Everpure, Inc. · NYSE:P
Everpure — Pure Storage — Q3 FY2016 Earnings Presentation
16 slides from Everpure's earnings presentation, Dec 3, 2015
Slide 1: Q3 Fiscal 2016 Results
DECEMBER 3, 2015 Q3 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 assumed future results
Slide 3: Key Highlights
Key Highlights TAM GROWTH CUSTOMERS LEVERAGE LIQUIDITY $24B $131M >1,350 62% $573M In disruption by Total revenue Customers (+142% Y/Y) Non-GAAP gross Cash balance Flash and Cloud margin* (+3 ppts Y/Y) at quarter end $9 167% Incremental purchases -21% growth Y/Y from top 25 customers Non-GAAP Operat
Slide 4: Quarterly Revenue
Quarterly Revenue $131.4 $17.8 Q3 FY16 Product Revenue ($ in millions) Support Revenue ($ in millions) Y/Y total $84.7 167% revenue growth $74.1 $13.5 $113.6 $65.8 $10.5 $8.0 $71.2 $49.2 $63.6 $57.8 $5.4 $34.8 $43.8 $24.6 $3.7 $2.5 $31.1 $22.1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY15 FY16 Pure Storage CONFIDENTIAL
Slide 5: Customers
Customers >1,350 Q3 FY16 Number of customers >1,100 >850 >800 Adds Y/Y, >750 +142% Y/Y >550 >450 $9 Incremental purchases from >300 top 25 customers within 18 months Q1 Q2 Q3 Q4 Q1 Q2 Q3 59 FY15 FY16 Fortune 500 customers +103% Y/Y Pure Storage CONFIDENTIAL – DO NOT DISTRIBUTE 5
Slide 6: Non-GAAP Gross Profit & Margin
Non-GAAP Gross Profit & Margin $81.0 Q3 FY16 Non-GAAP Gross Profit ($ millions) Non-GAAP Gross Margin (%) +300 BPS Y/Y $50.1 61.7% $44.8 58.7% $36.6 60.5% 56.9% $28.9 59.2% +250 $19.8 $13.2 55.6% 53.6% See GAAP to non-GAAP reconciliation in Appendix Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY15 FY16 Pure Storage CONFID
Slide 7: Non-GAAP Operating Expenses As % of Revenue
Non-GAAP Operating Expenses As % of Revenue $15.0 S&M R&D G&A 156.4% 146.5% 18.3% 18.3% 15.5% $31.4 126.0% 113.1% 120.1% 13.4% 113.7% 42.1% 15.7% $28.1 14.2% 15.2% 43.2% 83.1 % 39.6% 37.1% 11.4% 38.5% 37.9% $19.5 $4.5 26.6% 96.0% $10.4 87.8% 73.0% 67.3% 60.4% 60.6% 45.1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY15 FY
Slide 8: Non-GAAP Operating Loss & Operating Margin
Non-GAAP Operating Loss & Operating Margin FY15 FY16 Q3 FY16 Q1 Q2 Q3 Q4 Q1 Q2 Q3 (21.4%) +46 PPTS Y/Y (53.2%) (57.5%) ($25.3) (67.3%) ($28.1) +40 ($31.2) (61.0%) ($33.1) (89.6%) ($37.9) ($39.4) Non-GAAP Operating Loss ($ in millions) See GAAP to non-GAAP reconciliation in Appendix Non-GAAP Operatin
Slide 9: Free Cash Flow
Free Cash Flow* FY15 FY16 Q3 FY16 Q1 Q2 Q3 Q4 Q1 Q2 Q3 (28%) (10%) +68 PPTS Y/Y ($13.0) (69%) ($20.9) (54%) (78%) ($38.1)** ($36.4) ($38.4) (110%) * Free cash flow = Cash flow ($45.3) ($45.5) from operations less capital expenditures (148%) Free Cash Flow ($ in millions) **Q2 FY15 free cash flow exc
Slide 10: Guidance
Guidance Q4 FY16 Guidance Revenue $134M to $139M Non-GAAP Gross Margin* 62% to 65% Non-GAAP Operating Margin* -24% to -18% * We have not reconciled guidance for non-GAAP gross margin and non-GAAP operating margin to their most directly comparable GAAP measures because items such as stock- based comp
Slide 11: Long-Term Target Operating Model
Long-Term Target Operating Model (Non-GAAP) FY15 Q3 FY16 … Target Model Gross Margin 56% 62% 63-68% S&M* 74% 45% 25-30% R&D* 40% 27% 15-20% G&A* 15% 11% 5-7% Operating Margin (73%) (21%) 15-20% Sustained Free Cash Flow Positive Beginning In Calendar Year 2018 * As a % of revenue See GAAP to non-GAAP
Slide 12: On Seasonality
Seasonality Illustration: On Seasonality FY15 Revenue & OpEx Actuals (Non-GAAP) •1H = Investment focus 66% (notably Sales and Marketing) Revenue % of Annual 60% OpEx % of Annual •2H = Revenue focus (sales investments start becoming 40% 34% fully ramped) 1H‘FY15 2H‘FY15 Investment Return Pure Storage
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 & Operating Margin
Operating Expenses & 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