Pure Storage (PSTG) 28 Feb 242024 Q4 Earnings call transcript

Good day, and welcome to the Pure Storage Fiscal Fourth Quarter and Full Year 2024 Earnings Call. Today's conference is being recorded. [Operator Instructions]. At this time, I'd now like to turn the call over to Paul Ziots, Vice President of Investor Relations. Please go ahead.

you. Thank and Conference Fourth Call. everyone, Year and to Earnings XXXX welcome afternoon, Quarter Pure's Fiscal Good

Rob Officer. On Chief Krysler, and Executive call, Officer; Chief the we Kevan Chief have Financial Charlie Giancarlo, Lee, Technology Officer;

Following Charlie's remarks, prepared and take we will Kevan's questions.

after issued being posted be us of market webcast. downloaded webcast can The slides at was on release and website our press close Our this investor.purestorage.com. with simultaneously is that accompany

These product to our to today economic include trends. are update we today, them. new we make statements, as risks will Any make facts industry outlook on and and subject we operations, assumptions and and uncertainties. regarding that On strategy, this and offerings based call and of statements competitive which forward-looking obligation financial current forward-looking our no and technology are our today, statements undertake its and advantages

slides. other from refer results the with our or revenue, directly these you of All should measures filings. metrics remaining contained as associated measures are to filings GAAP the we comparable earnings growth be may considered differ actual and in business discussion SEC non-GAAP and Our some results A materially results reported are relating our performance our forecasted, public to and obligations investments. cash not and [indiscernible] uncertainties RPO rates most and financial Reconciliations performance. to of indication than and an the is the and in future risks of provided

of will available website the Storage recorded Pure playback and property being IR is This for webcast and Investor the live be archive Relations An of being call website the is Storage. Pure broadcast on on purposes. is the

to fiscal at XX, of quiet Charlie. XXXX Friday, over I'll that, the quarter April close turn begins it first Our XXXX. With business, period

expanded contract was performance our FY Good strategy increased for Evergreen/Flex $XXX confidence sales Evergreen year. by sales We ended across XX% strong revenue earnings Paul. balanced QX QX with Evergreen/One with momentum afternoon, evidenced the services year increasing revenue. fiscal total product grew doubling innovation 'XX provides a exceeding billion of and to $X total our had year. This over growing portfolio million, launch. our year, product as for total value and welcome to platform over and everyone, we and sales portfolio. us subscription call. than interest and coming and now and more the since you, momentum and This in our the solid theaters Thank prior FlashBlade now and XXXX performance customer platform in over to increased

sales data pure leading fastest performance all continues disk. just X of FlashBlade the customers' for E-family file and to of months as flash new soon product, high products serve and modern achieved low-cost object that presaging applications. requirements for our the Launched platform ago, any will both growth replace

requirements and storage and operating vision for storage just and data sense environments. data multiple a consolidate makes service strategy providers, managed strategy succeed using disparate and storage to platform with continues majority the large managing Our and to single than system environment enterprises management Pure's more is different of working

cloud and enables with a their programmability. across pools, the storage agility to cloud single enterprise operating platforms, unified distributed Pure's systems direct to customers Fusion, and management It guarantee downtime environment as and unmatched centers storage customers Evergreen to of flash reliability Pure our data system public and seamlessly data no with storage enables Pure continue Pure's which cloud [ economics appreciate be and within all of combines framework. upgrades. application strategy features ] best operate spanning platform manage as a incorporating

data Pure allows their customers their efficiently environment. data infrastructure to organize optimize and

consistent financial XXX selected In QX. in was our enterprise major major and Our strategy, one to storage reliability, products a almost several strategic majority and in in represents with Fortune our on deals the enterprise. comprised services our Pure diverse ability and needs cloud-like Pure's X-figure efficiency. firm their vision example, of growing a services and environment proven our based platform operation and success of high all factor large satisfy This platform deal a

notable company one artificial quarter Pure fastest AI AI second the X-figure A providers training largest their most one of customers. solutions with powerful world. highly past in cloud an deal Evergreen/One differentiated is with to GPU this partner deal infrastructure to with offering the deliver to specialized this for and environments the of excited intelligence,

and data about environments. excites partners data. full customers confirmed ability is data their beginning storage their AI significantly hinder Customers fragmented potential current AI conversations leverage the bringing that what to with to that focus is environment to to their are However, unlock the me it through will truly fragmented customers of realize

in Current ways. environments X data storage AI inhibit deployments

arrays for AI storage data leaving their were selected enough performance little left existing First, access. just performance function, primary to provide for

