Pure Storage Q3 Earnings

By Patrick Moorhead - December 5, 2023

The Six Five team discusses Pure Storage Q3 Earnings.

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Daniel Newman: So Pure, it was a case of good quarter, bad guide. Really solid results, double-digit growth, expanded ARR 26%. Saw its evergreen business, the cloud business, increase year over year by about $400 million. I stand by my belief that the correlation between AI and storage is going to be significant and this is going to be good for companies like Pure Storage. The guide was a big miss and of course as you know, when you guide a big miss, it doesn’t matter if you’ve made your quarter. The guide is always the driver at least as far as what I’m seeing these days. They only guided 782 million against an expectation of 923. So that was a rough one. You and I’ll have a conversation with Charlie Giancarlo, their CEO, in the next week or so.

I will be asking him to dig in a bit about what’s going on there. Is it a longer term headwind? Was it a couple of deals that fell through? What really drove that? Having said that, I really watching their subscription ARR, their overall customer growth with their net product expansion, which has been very successful for the company Pat and they remain over 80 as an 81.4 NPS score because this customer gets the company gets the business of taking care of customers and they continue to be the best in class at doing that.

Patrick Moorhead: Yeah. So competitively, HPE, NetApp, and Dell were down for storage. Pure Storage and Lenovo storage was up. Sorry. Sorry. They beat on both. Forecast has a lot to do with some certain orders in telco and I usually like to discern whether it’s a self-inflicted wound or not and I don’t think this one is. And it’s great to see QLC kick in, right? This is the lower cost flash blade to essentially remove spinning disc. Looking forward to the conversation next week.

Patrick Moorhead
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Patrick founded the firm based on his real-world world technology experiences with the understanding of what he wasn’t getting from analysts and consultants. Ten years later, Patrick is ranked #1 among technology industry analysts in terms of “power” (ARInsights)  in “press citations” (Apollo Research). Moorhead is a contributor at Forbes and frequently appears on CNBC. He is a broad-based analyst covering a wide variety of topics including the cloud, enterprise SaaS, collaboration, client computing, and semiconductors. He has 30 years of experience including 15 years of executive experience at high tech companies (NCR, AT&T, Compaq, now HP, and AMD) leading strategy, product management, product marketing, and corporate marketing, including three industry board appointments.