Pure Storage (PSTG) 3 Dec 242025 Q3 Earnings call transcript

Good day, and welcome to Pure Storage Third Quarter Fiscal 2025 Financial Results Conference Call. Today's conference is being recorded. [Operator Instructions] At this time, I'd like to turn the call over to Paul Ziots, Vice President of Investor Relations. Please go ahead.

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

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

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

operations, statements, include after was investor.purestorage.com. On them. current statements will call posted webcast as this uncertainties. of of market being regarding can on are accompany our and this trends. our this update simultaneously we strategy, we product we webcast. which and be new today, statements and Our financial on issued and competitive forward-looking various our based website no outlook make at our call to press today, advantages, risks make close forward-looking and and obligation are These release to economic that downloaded and Any facts its where is assumptions is subject The slides offerings undertake industry technology and that today and

results performance. Our relating contained future reported public considered of indication may forecasted, our some uncertainties filings the is our as SEC, the to refer with we you an risks not to and business the results of and should results discussion in be actual and filings. of A materially from differ these

directly performance most this slides. or the RPO, and and financial non-GAAP and our GAAP associated remaining Reconciliations earnings metrics than provided call, in to revenue, obligations, release all measures and During growth measures rates other press are investments. are cash comparable

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

XX, XXXX fiscal January XXXX. quiet the quarter Friday, fourth period of at business, close begins Our

turn I'll it Charlie. over that, to With

and exceeding Pure both with delivered to operating our third revenues income and QX call. FY earnings Storage afternoon, 'XX quarter guidance. Good our welcome solid results

pleased that previous last design hyperscaler with we on signed year-end. announce to calls, achieving few in have I am the have a a hyperscaler engaged weeks. significant a by we in win I design discussed As X been top win And

This the the flash all storage in major and hyperscale for hyperscaler to storage, online first-ever provide is design the is future. flash vanguard storage standard providing it for in win environments

For reference, the drives responsible disk for of purchased hard today hyperscale globally. market to XX% is all XX%

providing and of to In data expected amounts storage, hyperscalers top of significant their free addition cost-effective this space X power use Pure technology up centers. in to data is

significantly while maintenance engagement and unparalleled at to legacy failure the Purity proven DirectFlash costs extended expected The with Pure DirectFlash disk and now companies price and energy storage cloud-based performance capacity technology data the bulk data close hyperscaler has Storage, by necessary at and density their lifetime storage ranges. testing power services between with performance, price, expected the capable Pure's to the engineering also low-cost reduce providing deliver even efficiency. cost-effective of rates provide and this this hyperscale is major infrastructure. is hyperscale Software customer will associated storage It doubling technology the of

for outline bulk all the of high-speed for fully of architecture their To technology. storage as utilize storage, Kioxia, To the well in single, a a with storage industry, support hyperscalers collaboration flash use increase hyperscale a consistent deepening for we are flash also inclusive demanding their our AI. global technology the performance NAND announced we as low-price demand expected most to in nearline with opportunity with leader today online cases, including here, higher working storage,

the hyperscale our partner community. in steadfast Kioxia has been with a engagement

per opportunity now Pure's everywhere. taking And year XXX and disks NAND vendors planning market. DirectFlash that ready their exabyte win design notice to are address hard Our technology signals is replace this to

footprint today volumes As started volumes announced labor technologies year data while design win over continue the X combined to power for reducing increasing we ago. physical the The of the hyperscale consumption, increase, and data hyperscalers to meet data of enable challenge centers. our work

have hyperscale customers, for own services, Hard of into hyperscalers commodity sales operates Disk and software standard we have While product their Drives had SSDs. on which storage developed their

early achieve cheap replace to was and hyperscalers Our with could storage. price necessary skepticism we outreach drive to first that met hard the performance

of investigating fit Purity compute and to their was smoothly us together DirectFlash and the hyperscaler technology economics the optimized targets. architectures this further to financial open and storage fit to into and However, working their Pure our design optimized

Pure market. X top their win, centers win itself as use is technology are data storage Pure's data hyperscale signals With exciting entering to The hyperscalers future this design standard. new an this that approved

trial We double-digit order expected field corresponds fiscal early deployments next with the year expect 'XX. production on exabytes large build-outs XXXX, full our calendar to in of which

in continue well. other We our hyperscalers dialogues with major as

business we of now Given line the AI year, key several this details. for investment intelligence. which of our another anticipate would the opportunities hyperscale turn increased significant provide area in significant to for creates for Kevan opportunity artificial that like will hyperscalers, namely to opportunity and next for over other Pure. additional exists I Pure,

learning to training First, we storage continue private and for GPU high-performance environments. leading-edge, farms machine public and provide in

