Everpure, Inc. · NYSE:P
Everpure — Pure Storage — Q4 FY2016 Earnings Presentation
16 slides from Everpure's earnings presentation, Mar 2, 2016
Slide 1: Q4 Fiscal 2016 Results
MARCH 2, 2016 Q4 FISCAL 2016 RESULTS Pure Storage CONFIDENTIAL – DO NOT DISTRIBUTE 1
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
Slide 3: Q4 Key Highlights
Q4 KEY HIGHLIGHTS TAM GROWTH CUSTOMERS LEVERAGE LIQUIDITY $24B $150M >1,650 66% $605M In disruption by Total revenue Customers (>120% Y/Y) Non-GAAP gross Cash balance Flash and Cloud margin* (+10 ppts Y/Y) at quarter end >$12 128% Incremental purchases -14% revenue growth from top 25 customers Non-G
Slide 4: Quarterly and Annual Revenue
QUARTERLY AND ANNUAL REVENUE $150.2 $440.3 FY16 $22.9 $64.6 $131.4 $17.8 Y/Y total Product Revenue ($ in millions) 152% revenue Support Revenue ($ in millions) growth $84.7 $127.3 $74.1 $13.5 $113.6 $65.9 $10.5 $174.5 $375.7 $8.1 $71.2 Q4 FY16 $49.2 $19.6 $63.6 $5.4 $34.8 $57.8 $3.7 $24.6 $43.8 $154
Slide 5: Customers
CUSTOMERS >1,650 Q4 FY16 >1,350 >1,100 >900 Adds Y/Y, Number of customers >120% Y/Y >850 >750 >550 >$12Incremental >450 purchases from top 25 customers >300 within 18 months of initial purchase Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 66 FY15 FY16 Fortune 500 customers +65% Y/Y Pure Storage CONFIDENTIAL – DO NOT DIS
Slide 6: Non-GAAP Gross Profit and Margin
NON-GAAP GROSS PROFIT AND MARGIN $275.1 $99.2 FY16 Non-GAAP Gross Profit ($ millions) Non-GAAP Gross Margin (%) 62.5% $81.0 56.9% 58.7% 60.5% 66.0% 56.4% +6.1 PPTS Y/Y 61.7% 59.2% 55.6% 53.6% $50.1 $44.8 44.9% $98.5 Q4 FY16 $36.6 $28.9 $19.8 $13.2 $19.2 +10.4 PPTS Y/Y See GAAP to non-GAAP reconcilia
Slide 7: Non-GAAP Operating Expense as % of Revenue
NON-GAAP OPERATING EXPENSE AS % OF REVENUE 156.4% 146.5% 177.2% 18.3% 15.5% 12.6% S&M R&D G&A 126.0% 113.1% 120.1% 13.4% 113.7% 42.1% 57.6% 129.5% 15.7% 43.2% 14.2% 15.2% 14.9% 39.6% 83.1 % 38.5% 79.9% 94.3% 37.9% 37.1% 11.4% 40.2% 12.7% 10.9% 107.0% 96.0% 87.8% 26.6% 27.4% 30.8% 73.0% 67.3% 74.4% 6
Slide 8: Non-GAAP Operating Loss and Operating Margin
NON-GAAP OPERATING LOSS AND OPERATING MARGIN FY15 FY16 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY14 FY15 FY16 FY16 (13.9%) (31.8%) (21.4%) +41.3 PPTS Y/Y (53.2%) ($20.9) (73.1%) (67.3%)` ($56.6) ($25.3) (57.5%) (61.0%) ($28.1) Q4 FY16 ($31.2) ($33.1) ($37.9) (89.6%) ($39.4) (102.8%) (132.4%) +43.6 PPTS Y/Y ($51.6)
Slide 9: Free Cash Flow
FREE CASH FLOW $32.1(b) FY16 21.4% FY15 FY16 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY14 FY15 FY16 (28.2%) (9.9%) Q4 (10.7%) +80.0 PPTS Y/Y (68.9%) (78.0%) ($13.0)(b) (53.7%) (109.7%) ($47.2)(b) ($20.9) ($66.2)(a ($36.4) ) (90.7%) Q4 FY16 ($38.4) ($38.1)(a) ($45.3) ($45.5) (147.8%) Free Cash Flow ($ in millions) (154
Slide 10: Guidance
GUIDANCE Q1 FY17 Guidance Full FY17 Guidance Revenue Revenue $135M to $139M $685M to $725M Non-GAAP Gross Margin* Non-GAAP Gross Margin* 65% to 68% 65% to 68% Non-GAAP Operating Margin* Non-GAAP Operating Margin* -34% to -30% -22% to -18% * We have not reconciled guidance for non-GAAP gross margin a
Slide 11: Long-Term Target Operating Model
LONG-TERM TARGET OPERATING MODEL (Non-GAAP) Q4 FY16 FY16 … Target Model Gross Margin 66% 62% 63-68% S&M* 42% 51% 25-30% R&D* 27% 31% 15-20% G&A* 11% 12% 5-7% Operating Margin (14%) (32%) 15-20% Sustained Free Cash Flow Positive Second Half of Calendar Year 2017 * As a % of revenue See GAAP to non-GA
Slide 12: Non-GAAP Operating Margin Guidance
NON-GAAP OPERATING MARGIN GUIDANCE FY15* FY16* FY17 (Guidance) ● 1H = Investment focus (notably Sales and Marketing) (20.0%)** (31.8%) (32.0%)** ● 2H = Revenue focus (sales investments start (53.2%) becoming fully ramped) Q1 Full fiscal year (73.1%) (102.8%) *See GAAP to non-GAAP reconciliation in A
Slide 13: Appendix
APPENDIX Pure Storage CONFIDENTIAL – DO NOT DISTRIBUTE 13
Slide 14: Gross Margin
GROSS MARGIN GAAP to Non-GAAP Reconciliation Pure Storage CONFIDENTIAL – DO NOT DISTRIBUTE 14
Slide 15: Operating Expenses and Operating Margin
OPERATING EXPENSES AND OPERATING MARGIN GAAP to Non-GAAP Reconciliation Pure Storage CONFIDENTIAL – DO NOT DISTRIBUTE 15
Slide 16: Free Cash Flow
FREE CASH FLOW GAAP to Non-GAAP Reconciliation Pure Storage CONFIDENTIAL – DO NOT DISTRIBUTE 16