Pure Storage says Evergreen//One over-performance will impact Q4 sales

Pure Storage says in prepared earnings call remarks, “The outperformance of Evergreen//One this year has been significantly above our prior expectations, and we now expect this strong level of demand to continue through Q4. While this success is a long anticipated and welcome expansion of our business model, its over-performance will have an effect on near term revenue…Although we expect demand to increase for the second half of the year there are two important factors that are impacting our annual revenue expectation this year which we now expect to be $2.82 billion, growing 2.5 percent, and Q4 revenue is expected to be $782 million, declining 3.5 percent. First, is the impact of our Evergreen//One, storage-as-service momentum which will be discussed in more detail, and; Second, is the impact of a $41 million dollar non-cancelable product order with a Telco customer that is not expected to be fulfilled until next year. Both factors, on a combined basis, represent approximately 4.5 points of incremental headwind when compared to the annual revenue guide we provided at the beginning of the year.”