Pure Storage Inc (NYSE: PSTG) stock lost over 5.2% on 26th August, 2020 (as of 10:00 am GMT-4; Source: Google finance) post lower than expected second quarter of FY 21 performance. The company has lost $65 million, in the second quarter, compared to a loss of $66 million, in the year-ago period. The company anticipates flat fiscal third-quarter revenue, saying that the expectation should not be viewed as guidance. Total bookings or sales during the first six months of the year rose 8.3% year-over-year, and during Q2, fell 3.3% year-over-year due to the headwinds the company faced in the United States.
PSTG in the second quarter of FY 21 has reported the adjusted loss per share of 25 cents, beating the analysts’ estimates for the adjusted loss per share of 25 cents, according to analysts polled by FactSet. The company had reported the adjusted revenue growth of 2 percent to $404 million in the second quarter of FY 21, beating the analysts’ estimates for revenue of $395 million. Product revenue has fallen 9% year-over-year, while subscription services momentum continues as revenue rose 37% year-over-year and represented approximately 33% of total revenue, up from 24% of total revenue year-over-year. Subscription services revenue includes revenues from the Evergreen subscriptions and the Unified subscription, which includes Pure as-a-Service and Cloud Block Store.
Moreover, the company experienced significant growth in the international business during the second quarter while facing headwinds in the United States created by COVID-19. Total revenue in the United States during Q2 was $282 million fell 4% year-over-year, while the total international revenue rose 20% year-over-year to $122 million during Q2.
The company has posted Non-GAAP gross margins for product and subscription services for the second quarter of 69.8%, which is year-over-year increase of 0.4 points. The company delivered Non-GAAP product gross margin in Q2 of 70.1%, and non-GAAP subscription services margin expanded 1.8 points year-over-year to 69.2%. Overall, the company reported the total non-GAAP operating profit during Q2 of approximately $11 million compared to a non-GAAP operating loss of approximately $3 million during Q2 of the prior year.
Meanwhile, the company has announced the second generation of FlashArray//C, which is the industry’s first and still only all-QLC storage solution. This offering effectively renders hybrid storage obsolete by offering flash density, performance and reliability at lower cost than legacy hybrid disk arrays. Further, the company has recently announced a partnership with Cohesity to introduce Pure FlashRecover. This is the first fully integrated all-flash rapid recovery solution on the market.