. For the full fiscal year 2025, the company anticipates revenue to reach $3.1 billion, which is significantly higher than the consensus estimate of $2.82 billion. This optimistic guidance is a testament to the company's confidence in its Evergreen//One Storage-as-a-Service and the momentum it has been gaining.
Charles Giancarlo, Chairman and CEO of Pure Storage, commented on the company's strategic direction, stating, "Our data platform strategy is revolutionizing the storage industry. It helps enterprises and service providers unify fragmented data environments into a seamless, modern, and efficient system—a system performance-ready for artificial intelligence." He also highlighted the affordability and reliability of their offerings, even when compared to traditional hard disk system price levels.
The company also reported a 31% year-over-year (YoY) growth in remaining performance obligations (RPO), reaching $2.3 billion, and a 25% YoY increase in subscription annual recurring revenue (ARR), which now stands at $1.4 billion. These figures underscore the strong momentum in Pure Storage's subscription services and the growing customer commitment to its platforms.
Pure Storage's financial health remains solid, with $1.5 billion in total cash, cash equivalents, and marketable securities, and a strategy to return value to shareholders through share repurchases. The company announced an authorization for incremental share repurchases of up to an additional $250 million under its stock repurchase program.
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