SANTA CLARA - Today, Pure Storage (NYSE:PSTG) reported a robust first quarter for fiscal year 2025, with an impressive 18% increase in revenue year-over-year (YoY), signaling strong demand for its data storage technologies and services. The company's revenue reached $693.5 million, surpassing the analyst consensus of $681.02 million. However, the reported adjusted earnings per share (EPS) of -$0.11 fell short of the expected $0.21, as estimated by analysts.
The company's subscription services revenue climbed by 23% YoY to $346.1 million, contributing significantly to the total revenue growth. Pure Storage's subscription annual recurring revenue (ARR) also saw a notable rise, reaching $1.4 billion, a 25% increase YoY. Despite the positive revenue trend, the company incurred a GAAP operating loss of $41.8 million, while non-GAAP operating income stood at $100.4 million.
In terms of guidance, Pure Storage anticipates second-quarter revenue to be around $755 million, slightly above the analyst consensus of $751.7 million. For the full fiscal year 2025, the company expects revenue to hit $3.1 billion, which is slightly below the consensus estimate of $3.127 billion.
Charles Giancarlo, Chairman and CEO of Pure Storage, expressed confidence in the company's position to integrate fragmented data storage environments, which he believes is a critical capability for enterprises deploying artificial intelligence, hybrid cloud, and modern applications. "We are pleased with the strong start to our year as Q1 revenue growth of 18 percent and profitability both outperformed," added Kevan Krysler, Chief Financial Officer of Pure Storage.
The company's focus on innovation was highlighted through its collaboration with NVIDIA (NASDAQ:NVDA), delivering new validated reference architectures for AI use cases. Additionally, Pure Storage introduced new self-service capabilities across its Pure1® storage management platform and Evergreen® portfolio, enhancing customer control over their data storage environments.
While the stock movement percentage following the earnings release was not provided, the positive revenue performance and forward-looking guidance suggest a potentially favorable market response.
Investors and analysts will be looking forward to the Pure//Accelerate annual customer event next month, where the company is set to unveil industry-first innovations in its Pure data storage platform.
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