Pure Storage, Inc. (NYSE:PSTG) Q2 2020 Earnings Conference Call - Final Transcript

Aug 21, 2019 • 05:00 pm ET


Pure Storage, Inc. (NYSE:PSTG) Q2 2020 Earnings Conference Call - Final Transcript


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Good afternoon. My name is Mike, and I will be your conference operator today. At this time, I would like to welcome everyone to the Pure Storage Second Quarter Fiscal 2020 Earnings Conference Call. [Operator Instructions]

I will now turn the call over to Matthew Danziger, Vice President of Investor Relations. You may begin your conference.

Matt Danziger

Thank you, and good afternoon. Welcome to the Pure Storage second quarter fiscal 2020 earnings conference call.

Joining me today are our CEO, Charlie Giancarlo; our CFO, Tim Riitters, our President, David Hatfield; and our VP of Strategy, Matt Kixmoeller.

Before we begin, I would like to remind you that during this call, management will make forward-looking statements, which are subject to various risks and uncertainties. These include statements regarding competitive, industry and technology trends, our strategy, positioning and opportunity, our current and future products, business and operations, including our operating model, growth prospects, and revenue and margin guidance for future periods.

Any forward-looking statements that we make are based on assumptions as of today, and we undertake no obligation to update them. Our actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. A discussion of various risks and uncertainties relating to our business is contained in our filings with the SEC, and we refer you to these public filings.

During this call, we will discuss non-GAAP measures in talking about the company's performance, and reconciliations to the most directly comparable GAAP measures are provided in our earnings press release and slides.

This call is being broadcast live on the Pure Storage Investor Relations website and is being recorded for playback purposes. An archive of the webcast will be available on the IR website for at least 45 days and is the property of Pure Storage.

With that, I'll turn the call over to our CEO, Charlie Giancarlo.

Charlie Giancarlo

Thank you, Matt, and good afternoon, everyone. Thank you for joining us on today's earnings call. I will begin by sharing our high-level results from the quarter, Hat will provide a go-to-market update, and Tim will offer a detailed review of our financials.

We had a strong quarter and the fundamentals of our business remain solid. For Q2, revenue was $396 million, growing 28% year-over-year, which was above the midpoint of our guidance. Our industry-leading gross margin grew to 69.4% and operating margin was a negative 0.8%, beating our guidance range.

In less than 10 years, we disrupted the storage industry by creating solutions that are intelligent, automated, and modern and delivered 10x improvements in the performance, the cost of operations, and usability. We are now setting a bold new path for Pure for our second decade which will deliver the next set of 10x breakthroughs. Our goal is to take the fragmented and antiquated data storage environment and recreate it into a unified, automated, and multi-cloud data experience.

Pure delivers a modern data experience to our customers. Unlike legacy infrastructure vendors, Pure enables