to E-family now are access apps on reliability systems disk and hard AI and Second, Storage their of traditional limiting comparable The flash compute of both to delivers at AI there directly issues. for arrays storage these provisioned efficiency networked, Pure's existing solves primary access. not with Pure stack. plenty performance not platform prices

and environment makes management pure And ranges data the of single performance platform accessing protocols the price operating easier. and across

data saw customers year by seeing of the its an industry record scale. this and also financial a latest Portworx applications strong environments of critical industry financial positioned AI the X Portworx the leadership in their by growth sector was new to Portworx production accelerated significantly data graduating Portworx as category. container in projects quarter. improved increasingly global development IDC, A leader in for past Portworx. management institution lower and leading preparation. container-based infrastructure efficiency had which recognized Portworx based their and numbers automating Kuganetes increased sales management with We internal deployments are cloud cost Tier on

infrastructure model. customer experience The of Evergreen One and consistently SaaS modern As appreciate Evergreen's/One guaranteed year, Evergreen/One service data we improving world-class the contractually always reported all breakout service a Customers growth. level with agreements. offers services, always experienced simplicity

Now Adding our industry for to new centers. past when in space guarantees two, pays migration; loss; SLA their family, Evergreen/Forever, data leadership, One, power customers X X and data Evergreen/One, power with efficiency space Pure and and and SLA across introduced offerings. our this data year. hosting Pure service rack Evergreen three, no the Evergreen/Flex Evergreen/One

AI by offering Furthermore, the and to solutions commitment for in world's Pure reporting. is their many the sustainable energy competitive industry the environment this data. XX%, is in approximately growing on drive storage intelligence Solutions demands to data outstripping can data e-waste Our most advantage customers availability Flash environmental continues proving of focused environments. artificial for center power the and of by demand usage, in and an space driven power center reduce critical the

platform our opportunity our this We strategy are and to increasingly market. in lead confident

technology outdated are and programs hardware. rebuy evergreen continually disruptively industry Our the of changing allowing and to replace need to customers the eliminate

risk. Eliminating to importantly, reduces infrastructure and sure enterprises, to downtime application updates dramatically reliability. while Most upgrades due system improving

Our sustainable X includes deliver environment confidence to and is advantages. ability our a of storage management operating competitive bolstered by needs. for single our enterprise majority This data the

to of our always pools ] as across all Direct performance Our disruption, cost modern And of both data. customers cloud without finally, model, which operating Evergreen flash their allows management, guarantees application unified centers environment data data manage and which technology, enables to and our leadership. [ which an clouds

are macro signs improvement about to While beginning see some the in cautious the we encouraging of we economy, environment. remain

As and industry's serve are performant storage most energy intelligence. sustainable the consistent to we well demands of both solution artificial and positioned the data-intensive

stabilized, growth. should Additionally, pricing after improve storage market XX market has months of which steep declines, NAND

growing have that, product now. I operating a given 'XX, FY returning customer to double-digit it Fort for high to to and our our forward With portfolio, Evergreen and turn to like cloud over growth, revenue Looking strategy, confidence offerings. I'd platform model, subscription our strong Kevan of Works demand our

Thank you, Charlie.

profit. We for revenue performance, with pleased our are exceeding financial QX operating both and guidance

consumption exceeded value our offerings especially subscription Evergreen/One, QX end XXX% TCV and obligations, and demand As and strong, our offerings a solely sales Portworx. the Evergreen/One service over Storage for we or grew sales contract associated subscription-based expecting, were FY at with both was very was customer total million. or XX%. Remaining and offerings offering in performance RPO, for strong, growing for 'XX for Service as Evergreen/Flex Annual very $XXX our of

net MDR XXX%. or the at of end year Our was the subscription retention, dollar services

year, the X.X%. grew For revenue

revenue customer sales that would telco expectations TCV a growth and at our and expectations When grow sales beginning sale a year to at quarter the is in growth the annual As year of that be last a over 'XX, revenue X%. Evergreen/Flex for approximately shipped Evergreen/Flex Evergreen/One reminder, we the with the for been Evergreen/One have of would XX%. for adjusting mentioned above FY noncancelable assumed and our 'XX, the FY product beginning growth TCV expected substantial

related platform Evergreen/One across recognized consumption our time. offerings from shipment. our sales to over and products of upon is product recognized revenue Whereas a As subscription storage data service reminder, revenue and are Evergreen/Flex our

in quarter, included Fortune year-over-year in Operating to the Product telco was significant solutions billion. order Key major original with margin win of strong the also operating a margins in across gross and QX, for of of orders we relating the approximately a of FY mentioned XX% above data strength value product year. RPO, includes our orders exceeding platform 'XX XX% financial orders contributors margin guide RPO the $X.X company. and services which were last including end of QX, beginning that XX% total grew at Total XXX our noncancelable storage our a at QX reflecting disciplined our investing.