to Building environment. on serving better scale with partnered existing dedicated the serve NVIDIA specialized training strategic successful, provide standard investment Pure a world's we thousands We for deployment, we option were SuperPOD CoreWeave, CoreWeave the cloud to infrastructure make environments. Storage architecture largest GPU officially customers. turnkey announced recently cloud our for provider available the as a quarter, supercomputing CoreWeave AI past our GPUs, designed with This DGX certified a within of to

commercial RAG language engines look are enterprises proprietary many large they retrieval-augmented considering data. environments generation as Second, apply to their and or to models analyze inference

of system Storage medical In the who and device prevent to which introduced support generative products. defects, full we signed imaging Pure, deploy quality pod, set AI couldn't faced their analytics, can defective we the their With identify a legacy stack to multimillion with capture train a a deal expertise to their the interruptions run quarter, This and and real-time cost manufacturer AI significantly storage solutions, reduce now improving assurance. metadata a machines they operations Pure time, and GenAI catch AI required because their projects. quarter, dollar technology

AI to operating will to to modernize break continues to with drive and AI other meet different manage access storage need environments Third, infrastructure their Unlike down customers data. customers to easier and data vendors, silos Pure to varied needs. enable not

a one defense inference of sets fine-tuning of platform training, range Pure's aerospace data quarter, to multiple Fortune XXX and suppliers many the activities. for seamlessly storage This wide sharing support storage chose environments and infrastructure. chose Pure leading and This and data industry their customer AI groups world's across the to AI

enterprise data the enterprise. shift across data create to the AI and enterprise, by technologies since biggest to enabling enterprises used and safety, their Pure and improved virtualizing human Expanding Pure develop reduce driving With The own flash. turning are management Pure platform Storage solutions. aviation in to to pilot global transforming their the workload Pure and platform data capabilities, environment autonomous will on storage multiple storage enhance develop be is enterprise human-centric Fusion, we cloud

will will object upgrade platforms to arrays, Pure file new Block this all be extended and and to next and be Pure storage nondisruptive all existing standard be our a available will block early products Pure offerings. in as Fusion free year. quarter Fusion storage service

enterprises storage in innovation and industry. advances data are hyperscalers Our now the for transforming

to Our flash Purity-based now enterprises for us scale. penetrate the DirectFlash hyperscalers in has technology technology experience largest and at optimizing largest the storage to enabled begin our with

dedicated storage a to their dedicated manage individual hyperscalers scale, traditional workload silos. is Traditional inaccessible workloads. be far other their a shared enterprise workloads. of for specific with other generally enterprises. workload Storage for manage enterprises Because which differently stored particular data create arrays, and to data storage products are specific architectures workloads. Traditional than Therefore, cannot storage

handful small By access hardware. storage enabled data low, price-performance data capabilities contrast, hyperscalers easier. only for same from and and by segmented the storage workloads by software, environments medium This customers levels, only utilize are of far dedicated environments. not All storage makes have Different instance. high, all a

allowed be with this attributes data Pure bring hyperscalers with in the to Our experience architectures cloud us released data working centers quarter. Fusion will has which to enterprise of best vX.X,

automated their agile the job and to DevOps on-prem placement, makes Fusion and Fusion in empowers enterprise now data management, automates their cloud accessibility, that balancing possible simplifies competitive enterprise stay cloud businesses effortless experience. enhances both AI. clouds data Pure developer combining data enterprises own and load across on-prem federate data environments seamlessly and to global scalability, enabling to operations own access. cloud, build for AI-ready the Pure it age importantly, environments, of build and storage

according and location data global of to fully and data API recovery the users Operating the their inclusive enterprise allows delivers Fusion to Pure Fusion and Cloud of and resiliency, customized, to define performance, the policy. to standardize On-premise automate via organizations and and cloud. across Platform, management services in Model cost, classes, delivery unifies, automates own

deepened enterprise also have major with our cloud We public vendors services. partnership for

independent storage service Azure enterprise a Fusion We of VMware Cloud the enabling transition simplify disruption, for smooth, With compute and scaling Pure from AVS, IT preview environments powered of data ensures Storage cloud minimal cost storage with AVS boosting Azure Microsoft official Pure This solution or resilience the for efficiency, first-of-its-kind nodes. to VMware on-premise migrations short. efficient from simplicity.

broader macro environment. to now Turning and market the

which landscape, and relatively seen contend all pressure We with Customers meaningful and spending on remains to IT continue competitive the in AI higher as well placing overall year. consistent we costs software the SaaS heightened cloud unanticipated operating have any budgets. as environments uncertainty, spending muted have seen not change with

to would the that we strongly of from confident positioned segments. quarter, I are Evergreen//One our strength all across While seen have in have are we liked more

