Everpure, Inc. Class A common stock

Good day and welcome to the Pure Storage third quarter fiscal year 2024 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 question 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'd like to turn the call over to Paul Zayetz, Vice President of Investor Relations. Please go ahead.

Thank you. Good afternoon, everyone, and welcome to Pure's third quarter fiscal 2024 earnings conference call. On the call, we have Charlie Giancarlo, Chief Executive Officer, Kevin Kreisler, Chief Financial Officer, and Rob Lee, Chief Technology Officer. Following Charlie's and Kevin's prepared remarks, we will take questions. Our press release was issued after close of market and is posted on our website where this call is being simultaneously webcast. The slides that accompany this webcast can be downloaded at investor.peerstorage.com. On this call today, we will be making 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 related 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 revenue, remaining performance obligations, or RPO, and cash and investments. Reconciliations to the most directly comparable GAAP measures are provided in our 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 24 quiet period begins at the close of business Friday, January 19, 2024. With that, I'll turn it over to Charlie.

Good afternoon, everyone, and welcome to our Q3 earnings call. We are pleased with Pure's Q3 financial results. We saw healthy demand for our portfolio throughout the quarter, proving that Pure's platform strategy and vision is resonating with our customers. The Pure storage platform provides customers the ability to deploy a consistent software and management environment across the full price performance range for block, file, and object workloads, for both traditional and cloud native applications. The Pure platform guarantees customers never experience change management downtime. It guarantees the lowest space power and e-waste in the industry and provides infrastructure and services that always get better with age without disruption. The Pure storage platform also promises a cloud operating model for our customers, enabling them to manage their data storage like the cloud providers to reduce their storage costs in the cloud, to provide tailored storage services to their developers like the cloud, and to consume storage like the cloud as a service. This model is gaining traction with leading customers. Evergreen One, our storage as a service consumption offering, saw continued extraordinary growth, more than doubling year over year. Evergreen One and Evergreen Flex are our preferred services for providing customers data storage on a consumption basis, although we continue to offer customers the choice of consuming storage as CapEx. We believe the continued high demand for Evergreen One is being driven by our sales activities, new customer buying behavior, and the current macro environment. Customers are attracted to the ability to manage and consume Evergreen Storage as a cloud service as they need it, but with the low cost, advanced capabilities, and data security of on-prem storage. The outperformance of Evergreen One this year has been significantly above our prior expectations, and we now expect this strong level of demand to continue through Q4. While this success is a long-anticipated and welcome expansion of our business model, its overperformance will have an effect on near-term revenue, which Kevin will cover in detail. In Q3, Pure set a new industry standard with eight service-level agreement, or SLA, guarantees across our Evergreen services. With the innovative new Paid Power and Rack program, we pay our Evergreen customers power and rack space costs. This first of a kind program is enabled by our ability to deliver the cloud attributes that customers desire with the most energy efficient and reliable storage technology. Paid power and rack directly addresses the increasing costs of electricity and data center space. Additional SLAs introduced in Q3 guarantee no change related downtime, no future data migrations for hardware replacements, upgrades or expansions. and zero data loss. Portworx, our Kubernetes and container storage software for cloud-native applications, also had a record quarter. Portworx was recently named a leader in the inaugural IDC marketscape for container data management. We saw increased multi-year renewals from existing customers and new customers deploying the Portworx suite of products for multi-cloud databases, messaging, and logging systems. Portworx was also selected by a leading global retailer to provide a single integrated platform for their machine learning researchers and analysts, ensuring consistent models across multiple clouds. A large international government authority is supporting their artificial intelligence and machine learning environments with Portworx deployed in mission critical cloud based applications. Customer momentum in the field of artificial intelligence also continues for Pure, with a double-digit number of AI wins in the quarter across our portfolio. This included Era Technology, an AI-based decision intelligence and automation platform that chose our Portworx solution for seamless cloud integration, outperforming competitive solutions by 200%. And Olympus adopted Pure's AI-ready infrastructure based on a FlashBlade and NVIDIA solution for a new AI development environment, ensuring performance and capacity for large-scale models to accelerate their success with transformative AI solutions. We remain our customer's preferred partner for AI deployments and have strengthened our innovation and leadership by earning NVIDIA BasePods certification. Our complete AI-ready infrastructure, built on the NVIDIA DGX BasePod reference architecture and the latest FlashBlade S storage platform, makes AI scaling and deployments faster and easier for our customers. We continue to see strong demand for FlashBlade E, and this month we announced the general availability of FlashArray E and shipped our first orders. This past quarter, we announced our latest Gartner Accolade, a leader in the magic quadrant for distributed file systems and object storage. And it's now three years running. This marks the 10th successive year overall that our leadership has been acknowledged by Gartner in transforming the storage industry. The early success of our e-family reinforces our belief that Flash is replacing disk, enlarging Pure's opportunity in enterprise and eventually cloud storage. In Q3, Pure scored another major win for new 5G infrastructure to be deployed in our fiscal 2025. Pure's continuing success in the 5G space is based on our superior performance, reliability, density, longevity, and advanced remote management capabilities. We are seeing strong early customer interest in our expanded partnership with Microsoft and the Pure Cloud Block Store integration with Azure VMware Solution, also known as AVS. Pure and Microsoft announced the public preview of this service this quarter. CBS and AVS are providing customers the opportunity to reduce their cloud storage spend by half or more while providing them the advanced services that they experience with Pure's enterprise systems. customers are also enthusiastic about managing their storage and data across data centers and clouds in a consistent hybrid environment. Despite the uncertainties of the current business environment pure superior low total cost of ownership and evergreen offerings are making a difference in this challenging it economy. we are seeing a strong positive response to our position of having a consistent, unified Flash platform for all storage needs, from the data center to the cloud. This position is enabling us to compete for ever larger footprints in large enterprise accounts. This, coupled with the strong overall demand for our platform, gives me the confidence in our continued ability to take share and outpace the market. With that, I'll turn it over to Kevin for further commentary.