Everpure, Inc. Class A common stock

Good day, and welcome to the Pure Storage Fiscal Fourth Quarter and Full Year 2024 Earnings 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 answer at the end. If you'd like to ask a question, please press Start and Number 1 on your telephone keypad. At this time, I'd now like to turn the call over to Paul Zietz, Vice President of Investor Relations. Please go ahead.

Thank you. Good afternoon, everyone, and welcome to Pure's fourth quarter and fiscal year 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 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 today 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 revenue, remaining performance obligations, or RPL, and cash and investments. Reconciliations to the most directly comparable gap measures are provided in our earnings press release in slides. This call is being broadcast live on the Peer 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 Peer Storage. Our first quarter fiscal 2025 quiet period begins at the close of business Friday, April 19, 2024. With that, I'll turn it over to Charlie.

Thank you, Paul. Good afternoon, everyone, and welcome to our Q4 and fiscal 2024 earnings call. We had a solid Q4 performance and ended the year with increasing sales momentum and balanced performance across our theaters and product portfolio. This momentum and growing customer interest in our platform strategy provides us with increased confidence for the coming year. This year, we expanded our Evergreen portfolio and increased subscription services revenue now to over 40% of total revenue. FY24 total contract value sales for Evergreen One and Evergreen Flex grew to over 400 million, more than doubling over the prior year. Product and platform innovation was strong as evidenced by FlashBlade now exceeding $2 billion in total sales since launch. FlashBlade continues to serve as the leading platform for customers' modern file and object data requirements for both high-performance and low-cost applications. Launched just nine months ago, our new e-family of products achieved the fastest sales growth of any Pure product, presaging that Flash will soon replace all disks. Our data storage platform strategy and vision is working and continues to succeed with large enterprises and managed service providers. Pure strategy to consolidate data storage using a single operating and management environment for the majority of storage requirements just makes more sense than managing multiple different and disparate system environments. Pure's direct flash reliability and economics continue to be unmatched, and customers appreciate our evergreen guarantee of no application downtime with system upgrades. Pure's platform strategy incorporating Pure Fusion, which enables Pure Systems to operate as a distributed storage cloud, combines the best features of enterprise storage with cloud agility and programmability. It enables customers to manage their data environment as unified storage pools, seamlessly spanning across data centers and public cloud platforms, all within a single operating and management framework. Pure allows customers to organize their data infrastructure efficiently and optimize their data environment. Our platform vision was a major factor in several strategic enterprise deals in Q4. In one example, a major Fortune 500 financial services firm selected Pure based on our platform strategy, our proven reliability, and our ability to satisfy the majority of their diverse storage needs with a consistent environment and cloud-like operation and efficiency. This high eight-figure deal comprised almost all of Pure's products and services and represents our growing success in large enterprise. A second notable eight-figure deal this past quarter was an Evergreen One deal with one of the largest specialized GPU cloud providers for artificial intelligence, offering highly differentiated AI infrastructure solutions to their customers. Pure is excited to partner with this company to deliver one of the most powerful and fastest AI training environments in the world. However, what truly excites me about AI Confirmed through conversations with customers and partners is the focus that it is bringing to customers fragmented data environments. Customers are beginning to realize that their current fragmented data storage environment will significantly hinder their ability to leverage AI to unlock the full potential of their data. Current data storage environments inhibit AI deployments in two ways. First, Existing data storage arrays were selected to provide just enough performance for their primary function, leaving little performance left for AI access. Second, existing storage arrays are not networked, limiting access to AI apps not provisioned directly on their primary compute stack. The Pure Storage platform solves both of these issues. Pure's eFamily delivers flash reliability and efficiency at prices now comparable to traditional hard disk systems and with plenty of performance to spare for AI access. And the single operating and management environment of the Pure platform across protocols and price performance ranges makes accessing data easier. We are also seeing increased numbers of Portworx deployments in AI environments for data management preparation. Portworx had a record year and accelerated growth based on customers increasingly graduating their container-based development projects to production scale. Portworx saw strong sales in the financial sector this past quarter. a leading global financial institution significantly improved the efficiency and lowered the cost of critical tier zero applications by automating its internal cloud infrastructure with Portworx. Portworx industry leadership was recognized by IDC, which positioned Portworx as an industry leader in their new and latest Kubernetes container data management category. As we reported all year evergreen one consistently experienced breakout growth customers appreciate the simplicity of evergreen ones SAS model. The evergreen one service offers always improving data services always modern infrastructure and a world class customer experience with contractually guaranteed service level agreements. Now with Evergreen One, Pure pays customers for power and rack space when hosting the service in their data centers. Adding to our SLA industry leadership, Pure introduced three new SLA guarantees this past year. One, no data migration. Two, zero data loss. And three, power and space efficiency across our Evergreen family, Evergreen forever, Evergreen One, and Evergreen Flex offerings. Our commitment to offering the most sustainable storage solutions in the industry continues to drive competitive advantage for customers focused on their environmental reporting. Furthermore, the energy demands of AI is outstripping the availability of power in many data center environments. Pure flash solutions can reduce data center power usage, space, and e-waste, by approximately 20%. And this is proving critical in an environment driven by artificial intelligence and the world's growing demand for data. We are increasingly confident in our platform strategy and our opportunity to lead this market. Our evergreen technology and programs are changing the industry, allowing customers to eliminate the need to continually rebuy and disruptively replace outdated hardware. Most importantly to enterprises, Cure reduces risk, eliminating application downtime due to infrastructure updates and upgrades while dramatically improving system reliability. Our confidence is bolstered by our four sustainable competitive advantages. This includes our ability to deliver a single operating and management environment for the majority of enterprise data storage needs. Our evergreen technology, which guarantees an always modern environment without application disruption. Our direct-to-flash management, which enables both performance and cost leadership. And finally, our cloud operating model, which allows customers to manage all of their data across data centers and clouds as unified pools of data. While we remain cautious about the economy, We are beginning to see some encouraging signs of improvement in the macro environment. As the industry's most performant, consistent, and sustainable storage solution, we are well positioned to serve both the energy and data-intensive demands of artificial intelligence. Additionally, after 18 months of steep declines, NAND market pricing has stabilized, which should improve storage market growth. Looking forward to FY25, I have high confidence of returning to double-digit revenue growth given our platform strategy, our growing product portfolio, our cloud operating model, and strong customer demand for our Evergreen and Portworx subscription offerings. With that, I'd like to turn it over to Kevin now.