It storage efficiency model, Fusion we're an consistent of cloud and turning location. and for reality a enterprise our data lower a an at platform, with faster into at self-service, operating data not speed, scaling operations vision greater the is cloud enterprises. The costs. is enabling With

our position in leader in analysts, industry XXXX position File Magic Object consistent as for annually such in leader recognized time Storage Gartner and fourth XXth Magic has Quadrant for recent innovation platforms. XXXX storage our and the Quadrant Our the by our platforms, Primary been industry time

global a availability to operations. a is become concern, Energy and critical hyperscalers has risk

cost. they're with significant Expanding nuclear any the presently of no DirectFlash one Alternatively, largest replacing supply secure Pure power. Some power disk years. longer for inefficient power are contracting storage power many a reliable cannot plants to with hard power, hyperscalers. capacity electrical electricity even represents add to sources technology seek production for drive at of low-cost looking Hyperscalers available

growth, can electrical such and power limitations data data while simultaneously is Storage enable power only simultaneously applications other data hinder to amounts space their center center cost-effectively hyperscalers the of AI. Pure storage increasingly upgrade company vast As that freeing as for

on our the era expansion personally opportunity I progress more our Overall, a am as ahead storage we with hyperscale and than are enterprise management. capabilities, opportunity data very ever pleased excited we of new our with Pure's about in drive

mic Kevan. With that, to I'll the pass

you, Thank Charlie.

We are cost-sensitive strong workloads delivering $XXX operating QX of results, pleased all-flash. to our our both year-over-year for X% solutions, demand FlashArray//C operating with revenue our profit also and Strong E enabling million guidance. continues and million. grew customers Revenue while to of profits their $XXX exceeding family financial move

our renewals subscriptions Evergreen growth. robust, year-over-year base of across remained our demonstrating installed Additionally, strong

we Total $XX months Higher our quarter. though define valued converting last in larger is reduced velocity $XXX we $X of Evergreen//One meaningful sale. FY for we greater of traditional during than million million that X the Conversion as experienced contract increase that a less QX, million value pipeline based strong, to than opportunities sales reaching opportunities these QX expectations a in our $X on Storage-as-a-Service million, TCV or 'XX. Evergreen//One is offerings for consistent was

total higher-than-expected Subscription grew in contributed lower-than-expected $X.XX This of resulting which services to to services, product year-over-year RPO product and annual QX, revenue, also $X.X orders both sales XX% or subscription includes grew XX% billion while exiting Evergreen//One. to in recurring billion. QX revenues TCV ARR,

was international excluding orders, by our by sales revenue $XXX U.S. our QX million, lower-than-expected subscription million. revenue offering. $XXX impacted RPO of RPO, product and XX%. TCV growth grew and is with Evergreen//One associated service offerings exclusively was for

strong acquisition during we gross gross of customers at customer XXX the subscription Fortune and new by strong and grew at In margin to XX.X%. solid reflecting remained at XXX. QX, XX.X%, XX.X% services serve Our margin product continue margin total XX% QX, gross

data solutions. This strategic As customers cost-sensitive our family resulting underscores high-value our by transition in in product workloads anticipated, efforts was cost-effective, margin E solutions to our gross our product FlashArray//C while margin, influenced commitment decline our across modest to storage platform. to help for and delivering gross customers approach, a

growth strong gross in in continued the to product modest margin our to QX. //C we QX, sequential to from similar ahead Looking resulting QX FlashArray of solutions, E expect trend observed family decline and a

Operating continued were overachievement, operating QX discipline. and margin revenue profit gross XX.X% operating impacted during of margin strong expense by $XXX million positively of performance and

XXX Our quarter large at sheet by the sequentially increased billion was software $X.X operations Pure's reflects flow a including licensed. QX. balance cash to head count we approximately employees. new $XX strong, in nearly and and that the of is technology upfront end X,XXX and during Cash investments payment for million liquidity from

expenditures significant $XX were includes investments operations hyperscale Capital for million opportunities. and scale to our

million returning our to million shares, X.X $XXX repurchased we shareholders. approximately QX, During

offset awards, We of employee also on million X.X $XX which by equity also withholding paid due shares. million taxes dilution approximately

on existing million $XXX remaining approximately our repurchase authorizations. have We

Turning to guidance.

the to $X.XX 'XX is $X of to seeing a Evergreen//One approximately our raise sale. to traditional billion, our an year-over-year are The increase opportunities We under expectations revenue converting raising million growth. expectation representing FY XX.X% result revenue FY in 'XX

expectations, TCV and of our FY dynamic increases significant consumption sales the offerings, on lower will our also FY offerings 'XX this While product growth our subscription growth growth for as-a-service sales revenue as-a-service impact we it do offerings. a expectations have expect TCV not our revenue growth. for reduces 'XX With

such, FY As we as-a-service offerings. our 'XX not sales TCV for are updating our guidance

$XXX X.X% year-over-year For of QX, anticipate reflecting million, we revenue growth.

an to moving guidance, million, margin profit operating with expectations. our we 'XX to our expectations also XX%. are raising of Aligned FY FY 'XX Now revenue approximately reflecting operating $XXX profit increased operating

$XXX of For QX, profit XX.X%. operating operating and of margin guiding million are we