revenue highlighting service subscription subscription-based QX, traction to ARR or $X.X approximately strong In the services annual consumption grew XX% for our and offerings. billion, recurring

Subscription XX% has subscription started. at service comprising service Evergreen subscription grew mentioned noncancelable previously, not of date ARR contracts started, Subscription As revenue and date total the XX% services during where of QX we end noncancelable ARR revenue. XX%. effective contracts not the has QX $XXX where growing million, services excludes was the effective Including Services subscription

and for QX was million. revenue revenue million, $XXX $XXX was international U.S.

over during of XXX. margin acquisition XX.X% and strength in QX for customers. the subscription gross gross XX.X%. including slightly Our customers gross to QX, QX, We the new XXX margin margin gross customer services margin by new In now XX.X% subscription serve was product Fortune XXX and XX.X% and of total contributed X services was grew Product both XX% year. Fortune

approximately $X.X nearly and increased Cash QX. and Our flow the employees very the approximately operations was billion end and the in $XXX strong, investments million remains the to X,XXX million including at 'XX. balance of quarter. during end Pure's approximately cash $XXX sheet from of FY quarter at for liquidity slightly headcount

to of the during expenditures included year 'XX. sales during Storage year million. approximately driving our expenditures million as the test Evergreen/One XXX,XXX Capital innovations. were FY growth $XX.X team X.X% shares we for Factors for new Representing our of offering, revenue equipment $XXX stock engineering a our Service our shareholders. repurchased supporting higher nearly capital our QX, headquarters and returning of product new In approximately

For in were the repurchased quarter. million throughout parameters share quarter, our repurchase with we as X.X our in lower million year, activity fixed of that the the Consistent a of capital to nearly last a repurchases represent level shareholders. $XXX returning nearly place result shares, trading remarks our

million repurchase announcing we We have existing $XXX approximately authorization $XXX repurchase a share of remaining our authorization, today and million million. are new on $XXX

Now turning our to guidance for 'XX. FY

double-digit growth return billion. growing We XX.X% FY to revenue expect to $X.X 'XX, in to

We data cautious across will macro remaining of strengthen while our demand spending expect also platform storage entire environment. the

growth revenue which TCV are for be $XXX Evergreen/One service expected in and to million. Evergreen/Flex XX% annual offerings, growth guide sales also XX.X% collective contemplates of our Our approximately

subscription 'XX when growth that we offerings better growth growth help impact mid-teens sales in a increase at our operating To we from of 'XX expanding the margin profit Slightly short-term in of have our longer-term FY adjusting X with beginning to forecasted revenue service arising offerings. and FY on and Evergreen/Flex by guide X-point in of 'XX to from communicated our FY growth, that each year represents FY expected expect the revenue our and our driving rate percentage our million, $XXX past Evergreen/One is profitable be with operating 'XX. would our by of the for that the XX%. a be Consistent point we estimate in year. or consumption growth line both offset goal Margin margin operating FY for expected TCV 'XX annual understand the philosophy additional revenue and be

growth with reducing continuing Service, getting back pleased Evergreen/Flex growth and Evergreen complexity, value architecture revenue strong Storage flexibility are platform a delivers business by efficiencies. nev substantial and double-digit and power customers reliability, cost our Q&A. to expectations data With to storage and our I'll for Pure's We that, and increasing turn while offerings. Paul unparalleled our back to it as from of

Instructions]. [Operator Kevan. Thanks,

kindly questions we let's questions, additional time ask allows. be have that happy started. get you you take if queue additional If the we'll Operator, please to and those rejoin

[Operator Instructions].

Amit from question is Evercore. from The Daryanani first

do proposition you framework with Evergreen/One everyone, afternoon, so over looks guess, Can Charlie, a sales a on Good continue may, basis lot. comes you you subscription shipment customers it rate for a your really from there to I kind at think into then revenue what resonating to did touch you And here. to is it grow a a actually after the Thanks what nice congrats move think of 'XX and your much print could base to if base, a time? how again really just offering. is about value well Evergreen/One robust on you question is should when of like in model 'XX. fiscal

