Pure Storage (PSTG) up 10% as Q3 beats estimates
13:50, 24 November 2021
Pure Storage’s stock moved higher in pre-market activity on Wednesday as the cloud storage company reported fiscal third-quarter earnings that beat estimates.
For the period ended 31 October, the net loss narrowed to $28.7m (£21.5m) from a loss of $74.2m a year earlier. Total revenue jumped 37% to $562.7m from $410.6m in the prior fiscal third quarter.
Adjusted earnings per share of 22 cents beat analysts’ estimates of earnings of 12 cents on revenue of $530.83m, according to figures widely available on financial news sites.
In pre-market trading, the stock was up 10% at $30. Pure Storage is up 18% year to date.
With supply chain issues in the forefront of investors’ minds, Pure Storage CEO Charles Giancarlo put them at ease.
“Pure has built a very robust supply chain based on strong, open and trusted relationships with our partners. Our strategy incorporates manufacturing and operations in multiple sites and on multiple continents to enable flexibility, resilience and global responsiveness,” Giancarlo said on a conference call.
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On the call, Giancarlo added that the company recorded “double-digit quarter-over-quarter growth” across all of its product lines and across both US and international markets.
“We are also pleased with our strong profitability trend continuing through this fiscal year. With a sustained and steady growth across all key regions, products and customer segments, Pure continues to take share in this large and growing market,” the CEO said.
Pure Storage said that subscription services revenue was up 38% year on year at $187.8m. Subscription annual recurring revenue was $788.3m, up 30% year over year.
For the fiscal fourth-quarter, Pure Storage said it expects revenue of $630m. The company expects revenue of $2.1bn for the current fiscal year.