The following is a summary of the Pure Storage, Inc. (PSTG) Q2 2025 Earnings Call Transcript:

Financial Performance:

• Q2 FY25 revenue growth was 11% year-over-year, reaching $764 million.

• Subscription Services annual recurring revenue (ARR) grew 24% to over $1.5 billion.

• Total RPO exiting Q2, including both subscription services and product orders, grew 24% year-over-year to $2.3 billion.

• Operating profit for Q2 was $139 million, with operating margins maintaining robust performance.

• Guidance for Q3 expects revenue of $815 million and operating profit of $140 million, maintaining an operating margin of 17.2%.

Business Progress:

• Launched next generation of Fusion and AI storage-as-a-service for GPU clouds.

• Introduced Direct to Flash technology catering to hyperscalers with significant efficiency benefits.

• Engaged in detailed discussions and contractual negotiations with major hyperscalers expected to lead to first design win by year-end.

• Pure Cloud Block Store for Microsoft Azure VMware Solution is assisting enterprises in reducing cloud storage costs, with cases showing savings up to 50%.

Opportunities:

• AI and machine learning storage solutions, particularly through the service offerings of Evergreen//One for AI.

• Strategic positioning in cloud storage cost management potentially reshaping large enterprise cloud deployments.

Risks:

• Extended deal closure timings impacting the growth speed of SERVICES ARR due to the cautious expense management in response to economic conditions.

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