Pure Storage, Inc. (NYSE:PSTG) Q2 2020 Earnings Conference Call - Final Transcript
Aug 21, 2019 • 05:00 pm ET
customers to utilize more of their data, while reducing the complexity and expense of managing the infrastructure behind it. We provide a data experience that creates a common operating environment across multiple data centers and clouds, easing operations via APIs and intelligent AI-driven automation. We now offer our customers integrated hybrid cloud and on-prem solutions, consumable as a flexible subscription to deliver that modern data experience.
Looking at the market as a whole, Pure is clearly out-executing our traditional competitors, some of whom have expressed concerns around the macro economy. We do not believe the macro environment has affected us this past quarter.
What we do see is a significant transitory NAND supply/demand imbalance which impacted component prices and the storage industry as a whole. We expect this situation to continue to affect us for the balance of the year given the natural lag between component costs and storage market pricing. However, we are already seeing NAND pricing rise in the spot market, and suppliers are delaying additional fab capacity. We believe these signals point to an improving market next year.
As compared to others, Pure's continued exceptional growth and margin leadership highlight our differentiation which is consistently validated by our growing, happy customer base. Our results underscore that our strategy is working. We also know that it is in challenging market environments when our superior value proposition enables us to gain even more market share.
In today's world where data is at the core of digital transformation, legacy vendors have inexplicably decreased their investment in innovation and instead are relying on commodity hardware and software. They attempt to convince customers that all systems are the same, and that price is all that matters. Customers, however, understand that an investment in innovation is an investment in their future.
Our continued investment in successful innovation is one of several reasons we are growing faster than public market competitors. At our Accelerate conference next month, we will announce ground-breaking portfolio additions and future innovations as part of our strategy for the next decade.
Pure's focus on priorities important to CIOs today, building a hybrid cloud; transitioning to fast, consolidated data architectures; deriving business value from AI and analytics; and enabling customers to rapidly recover from IT failures, means that more customers than ever are choosing Pure. We are the essential company driving change in the data industry, providing an unparalleled experience which delivers business outcomes and ensures customer delight.
Now, I would like to share more personal news. As you may have read in our Press Release, our CFO, Tim Riitters, will be leaving Pure for personal reasons. An executive search is already underway for our next CFO. Tim will participate in that process and will help in the transition.
When he first joined Pure, we were less than $200M in revenue, a private company. We had 600 employees, and just one product. Five years later, we disrupted an entire industry, we have grown almost 10 times, consistently delivering double-digit annual revenue