Everpure, Inc. Class A common stock

Good day and welcome to Peer Storage Third Quarter Fiscal Year 2023 Earnings Conference Call. Today's conference is being recorded. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star 1 on your telephone keypad. At this time, I would like to turn the call over to Paul Dyess, Vice President of Investor Relations. Please go ahead.

Thank you. Good afternoon, everyone, and welcome to Pure's third quarter fiscal 2023 earnings conference call. On the call, we have Charlie Giancarlo, Chief Executive Officer, Kevin Chrysler, Chief Financial Officer, and Rob Lee, Chief Technology Officer. Following Charlie's and Kevin's prepared remarks, we'll take questions. Our press release was issued after close of market and is posted on our website where this call is being simultaneously webcast. Slides which accompany this webcast can be downloaded at investor.purestorage.com. On this call today, we will make forward-looking statements which are subject to various risks and uncertainties. These include statements regarding our financial outlook and operations, our strategy, technology, and its advantages, our current and new product offerings, and competitive industry and economic trends. 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, all financial metrics and associated growth rates are non-GAAP measures other than revenues, remaining performance obligations, or RPO, and cash and investments. Reconciliations to the most directly comparable GAAP measures are provided in earnings press release and slides. 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. Our fourth quarter fiscal 23 quiet period begins at the close of business Friday, January 20, 2023. With that, I'll turn it over to Charlie.

Thanks, Paul. Hello, everyone, and welcome to the call. We hope that our fellow Americans had a wonderful Thanksgiving holiday and that our non-U.S. listeners had a restful few days while everyone in the U.S. was offline. We are once again pleased with our quarterly results, showing year-over-year revenue growth of 20% and subscription ARR growth of 30%, surpassing $1 billion for the first time. Our portfolio of subscription products had a strong quarter, with Evergreen One achieving record results. Our new products, including FlashArray C, FlashArray XL, and FlashBlade S, also saw excellent growth this past quarter. FlashBlade S, our newest product, is off to a great start in its first full quarter of sales. The number of S systems sold were above our plan, and petabytes sold were well above our plan. We're also seeing S customers taking advantage of the increased performance and scale, choosing to purchase larger systems than the prior generation. Pure continues to lead the industry in product innovation, having released a record number of new products and services this year, including FlashRay XL, FlashBlade S, Pure Fusion, Portworx Data Services, and Evergreen Flex. We are proud to share that this innovation has once again been recognized with Gartner's highest rankings in their magic quadrant. Pure was named the leader for the ninth consecutive year for primary storage and a leader for distributed file systems and object storage, significantly increasing FlashBlade's ranking year over year. Pure's unique value proposition of advanced technology, low total cost of ownership, Industry-leading energy savings combined with powerful performance is the reason that leading-edge technology and hyperscale cloud companies increasingly choose to rely on Pure. This past quarter, as planned, we were pleased to ship the second phase of Meta's build-out of their Research Supercluster, or RSC. As a reminder, our shipments for Meta RSC consist of both FlashBlade and Flasher AC. Meta relies on Pure's FlashBlade to provide lightning-fast data delivery to their NVIDIA GPUs, and FlashArray C to provide performance-oriented and cost-effective bulk data storage at one-tenth the space, power, and cooling of a disk alternative. NAND cost per bit continues to approach that of magnetic disks. Because of Pure's unique intellectual property, Pure QLC-based systems are now competitive with hybrid disk-based systems on a price per bit level, years ahead of the commodity crossover point. We expect that the currently anticipated improvements in Pure's NAND economics this coming year will enable Pure to deliver our QLC-based products at prices competitive with most near-line disk arrays on a total cost of ownership basis. We believe strongly that the days of the hard disk and the data center are over. Customers that do not take advantage of Pure's QLC products to replace disk systems are choosing the more expensive and energy-intensive option. New enterprise customers this quarter include a large global telco, a large global payment processor, and a major energy provider. Existing customers like Vertifor, a leading provider of modern insurance technology, continue to expand their relationship with Pure, relying on the combination of technology performance, total cost of ownership, and an evergreen customer experience to fuel their data-dependent business objectives. This past quarter, significant numbers of the enterprise companies specifically chose Pure for our exceptionally low power space and cooling performance. This has been especially evident in Europe, where not only energy prices but energy security is of major concern. As mentioned, we saw strong growth in both new and existing Evergreen customers this quarter. Evergreen's flexible approach to both consumption and pricing is helping customers of every size deal with the uncertainties that businesses and organizations face in the current environment. Many new customers also cited energy savings as a new important benefit. Also this quarter, We saw several large telco customers purchase our portfolio to support projects ranging from 5G deployment to modernizing infrastructure. For example, one of the largest telecommunication providers in Asia increased their Pure portfolio, including their Flasher AC footprint, furthering their commitment to environmental sustainability while accelerating their transformation and services offerings to their customers. Looking ahead to world economic conditions, we continue to see instances of longer sales cycles in the enterprise segment and expect that enterprises will continue to exercise caution in spending over the next year. We believe that this focus on spending uniquely favors Pure Storage in the quarters ahead. The combination of Pure's evergreen offerings, best-in-class power, space, and cooling, and operating simplicity results in significantly lower operating costs for enterprise customers. Given challenging economic and energy situations around the world, more enterprises are focused on total cost of ownership, an area where Pure excels. As we look forward, we are keeping our eyes on a number of macroeconomic factors, in particular inflation, slower economic growth, and lingering supply chain disruptions. Considering the current economic uncertainty, we plan to thoughtfully invest in our expansion while continuing to deliver strong operating results. Despite the challenges and uncertainties of the current business environment, we remain confident in our ability to take share and outpace the market while delivering products, solutions, and services to customers that exceed their expectations. I'd like to hand the mic over now to our CFO, Kevin Chrysler, for a review of our numbers.