Before in win our to technology closing, preliminary design X services. not contribution of design expansion part reaching 'XX, revenue with first time. win hyperscaler some capacities sale which hyperscaler. delivering as with to models. that our Hardware a involves your and transformative and FY like our share from anticipate production the operating deployments, on The commercial this I'd our inform top to expectations will double-digit for margin meaningful thoughts exabyte included beginning be full-scale support help aligns licensing this We win framework by for

guidance. FY these milestone, for 'XX technology approximately To FY hyperscale opportunity our and deliver increase 'XX operating to investments, this differentiated aimed scaling capitalize margin our Pure's operating expect will on will operations be operating XX%, in storage. accelerating FY we we with at margin investments 'XX considering When consistent

in our Pure data strategic spending focused their we navigating the remain and position ahead, execution, storage as greater landscape. operations. investments IT look growth to across platform, in innovation, empowering closing, In ahead our while efficiency, on scalability fueled unlock We and a as leader muted our data by opportunities resilience a storage advancements transforming organizations persistently environment. The are

drive lies to We confident and are ahead about sustained what and growth our excited ability in innovation.

to With that, Paul I'll back for it Q&A. turn

Kevan. Thanks,

we X Q&A the Before as can so of we begin limit question yourselves you get to possible. as I'll part people X many session, ask to please to consisting

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

question Daryanani the [Operator comes Amit of from ISI. first Instructions] of line Evercore Your

on could for in most or big on while. Congrats hyperscalers building impact, think the it terms just of scale Pure folks in hyperscale Pure? Could you a I know on heard given opportunity terms resources. folks do be drove have I for talk TAM up how working you about win. own, then fair perhaps the a at this amount what But decision their sizing this you of do touch have And the this revenue bit. versus financial of by just a hyperscaler you on this Storage choose these to been of

hear to your voice. Thank you, Amit, good and

have we long know, time. this you working been on a As

a of we the had it out that could them of are hyperscaler fit to that different different to our fact this At of they themselves. factors. superlatives end the of day, the and best number for given there a it And was away the wouldn't that number have So to ability frankly, this technology was they our provide area, in experience anything our got it believe that right develop ready do.

particular First, order, in unmatched and no reliability scale. at really

secondly, year. failure these First rate failure levels. to rates of labor hard are pressing outage we But compares to now, reliability That's to and costs. and per can our X.XX% And all, for unbelievably higher XXx low. disks. X scale we for exabyte That to that overall reduces SSDs costs

the Secondly, power savings. on massive impact

less environments. If power you than -- that X we is or disk a have and XX:X improvement hard between

other see you if about than It's center for scale to into available to that really deliver needs power saving it. We perhaps very rather a in happen. value. need as them also applications this that such power huge their then away. well. that's more this to It XX% place power. out power Think a as of AI to At a no to accelerated that source source go think them level, into architectures their can of data total There's you R&D power savings. time they it That's fits put right for to

software, architecture which a architecture it all on fits into SSD-based operate Our model virtualized processor-based is of their their of rather a an processor. software than remember, means having

X price to capabilities to disks model. a as more is tough it's when to considered the that's finally, disks, beat. everything And performance I equation of same mean TCO Getting an just hard hard really, So then or unparalleled and software-defined those the so do performance. so much it's times with and really

it to side me economic of Kevan. the pass For over let this,

like at things, couple high point today front, thanks, really about to, hyperscaler could market. XX% a scale. opportunity what Thanks, that the look financial Charlie Amit, this for the by mentioned sold Charlie, and of XX% just on is you all driven Yes. including for to A question. level I'd your potentially of this

in as good significant of of gives a also I think well of included And in over contributions operating as Obviously, looks long couple well. term. result like I In will opportunity I I you there's my point as in revenue that would term that data what considerations time so margin us shorter the over that us think prepared the expansion a term, for the terms remarks. for long highlight terms

to scaling for beginning us. margin, of front guidance this the at opportunity enable operating expecting that the year we're in of hyperscale funding really flat And to for terms XX%. year's In with 'XX, that accelerating gave that's we of the be that's of operations and FY

We say, consideration expect for from to this in and sale this include when contribution storage it's important note that we include it us until revenue operating significantly and capacity think to a sale revenue data as about are it'd going don't would to also also and meaningful that's opportunity then about than of compared lower well. And important thinking to, not we're 'XX, solution. FlashBlade//E opportunity FY hardware margin lastly, when our that to relation And the hyperscaler an our contribution expansion. in we from purchase, be

think are be us So for considering. important those some points to I

of Your line Rakers next Wells the Fargo. Aaron comes of from question

Yes.

