The global NAND Flash Memory market is expected to grow from $18.5 billion in 2020 at 22% CAGR to a $74.3 billion market by the end of 2027. Mountain View-based Pure Storage (NYSE: PSTG) recently reported its quarterly results that continued to outpace market expectations.

Pure Storage’s Financials

Pure Storage’s third-quarter revenues grew 37% over the year to $562.7 million, ahead of the market’s estimates of $530.4 million. Adjusted EPS of $0.22 also beat analyst estimates of an EPS of $0.12.

Subscription services revenue grew 38% to $187.8 million. During the same period, product revenues grew 36.6% to $374.9 million.

For the fourth quarter, Pure Storage expects revenues of $630 million versus analyst forecast of $601.11 million. It also expects fiscal year revenues to be $2.1 billion, compared with the market’s estimate of $2.04 billion.

Pure Storage’s Product Expansion

Recently, Pure Storage announced a partnership with Microsoft Azure to significantly increase the speed of the next-gen chip design by providing a data layer that has the ability to keep up with massive, concurrent high-performance computing (HPC) workloads that run in the cloud. The current chip shortage in the industry has created a bigger demand for cloud-based solutions to manage HPC workloads. Its partnership will provide cloud-adjacent storage for engineering, design, and automation (EDA), HPC, and other highly parallel workloads, including software building and testing by leveraging Pure Storage FlashBlade.

Earlier this quarter, Portworx by Pure Storage, the Kubernetes Data Services Platform, also announced the release of PX-Backup 2.1, its application and data protection platform for modern applications. The latest enhancements to PX-Backup provide organizations with comprehensive data protection, multi-cloud mobility, and improved compliance support for applications running on Kubernetes. Enhancements include abilities to deliver application portability between any cloud or on-premises data center, to offload backups to object storage, recover applications running on read-write-many (RWX) persistent volumes provisioned as file shares, and an added layer of security support.

Pure Storage’s products are being well received in the market. In the recently published Gartner Magic Quadrant for Distributed File Systems and Object Storage, Pure was ranked a leader along with big names like Dell and IBM, and other niche players like Qumulo and Scality. Gartner recognized its strength in FlashArray business and common management system that provides an advantage for customers who want to consolidate vendors across block, file and object workloads. Its AIOps and analytics capabilities were also ranked as a strong positive for its offerings.

Pure Storage’s stock is trading at $30.88 with a market capitalization of $8.8 billion. It had touched a high of $29.53 in February. The stock fell to a 52-week low of $16.79 in July.