Pure Storage hails channel success as it makes a Q2 loss

CEO Scott Dietzen claims Dell-EMC merger has contributed to strong channel performance

Pure Storage saw net losses widen in Q1, but claims its channel performance has been key to its revenue increase.

The flash firm saw sales for the three months ending 30 April rise 89 per cent annually to $139.9m (£95.1m), but it recorded a net loss of $63.5m, compared with a net loss of $49.1m the year before.

Pure's CEO Scott Dietzen remains confident about the firm's position.

"Year over year, our revenue growth continues to dramatically outpace both our storage industry competitors and the broader enterprise technology sector," he said.

"While the legacy players retool complex, 20-year-old products to compete, customers continue to be attracted to Pure's simplicity and superior customer experience across flash-optimised software, hardware, our Evergreen business model and cloud management.

"We continue to expect to reach sustained positive cashflow by the second half of calendar year 2017."

In a conference call with investors, Dietzen highlighted Pure's "100 per cent go-to-channel model" as key to the strong sales figures, with partners bringing in 70 per cent of new logos.

He also credited some of Pure's channel success to "uncertainty" surrounding the Dell EMC merger.

"I think the merger between Dell and EMC is actually creating additional headroom for us in the channel," added Dietzen. "EMC has historically done about 33 per cent of their business through the channel [and] Dell is known for their direct sales DNA."

The quarter saw Pure's customer base grow by 300 to 1,950 with the addition of clients including SoftBank, the World Bank and the GMO CLOUD K.K.