Everpure, Inc. Class A common stock

Mr. Sanjot Khurana. Mr. Khurana, please go ahead.

Thank you and good afternoon. Welcome to the Pure Storage fourth quarter fiscal 2022 earnings conference call. My name is Sanjot Khurana, Vice President of Investor Relations and Treasurer at Pure Storage. Joining me today are our CEO, Charlie Giancarlo, our CFO, Kevin Chrysler, and our CTO, Rob Lee. Before we begin, I would like to remind you management will make forward-looking statements which are subject to various risks and uncertainties. These include statements regarding the COVID-19 pandemic and related disruptions, our growth and sales prospects, competitive industry and technology trends, our strategy and its advantages, our current and future product offerings, and our business and operations. Any forward-looking statements that we make are based on facts and assumptions as of today, and we undertake no obligation to update them. Our actual results may differ materially from the results forecasted, and reported results should not be considered as an indication of future performance. A discussion of some of the risks and uncertainties relating to our business is contained in our filings with the SEC, and we refer you to these public filings. during this call we will discuss non-gap measures in talking about the company's performance and reconciliations the most directly compatible gap measures are provided in our earnings press release and slides additionally when we refer to sales in our prepared remarks we mean total bookings excluding cancelable orders this call is being broadcast live on the pure storage investor relations website and is being recorded for playback purposes An archive of the webcast will be available on the IR website and is the property of Pure Storage. With that, I'll turn the call over to our CEO, Charlie Giancarlo.

Hello, everyone, and welcome to our call. I hope you are healthy and faring well given the many challenges of the current environment. I'm very pleased to report that Pure delivered a fantastic Q4, capping off a great fiscal year. our quarterly revenue grew 41% over last year's strong Q4. This past quarter, we again enjoyed strong growth, especially in the Americas, our largest theater. And we grew across enterprise, commercial, and public sectors. I'm especially pleased with our growth in both net new logos and subscription annual recurring revenue, indicating great progress against our long-term strategy. Full-year revenue growth was 29%. and the annual growth of our subscription revenue was 37%. Revenue growth and operational leverage drove strong profit and cash flow growth in fiscal 22. As we stated in our Financial Analyst Day presentation in September, our total addressable market of more than $60 billion across both storage and storage as a service continues to provide expansion opportunities for Pure. We believe that our strong performance is clear evidence of Pure's increasing strength. Three things are necessary for sustainable growth, which we have steadily developed within Pure. First, sustainable growth requires highly differentiated technology with sustainable competitive advantage. First, TUR's focus on developing purity software and our direct flash technology to maximize the many advantages of solid-state storage is unique in our industry and has taken many years to develop. Second, sustainable growth requires a broad portfolio that addresses a full range of customer needs, a portfolio that we have steadily developed over the last several years. Sustainable growth requires the ability to support customers in all major market segments, commercial, enterprise, public sector, and cloud. Pure now has all three of these elements to drive our growth for many years to come. Pure's highly differentiated technology enjoys a strong sustainable competitive advantage. Many of Pure's advantages stem from core software architecture decisions that are practically impossible to retrofit into pre-existing software. Among our advantages are the simplicity in the design and use of our products, the ability to realize the best price performance from raw flash, and the ability to perform non-disruptive upgrades for both hardware and software, which deliver a cloud-like experience. While some competitors make claims of non-disruptive upgrades in their marketing, they consistently fail to deliver. Furthermore, Pure's proprietary hardware provides higher performance, reliability, and longer lifetime while requiring less space, power, and cooling than competitors' commodity-based systems. Competitors would need entirely new designs and years of new software development to replicate Pure's advantages. Pure's growing portfolio of industry-leading storage and data management products has propelled the growth of our enterprise business to greater heights. Customers appreciate the simplicity of our portfolio, which supports the majority of their traditional workloads with just two hardware architectures sharing a common software architecture, and their cloud-native workloads with Portworx all integrated through Pure One and all available as a service. They appreciate our ability to provide common interfaces and ATIs between on-prem and the cloud. They have embraced our ability to support their development of cloud-native applications with Portworx. They're excited by our vision to provide automated data management with PureFusion and Portworx Data Services. and they are overjoyed as we consistently deliver non-disruptive upgrades year after year and soon decade after decade with our evergreen design a model that has been claimed competitively but never replicated the effect of our portfolio is evident not only in our continuing penetration into large enterprise but also in our recently announced collaboration with meta Meta chose Pure when it needed a storage partner to deliver powerful and scalable storage capabilities for their AI research supercluster. With FlashArray and FlashBlade, their AI supercomputer has unparalleled performance and benefits from a broad range of our technology's advantages, underpinned by Pure's foundation of simplicity, reliability, and sustainability. We announced a record number of new products and services this past fiscal year, including purity upgrades for ransomware and disaster recovery, additions to our FlashArray C series, FlashDeck as a service, PureFusion, Portworx data services, and major enhancements to our PureOne digital experience. This past December, we announced FlashArray XL, which delivers 5.5 petabytes of capacity in up to 80% less space and power than competitive all-Flash solutions, and it's off to a great start. Our product pipeline for FY23 is no less ambitious, and I am incredibly excited about the year ahead. Our vision and technology to deliver a cloud operating model to our customers' multi-cloud data environment spanning their private cloud and public cloud providers, continues to resonate and grow. This vision is based on the concepts of first, providing common frameworks and APIs to both on-prem and hyperscaler environments. Second, enabling fully automated data management to IT organizations through policy. And third, the abstraction of these IT-created data classes for developers' access through API. We are seeing strong interest in this transformational model built on Pure Fusion, Portworx, and delivered by Pure One. We have enjoyed great success with our strategy of delivering a simple set of evergreen data platforms that enables customers to focus more on leveraging their data than on managing their storage environment. Customers have rewarded us with market share gains and recognized us with the highest third-party certified net promoter score in almost all industries of 85.2 for the calendar year 2021. From our primary focus on the commercial market just five years ago, we have expanded our skills and infrastructure to support all major markets. Today, our enterprise business model is fully capable of supporting the largest global organizations, both public and private, with a portfolio of products, subscription services, support, and professional services. We do this with the help of a growing set of capable partners. We're now adding an ability to serve large hyperscalers and MSPs. We are proud to partner with the world's largest global system integrators and managed service providers to make Pure a preferred part of their solutions. We recently announced a global partnership with Kindrel, combining the power of Pure's offerings and Kindrel's expertise to deliver industry-leading solutions to customers' most complex challenges. Our joint customers are already benefiting from this partnership. One of the world's leading shipping and logistics companies chose Pure as a service to build a secure data infrastructure for its new logistics offering for its clients. Being part of a major digital transformation to improve shipping and logistics worldwide has special poignancy as we face supply chain challenges that continue to affect all companies. I feel confident that we have one of the most robust supply chains in the business. Pure has invested in strong relationships with our supply partners and flexible multi-source global operations over many years, and we benefit from the architectural advantages of our integrated hardware designs. While there have been numerous supply chain challenges over the last year, and we are certainly not invulnerable to disruption in the future, We have navigated and managed them well and continue to meet our customers' demands. Earlier, I had mentioned that Pure Solutions are able to provide customers higher performance and reliability with significantly less space, power, and cooling than competitive all-Flash products, in many cases utilizing up to 80% less power and space. Lower energy use by our products will significantly reduce the environmental footprint of our customers' data centers. Third-party reviewed competitive comparisons will be one part of our full Environmental, Social, and Governance, or ESG, report, which we will publish later this month.