8-K
Everpure, Inc. (P)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 29, 2024
_____________________________________
Pure Storage, Inc.
(Exact name of Registrant as Specified in Its Charter)
_____________________________________
| Delaware | 001-37570 | 27-1069557 |
|---|---|---|
| (State or Other Jurisdiction<br>of Incorporation) | (Commission<br>File Number) | (IRS Employer Identification No.) |
| 2555 Augustine Dr.<br><br>Santa Clara, California 95054 | ||
| (Address of Principal Executive Offices and Zip Code) |
(800) 379-7873
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||
|---|---|---|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||
| --- | --- | ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| --- | --- | ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
| --- | --- |
___________________________________
Securities registered pursuant to Section 12(b) of the Act:Title of each classTrading symbol(s)Name of each exchange on which registeredClass A Common Stock, $0.0001 par value per sharePSTGNew York Stock Exchange LLC________________________________________
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02. Results of Operations and Financial Condition.
On May 29, 2024, Pure Storage, Inc. ("Pure") issued a press release and will hold a conference call regarding its financial results for the quarter ended May 5, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.
This information, including the exhibit(s) hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Pure is making reference to non-GAAP financial information in the press release and the conference call. A reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures is contained in the attached press release. These non-GAAP financial measures are reported in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
The following exhibit is furnished herewith:
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release entitled "Pure Storage AnnouncesFirstQuarter Fiscal 2025Financial Results" |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Pure Storage, Inc. | |
|---|---|
| (Registrant) | |
| By: | /s/ Kevan Krysler |
| Kevan Krysler | |
| Chief Financial Officer |
May 29, 2024
Document
Exhibit 99.1
Pure Storage Announces First Quarter Fiscal 2025 Financial Results
Q1 total revenue growth of 18%, year-over-year
Subscription services ARR over $1.4 billion
SANTA CLARA, Calif. – May 29, 2024 – Today Pure Storage (NYSE: PSTG), the IT pioneer that delivers the world's most advanced data storage technologies and services, announced financial results for its first quarter fiscal year 2025 ended May 5, 2024.
“Pure Storage is uniquely positioned to integrate fragmented data storage environments, which hinders enterprises from easily deploying artificial intelligence, hybrid cloud, and modern application deployment,” said Charles Giancarlo, Chairman and CEO, Pure Storage. “At our June Accelerate conference, global customers will see how our latest innovations enable enterprises to adapt to rapid technological change with a platform that fuses data centers and cloud environments.”
First Quarter Financial Highlights
•Revenue $693.5 million, an increase of 18% year-over-year
•Subscription services revenue $346.1 million, up 23% year-over-year
•Subscription annual recurring revenue (ARR) $1.4 billion, up 25% year-over-year
•Remaining performance obligations (RPO) $2.3 billion, up 27% year-over-year
•GAAP gross margin 71.5%; non-GAAP gross margin 73.9%
•GAAP operating loss $(41.8) million; non-GAAP operating income $100.4 million
•GAAP operating margin (6.0%); non-GAAP operating margin 14.5%
•Q1 operating cash flow $221.5 million; free cash flow $172.7 million
•Total cash, cash equivalents, and marketable securities $1.7 billion
“We are pleased with the strong start to our year as Q1 revenue growth of 18 percent and profitability both outperformed,” said Kevan Krysler, Chief Financial Officer, Pure Storage. “We are well positioned with our highly differentiated data storage platform for substantial long-term growth.”
At the Pure//Accelerate annual customer event next month, the company will be delivering industry-first innovations in the Pure data storage platform to address the most pressing topics critical to customers, including AI and Cyber Resiliency.
First Quarter Company Highlights
•Accelerating Enterprise AI: Through integrations with NVIDIA, Pure delivered new validated reference architectures for running generative AI use cases, including a new NVIDIA OVX-ready validated reference architecture, adding more options for customers in addition to the previously announced NVIDIA BasePod certification. As a leader in AI, Pure Storage, in collaboration with NVIDIA, is arming global customers with a proven framework to manage the high-performance data and compute requirements they need to drive successful AI deployments.
•Subscription Services Innovation: New self-service capabilities across its Pure1® storage management platform and Evergreen® portfolio empower customers with more control over their data storage environment via a single management layer, simplifying end-to-end operations.