doing Hope Amit. Thanks, Yes. well. you're

type like the you. economic cloud-based two think question on And the about then else very the it's PCs really it use just could and I'll first. So laptops, and that in external use on probably for some and the model. What's answer service. actually, a Evergreen/One noneconomic but of exciting or noneconomic, really think I this is start you of on The I ways. SaaS-like Because no is their I everybody managed their hard ease, drives call, longer with

storage it whether just worry worrying that's to to now about subscribe deployed configure that is failing, our a customer's we pay same service, and able easily cloud, as Evergreen/One in a or need have buy it's customer's out The to more deployed the is true and is go don't on for a the hosting is if actually it the about capacity really That You in premise. service. us. system. colo what with And having you're them premise, for new it you on without to

from all the service. the constantly at So from and entirely looking attributes manage the remotely. manage has They SaaS necessary, customer it of as We it a standpoint, We're mostly capacity of performance Upgraded standpoint. otherwise. cloud. through it a

And the many very it's world they the of managed. course, attracted way a so now And easy reason the service. operating and completely is why modern customers to and service that are the that's

as what the of economic sized a it are for use Of they buy don't course, to elements they use when that to what X they for they that that when they're what think years, I they system the only they'll or they at pay it, and said, need rate use it. use need hence, they pay X is able just that they --

both from noneconomic and compelling it's economic So purposes.

Lastly, X% total in of terms subscription.

easily, our think over this a majority I revenue of so And the being we see subscription continued any growth in certainly environment, to time category. clear in with way

line The is question Rakers Wells the Aaron from Fargo. of next from

about unbilled think That's little on quarter. RPO congrats the stands about alluded talked the telco also -- is in numbers major with this The last that sitting $X.X component large of to $XX quarter, also at that balance a bit. number sounds I $XXX And Kevan, but to I million a but year-over-year. very know, win wanted like billion a services significant out, you financial I you Yes. million. ask up company. about the the about more the it at XX% from notably even

I you're we give that, little the subscription us think bit more if might that insight seeing. unpack growth into a that

RPO unbilled big any number help just contributions I'm be in the us would product quarter? in And growth ex So that could the if you useful. bridge wondering those help

about Aaron, But I XXX win. yes, really of we bridging into before this Fortune will great, we're give some That's you the get you it, excited discussion.

information Charlie bit, some me then provide have Let little for you. a and explain bridging that I'll

wind came in the in Yes, late bit a quarter. the

a that a environment will their fiscal really having into it you understanding exciting. deploying frankly, Very single And They all be new the So that it's ramifications our obvious the was Pure's covered environment. through really of unify it them services, of buying on year. operating based deal most this and was to majority, data -- not storage products. that if fully

win. pleased with that really So

that's Fortune yet. win product unbilled significant And total we would RPO, the from again, the you're then, the shipped product right. those which the standpoint, bridging our Both because with be order would exactly telco orders. and a of that's Aaron, And XXX. And include haven't

what So to depending piece RPO. you'll that customers' come it more build are. we is going either through. it other But as ship for product, the of significant that Evergreen/One quarterly, on as billings relates And see subscription the be preferences the our large that of to we and Evergreen/Flex growth again, annually, offerings.

you're that So a the will as large well. end be that of build piece seeing

Aaron. you, Thank

please. question, Next

line Morgan Our next from Meta Stanley. from Marshall question comes the of

the discussion, expect been inference. would time is investors for investments AI think is you're just out the Maybe data figure these the in that on of you Great. -- of when with I trying versus storage getting we've having of to preparedness lot the a conversations some timing as ready

any in Just considering you're seeing of other kind investments? terms of patterns these timing or when are customers just enterprises that

there's And second are from about I'm price eventually disk volatility on a pricing, talk been the the we not there concerned a as point then just in question, lot different NAND of a about is has be my year? conversation quarter-on-quarter at maybe differential? even moved conversation vendors, a to Or on some of -- a hammer all-flash to, this infrastructure okay, let's moving crossover really about

that your end, up this don't the first is others be bad upset take back Paul. pick And us. the last we'll question. sorry, get at Meta, with to the question. guy I'm your I'm so We'll going on

to that. Sorry, follow I had

And to high-performance the a performance. that's you're which -- about inference I'm general of AI is go three not data talk in customers super the but silos. right at the just let's market data it. to that everything some but that's then perhaps to the the place The needs And necessarily or along One get can access the super AI. market, with data involves high-performance sort and area, take looking storage, so uplift to that So data performance, right. -- good supercharged storage GPUs, in modeling now GPUs categories.

it's of in the on And that, tracking the appropriately and of And on Obviously, think think we're of market smallest transfixed with of world in market do modeling total I things. modeling the of of part out the has I and is course, the that entities them, so, market. all but going a been lot side terms size. of different dog activities probably the