Kevan, that. and licensing you're to sounds it's are that, those guys. a what can like those, a manufacturing you the of mechanics guess, just this, Hopefully, little Purity said unpacking the Sorry just basis guess of engagement well. not there. about attributes I capacity maybe Congrats and financial you announcement also licensing therefore, modules, was my hear deployed question I licensing a just is it me DSM the of as where now. on unpack on bit

hyperscale XXX% as mix go center think next-generational think they drives a flash. Or do about as into to it customer that then is And flash? move data you they footprint of we hard and this that this, decide

would helpful. that be around thoughts any Just

Yes. Thank you.

that. me let start So with

will you effectively from it you're from So right directly hardware, licensing the that both will, as hardware the if We're of their about The be be software buying parts their -- X customer thinking as the the integrator. the buying well technology way. They'll integrator. the is design.

And have so correct. you that

largely comes it as and fees, in for licensing fees fees. us, support software So

is we've this more customer terms roll will FY involved the out the data indicated In by we're as which in center intimately of our next-generation ongoing 'XX, development of way is, next the in. design, year revenue their

which Now to prove will ourselves right is had this the majority their our hyperscalers, of is being being vast but that able level a prove price -- to by for their the has provided they'll today. architecture now, do including across what hard able storage, consistent which performance use which the in majority all storage, higher been the in their of is expectations that disk at to storage, of SSDs generally true be performance we

question of comes Ma the of from next Guggenheim Securities Your Howard line

industry. Congratulations a I believe guys on for potential the game changer hyperscaler and change in design the Pure the win. sea it's

of So deal. Charlie about and the a and Kevan, bit I want little this to ask more structure size

then $X.XX per software that it's recognized what or So maybe that math, which $XXX first like only, And is just could assume just if envelope the is? -- it calendar since of revenue is so means X the you half in do if gigabyte of if I guess could XXXX, calendar is in then I million be some even opportunity, on something deal the to million. either to you you length like share $XXX assume close back 'XX, double-digit get exabytes -- you XXXX and

And share, could exactly in the if 'XX follow-up a be just would color those what on too. on can I will the are assuming be you the So OpEx gross Could right any helpful. investments margin ranges you're on if making margins, that accretive? comment are you deal lines? sneak And

Howard. Lots there. questions of embedded in Yes. Thanks,

this looks Let we're pretty we the I impact. terms the more of as along. me provide and think with Gross Look, like, -- we'll details first level still margin we're way go start and high in again, what a margin.

the the value hardware. it of that in terms thinking of will majority about You're still deal the right fact be the of

your And consider for models. important that's I to think

multiyear thinking go we'll as gross in company I along. this way about think it's And again, tracking updates a time. in we've it And of give a point terms then we gross margin the good as duration, are be at is TBD. volumes duration, to margin, although been what

question comes of of Pinjalim the Your Bora line next from JPMorgan.

how Congrats terabytes to the of I or does modules. based XXX. on opportunity this DFM kind on motion go of of you, through wanted expansion you this the evolve or currently Is ask your XX change quarter. density as the Charlie,

terabyte, towards expect As this you evolve you kind do the the volumes particular how XXX move of in case?

Yes. of on tend The the -- bulk very the therefore, any would is although lot And doesn't for in of specifically this of road one they I know important to selection map, cost They that at the low lead in played it and these a their role in on A of one our us. things, big depend that be hyperscalers do game. storage we tends of density to say, most understand solution the -- gigabytes. forefront terms having side of cost the them. and stays certainly, of a the that to

will based utilize also they they for the same can the performance that workload be and technology and that the are higher DFMs. time, on same impressed environments exactly At density lower

of one a real of to performance. if positive. all the that the run that you level here the So price it's every big And what is is technology operation different almost rules at a need you're one technology satisfies hyperscaler magic having

Yes. X And thing, I'll just Pinjalim. add

pay that really introduction to this the terabyte with remarks, technology customer the including that costs. some the as been of from for earlier, would we XX shipping hyperscalers of along right, got it earlier more much in path the really was the our compelling look we particular on we've ahead, working superlatives attention. to road makes map solution at all forward, And replacement into now say As XXX-terabyte that this disk generation really prepared that Charlie and time. step as that really outlined drive just each basis we're modules look mentioned I the Charlie a

of comes of Cikos from Needham Company. & Your the question next line Mike

is at any expectations? Cikos TCV I a previous Matthew how on wanted is there of on around of Evergreen reiteration a revenue commentary trend Calitri the directional you're This mix? for and as provide color Needham. over the you to is overall to clarify, subscription expecting And revenue, percentage Mike can subscription

correct. we in converting question, this Yes, a saw we opportunities And saw those Matt. a with sale, that yes, traditional it's Evergreen//One higher our a opportunities shift meaning where that's great quarter, velocity CapEx sale. It's really to particular,

revenue, that And increase obviously, so a that's meant we the what guide product year. our is, for really and saw what higher drove

