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Pure Storage, NetApp beat Wall Avenue expectations as cloud providers dominate

Distributed storage startup Pure Storage this afternoon reported a fiscal Q2 income that beat analysts’ expectations whereas additionally sending the corporate’s shares up by 8.35% in late buying and selling. 

Additionally this afternoon, storage networking pioneer NetApp reported fiscal Q1 income and revenue that equally topped expectations. The report despatched NetApp shares up 1.50% in late buying and selling. 

Pure Storage’s income for the quarter rose to $496.Eight million, a progress of 23% year-over-year. Analysts had been modeling $471.1 million.

Pure Storage’s CEO, Charles Giancarlo, mentioned that the corporate’s income progress made it “clear” that their long-term technique to supply prospects with fashionable knowledge providers is working. 

“We’re in an awesome innovation cycle with our portfolio and our gross sales momentum and execution have by no means been stronger,” Giancarlo mentioned. 

CFO Kevan Krysler added that the efficiency in Q2 “mirrored robust gross sales execution.” 

“We noticed power from each our enterprise and business prospects throughout our complete options portfolio,” Krysler defined.

For the present quarter, the corporate expects a income of $530 million with a non-GAAP working revenue of $40 million.

For the total 12 months, the corporate sees income rising to $2.04 billion. 

The corporate added that the reported figures have been the very best whole gross sales for any second quarter within the historical past of the corporate, representing a progress of greater than 30% year-over-year. Income from subscription providers was up 31% year-over-year, notably with Pure as-a-Service, which they mentioned practically doubled its revenues in comparison with final 12 months. 

Pure Storage additionally discovered success with massive enterprises, reporting that their high 10 prospects spent greater than $100 million. This quarter, Pure Storage mentioned its software program for managing public cloud block storage is out there on Microsoft’s Azure cloud computing service. 

For NetApp, the corporate’s CEO George Kurian mentioned the corporate noticed robust income, gross margin and working leverage throughout their complete enterprise.

“Cloud and digital transformation initiatives stay high buyer priorities and our outcomes underscore the worth we carry to prospects in a hybrid, multi-cloud, data-driven world. With centered execution and demonstrated management, we’re reshaping the {industry},” Kurian mentioned. 

“We made numerous innovation bulletins this quarter, and we’ll proceed to carry industry-leading capabilities to market, additional enhancing our differentiated place in cloud and software program.”

Income for the quarter rose 12%, year-over-year, to $1.46 billion, yielding a revenue of $1.15 a share.

Analysts had been modeling $1.42 billion and $0.943 per share.

For the present quarter, the corporate predicted a income of $1.49 billion to $1.59 billion, and an EPS in a spread of $1.14 and $1.24. 

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