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Pure Storage Reports Financial Results for Q3 Fiscal 2025

Pure Storage, a leading player in data storage technology, has published its financial outcomes for the third quarter of fiscal 2025, which concluded on November 3, 2024. This release underscores the company's significant strides in both revenue growth and innovation within the realm of IT storage solutions.

Key Financial Highlights

In the third quarter, Pure Storage recorded total revenues of $831.1 million, reflecting a 9% increase compared to the previous year. Among these, subscription services proved to be a major growth area, bringing in $376.4 million, which is a remarkable 22% increase year-over-year. Furthermore, the annual recurring revenue for subscriptions reached $1.6 billion, marking another rise of 22%.

In addition, the company reported remaining performance obligations of $2.4 billion, a 16% growth. The gross margins remained impressive as well, with GAAP at 70.1% and non-GAAP at 71.9%. Operating income for the quarter was cited at $59.7 million (GAAP), while non-GAAP operating income stood out at $167.3 million, translating to operating margins of 7.2% and 20.1%, respectively.

Strategic Milestones

Charles Giancarlo, Chairman and CEO of Pure Storage, announced a groundbreaking design win for their DirectFlash technology with one of the top four hyperscalers. This pivotal achievement denotes a substantial advancement in the data storage industry, setting Pure's Flash technology as a new standard for hyperscale online storage, significantly enhancing performance and scalability while simultaneously cutting operational costs and electricity use.

The company is also pursuing ambitious projects aimed at fortifying its standing in the AI landscape. With certifications for FlashBlade//S500 in AI training environments and partnerships with cloud solutions like CoreWeave, Pure Storage is channeling efforts to enhance its capabilities for supporting AI-driven initiatives.

Innovations in Data Storage

Notable innovations from Pure Storage include the imminent release of v2.0 of Pure Fusion™, which allows clients to establish their enterprise data clouds akin to hyperscaler operations. Additionally, the introduction of new solutions to facilitate seamless transitions from VMware to Microsoft Azure signifies Pure's commitment to enhancing operational flexibility for enterprises.

The unveiling of the Pure Storage FlashArray™ with AWS Outposts exemplifies the integration of Pure Storage with AWS’s cloud services, providing enterprise-level storage capabilities that can operate within customers’ own data centers.

Industry Recognitions and Future Outlook

Pure Storage has sustained its reputation as an industry leader, being recognized for the fifth consecutive year as a leader in the Gartner® Magic Quadrant™ for Primary Storage Platforms and for File and Object Storage Platforms. It also earned a spot on Forbes' Most Trusted Companies list for 2025, ranking 144th, and was recognized by Fortune as one of the Best Places to Work in Technology in 2024, ranking 14th.

Looking ahead, guidance for the upcoming fourth quarter of fiscal year 2025 indicates anticipated revenues of $867 million, with a year-on-year growth rate of 9.7% and non-GAAP operating income projected at $135 million.

Conclusion

As Pure Storage continues to innovate and lead within the data storage domain, its strategic partnerships and focus on AI readiness position it for sustained success. The company’s financial results not only highlight current performance but also reflect its aspirations for future growth in a dynamic technology landscape.