Yes. this little bit. expand a me on Matt, let

I in there's been think that unexpected that due what software AI market year that OpEx seeing costs in pressure to increase is uncertainty. as cost on in and we're this customer the increased as came well the SaaS software budgets increase

had been such budget, pressure them customers than out the so comes And CapEx we're a obviously seeing not more had which purchase, we product under seen Storage-as-a-Service standard in this to year. of past comes OpEx has who out which offering, considering been a an moving the of which budget,

think we'll by see organizations We still a and of a expect OpEx is because temporary phases. start Storage-as-a-Service to we in past growth It's just a evolving. I that in to expenditures unexpected phenomenon. that its year. temporary superior the due phenomenon We this still the think this bring capabilities economics offering has but early market high been would This the is superior this again,

it, Yes. And sale. that it's I a traditional that's a service, actually there's we and right, well, with easier, important about what's technology default think a to And maturity. in or through storage tendency that's, technology really sale still as purchasing to CapEx early as when its selling frankly, think data

Leopold line of question James. Simon of Raymond Your the from comes next

CoreWeave on to announcement Wanted this. released that check last you The month.

sounds obviously, like it opportunity. that's So not the big hyperscale

that the terms nature of behind that describing particular the color help of use out So the us some maybe win of you opportunity. in could case and and

the that. as our Yes, strategic very will Pure Simon. partnership take to partnership, make cloud. in their This the Absolutely, well bring investment made announced, both which we CoreWeave-dedicated technology we're as with Rob. available CoreWeave, commercial is we with the of and which excited I'll expand customers all Storage to

over the for joint who working last You deployments standing we've up release, in of the the leading one -- the a mentioned storage with as been scale GPU provider customer. CoreWeave, cloud for largest large is in we year GPU

the design success broadly partnership takes that building on latest proven makes more those And learnings expands and available of environment, really this our that joint that customers. for

So of really early from the demand interest seeing already and excited and that get to announced base. customer signs

so we that's able time, CoreWeave. not infrastructure win just name, that's about it That had quarters announced at there ago, that to Simon, quarters point their We were cloud now. the the -- there's in deal, a confusion, use in ago. I was double-digit X X no believe was was And but place GPU that

And today. is hyperscaler last the Simon, X X that have Yes, discussing CoreWeave been thing. we top not

next comes TD line from Krish Your Sankar of the Cowen. question of

And Kevan, results exabytes on win. the you in place? calendar this on agreement it tied Or this XXXX. is it's estimate on big Is Charlie not? congrats opportunity scale? license? that about Or is talked also whether can a the in and hyperscaler your license, based exciting for how the to this recurring double-digit and is onetime or it And annually on Charlie, exabytes

their record, we designing the where be go based the of expectations all calendar for our is -- in XXXX for The on customer, however, Kevan. the storage much next-generation record win but coordination TBD, the plan the clear, they're design. are sales are around with to us of that's pretty ahead, plan just that So also licensing design

tied be will that licensing really direct technology Yes, the for and shipping. capacity be the purity flash to the we'll software

the from of of comes Hosseini next line Mehdi Your question Susquehanna.

fiscal order 'XX? Can in in would to 'XX the your reference FY win what you estimated hyperscaler help fiscal the is with and you double-digit understand shipment current that the exabyte shipments. to exabyte year, year help understand us Charlie, Yes.

No test this systems than substantial shipments year. other

of Param Singh from comes of the Oppenheimer. question next line Your

to So you sales velocity likely in platform that of higher type announced now might that move going Evergreen//One into opportunity. Evergreen//One today. addition you I more be versus your directly of direct think mentioned back have an DCF with some want to hyperscale on-prem Do more your the to I really hyperscaler customers dive X know the a you sales. Purity go sale coming to to with you for opportunities But more

is the able answer their is be hyperscalers. the no. the following. if customer customers. selling mostly but storage to offers It's that win question, that. technology, to reason were and I take Yes, interesting underlying this similar not the that And I'll the we'll we services storage hyperscaler others to The Is infrastructure think the an

on storage much cloud they are some of their same does storage. of because decisions What software application move that deployment mean? Largely the software around and the less around their therefore, around services to services enterprises are based Those own today. considerations offer that

we choose data. what to decisions think divorced so they from largely where put And those their are

keep their So we to sell they that on-prem, that's to the generally product standard applications decide where today. our extent

in keep alternative And and cloud. it when give prem they using service to on-prem, we as a on decide them the operates storage both of that the

really that hyperscalers offering see So I their don't I decisions as think using our X of those to direct as and will separate storage put affect to things, flash technology for very where our dramatically storage. enterprise

companies the cloud of software of to some which On that the data best on-prem with storage they attributes that we've for our is as that on enterprise Pure can side, their today, cloud. own put the Fusion other I both what do storage think we we their that allows quarter. announcement of build made flip cloud is storage in released that do the download to well the as enterprise this And bring consists

them same cloud this a the service, very operate, in that hyperscalers as as to individual much rather operate is storage than arrays. as storage data way which a of And allows

