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

Aug 21, 2019 • 05:00 pm ET

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

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Presentation
Executive
Tim Riitters

we want to be mindful of this dynamic as we think about the rest of the year in developing our guide. We believe a more balanced revenue and NAND market environment will emerge as the quarters progress, and return to the consistent long term NAND market trend line.

Second, while we did not see any specific indications that macro impacted our business in the quarter, we nevertheless want to be mindful of the environment given the recent headlines and cautionary tone of other infrastructure vendors. We remain confident in our ability to drive growth in the quarters ahead.

With this as context, for the third quarter of fiscal 2020, we expect, revenues in the range of between $434 million to $446 million, or $440 million at the midpoint; non-GAAP gross margin in the range of between 66% and 69%; and non-GAAP operating margin in the range of between 3% and 7%, or 5% at the midpoint.

For the full year of fiscal 2020, we now expect, revenues in the range of between $1.645 billion and $1.715 billion, or $1.68 billion at the midpoint. Non-GAAP gross margin in the range of between 67% to 69%, and non-GAAP operating margin in the range of between 2.25% and 4.75%, or 3.5% at the midpoint.

You will notice that our operating profit guidance remains unchanged. This speaks to our focus on thoughtfully and carefully investing given the current environment, and adjusting our spend plans to maintain our profit goals despite the reduction in our top line expectations.

As I wrap up, I'd like to offer some final thoughts on why we continue to be excited about the road ahead here at Pure. Number one, Our Q2 results highlight Pure's momentum, with us growing roughly 10 times faster than any of our public competitors. Number two, the fundamentals in our business remain strong. Number three, we are on the cusp of a significant and exciting product cycle. And finally, we remain focused on driving a smart and profitable business.

In closing, as Charlie mentioned, I have made the personal decision to leave Pure. My last day will be later in the year, and in the interim I'll participate with the selection of and transition to our new CFO. And I will be at Accelerate next month and look forward to meeting many of you at our Investor Day. It has really been an honor to serve as Pure's CFO. The company is positioned well for the future, and I am excited to see what Pure does in its next decade.

With that, I'll turn it back to the operator for questions.