I beginning. to think what do inference only there. just is going to out trying Customers figure they're

I think data last what's and months spoken customers current environment I've recognize performance to at offer channels of to let it is able up want data, and AI their large really alone do the task that impressed X the create. the to being with is over that to the me integrators work to both everybody starting as really not that high to even customers environments they'll

as view -- very So opportunity. that's I that large a

very So I would say we're in early this. still

think question. the your I of that's part other

very some I to work to and think its enterprise this, it's for through time we're to it enterprises the early think way going in planning horizons. I take -- through

this Yes. And Meta, is Rob.

to agree echoing would definitely that. in Just comments. on I jump Charlie's

performance think of connect in limitations own from physical being do data For access to able fragmenting we're certainly to discussions breaking understanding moving bringing customers, away all through to areas with silos how down cycle transition that their are of automation the and their in customers, policy they my data. from really data today, terms I early

think that is infrastructure especially decisions, it customers discussion future proofing to are we're that their investments. as this pertains technology of realizing importance I the are space navigating the having other

to prepare that that of If and that in. speed flexibility environment for out moving going space you're your making because the utmost investing critical it's building to be modernize is are the just AI, in you're choices absolutely infrastructure

the can And Fusion, single storage to software right? pleased so really very that see when emerge got step kind position. helping our of to you position, from with consistent and from you You where with operating back map that that fragmented our data that, portfolio, customers down environment and hardware map Pure

and to has lacking quite certainly ] ED future [ been performance, an with in bringing some doing Evergreen, we're time. of frankly area much what that that needed proofing terms storage then bringing optionality. for that And performance Certainly, with

of question line comes The from Tim from next the Barclays. Long

a follow little I it pertains of company service back little wanted and subscription up based. more as a bit bit to margins a leverage of here. on to Kind the becoming

of a kind here. X-parter maybe So

pretty on line. talk levers It are lower. about look guided gross high What little Just a gross margin margin like probably a does the line? bit that's It's the level. been the

talk of line? in the of And an about little investment OpEx kind then is the the you bit environment off a be just revenues maybe, Kevan, can going subscription where to of pulling more

we'll Kevan, I'll in the back question, guy be Tim, take ahead the OpEx bad gross jump to again. come and later. the please and go and margin

And look to than do while of look, our lower as operating expenses of with the we in in in expand more innovation. FY margin gross to again both 'XX, and that think double-digit about can it XX% we we're in as returning detail into grow and to to profitable performance consistent continue also our and we 'XX growth. context Yes. that our invest with it And FY is to And philosophy pleased some But go I'll what 'XX, assumes we if growth. slightly really will our at margin operating driving saw rate FY capacity in a as needed. we and this sales expecting revenue operating 'XX, margin

imply gross this derived our in then market which principally would to and margins E-family. to scale slight Tim, continue be a as And we the right, we margins, disk decline gross product expect penetrate you're within

So hopefully, you. for that's helpful

Our Ma Partners. comes next Howard question from Guggenheim from

at a customer to point. far, And a data does deal? just TCV or an scenarios is much a deal start average, if for where than smaller an then how smaller you might an and have on the the start deal. CapEx OpEx on deal compared on OpEx much us My range crossover of deal the based could be think maybe question you Kevan. OpEx it scenarios CapEx size for where deal for Kevan, would is on comment And the what so smaller note, related start I helpful the same of CapEx might the

it's average great think between and out variation close. of Charlie about. do size, on you data a and And points we FY Evergreen/One. when Charlie, Howard, our order Rob jump take fit. time a When when on-demand that around you And are a we're raise? Obviously, then pretty question, terms they comparison, you'd pull see other as in back step lot 'XX. But CapEx a have But have deal sizing between level want our offerings to and actually billings as lot any the again, of Yes, well we how One. see into let between we I'll a value evolves. straight as at CapEx the Still and principally do Evergreen points frankly, to more

Evergreen/One customer same do breakeven. couple of get into Yes. we one other. hoping data. a we in for will by the quarter of of because the because customer that's versus a better bolstered reaction base same, deciding have to a I approximately Howard, the the level are the the the the an number in actually say, handle -- may different to Average that deal than CapEx, not where quarters. have What we're that coming you gut is basis. that The on but numbers, look down about mentioned, exactly of though, the deals true environment, numbers. somewhat out We're Kevan individual breakeven and do know, rarely got lower that My it's yet all average as be is the the trying ways deal-by-deal average of that, next entire And across if X.X TCV question, dig a tells great ourselves not years. is over but the me we situation and same

would the breakeven. That revenue be

still figure amount the and the capacity, out. that that of of capacity. And is to Sorry, not trying about asking we're revenue the same -- breakeven or you're what same level necessarily

you, Thank Howard.

