Photo Credit: Tony Melony from Pixabay

According to a recent report, the global NAND flash memory market is expected to grow at 5% CAGR from $66.52 billion in 2021 to reach $94.24 billion by 2027. The current macro trends of AI and machine learning, mobility, and connectivity are helping drive growth in this market. Pure Storage (NYSE: PSTG) recently reported its second-quarter results that surpassed market expectations.

Pure Storage’s Financials

Pure Storage’s second-quarter revenues grew 30% to $646.8 million, ahead of the market’s estimates by 1.6%. Adjusted EPS of $0.32 also beat analyst estimates of $0.22.

By segment, Subscription services revenue grew 35% to $232.2 million. Subscription Annual Recurring Revenue grew 31% to $955.3 million. Product revenues grew from $324.9 million a year ago to $414.6 million.

For the third quarter, Pure Storage estimates revenues of $670 million. The market was looking for revenues of $650.21 million and an EPS of $0.20. It expects to end the year with revenues of $2.75 billion. The market expects revenues of $2.67 billion and an EPS of $0.95 for the year.

Pure Storage’s Product Upgrades

During the quarter, Pure Storage continued to introduce several new products. It released a new FlashBlade//S family of products that has been built with a modular architecture and shares components with Pure’s FlashArray. The flexible, all-QLC system addresses the demands of unstructured data and modern application growth to deliver higher performance and cost-effectiveness. FlashBlade S expands the use cases for its product line, including a wide performance range of file and object workloads, such as computational analytics and AI, image search and recognition, electronic design automation, media special effects, high-performance computing, and data protection. FlashBlade S has been designed with full evergreen capabilities, enabling the system to be continuously upgraded without disruption. The product was launched during the quarter, and it already accounts for 20% of all Q2 FlashBlade orders.

Within its Evergreen subscription portfolio, it has added Evergreen Flex, a new fleet-level Evergreen offerings. Evergreen Flex provides customers with the flexibility to optimize their data infrastructure. It provides utilization pricing across a customer’s entire storage environment with the ability for customers to purchase inexpensive storage hardware and consume capacity on a pay-as-you-go model.

In the current uncertain macro environment, Pure realizes that customers are looking for solutions that accelerate their digital transformation while reducing overhead and total cost of ownership. Some of its products like Portworx data services released recently are able to get strong market interest by providing these capabilities. Portworx offers a simple one-stop shop for modern database operations, comes with a rapid time to deploy and scale Database-as-a-Service for developers and the ability to avoid cloud lock-in due to its multi-cloud compatibility.

Pure Storage’s stock is trading at $26.09 with a market capitalization of $7.8 billion. It touched a 52-week high of $36.71 in March this year and a 52-week low of $21.90 in May this year.

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