q1 fiscal 2022 results

May 26, 2021Q1 Fiscal 2022 Results

© 2021 Pure Storage,Inc.

2© 2021 Pure Storage, Inc.

FORWARD LOOKING STATEMENTSAND NON-GAAP INFORMATION

This presentation contains “forward-looking” statements that are based on our beliefs and assumptions and on information currently available to us. Such forward-looking statements include statements concerning our possible or expected future financial or operating results, business strategies, product development plans,technical and business advantages, competitive position, industry trends and potential growth opportunities. Forward-looking statements include all statements thatare not historical facts and can be identified by terms such as “anticipate,” “believe,” “could,” “seek,” “estimate,” “intend,” “may,” “plan,” “potential,” “predict,”“project,” “should,” “will,” “would” or similar expressions and the negatives of those terms.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements todiffer materially from any future results, performance or achievements expressed or implied by the forward-looking statements, including risks, uncertainties andother factors relating to our beliefs about financial results, our momentum and growth potential, growth and market position, technological leadership and marketopportunity, introduction of new functionality and products, demand for our products and subscription services, the success of the Portworx acquisition andtechnology, customer spending priorities, our competitive position and industry dynamics, pricing environment, global economic situation, and relationships with thirdparties, including partners, customers, suppliers and contract manufacturers and the duration and scope of the COVID-19 pandemic and related restrictions and itsimpact on our business, operating results, cash flows and/or financial condition. Additional risks, uncertainties and other factors are included under the captions "RiskFactors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," in our reports previously filed with the SEC, which areavailable on our website at investor.purestorage.com and on the SEC's website at www.sec.gov.

Forward-looking statements represent our beliefs and assumptions only as of the date of this presentation. Except as required by law, we assume no obligation toupdate these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-lookingstatements, even if new information becomes available in the future.

This presentation includes certain non-GAAP financial measures as defined by SEC rules. As required by Regulation G, we have provided reconciliations of thosemeasures to the most directly comparable GAAP measures, which are available in the Appendix. We have not reconciled our guidance regarding non-GAAP operatingincome (loss) to its most directly comparable GAAP measure because items such as stock-based compensation expense and payroll tax expense related to stock-based activities that impact these measures are not within our control and/or cannot be reasonably predicted. Accordingly, a reconciliation of the non-GAAPoperating income (loss) to the corresponding GAAP measure is not available without unreasonable effort.

http://investor.purestorage.com/

http://www.sec.gov/

Company Overview

© 2021 Pure Storage,Inc. 3


Pure delivers a modern data experience that helps customers put data to use and allows them to run their operations as a true, automated, storage as-a-service model seamlessly across multiple clouds.

Who are we?


5© 2021 Pure Storage, Inc. 5© 2021 Pure Storage, Inc.

Pure Storage At A Glance

~330Q1 FY22 Customer Additions

CustomersQ1 FY22 Revenue Subscription Services Revenue

$413 M12% Y/Y Growth

Customers

~49%*Of Fortune 500 companies

35%Q1 FY22 Y/Y Growth

9,000+*Global Customers

CustomersFY21 Annual Revenue Leadership

$1.68 BSatisfaction

83.5 NPSTop 1% of B2B Companies

7 Year LeaderGartner Magic Quadrant

(*) As of the end of Q1 FY22


Unified Fast File and Object Container Data Services

Mission-Critical Block Storage All-Flash Secondary Storage

Subscription to Innovation

Simple, Reliable Storage as-a-Service

Cloud Block Store

Modern Infrastructure Best in Class for

Accelerating Traditional Applications

Modern Operations Core to Edge to Cloud Subscription Flexibility

Modern ApplicationsIndustry Leader for

Modern & Cloud-NativeApplications

Delivering the Modern Data Experience

Seamless Data Mobility

7© 2021 Pure Storage, Inc.© 2021 Pure Storage, Inc.

Top 10 Reasons Customers Buy Pure

Simplicity - Easy to buy, install and operate

Innovation – 7x leader in Gartner Magic Quadrant

Reliability - Six 9s of reliability

Leadership - 1st flash that costs less than hybrid disk arrays

Flexibility - Differentiated unified as-a-service offering

Trust - Top 1% of NPS of industry B2B scores

Enterprise Proven - Expanding in Global F500 & key verticals

Cloud Chosen - Trusted by the largest and most demanding

Green - Evergreen Storage = less waste

Fair - Transparency & pay as you go


>9,000CUSTOMERS TO-DATE

~330NEW CUSTOMER ADDITIONSIN Q1 FY22

~49%OF FORTUNE 500

~$2*Incremental purchases from all customers within 24 months of

initial purchase of $1

~$10*Incremental purchases from top 25 customers within 18 months

of initial purchase of $1

(*) Note: Incremental Purchases exclude Evergreen and Unified Subscription Services purchases

TOTAL AND NEW CUSTOMERS

>6,000>7,500

>9,000

06012018024030036042048054060066072078084090096010201080114012001260132013801440150015601620168017401800186019201980204021002160222022802340240024602520258026402700276028202880294030003060312031803240330033603420348035403600366037203780384039003960402040804140420042604320438044404500456046204680474048004860492049805040510051605220528053405400546055205580564057005760582058805940600060606120618062406300636064206480654066006660672067806840690069607020708071407200726073207380744075007560762076807740780078607920798080408100816082208280834084008460852085808640870087608820888089409000

