Everpure, Inc. · NYSE:P

Everpure — Pure Storage — Q3 FY2018 Earnings Presentation

20 slides from Everpure's earnings presentation, Nov 28, 2017

  1. Slide 1: Q3 Fiscal 2018 Results

    Q3 FISCAL 2018 RESULTS NOVEMBER 28,2017 1 sameness ©) purestorace

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

    FORWARD LOOKING STATMENTS 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 financi

  3. Slide 3: Cloud + Data Driving Pure Growth

    CLOUD + DATA DRIVING PURE GROWTH ©) puresTorace

  4. Slide 4: $35B+ Opportunity

    $35B+ OPPORTUNITY Worldwide IT Infrastructure Hardware Spend by Consumption Model (Compute, Networking, Storage) 2019 Cloud IT Hardware Spend $125.9B, Storage share: 31% MARKETS THAT MATTER TOP 500+ Leading Clouds - oy laa, SaaS, PaaS NY 22 70 5-YEAR CAGR inturt laaS/PaaS SaaS, Linked ff Traditional

  5. Slide 5: Q3 FY18 Key Highlights

    Q3 FY18 KEY HIGHLIGHTS Pram T customers] teverase | Non-GAAP J+$35B +300 24,00 0. YIY _ - 66 4%. ~ ° . []werecaneratin on $11 >$2 Gross margin Gross margin Cloudification of IT e Incremental purchases from top _ Incremental purchases from all ith customers within 24 months of (0.7 ppts Y/Y) (0.9 ppt

  6. Slide 6: Quarterly Revenue

    +41% QUARTERLY REVENUE i wrrora revenue crowns $2777 $227.9 $224.5 $54.5 $411 $182.6 $49.5 $186.8 $150.2 $44.2 $131.4 — | - FY17 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY18 Q1 FY18 Q2 FY18 Q3 ™ Product Revenue (Millions) Support Revenue (Millions) sovrpune sronace we ©) purestorace

  7. Slide 7: Customers

    >4,000 CUSTOM E RS NUMBER OF CUSTOMERS TO DATE “300 ADDS Q/Q, 8% Q/Q “$11 Incremental purchases from top 25 customers within 18 months of initial purchase of $1 >$2 Incremental purchases from all customers within 24 months of intial purchase of $1 ° 54% >3700 53050 | 73350 >2300 >1950 >1350 || 71650

  8. Slide 8: Non-GAAP Gross Margin & Profit

    NON-GAAP GROSS MARGIN & PROFIT LONG-TERM GM TARGET RANGE 68% 63% FY16 Q3 FY16 Q4 FY17 Q@1 FY17 Q2 FY17 Q3 FY17 Q4 FY18 Q1 FY18 Q2 FY18 Q3 mmm Non-GAAP Gross Profit (Millions) | —®—Non-GAAP Gross Margin 8 sowrpune srowace we «See GAAP to non-GAAP reconellaonin ou appendix ©) purestorace

  9. Slide 9: Non-GAAP Operating Expense

    NON-GAAP OPERATING EXPENSE AS A PERCENTAGE OF REVENUE 45.1% 41.6% 11.4% 10.9% FY16 Q3 FY16 Q4 2017 PURE STORAGE INC. 13.5% FY17 Q1 21.9% 48.3% 9, 38.6% 47.2% 10.0% FY17 Q2 9.9% 7.5% FY17 Q3 FY17 Q4 G&A =S&M BR&D 8.8% FY18 Q1 See GAAP to non-GAAP reconciliation in our appendix 48.5% 7.7% FY18 Q2 FY18

  10. Slide 10: Non-GAAP Operating Margin and Profit

    NON-GAAP OPERATING MARGIN +94 AND PROFIT Y/Y PPTS IMPROVEMENT FY16 Q3 FY16 Q4 FY17 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY18 Q1 FY18 Q2 FY18 Q3 $(20.9) ™_ $(30.5) | $(26.4) $(28.1) $(414) $(31.4) lm Non-GAAP Operating Loss (Millions) | —@-Non-GAAP Operating Margin 10 zor pure storaceine See GAAP tononGAAP rec

