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• Total Revenue: $3.2 billion, a 12% increase year-over-year.

• Q4 Revenue Growth: 11% increase.

• Operating Profit: $559 million for FY25; $153 million in Q4.

• Operating Margin: 17.4% in Q4.

• Product Gross Margin: 62.9% in Q4.

• Subscription Services Revenue: $385 million in Q4, a 17% increase.

• Subscription Services ARR: $1.7 billion, a 21% increase.

• Total Remaining Performance Obligations (RPO): $2.6 billion, a 14% increase.

• Free Cash Flow: $526 million for FY25.

• Cash and Investments: $1.5 billion at year-end.

• Share Repurchases: $374 million for FY25, 6.7 million shares repurchased.

• FY26 Revenue Guidance: Expected to grow by 11% to over $3.5 billion.

• Q1 FY26 Revenue Guidance: $770 million, an 11% year-over-year increase.

• Warning! GuruFocus has detected 3 Warning Sign with PSTG.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Pure Storage Inc (NYSE:PSTG) exceeded both revenue and earnings guidance for Q4 and fiscal year 2025.

• The company achieved a design win with a top four hyperscaler, progressing well in testing and deployment plans.

• Launch of the 150 terabyte DirectFlash Module marked a significant increase in capacity, with plans for a 300 terabyte module later this year.

• The Evergreen//One program attracted strong customer satisfaction and high existing customer growth.

• Fusion version 2 was released, transforming traditional enterprise data storage architectures into enterprise data clouds, receiving positive feedback from early adopters.

Negative Points

• The rise of NAND prices in 2024 negatively affected gross margins, particularly impacting the //E family.

• Product gross margins were temporarily lower at 62.9% in Q4 due to higher QLC Flash costs and stable hard disk solution pricing.

• Total contract value (TCV) sales for Evergreen//One and other service-based offerings declined by 3% in FY25.

• International revenue decreased by 3% year over year in Q4, despite overall annual growth.

• The geopolitical environment and potential tariff scenarios contribute to a dynamic and uncertain macroeconomic environment.

Q & A Highlights

Q: Can you provide an update on the adoption and feedback of Fusion 2.0? A: Charles Giancarlo, CEO: We've had dozens of companies download and activate Fusion 2.0, with enthusiastic feedback. Customers appreciate managing systems as a fleet rather than individual arrays, simplifying data handling policies. It's early, but we expect a network effect as more customers adopt Fusion.

Q: How is the hyperscale opportunity progressing, and what discussions are you having with other hyperscalers? A: Charles Giancarlo, CEO: Conversations are evolving and expanding, particularly around different data storage tiers. Engagements with other hyperscalers are progressing faster, with increased interest, although nothing specific to announce yet.