Everpure, Inc. · NYSE:P

Everpure — Pure Storage — Q1 FY2019 Earnings Presentation

18 slides from Everpure's earnings presentation, May 21, 2018

  1. Slide 1: Q1 Fiscal 2019 Results

    Q1 FISCAL 2019 RESULTS MAY 21, 2018 1 © 2018 PURE STORAGE INC.

  2. Slide 2: Forward Looking Statements and Non-GAAP Information

    FORWARD LOOKING STATEMENTS AND 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 financ

  3. Slide 3: $35B TAM

    $35B TAM SUBSTANTIAL MOMENTUM WITH LARGE OPPORTUNITY AHEAD $35B Storage and Storage Software Spend FOCUSED ON MARKETS THAT MATTER I. TOP CLOUD COMPANIES II. NEXT-GEN OPPORTUNITIES III. CLOUD-IFICATION OF IT $1B Pure Revenue FY2018 3 © 2018 PURE STORAGE INC.

  4. Slide 4: Q1 FY19 Key Highlights

    Q1 FY19 KEY HIGHLIGHTS TAM Customers Leverage GAAP Non-GAAP +$35B >4,800 +500 Leading Clouds ~300 adds Q/Q, 43% growth Y/Y 65.0% 66.3%* Next-Generation Data Cloud-ification of IT ~$12 >$2 Incremental purchases from top Incremental purchases from all Gross margin Gross margin 25 customers within 18 m

  5. Slide 5: Quarterly Revenue

    QUARTERLY REVENUE Prior period revenue has been adjusted to reflect adoption impact of ASC 606, which we adopted in FY19 Q1. +40% Q1 FY19 Y/Y TOTAL REVENUE GROWTH $339.9 $55.7 $277.6 $255.9 $231.5 $49.8 $224.7 $60.5 $199.2 $37.3 $182.6 $45.0 $167.5 $32.7 $141.0 $39.8 $29.2 $284.2 $25.5 $227.8 $194.2

  6. Slide 6: Customers

    CUSTOMERS >4,800 NUMBER OF CUSTOMERS TO DATE 43% Y/Y, >1,450 ADDS Y/Y ~300 ADDS Q/Q, 7% Q/Q ~$12 Incremental purchases from top >4500 >4800 25 customers within 18 months >3700 >4000 of initial purchase of $1 >3350 >1950 >2300 >2600 >3050 >$2 Incremental purchases from all customers within 24 months

  7. Slide 7: Non-GAAP Gross Margin & Profit

    NON-GAAP GROSS MARGIN & PROFIT Prior period information has been adjusted to reflect adoption impact of ASC 606, which we adopted in FY19 Q1. LONG-TERM GM TARGET RANGE 67.5% 67.2% 66.6% 67.2% 68% 66.4% 66.4% 66.3% 66.3% 65.9% 63% $225.4 $184.4 $169.8 $154.3 $150.9 $131.1 $121.3 $112.5 $95.2 FY17 Q1

  8. Slide 8: Non-GAAP Operating Expense

    NON-GAAP OPERATING EXPENSE AS A PERCENTAGE OF REVENUE Prior period information has been adjusted to reflect adoption impact of ASC 606, which we adopted in FY19 Q1. 93.5% 80.0% 80.3% 77.5% 29.3% 72.9% 72.3% 66.9% 26.6% 27.1% 22.7% 62.7% 59.0% 23.2% 22.0% 21.6% 18.2% 16.3% 50.8% 43.6% 39.9% 44.3% 47.

  9. Slide 9: Non-GAAP Operating Margin and Profit

    NON-GAAP OPERATING MARGIN AND PROFIT Prior period information has been adjusted to reflect adoption impact of ASC 606, which we adopted in FY19 Q1. +7.9 Y/Y PPTS IMPROVEMENT FY17 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY18 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY19 Q1 $24.9 7.3% $10.2 $(0.7) 3.7% $(14.1) -0.3% $(15.3) -7.

  10. Slide 10: $8.6M Free Cash Flow (FCF)

    FREE CASH FLOW (FCF) $8.6M FCF EXCLUDING ESPP IMPACT Free cash flow (non-GAAP) * (Millions) Free cash flow as % of revenue Free $25.3 $38.3 11.3% Cash 11.1% $14.0 -$3.7 5.0% Flow (1) -$17.4 -12.4% (2) -$27.1 -$17.5 -1.4% -$35.8 -14.8% -7.8% -$33.3 -18.2% -20.4% FY17 - Q1 FY17 - Q2 FY17 - Q3 FY17 - Q

  11. Slide 11: Guidance

    GUIDANCE . Q2 FY19 FY19 Revenue $296M to $304M $1.320B to $1.370B Non-GAAP Gross Margin (1) 63.5% to 66.5% 63.5% to 66.5% Non-GAAP Operating Margin (1) -7.0% to -3.0% 0.0% to 4.0% (1) We have not reconciled guidance for non-GAAP gross margin and non-GAAP operating margin to their most directly compa

  12. Slide 12: Long-Term Target Operating Model

    LONG-TERM TARGET OPERATING MODEL NON-GAAP As a % of Revenue (Non-GAAP) Q1 FY19 TARGET MODEL Gross Margin 66.3% 63 – 68% R&D 22.0% 15 – 20% S&M 42.0% 25 – 30% G&A 8.3% 5 – 7% Operating Margin -6.0% 15 – 20% 12 © 2018 PURE STORAGE INC. See GAAP to non-GAAP reconciliation in our appendix

  13. Slide 13: Appendix

    APPENDIX Q1 FISCAL 2019 RESULTS 13 © 2018 PURE STORAGE INC.

  14. Slide 14: Revenue

    REVENUE ASC 606 TO ASC 605 RECONCILIATION 14 © 2018 PURE STORAGE INC.

  15. Slide 15: Gross Margin

    GROSS MARGIN GAAP TO NON-GAAP AND ASC 606 TO ASC 605 RECONCILIATION 15 © 2018 PURE STORAGE INC.

  16. Slide 16: Operating Expenses, Margin & Net Income (Loss)

    OPERATING EXPENSES, MARGIN & NET INCOME (LOSS) GAAP TO NON-GAAP AND ASC 606 TO ASC 605 RECONCILIATION 16 © 2018 PURE STORAGE INC.

  17. Slide 17: Free Cash Flow

    FREE CASH FLOW GAAP TO NON-GAAP RECONCILIATION 17 © 2018 PURE STORAGE INC.

  18. Slide 18: Slide 18

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