The Six Five team discusses Pure Storage Q3 Earnings.
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Transcript:
Daniel Newman: So Pure, it was a case of good quarter, bad guide. Really solid results, double-digit growth, expanded ARR 26%. Saw its evergreen business, the cloud business, increase year over year by about $400 million. I stand by my belief that the correlation between AI and storage is going to be significant and this is going to be good for companies like Pure Storage. The guide was a big miss and of course as you know, when you guide a big miss, it doesn’t matter if you’ve made your quarter. The guide is always the driver at least as far as what I’m seeing these days. They only guided 782 million against an expectation of 923. So that was a rough one. You and I’ll have a conversation with Charlie Giancarlo, their CEO, in the next week or so.
I will be asking him to dig in a bit about what’s going on there. Is it a longer term headwind? Was it a couple of deals that fell through? What really drove that? Having said that, I really watching their subscription ARR, their overall customer growth with their net product expansion, which has been very successful for the company Pat and they remain over 80 as an 81.4 NPS score because this customer gets the company gets the business of taking care of customers and they continue to be the best in class at doing that.
Patrick Moorhead: Yeah. So competitively, HPE, NetApp, and Dell were down for storage. Pure Storage and Lenovo storage was up. Sorry. Sorry. They beat on both. Forecast has a lot to do with some certain orders in telco and I usually like to discern whether it’s a self-inflicted wound or not and I don’t think this one is. And it’s great to see QLC kick in, right? This is the lower cost flash blade to essentially remove spinning disc. Looking forward to the conversation next week.
Author Information
Daniel is the CEO of The Futurum Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise.
From the leading edge of AI to global technology policy, Daniel makes the connections between business, people and tech that are required for companies to benefit most from their technology investments. Daniel is a top 5 globally ranked industry analyst and his ideas are regularly cited or shared in television appearances by CNBC, Bloomberg, Wall Street Journal and hundreds of other sites around the world.
A 7x Best-Selling Author including his most recent book “Human/Machine.” Daniel is also a Forbes and MarketWatch (Dow Jones) contributor.
An MBA and Former Graduate Adjunct Faculty, Daniel is an Austin Texas transplant after 40 years in Chicago. His speaking takes him around the world each year as he shares his vision of the role technology will play in our future.
