Pure Storage falls short of Q1 market expectations

Pure Storage published its first quarter financial results on Tuesday, falling below market expectations. The company also gave a weak Q2 outlook. Shares were down in after-hours trading. 

Non-GAAP net losses for the quarter came to 11 cents per share on revenue of $326.7 million, up 28 percent year-over-year.

Analysts were expecting a net loss of seven cents per share on revenue of $333.16 million.

The company nevertheless touted its solid growth and innovation across its portfolio. In Q1, Pure Storage announced the acquisition of Compuverde, a move that will enhance its file storage capabilities and allow it to target hybrid architectures. The company also brought ObjectEngine, its data protection platform for flash and cloud, into general availability. Pure Storage also in Q1 announced the expansion of its Evergreen Storage Service -- another move aimed at customers adopting hybrid environments.

"Pure continues to gain market share with innovation, a differentiated business model and our laser focus on customer delight," CEO Charles Giancarlo said in a statement. "As enterprises embark on their hybrid cloud journeys, Pure is excited to play a role in modernizing their business."

For the second quarter, Pure says it's expecting revenue $389 million to $401 million, or $395 million at the midpoint. For the full 2020 fiscal year, it expects revenue  in the range of $1.7 billion to $1.77 billion, or $1.735 billion at the midpoint.

Analysts expect Q2 revenue of $396.95 million. 

More on Pure Storage:

• Pure Storage buys Compuverde to expand hybrid cloud storage  
• Pure Storage, Nvidia, Cisco launch AI hyperscale systems  
• Rackspace, Pure Storage offer joint solution for hybrid cloud customers