Pure Storage rises due to higher income, surprising annual guidance

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.

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