Pure Storage Q1 revenue soars 18 per cent and raises FY25 outlook
Data storage firm revenue was $693.5m, powered by AI and subscription growth
Pure Storage reported 18 per cent year-on-year growth in total revenue for Q1 2024, fuelled by strong demand for its subscription services and solutions aimed at enabling enterprises to leverage AI and hybrid cloud environments.
The company's total revenue for the quarter was $693.5m.
A key driver was Pure Storage's subscription services business, which saw revenue jump 23 per cent to $346.1m.
"Pure Storage is uniquely positioned to integrate fragmented data storage environments, which hinders enterprises from easily deploying artificial intelligence, hybrid cloud, and modern application deployment," said Charles Giancarlo, chairman and CEO at Pure Storage.
"At our June Accelerate conference, global customers will see how our latest innovations enable enterprises to adapt to rapid technological change with a platform that fuses data centres and cloud environments."
The company's subscription annual recurring revenue (ARR) surged 25 per cent to $1.4bn.
Despite robust revenue growth, Pure Storage reported a GAAP operating loss of $41.8m for the quarter. On a non-GAAP basis, the company posted operating income of $100.4m, reflecting a healthy 14.5 per cent operating margin.
"We are pleased with the strong start to our year as Q1 revenue growth of 18 percent and profitability both outperformed," said Kevan Krysler, CFO of Pure Storage.
"We are well positioned with our highly differentiated data storage platform for substantial long-term growth."
AI and hybrid cloud feature prominently
The storage challenger was also keen to highlight its expanded offerings in enterprise AI and hybrid cloud.
The company delivered new validated reference architectures for running generative AI use cases through integrations with NVIDIA, including a new NVIDIA OVX-ready architecture.
Additionally, Pure Storage introduced new self-service capabilities across its Pure1 storage management platform and Evergreen portfolio.
Looking ahead, Pure Storage provided an optimistic view for the second quarter and full fiscal year 2025.
The company expects Q2 FY2025 revenue of $755m, up 9.6 per cent year-over-year, and non-GAAP operating income of $125m (16.6 per cent margin).
For the full fiscal year 2025, Pure Storage forecasts revenue of $3.1bn (up 10.5 per cent year-over-year), TCV sales for Evergreen subscription services of $600 m (up approximately 50 per cent year-over-year), and non-GAAP operating income of $532m (17 per cent margin).