Everpure, Inc. · NYSE:P

Everpure — Pure Storage — Q1 FY2017 Earnings Presentation

16 slides from Everpure's earnings presentation, May 25, 2016

  1. Slide 1: Q1 Fiscal 2017

    Q1 FISCAL 2017 25 MAY 2016

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

    FORWARD LOOKING STATEMENTS AND NON-GAAP INFORMATION This presentation contains “forward-looking” statements that are based on our beliefs and assumptions and on information currently available to us. Such forward-looking statements include statements concerning our possible or expected future financ

  3. Slide 3: Q1 Key Highlights

    Q1 KEY HIGHLIGHTS | TAM GROWTH | CUSTOMERS LEVERAGE LIQUIDITY $24B In disruption by flash and cloud '$139.9M Total revenue 89% Revenue growth Y/Y >1,950 Customers (+124% Y/Y) “$12 Incremental purchases from top 25 customers within 18 months of initial purchase 72 Fortune 500 customers (+60% Y/Y) Non

  4. Slide 4: Quarterly Revenue

    QUARTERLY REVENUE m= Support Revenue ($ in millions) $150.2 = Product Revenue ($ in millions) $ $139.9 131.4 FY15-Q1 FY15-Q2 FY15-Q3 FY15-Q4 FY16-Q1 FY16 -Q2 FY16-Q3 FY16-Q4 FY17-Q1 89% Y/Y total revenue growth ©) purestorace

  5. Slide 5: Customers

    CUSTOMERS m # of Customers FYI5-Q1-FYI5-Q2_—s FYI5-Q3_— FY15-Q4_—FY16-Q1 FY16-Q2 FY16-Q3_— FY16-Q4_—FY17-Q1. >1,100 Adds Y/Y, 124% Y/Y “$12 Incremental purchases from top 25 customers within 18 months of initial purchase 72 Fortune 500 customers +60% Y/Y ©) purestorace

  6. Slide 6: Non-GAAP Gross Profit & Margin

    NON-GAAP GROSS PROFIT & MARGIN mNon-GAAP Gross Profit ($ in millions) 46.8 PPTS Y/Y -@Non-GAAP Gross Margin (%) FY15-Q1 FY15-Q2 FY15-Q3 FY15-Q4 FY16-Q1 FY16-Q2 FY16-Q3 FY16-Q4 FY17-Q1 6 PURE STORAGE ©) purestorace

  7. Slide 7: Non-GAAP Operating Expense as Percentage Revenue

    NON-GAAP OPERATING EXPENSE AS PERCENTAGE REVENUE =G&A =R&D mS&M 156.4% 146.5% 13.7% 96.7% FY15-Q1 FY15-Q2 FY15-Q3 FY15-Q4 FY16-Q1 FY16-Q2 FY16-Q3 FY16-@4 FY17-Q1 See GAAP to non-GAAP reconciliation in Appendix 7 >ojspune soease We ©) purestorace

  8. Slide 8: Non-GAAP Operating Loss & Margin

    NON-GAAP OPERATING LOSS & MARGIN +23.8 PPTS Y/Y FY15-Q1 FY15-Q2 FY15-Q3 FY15-Q4 FY16-Q1 FY16-Q2 FY16-Q3 FY16-Q4 FY17-Q1 miNon-GAAP Operating Loss ($ in millions) ~@Non-GAAP Operating Margin (%) 8 syoesionace ©) purestorace

  9. Slide 9: Free Cash Flow

    FREE CASH FLOW FYI5-Q1 FYI5-Q2 FYI5-Q3 FYI5-Q4 FYI6-Q1 FYI6 -Q2 FY16 -Q3 FYI6-04 FYI7-Q1 $321") u Free Cash Flow ($ in millions) -@Free Cash Flow as a % of Revenue (a) Q2FYI5 FCF excluded $27.6 million of cash paid in connection with a tender offer. (b) Q3FYIG, Q4 FYI6 and QI FYI7 FCF included $2.2

  10. Slide 10: Guidance

    GUIDANCE $153M to $157M Revenue 65% to 68% Non-GAAP Gross Margin* -30% to -26% Non-GAAP Operating Margin* ©) purestorace

  11. Slide 11: Non-GAAP Operating Margin

    NON-GAAP OPERATING MARGIN GUIDANCE 7: 7: _— Investment focus (notably Sales and Marketing) Revenue focus (sales investments start becoming fully ramped) mQ2 = Full fiscal year ©) purestorace

  12. Slide 12: Long-Term Target Operating Model

    LONG-TERM TARGET OPERATING MODEL (Non-GAAP) a Gross Margin 62% 67% 63 - 68% S&M* 51% 54% —_ 25 - 30% R&D* 31% 29% > 15 - 20% G&A" 12% 13% > 5 -7% Operating Margin (32%) (29%) > 15 - 20% Sustained Free Cash Flow Positive Second Half of Calendar Year 2017 ©) purestorace

  13. Slide 13: Appendix

    _ APPENDIX Q1 FISCAL 2017 RESULTS © purestorace

  14. Slide 14: Gross Margin GAAP to Non-GAAP Reconciliation

    GROSS MARGIN GAAP TO NON-GAAP RECONCILIATION ($n thousands) QUFYIS §=(%) Q2FYIS (%) Q3FYIS (%) Q4FYIS (%) FYIS (%) QIFYIG (%) Q2FYIG (%) Q3FYIG (%) Q4FYIG (%) FYIG (%) QIFYIT § (%) Product gross margin (GAAP) $12,373 558% $18,272 588% $27,077 619% $33,689 583% $9141 590% $40,906 643% $43,551 612% $7

  15. Slide 15: Operating Expenses & Operating Margin

    OPERATING EXPENSES & OPERATING MARGIN GAAP TO NON-GAAP RECONCILIATION As Sof ‘Asxof As Sof As%of ‘As Sof AsSof As Sof Total Total Total Total Total Total Total ‘Reven ‘Revenu ‘Reven Revenu ‘Revenu Revenu ‘Reven (Sin thousands) Q1FYIS ue O2FYIS OBFYIS 2 OSFYIS ue 2 QIFVIG 2 2 EG ue O1FYiT RED (GAAP)

  16. Slide 16: Free Cash Flow

    FREE CASH FLOW GAAP TO NON-GAAP RECONCILIATION ($ in millions) Cash provided by (used in) operations Less: Capital expenditures Pius: Cash paid in connection with a tender offer Free cash flow (non-GAAP) Adjust: ESPP impact Free cash flow without ESPP impact (non-GAAP) Free cash flow as % of revenue

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