But one necessarily making as to decisions building don't as for enterprise a sales upon their in hyperscaler them see as to difference I the see So storage foundational where place they big I another. applications. their our

of the of question Merchant line next Citi. from Asiya comes Your

are hyperscaler on appears announcement. temporary evergreen budgets. pressures given well the of most The the that product phenomenon as more a it And customers TCV, OpEx was this a you on transitioning mentioned Congrats to probably sale.

are into pipeline of growth. for you as ahead Evergreen your subscription expectations to offering Evergreen look to As look opportunity at 'XX, you us and and help you of services, can this services double-digit up again understand the ramp calendar you what if

shifted walking with $X couple to what about be But last update look, on see thinking question. when wait was us from or want actually really we've some an -- our given last industry-leading guiding bit not Evergreen//One conversions, that here out would $X quite this no that that on if the I next you consistent over dynamic has for higher to you to thoughts to Yes. quarter. million then offering. or dynamic especially And sustaining, looks we've One at appreciate That of tick and less. the year, Evergreen to of talked Evergreen//One plays the And through talking that's we change quarter. million, specific conversions talked traditional have a our service our a is our about time all QX to there's where expectations, is, again, we a next spent about opportunities, up, And with we saw again, investors velocity the be and Where will, quarter. how a sale. meaningful I for and look

James Fish of Sandler. Piper

one to congrats well. my cloud on around echo I'll pipeline. as ask Just want the I did

cloud First opportunity. on or the hyperscale

to based get your You guys potential alluding other the keep hyperscalers comments. on

So this with other of licensing terms you clouds seeing conversations. what similar in to potential are

have the let's XX You providers. AI with going say, on cloud top and

some on storage? does is to side, And calendar . year be of enterprise Or the kind second, evergreen refresh up setting the a model for larger that mute the of impact 'XX maybe

I'm on Yes. our Actually, to to Rob, going CTO, turn discussion. hyperscaler the Rob?

absolutely. Yes,

all of can reliability progressed we said, say the power And envelope we which driving can they we deliver, Certainly, earlier, multiple because attributes with significant are TCO savings. continue the our deliver Charlie progress. hyperscalers unmatched performance that's highlighted I as the So to would discussions that the savings.

the are arrangement. the so and main those of commercial than more specifics drivers, the think I financial

I additional do penetration accelerate technology our customer our enable the of announcement But broader space collaboration prospects. as to flash those well continue the strategic will think our with and into serve that hyperscalers in discussions both as that. today's to multiple go lead with with Kioxia a

At over very, clearly win a design we plan about is as of mentioned, the excited the but of work very to there's in hyperscaler, puts this us. with done. record be same double-digit us we'll ultimately they typical the hyperscaler exabyte as production as the to very, move to they next so more very And ahead time, fiscal the we're stages, we're continue the So potential very year this important working 'XX. closely that milestone capacities what with through ramp Right? progress expecting be into to in be

believe to up far I I next market. IT of building. have pent-up really that that a do as As pent what we looks -- being enterprise, we'll like around But are And -- expectations into is we demand some your demand we there year. believe muted get the do believe see tend because that there's question is being as to

the from comes line of Bank question next Wamsi America. of Mohan of Your

opportunity, Going Or revenue be to back of around the mix? as your capacity is the the basis. itself relation exabyte the a Is in a storage purchases hardware somewhat significantly hyperscaler Kevan, contribution lack lower that to would think that lower. of of we data part software per the should pricing comments on just also

that the this hyperscaler? does bake is that future? clarify, wins just the in double-digit Or to is from X in 'XX, calendar additional in And exabytes

was 'XX -- associated And first this hyperscaler win Yes. expectations exabytes win. relates your that itself design our Thanks, that and with part second what of FY Wamsi. question? The double-digit your in to

on that just capacity being lower you storage -- be solution? the capacity of is your the that Is would different sold because relatively way that traditionally Or in the the that software sale. compared is somewhat lack It's itself comment a the selling? the to it from just contribution of hardware pricing revenue of

is really sale, fact really primary is and that hardware driver. the primary of to this going the driver would that be be will our and the excluded from Yes. be

to into in play Now it, magnitude, when excluded. you the also fact hardware pricing think about that will scale of is secondary order but it's

Meta line of from comes Marshall question Stanley. Morgan Next of the

what -- being but architecture, TBD you a of 'XX? know center how to in out in kind the data architecture on volume the know the wanted the they centralize will fiscal kind new moving on what that volumes what pieces are be? what look do of will kind the that fast still of Or your kind be this as TBD sense roll Is true having of just just will you in of of like. kind of don't I but you will percentage

Meta. we largely for of but more. Thank center know unknown. percentage we bit for what shooting the the that's large qualified would data center little of build-outs of we little a portion of a it, have data Yes. you, bit an although unknown, exactly have say even also that a I exact It's that very, the we're we will schedule is very

not of about than their you for in components more of that for have their anything So the I control design, it's though, part, part other many lot we're still which of would on most including ours, other will, They components, if say, a for next-generation but schedule, else. design.