FY20 Q1 FY21 Q1 FY22 Q1

~15%Customer Growth

Q1 FY22 Y/Y

Financial Overview



Q1 FY22 HIGHLIGHTS

1

2

3

4

5

Return to double-digit revenue growth of 12% Y/Y driven by broad-based strength

• US and International achieved double-digit revenue growth

New customer additions of approximately 330 this quarter, up 15% Y/Y driven in part by our commercial business

Continued strength and momentum in Subscription Services revenue, up 35% Y/Y with growth from existing and new customers

FlashArray//C, the first all-QLC flash array, grew double-digits Y/Y and continues to be our fastest growing new product ever

Confident in opportunity, long-term strategy, and continued momentum in Q2 and beyond


Q1 FY22 FINANCIAL SUMMARY

Financial Metrics Guidance Actuals Y/Y

Revenue $405 Million $413 Million +12%

Remaining Performance Obligations (RPO) $1,129 Million +24%

Non-GAAP Gross Profit * $291 Million +10%

Non-GAAP Operating Income (Loss) * $(20) Million $0.3 Million nm**

(*) See reconciliation of actual non-GAAP financial metrics to the corresponding GAAP measures in our Appendix. (**) Not meaningful


TOTAL REVENUE

$1,076 $1,239 $1,144

$284

$405 $540

250

750

1250

1750

FY19 FY20 FY21

Product Revenue (Millions) Subscription Services Revenue (Millions)

$239 $247 $250

$88 $120 $163

50

110

170

230

290

350

410

470

FY20 Q1 FY21 Q1 FY22 Q1

+18%Total Revenue 3-Year CAGR*

+12%Total Revenue

Q1 FY22 Y/Y Growth

+42% Subscription Services

3-Year CAGR*

$1,360

$1,643$1,684

$327$367

$413

+35% Subscription Services Q1 FY22 Y/Y Growth

Annual Revenue First Quarter Revenue

(*) Represents compounded annual growth rate from end of FY18 to end of FY21


$564 $607 $643 $697 $706 $724 $763$844 $866

$160 $163

$168 $183 $206 $232

$222 $250 $263

$724 $770

$811 $880 $912

$956 $985 *

$1,094 $1,129

FY20 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY21 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY22 Q1Axis Title

Deferred Revenue (Millions) Unbilled Remaining Performance Obligations (Millions)

REMAINING PERFORMANCE OBLIGATIONS

(*) Previously reported amount was reduced by $25 million arising from the expiration of a non-PaaS reseller contract.

*

+24%RPO

Q1 FY22 Y/Y Growth


$222 $264

$291

68.1%

71.9%70.5%

FY20 Q1 FY21 Q1 FY22 Q1

GROSS PROFIT & MARGINNon-GAAP as a Percentage of Revenue

See GAAP to non-GAAP reconciliation in our appendix

$919

$1,159 $1,179

67.6%

70.5% 70.0%

FY19 FY20 FY21

LONG-TERMGM TARGET

70%

65%

Non-GAAP Gross Profit (millions)

Annual Gross Profit & Margin First Quarter Gross Profit & Margin

Gross Profit Margin


7.4%

$51

7.8%

$56

8.2%

$4637.8% 40.0% 38.5%

18.7% 19.3% 20.6%

09.5% ($31) 8.6% ($5)

7.8%$0.3

45.0% 42.7% 39.9%

23.1%22.1% 22.7%

-25

3.7% 3.4% 2.7% (9.6%)

(1.5%)0.1%

OPERATING INCOME (LOSS) & MARGINNon-GAAP as a Percentage of Revenue

63.9%*

FY19 FY20 FY21

77.6%* 73.4%* 70.4%*67.1%* 67.3%*

G&A S&M R&D Operating Income (Loss) (Millions) Non-GAAP Operating Margin

Annual Operating Income & Margin First Quarter Operating Income (Loss) & Margin

FY20 Q1 FY21 Q1 FY22 Q1

(*) Non-GAAP operating expenses as a percentage of revenue



($18)

$11

($6)

$25

$24$27

-25

35

95

CASH FLOW


$64

$102 $93

$100

$88$95

50

110

170

FY19 FY20 FY21

FY19 FY20 FY21

Capital Expenditures (Millions) Free Cash Flow (Millions)

$164*

$190* $188*

$7*$35*

$21*

-FY20 Q1 FY21 Q1 FY22 Q1

(5.6% ofrevenue)

(5.3% ofrevenue)

(7.4% ofrevenue)

(7.4% of revenue)

(6.5% ofrevenue) (6.7% of

revenue)

Annual Cash Flow First Quarter Cash Flow

* Operating Cash Flow (Millions)


Guidance

(1) We have not reconciled guidance for non-GAAP operating income to the most directly comparable GAAP measure because items such asstock-based compensation expense and payroll tax expense related to stock-based activities that impact this measure is not within our control and/or cannot be reasonably predicted. Accordingly, a reconciliation of this non-GAAP financial measure guidance to the corresponding GAAP measure is not available without unreasonable effort.

. Q2 FY22

Revenue $470 Million

Non-GAAP Operating Income(1) $15 Million

Appendix



GROSS PROFIT & MARGINGAAP TO NON-GAAP RECONCILIATION


OPERATING EXPENSESGAAP TO NON-GAAP RECONCILIATION


FREE CASH FLOWGAAP TO NON-GAAP RECONCILIATION

OPERATING INCOME (LOSS) & MARGINGAAP TO NON-GAAP RECONCILIATION

q1 fiscal 2022 results

Documents