Pure Storage (NYSE:PSTG) stock soared over 7% following the closing bell on Wednesday after the tech company delivered strong guidance.
Q4 earnings per share (EPS) were reported at $0.20, notably below the consensus estimates of $0.44. However, the company surpassed revenue expectations, reporting $789.8 million against a projected $784.21 million.
The quarter witnessed a notable 24% increase in subscription services revenue, reaching $328.9 million, and a 25% rise in subscription annual recurring revenue (ARR) to $1.4 billion.
Pure Storage also reported a non-GAAP gross margin of 73.7%.
Looking ahead, Pure Storage has set its revenue forecast for the fiscal first quarter of 2025 at $680 million, exceeding analysts' consensus of $667.3 million.
Furthermore, the PSTG’s full-year revenue forecast stands at $3.1 billion, significantly above the $2.82 billion expected by analysts.
"We closed FY24 delivering strong RPO growth, and exceeded our revenue and operating margin guidance in Q4," said Kevan Krysler, CFO of Pure Storage.
"Looking to FY25, we expect double-digit revenue growth and strong growth of RPO, fueled by our highly differentiated data storage platform, and strength of our Evergreen and Portworx consumption and subscription offerings."