Pure Storage posts upbeat Q3 results, lifts 2019 guidance

The flash-based cloud-storage company Pure Storage (PSTG) reported a narrower loss in the third quarter helped by an income tax benefit. The results exceeded analysts’ expectations. The company raised its full-year 2019 guidance to reflect the forward-looking business momentum.

Net loss narrowed to $28.2 million or $0.12 per share from $29.4 million or $0.14 per share in the previous year quarter. Non-GAAP earnings soared 225% to $0.13 per share, helped by a decline in weighted average shares as well as higher adjusted operating income.

Revenue grew 34% to $372.8 million. This exceeded the company’s guidance range and was driven by the increase in new customers.

Looking ahead into the fourth quarter, the company expects revenue in the range of $438 million to $446 million. The non-GAAP gross margin is predicted to be in the range of 64.5% to 67.5%, and the non-GAAP operating margin is projected to be in the range of 8% to 12%.

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For the full year 2019, the company lifted its revenue outlook to the range of $1.376 billion to $1.384 billion from the prior range of $1.35 billion to $1.38 billion, and its non-GAAP gross margin forecast to the range of 66.6% to 67.6% from the previous range of 65.5% to 67.5%. Adjusted operating margin guidance was raised to the range of 3.9% to 5.3% from the prior estimates range of 2.5% to 4.5%.

Additionally, the company announced Pure Storage Cloud Data Services, a suite of new cloud offerings that run natively on Amazon Web Services (AWS). Pure Storage’s CEO Charles Giancarlo believes this launch will aid the company to bring its storage software directly to the public cloud.

Shares of Pure Storage ended Monday’s regular session down 8.32% at $17.53 on the NYSE. The stock has risen over 10% in the year so far and 0.81% in the past year.

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