Next question, please.

Our from from next comes JPMorgan. question Pinjalim Bora

Great. the for quarter. Thanks and congrats on taking question the

last the 'XX understand the bookings is Kevan, to contribution I'm or the -- fiscal of XX% to the guided, the through at understand when Evergreen/One But similar kind you the you not led year, a you growth, raise around are Just for half that I going line obviously bookings one the year you're kind top and Evergreen/One dollar what confidence to or assumption question year, TCV your of to for little to numbers trying additions. the end I'm to assumption the and right and the Kevan. of trying assuming headwind -- of guidance had number XXX%. through gives and on that to year that the line a it's be risk the kind understand bigger just top guide. we

and and our And our you the that that our looking sales to work gave of lot Yes, part you as in the TCV imagine XX% both modeling, Pinjalim. a I will, best revenue for as well TCV process. sales revenue have appreciate informs of guide with Evergreen/One up as for coming involved of at Evergreen/Flex pipeline, the looking question, And look, which XX.X% when for are guide, Evergreen/Flex. terms we're of look, and rate of at opportunities we that growth for view, then is if Evergreen/One guide,

and -- what if -- And And really in in mix we the see how sit and as what's would our we our our today. mix sales growth revenue of less TCV consumption be our sales would if about we that And significant question impact? FY FY saw similar here think your in the is, changes we we impact you 'XX. do offerings, look, expect but to 'XX growth that results hey, subscription expectation would That increase.

rate. Evergreen/Flex growth if you significantly side, have reverse sales year, well the assumption TCV as to to and outperforms and revenue we'll an on growth through the our across impact on our that of sales XX% update And grow Evergreen/One give progress would visibility. Evergreen/One continue that we and Now of Flex of performance sales

you, Pinjalim. Thank

please. question, Next

Cowen. Chris Steinar question from comes next TD Our from

being deal X-figure or with being Chris. This for training I'd are GPUs are the about GPU or pure about. talk you and are there is used in talked Can Eddy better versus backup major think E-Series like would these investors there guys in your discuss to where they some feeding directly like used like where about they systems workloads and provider I archive cloud FlashArray wondering systems understand for inference ask the and you your for to for opportunity mix FlashBlade example? can so there? is within if AR systems can Also the the whether understand there sit you

is question. this the take that one. Thanks I'll Rob. for Eddy, Yes,

win. So excited really kind of of and this AI providers. interesting use customer in about involved of of cloud largest all workflow. a and usage the GPU this Charlie number use environment What's training exciting about cases, mix is The is cases one in it's a mentioned, very the here

data pre lot is portion So AI is of GPU for is a data experimentation directly it being said, as being of is, you being portion model large used and servers, in for post feeding environments. done out training. direct used these A That a preparation, and of training processing. into

and performing going a large doing As development through number and these users tasks. -- workflows well, these this environment of is doing supporting this kind of

lot lot right the a as to mix of product I data training for dynamic was right you as lot this part think that all cloud beyond elements part your the sale. of the case, workflows through AI of a deal, levels will this to think deploy a I the understand better the just Evergreen/One this walked second the for remind the in was provider, the a is of broader usages. work of nature Evergreen/One you, I expand in service the the creates question I that of space. model speaks preparation, flexibility of the in the large service which to set into just provider, high-speed

[indiscernible] said, being with That product served is environment FlashBlade set. the

hopefully, of So about a space. you really gives bit and opportunity more the think our that validation color the little in to points

question from next Jason comes from William Our Blair. Ader

you us and to Evergreen/One Just wanted from when be give might if Flex. ask revenues and to willing

great question. Jason,

bridging sitting. and revenue, TCV terms TCV that the in in you'll Let I through being do is in want sales we're on point see level we're at slides sales of you for of in terms and the this the work of a us normalized where that conversion giving think of transparency we'll to the those we presented, time time

Our next from from David comes question Vogt UBS.

that Is when underlying make the X%. periods? push framework transition telco And roughly at If reasonable looks for just the And the Kevan, of of traditional during And core that's to and historically, the storage I for years question. -- and I'm different model my that just back the and/or would to trying product it the how that the through over disclosures of prior math, if to you based 'XX, gave all on I that underpins what's over all normalize customers mean think a going for to services. did compounded from come those like the I'm model of couple sort demand the case, revenue you adjustments last and 'XX. your have couple trying 'XX think that and out last your years? I share 'XX

do storage and question. want the share hit modeling demand Charlie, you then and first market hit I'll to