  11. Slide 11: Q3 FY18 Share Count

    Q3 FY18 SHARE COUNT ACHIEVING PROFITABILITY IMPACTS DILUTED EPS COMPUTATIONS WHEN THERE IS NET LOSS IF THERE HAD BEEN NET INCOME BASIC/DILUTED SHARES * DILUTED SHARES * * NOTES: 1 Share count as of 10/31/17 - anticipated to continue to increase in coming quarters. 2. Diluted shares computed based on

  12. Slide 12: Free Cash Flow

    FREE CASH FLOW sms Free cash flow (non-GAAP) * —O— Free cash flow as % of revenue FY16 -Q3 FY16-Q4 FY17-Q1 FY17 -Q2 FY17-Q3 FY17-Q4 FY18-Q1 FY18 -Q2 FY18 - Q3 Free Cash Flow ® (excluding ESPP Impact) FY16 -Q3. FY16 -Q4 FY17-Q1 FY17 -Q2 FY17 -Q3 FY17-Q4 FY18-Q1 FY18 - Q2 FY18 -Q3. (a) See Appendix fo

  13. Slide 13: Guidance

    GUIDANCE Q4 FY FY18 Revenue $327M to $335M $1.012B to $1.020B Non-GAAP Gross Margin* 63.5% to 66.5% 65.6% to 66.6% Non-GAAP Operating Margin* 3.0% to 7.0% -4.9% to -3.5% * We have not reconciled guidance for non-GAAP gross margin and non-GAAP operating marginto their most directly comparable GAAP me

  14. Slide 14: Long-Term Target Operating Model

    LONG-TERM TARGET OPERATING MODEL NON-GAAP As a % of Revenue (Non-GAAP) Q3 FY18 TARGET MODEL Gross Margin 66.4% 63 — 68% R&D 18.2% 15 — 20% S&M 421% 25 — 30% G&A 6.9% 5-7% Operating Margin -0.7% 15 — 20% ©) purestorace

  15. Slide 15: Appendix

    _ APPENDIX Q3 FISCAL 2018 RESULTS (B smamensemens ©) purestorace

  16. Slide 16: Gross Margin GAAP to Non-GAAP Reconciliation

    GROSS MARGIN GAAP TO NON-GAAP RECONCILIATION {Sin thousands} Product gross margin (GAAP) Add: SBC Add: Payroll tax related to stock-based activities Product gross margin (non-GAAP) Support gross margin (GAAP) Add: SBC Add: Payroll tax related to stock-based activities ‘Support gross margin (non-GAAP

  17. Slide 17: Operating Expenses & Margin Reconciliation

    OPERATING EXPENSES & MARGIN GAAP TO NON-GAAP RECONCILIATION Fiscal Quarter As sor Assior As Sor As sor As or Total Tote! Tota Tater Toto! (Sin thousands) OS EVIE Revenue Revenue QAFVIT Rovenue GIFVIE Revenue QPFVIE Revenue QZEVIE Revenue RAD (GAAP) $43,065 SIS% 872632 518% $65.428 558s $89,361 a9 $6

  18. Slide 18: Free Cash Flow Reconciliation

    FREE CASH FLOW GAAP TO NON-GAAP RECONCILIATION Fiscal Quarter Qs a4 at Q2 Qs Q4 Qt Q2 3 {S$ in millions) Fy16 FY16 Fy Fv Fv Fy Fy1s Fyig Fy1s Cash provided by (used in) operations (GAAP) -$5.4 $42.0 $7.0 -$n6 -$473 $375 -$14.3 -$0.2 $282 Less: Capita! expenditures 76 39 -244 -217 18.5 12.2 12.8 WS 1

  19. Slide 19: Q3 FY18 Share Count

    Q3 FY18 SHARE COUNT ACHIEVING PROFITABILTY IMPACTS EPS COMPUTATIONS WHEN THERE IS IF THERE HAD BEEN NET INCOME NET LOSS BASIC/DILUTED FULLY DILUTED TSM SHARE ADJUSMENT EPS SHARE SHARES * SHARES (Varies with 90-Day Trailing Stock Price) COUNT * ‘SHARE PRICE TSM ADJ. (M OF SHARES) $ 4g, $ 46 $ 8 $ a2

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Pure Storage — Q3 FY2018 Earnings Presentation on 6ix