Cloud Stocks: Pure Storage Expansion Into Hybrid Cloud Fueled By Portworx Acquisition

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According to a recent report, the global NAND Flash Memory market is expected to grow from $56.43 billion in 2020 to $105.54 billion by the end of 2027 at a CAGR of 11%. Mountain View-based Pure Storage (NYSE: PSTG) recently reported its first-quarter results that surpassed market expectations. The company continues to add products to its portfolio to support the growth of hybrid cloud adoption.

Pure Storage’s Financials

Pure Storage’s first-quarter revenues grew 12% over the year to $412.7 million, ahead of the market’s estimates of $406.3 million. Adjusted EPS of $0.00 also beat analyst estimates of a loss of $0.07.

Subscription services revenue grew 35% over the year to $162.8 million. During the same period, product revenues fell 6.9% to $350.4 million.

Pure Storage estimates second-quarter revenues to be $470 million, versus the analyst forecast of $456.53 million.

Pure Storage’s Portworx Expansion

Last year, Pure Storage had acquired Portworx. I believe that this was a well-made match and recent results support the idea. Cloud-native databases, analytics applications, and AI frameworks, such as Cassandra, MongoDB, Spark, and Tensorflow, are some of the tools upon which customers are building their data pipelines. Pure has been serving these applications through FlashBlade. Post the acquisition, it has integrated Portworx’s capabilities to expand the support for these applications on any infrastructure both on-premise or in cloud at any scale.

Pure Storage has been building on the acquisition during the quarter. It recently announced the release of Portworx Enterprise 2.8. During the quarter, Pure Storage announced the release of Portworx Enterprise 2.8. The release introduces new integrations throughout its selection of products and services. Customers now have the ability to use VMware Tanzu with Portworx, allowing them to scale Kubernetes usage to greater levels. The release also introduced new capabilities including dynamic storage provisioning on FlashArray and FlashBlade, as well as unified visibility and support through Pure1. Containerized workloads are able to run seamlessly across the cloud.

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Disclosure: All investors should make their own assessments based on their own research, informed interpretations and risk appetite. This article expresses my own opinions based on my own ...

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