Yes.

market is subscription, because that the an question mainly resell not our XX% up variety, know, which, necessarily do that of our agencies the array in incorporate when -- means to case, we are I rate the you for picking as pickup by arrays really feel Evergreen/Forever a we same rate? what storage they we don't obsolete. in core, pretty relates reported think which because the don't at becomes remain share reporting obsolete still become not confident market the in share We David, we're your

-- back would I think our premise sales a have But the what stated for been -- that, have absolutely be you We X over the year. his it and in it love -- accounting, been to the with can't to the actually this year. is would basic is that. know is correct. we growth is look under our numbers that, at would little we product standard sales if around taking Do you have in what preamble No. don't the team Kevan? on believe Evergreen/One that -- Kevan that good I prior were have -- it get your So X% market I a

Evergreen/One envelope of contracts off to David, can thing calculation given that's do you amount the obviously, back sales coming given as you that excess Evergreen/One well is of other of for kind and for we've revenue the XXX% TCV as and FY too, in X growing estimate for around of The TCV FY is duration these the for Evergreen/Flex sales expectations 'XX, of average Flex our years, Evergreen and 'XX.

you, Thank David.

Next question please.

Capital KeyBanc from Blakey Markets. Tom from Comes

the and of kind even what maybe XQ you insight the some XQ of sales Charlie, about on rates conservatism and in products, kind exit to product straight-up get in your level side. FER there seeing your talk of Across guide like maybe in product fiscal the into and could you're fiscal possible just

our pipeline I the our now as and we seeing as indicated, indications customers we strong overall. at QX both, of go of well and are conversations think, we actual call improving as in forward end in with demand QX, think, in -- As the results in in our I

So that's what's giving us confidence.

of rates, I exit provide but... we don't think, generally Kevan, in terms -- direct

directionally think But obviously, specifically directionally. about to really seeing, when from Yes, it and a we're subscription revenue is next 'XX don't perspective. Charlie's taught think And revenue. on strength we've right, and both year, we I services it and FY services subscription we being in product don't. And Buyer point, but guide driven 'XX FY we he's revenue. growth the subscription

for really growth flattish good I services down to and think subscription maybe FY about think product it's that slightly way 'XX. being driven a overall to our by being revenue

you, Thank Tom.

Next question please.

Simon from from James. question comes Raymond Our Leopold next

see that buckets, Earlier in words, wanted broke could described unpack the to the the opportunities of sort as bit get and Q&A, item I And what down helpful. X really I'm AI data is other In I if trying found Charlie a to uplift. into the we to assuming or for it really as break manifest the opposed better AI operators you the sense is hyperscalers to in -- to you're into when of what of a expect needing itself of terms and the enterprises of material it becomes that timing to sales how platform.

more Just a help. impacting would if bit little that

Simon. Absolutely,

they So of or or own their It's mind. trapped generally is by their job, silos. this lot level regardless want to the at they environments absolutely is want manner of any to are serve What and your analytics concept correct. to which largely whether build of in is a on there's in I for environment for over course, data build, purchased which very think that, the to enterprises means today their instinct make their own economics necessary say, level their capacity modeling not. trapped, alone to or largely their data the the of primary do performance not were AI own have I order analysis In on inference do They to data with AI -- AI. for do do storage be able purchased data engine. that, for left available in performance let much at And is bought up storage that the type,

And they they're not array networked. are the at Traditional not even had storage networked if arrays that performance, level.

disk to to buy is generally which the go what that from and them performance to That have our arrays flash very environment. copy case, the would left for allows would indirect. is customers and And in over and useful have of You through our their have for replace primary new to purpose anyway. data going AI that plenty those arrays do platform terribly application not environment. mean

reduce they at for is lower reliability, with now AI have labor And associated higher cooling their environment their So to get update modernize the spacing it their data by analysis. a power much time XX, so environment available same factor of that it.

just Charlie a And bit. really lot a that data fragmented and of build of storage these on mentioned pools today. aren't network little silos to

it and a a customer take lens. me Let procurement from

application But department that look has only a being AI world connect And a configured glean in independently. that these lot these you used purpose, and to able technology where is data of being you've of to for a to unison and been do sets by these really in environments, insights worked by completely If connect at greater is the in storage single data actually purchased data historically all got application, okay. department them of that, things. whole power order from all

as all we to being able And of opportunity pull we data and position what here. larger when that's see our the think so really strategy, set our step pools platform back these about together, with we