comes from question next Lake Martinuzzi Eric Street Capital. of line Your the of

Yes, seem relationship? and capacity the you being about think would be I would Because being the guys cutting-edge wanted would like in Kioxia. your What's comment more the Kioxia to follow hyperscaler up manufacturing excluded. about technology, disintermediated. more hardware change with you I that working changed it about, then relationship, on directly the hey, given talk are

We're not qualification. design. the vendors. our with for the still the for being all Yes. responsible We're responsible question. Thanks relationship NAND disintermediated. the we're No, It is all of for

will the DirectFlash responsible themselves. also modules design for of be We the

the a It of in So we're model be very hyperscaler. Think the to to probably that much channel will purchases it way in hardware hyperscaler modules the integrator as best control it think integrator. the provides uses the an it. about and meat is the

customer road and in that's NAND We've their of parts edge had relationship to And which -- say goes co-designed, this Kioxia also an together. of if would maps well, and a well as just mentioned, commercial terms hyperscaler technology long-standing flash beyond with it's a of key this bleeding you is capacity. as that collaboration design. technology this collaboration will, I part technology a great bring that is direct expansion to codesigned with Charlie

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

front. to ask the on margin wanted Just gross

think sequential the be the in was I comment to QX decline similar should QX.

that Is FlashArray//C that this shifting if hardware more to getting be we And Series. the that that. product QLC-based that like on the you line, E and then on piece would out now steadily can of seems the if competitive? products competitive in clarify portfolio. and the And to Is mix side has make set of comments just expect market Just some something might could more their you it continue? the looking competition on

X. some for in back respect going of second out take X have we're who question, their or with of Tim, line not gotten your maybe to try all X questions, to

growth saw what I'll hit now expecting and we and Tim, -- maybe really enabling to QX our driven similar to QX their what workloads really decline FlashArray//C and gross And that the product it's transition and solutions. Yes. to the QX solutions. E sequential through in of our strategy we're the And about strong customers family these we're all cost-sensitive I'll seeing to our is across margin, to

price there for these is workloads. sensitivity the elasticity of Now less solutions given price the

that you're So of seeing. pressure increased the of on and product these the is growth putting reduced combination gross margins elasticity solutions the price the

Vogt David of Your line comes question next from the of UBS.

next on Kevan, Maybe for you a question, year. margins

Is you've are versus and comparable aggressively kind in about into help you relatively similarly sort 'XX dollars same going OpEx? that in framework? understand of calendar I 'XX? 'XX. the of talked support Can would it your investing last If gross of Also years. 'XX, fiscal investment year you. You fiscal couple should margins look of growth the think in us the the for Should mentioned be business because we where level 'XX investing in rollout to in been about kind the expect of the

I our suppliers that's And our and technology hardware And will spend DirectFlash road with where incremental really main mean, the from. includes year think we consistent fact our about believe more well. XX%, operating as year what with communicated for is this apply Great question. when that next we I'll of did quarter our we Yes. margin next that's And of expectations. into communicate more what and But the going time the for density some integration the technology think significant with these chain investments of I flat map hyperscaler drivers qualifying manufacturing our we our investments, capabilities, specifications. supply acceleration NAND and of expanding will and come additional of focusing sites details it

the year, And thinking cash CapEx flow margin why we about well for will below then our points slightly to free it heavily FY X operating from X our a investing perspective. think margin. this when full we're obviously, year that's below And as 'XX, for of we're be

Mehdi, Thank you, back you going from queue. back got David. into Mehdi for Thank who getting to take last for very question the We're much, in line his our second question.

So question. this will be our last

Your last of Susquehanna. question comes of Mehdi from the line Hosseini

'XX? what estimated the shipment FY Charlie, is Yes. in exabyte

said, hard because, into to bit going predict. It's little a preproduction going It's It's be as hard it's mostly test say to environments. bit I to a environments very low. little that we're

or a maybe one, those lines. something couple maybe So along

Thank you, Mehdi.

Before think had you Charlie, we conclude, final I some comments.

new to you addressing growth is facing playing us these They're high competition come be going and time want I fierce of demands to that thank the critical a energy take underscores, earnings all Yes. I hyperscalers. for for design Pure data role to to turning and But joining win on are power the sources power long very unique in very to think, sources. going online. even today's The call. power

in that the today they X storage. customers, With use of while huge once and all our Happy amounts forward to next you dramatic of free it their to for to employees, improving of best growth partners, their thank front of all they again be and continued and make again for of the investors issue continuing on that to to them, This our appreciate XX% suppliers. is Power's for our ways year. of We of of them commitment. up capabilities We a them. constraints support overall power performance speaking our the holidays, look all want power order available the deeply our I everyone. existing and the have

Third Quarter Storage you Fiscal Call. That Conference participation. concludes for the Thank your Pure Results Financial XXXX

line. your You disconnect may now