California-based data storage provider Pure Storage saw a 12 percent increase in reported revenue, exceeding the expectations of Wall Street.
The revenue for the first quarter reached $367.1 million, however, the company reported a non-GAAP loss of 2 cents per share. The result contradicts the Wall Street Journal’s forecast of share price loss around 15 cents per share.
Pure Storage sells flash-memory-based data hardware and software products. Part of the revenue success is the company’s subscription services, a key element for its investors. Hours after the trading, the stock rose about 2.5 percent.
“We are extremely proud of this quarter’s solid results and growth, especially during the current global crisis. The entire company adapted quickly and delivered the technology and services that our customers needed to keep organizations up and running,” said chief executive Charles Giancarlo.
Some of the highlights of the first quarter financial report include total cash and the investment value of $1.3 billion, operating cash flow of $351.1 million, and subscription revenue of $120.2 million, up by 37 percent.
The subscription service revenue increased by 37 percent or $120.2 as compared to last year’s data. According to the company officials, the growth can be attributed to the strong demand for Evergreen, Cloud Block Store businesses, and Pure-as-a-Service.
The company recalls its customers’ reliability in Pure products and simplicity to provide solutions to the global supply chain. Despite the market challenges brought about by the pandemic, Pure Storage remained relevant to customers who are in need of a cloud storage system.
Modern Data Experience
Pure Storage pushes for a stable pace in innovation to deliver safe, easy, and reliable services. The multi-cloud consumption model provided ‘a strong path for customers to manage costs and hybrid cloud transition.’
For the first months of opening the Pure-as-a-Service program, the company offered free months subscription for customers with a 12-month contract. This promotion provides savings for businesses that are dealing with declining revenue.
Additionally, Pure Storage also created a new solution to accelerate and consolidate database and enterprise workloads by 50 percent, through all-NVMe FlashArray//X. This service provides protection strategies to the cloud and modernizes the controllers.
To support modern application development, Pure Storage also introduced Purity 3.0, new software that would effectively replicate disaster recovery and hybrid cloud.
Despite the pandemic, the company’s supply chain continues to be stable and delivers products within standard shipping times.