And of our GPUs is then I'm realize, that in their are thinking is when of rent, or think many -- the they what the most analysis my that or with how timing, you poor. it's it's just governance beginning lease companies advanced and do very we regardless at most are the seeing oh about to gosh, buy data what might

that to ability data Our poor. access very get is to

the going it's general time for think I this. grips to come full So to take to market with

use that's early the -- see we meantime, year, next have to plenty this economic more our disc replace So it e of family I want why there's reasons anyway. customers when late In coming year. up would to

prepares for it, see kills better the stone. It's it one two I e-family AI. replacement as and So birds them with a

Thank you, Simon.

please. question Next

Chokshi comes Nehal Markets. Cap question from next from Northland Our

Evergreen run the one click Yes. GPU your the bookings on Thank I want that major with double results, cloud to you on you on what thank for major the overall -- That's congrats the detail on provider. does great. and and to revenue. your

put if not like -- within alternatively opportunity does if not as you're to you understand well utilized is penetration what you I'd at Specifically, than that XXX% that being how as deal particular GPU are penetrated that up provider?

is take pleased I'll so with Rob. win. very Look, I'll that one. XXX%, it's Nehal, you Yes, We're that. -- This the not tell we're

before, the one use GPU out think, there. I providers cloud largest as deployed of mentioned footprint the on being I particularly I it's mix we our cases exciting And is as think what's look, of there. mentioned,

see to consumption initial point those that deployments at One we'll that project and this driving Our really is in focus us. where takes ramping success, Evergreen

describe alternately being wondering utilized I Rob just was in before is can what [indiscernible]?

into don't the I speak that really can't that. have visibility that. know we to I

comes question from from Lake next Our Street. Eric Martinuzzi

Yes.

realignment was. And with charge the to realignment small I was the of that? goal QX. workforce done in a we you So are curious had know what

Yes.

to And based fit more company. way on to across models We we've X driving enterprise the to segments, that, really extent, to that's areas. specialized on meant on focus roles I we also customer that put organization restructuring. and focused inside have coordinated very mean, being in the and a the restructured reorganization and business putting the those commercial across no, some teams and were hyperscaler that there process much we to really moved don't And what And caused different were moved was that people place. roles that some limited that in -- eliminated,

Thank you, Eric.

next I got who a is line. person think this question back in

So the I this will think last question. be

question Wells is from Fargo. Rakers Aaron Next

All right.

with of given Just to narrative Meta AI discussion because know there's pure, into the the about just we're at Meta's lot been regard yourself at you been AIRE, not your where it and deployment, has where assumptions the any I curious, footprint. just Meta there's I'm whether a discussion year. I'm see asked, or of at baked guide currently the curious opportunity not of expansion and GPU of around that and this

Aaron. Thanks, X. This for round Welcome Rob. back is

value from Meta with our before, stronger a place. is them they with to working And than almost relationship solutions continuous said on We're realize incredible we Our as ever. basis. continue in

almost didn't we in to your question, RSC have to as We to But quarter, specific We see sales said did additional we've sales typically I the about other we Meta think mentioned, updating every into sales commenting or other AI asking have just RSC. before, -- as we've into sales we environments, environment. be deployments on in wouldn't including there. including other environments. AI

all-flash second Thank Charlie, at Meta's you, could you different crossover you to maybe data really center. about point concluding give a excellent the now whether comment on remarks, Aaron. before we're question

we're that. Yes, that be X I'm We're stick in expected still it's now timetable. I a great with believe years' last array year Meta, of I to I started to time. I in storage that in that the front years last disk think about sold that going process. question. early X saying

there, But tremendous time. much X bullish going decline the it with the X disk a years, ahead. is customers still am -- to stick -- this obviously, really early how growth year, to days. that early will even greater I'll out of has it's Disc and think we're take think very see the been this our e-family on this, year Systems. next considering expecting I but bit I We're I of of growth, it,

some And had concluding then statement. you

earnings today's built industry's thank Well, want that as strategy transformation. for everyone the is to The now joining us we've I storage do call. always, leading data today, platform on

With are really full your the suppliers, potential modern you trust incredible operates their do and unifying tackle your I fragmented seeing this And investors unified enterprise can uniquely enterprises storage way data the to data now forces progress. environment. our intelligence. all. response allow want within customers, environments. of just collaboration, the artificial platform, to and them behind their to Thank our dedication, really unleash going to your We that's that partners really our employees, the thank our are what's driving

That concludes Thank you participation. Full Fiscal Call. Fourth for Year Quarter the and Pure XXXX Storage Earnings your

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