Pure Storage Q3: Total revenue and ARR continue growth

Storage company sees growth in subscription services and operating margin

Pure Storage Q3: Total revenue and ARR continue growth

Data storage vendor Pure Storage reported total revenue of $762.8m, up 13 per cent compared to the same quarter last year.

Subscription services revenue, which includes the company's storage-as-a-service offerings, reached $309.6m, a 26 per cent increase. The vendor also said its FlashBlade product line reached "record sales".

Pure Storage's subscription annual recurring revenue (ARR) hit $1.3bn, up 26 per cent, while remaining performance obligations (RPO) rose 30 per cent to $2bn.

"We are pleased to see strengthening demand across our data storage platform, including the growth of our Evergreen//One storage-as-a-service offering, while also expanding our operating margin," said CFO Kevan Krysler.

The results highlighted continued momentum for the company's Evergreen storage offerings, which provide storage as a subscription service.

Pure Storage added new service-level agreement guarantees covering no-data migration, zero data loss, and power/space efficiency.

The vendor also marked the general availability of its FlashArray//E system, completing its //E family of all-flash storage products aimed at legacy disk storage markets.

Revenue growth forecast

For the fourth quarter, Pure Storage expects revenue in the range of $880m to $960m. For the full 2024 fiscal year, it forecasts revenue of $3.04bn to $3.2bn, reflecting over 30 per cent projected growth for its Evergreen//One service.

The company also raised its operating margin guidance.

The competition

Cloud storage competitor, NetApp also released results for its second fiscal quarter of 2024, seeing public cloud segment revenue grow by eight per cent over the same period last year.

The company's first-party and marketplace services revenue grew over 30 per cent during the same period, NetApp CEO George Kurian explained.

"We continue to see customer expansion and deepening partnerships as well as increases in customer count, capacity, revenue and ARR in this part of the portfolio," he said.