Pure Storage, Inc. (NYSE:PSTG) Q3 2024 Earnings Call Transcript

Kevan Krysler: Yes, it’s a great question. Look, if we look at the Evergreen//One orders that we’ve closed to date this year, we’re probably averaging a little bit over 3.5 years in duration associated with that of those orders, which really is similar to our traditional CapEx commitments as well. So that’s the answer in terms of duration that we’re seeing.

Charlie Giancarlo: I do want to point out that these are consumption contracts. And so these are, in effect, minimums. The consumption goes higher, then, of course, we’d expect more. And of course, we expect the contracts to continue even after the contract is done.

Kevan Krysler: That’s right, Charlie. And then when we calculate what the headwind is, and against – the headwind again is against our annual guide that we provided at the beginning of the year, we just basically translate the incremental growth we’re seeing beyond the growth we had assumed in the annual – in the annual revenue guide that we provided, using about 70% going to product if it was a traditional CapEx sale. So that’s how we’re calculating the points of headwind against our annual revenue guide.

Operator: There are no additional questions waiting at this time. So I’ll pass the conference over to the management team for closing remarks.

Charlie Giancarlo: Thank you, operator. Our strategy to provide customers a consistent, unified and modern storage platform for all their storage needs based on a cloud operating model continues to distinguish us in our industry and propel our success. And we believe the strength of our consumption offerings continues to outperform, benefiting both our customers and Pure. As we enter the holiday season, I want to extend our heartfelt thanks to all of our customers, our investors, partners, our suppliers and our employees. Your effort enables Pure to lead the industry in defining the next generation of data storage. Thank you.

Operator: That concludes the Pure Storage third quarter fiscal year 2024 earnings conference call. Thank you for your participation. You may now disconnect your lines.