Subscription services continue to fuel Pure Storage growth in fiscal Q2

Revenues grew 11 per cent year-on-year for the vendor

Pure Storage has posted a double-digit revenue rise in its second quarter fiscal results year 2025 ended August 4, 2024.

Revenues were up 11 per cent to $763.8m largely driven by its performance in subscription services, which earned the lion's share with $361.2m, up 25 per cent year-on-year.

In its Q1 2024 results published in May, subscription services again were a key driver, jumping 23 per cent to bring in $346.1m.

Subscription annual recurring revenues grew 24 per cent year-on-year to $1.5bn.

"We delivered strong financial results through the first half of our fiscal year, highlighting the effectiveness of our strategic initiatives," said Pure Storage chief financial officer Kevan Krysler.

"Our highly differentiated data storage platform strategy is demonstrating success with our customers."

Pure emphasised its platform innovation as a second quarter highlight.

The Pure platform delivers agility and risk reduction with an as-a-service experience across use cases and IT environments.

At its annual Pure//Accelerate conference, the vendor announced critical new platform capabilities to further improve the ability for enterprises to deploy AI, improve cyber resilience, and modernise applications, including Evergreen//One for AI, the first purpose-built AI storage as-a-service, enhancements to Pure Fusion, delivering first-of-its-kind storage automation, and an industry-first generative AI copilot for storage.

Additionally, Pure continued to extend its Storage as-a-Service (STaaS) offer with new service level agreements (SLAs).

Pure also continued to accelerate enterprise AI adoption, announcing that it will be a certified storage solution for NVIDIA DGX SuperPOD by the end of 2024.

Moreover, Pure joined the Ultra Ethernet Consortium (UEC), a Linux Foundation initiative, underscoring its commitment to expanding the capabilities of high performance Ethernet for large-scale AI and HPC initiatives.

Q3 and FY24 outlook

Pure expects Q3 revenues of $815m, which will represent a growth rate of 6.8 per cent.

Meanwhile, the vendor predicts FY25 revenues of $3.1bn, up 10.5 per cent year-on-year.