By Dhirendra Tripathic
Investing.com – Pure Storage stock (NYSE:PSTG) rose 12% in Thursday’s premarket trading as the company’s second-quarter revenue beat estimates and its net loss narrowed.
As a surprising move, the company also raised its annual revenue forecast. So far, it has stuck to its previous forecast of 14%-15% revenue growth, but now expects revenue to reach $2.04 billion for the year, up 21% from 2020.
Third quarter revenue is estimated at $530 million.
According to Chief Financial Officer Kevan Krysler, growth in previous quarters was simply too strong not to change its stance against a revised guidance.
Chief Executive Officer Charles Giancarlo predicted stronger growth for the company as more companies return to office work and seek more cloud-based products and services.
Operating profit of $46.6 million was the highest for any quarter and total revenue of $496.8 million was the highest for a second quarter.
Subscription services revenue grew approximately 31% year over year and was approximately 35% of the total. Product revenues were also strong during the quarter, growing 19%.
Total revenue in the second quarter grew 23% year-over-year to $496.8 million. Net losses decreased to $45.3 million, from $65.0 million as costs increased more slowly.