Pure Storage Stock Surges on Strong Subscription Growth
- Posted on December 05, 2024
- Stock Market
- By Samiat
Key Takeaways:
Pure Storage shares jumped over 20% after strong third-quarter results and raised full-year revenue guidance.
Subscription revenue climbed 22%, driving better-than-expected profit and sales.
The company now forecasts $3.15 billion in full-year revenue, up from $3.10 billion.
Impressive Earnings Results
Pure Storage (PSTG) reported adjusted earnings per share (EPS) of $0.50 for its fiscal third quarter, surpassing analysts' expectations of $0.42. Revenue grew 9% year-over-year to $831.1 million, exceeding the projected $814.9 million.
Subscription revenue was a standout performer, rising 22% to $376.3 million, with subscription annual recurring revenue (ARR) also increasing 22% to $1.6 billion.
CFO Highlights Strong Business Model
Chief Financial Officer Kevan Krysler credited the results to the “sustaining strength of our business models,” noting the company exceeded expectations for both revenue and operating income.
As a result, Pure Storage raised its full-year revenue forecast to $3.15 billion, up from the prior estimate of $3.10 billion.
Stock Performance
Pure Storage shares have surged 80% year-to-date, with the latest quarterly performance reinforcing investor confidence in the company's growth trajectory.
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