Awards and Accolades
•Financial Times The Americas’ Fastest Growing Companies 2024
•Data Breakthrough Awards “Overall Data Storage Company of the Year”
•CRN AI 100 list in the Data Center and Edge category
Second Quarter and FY25 Guidance
| Q2FY25 | |
|---|---|
| Revenue | $755M |
| Revenue YoY Growth Rate | 9.6% |
| Non-GAAP Operating Income | $125M |
| Non-GAAP Operating Margin | 16.6% |
| FY25 | |
| --- | --- |
| Revenue | $3.1B |
| Revenue YoY Growth Rate | 10.5% |
| TCV Sales for Evergreen//One & Evergreen//Flex Subscription Service Offerings | $600M |
| TCV Sales for Evergreen//One & Evergreen//Flex Subscription Service Offerings YoY Growth Rate | Approximately 50% |
| Non-GAAP Operating Income | $532M |
| Non-GAAP Operating Margin | 17% |
These statements are forward-looking and actual results may differ materially. Refer to the Forward Looking Statements section below for information on the factors that could cause our actual results to differ materially from these statements. Pure has not reconciled its guidance for non-GAAP operating income and non-GAAP operating margin to their most directly comparable GAAP measures because certain items that impact these measures are not within Pure’s control and/or cannot be reasonably predicted. Accordingly, reconciliations of these non-GAAP financial measures guidance to the corresponding GAAP measures are not available without unreasonable effort.
Pure//Accelerate 2024
Register for Pure//Accelerate® 2024 in Las Vegas from June 18-21, 2024 and discover how to embrace the new age of data. Be front and center as we make history, changing the future of storage and the industry. Pure Storage executives and world-leading experts - including Pure Storage CEO, Charles Giancarlo, and World Champion & Mental Health Advocate, Michael Phelps - will share insights, strategies, and their vision for the future.
Conference Call Information
Pure will host a teleconference to discuss the first quarter fiscal 2025 results at 2:00 pm PT today, May 29, 2024. A live audio broadcast of the conference call will be available on the Pure Storage Investor Relations website. Pure will also post its earnings presentation and prepared remarks to this website concurrent with this release.
A replay will be available following the call on the Pure Storage Investor Relations website or for two weeks at 1-800-770-2030 (or 1-647-362-9199 for international callers) with passcode 5667482.
Additionally, Pure is scheduled to participate at the following investor conferences:
Bank of America Global Technology Conference
Date: Tuesday, June 4, 2024
Time: 2:00 p.m. PT / 5:00 p.m. ET
Founder & Chief Visionary Officer John “Coz” Colgrove
Chief Financial Officer Kevan Krysler
William Blair Growth Stock Conference
Date: Thursday, June 6, 2024
Time: 9:20 a.m. PT / 12:20 p.m. ET
Chief Technology Officer Rob Lee
Product & Technology-Focused Meeting for Financial Analysts at Pure//Accelerate 2024
Date: Thursday, June 20, 2024
Time: 1:00 p.m. PT / 4:00 p.m. ET
The presentations will be webcast live and archived on Pure's Investor Relations website at investor.purestorage.com.
About Pure Storage
Pure Storage (NYSE: PSTG) delivers the industry's best platform to store, manage, and protect the world's data. With a cloud experience across a unified storage operating environment, Pure empowers every organization with the agility to meet evolving data requirements at speed and scale, while reducing total cost of ownership. Pure believes it can make a meaningful impact in reducing data center emissions worldwide by providing a storage platform that enables customers to significantly reduce their carbon and energy footprint. Pure is proud to be a customer-first organization, as evidenced by the highest Net Promoter Score in the industry. For more information, visit www.purestorage.com.
Analyst Recognition
Leader in the 2023 Gartner Magic Quadrant for Primary Storage
Leader in the 2023 Gartner Magic Quadrant for Distributed File Systems & Object Storage
Connect with Pure
Blog
Pure Storage, the Pure P Logo, Portworx, and the marks on the Pure Trademark List at www.purestorage.com/legal/productenduserinfo.html are trademarks of Pure Storage, Inc. Other names are trademarks of their respective owners.
Forward Looking Statements
This press release contains forward-looking statements regarding our products, business and operations, including but not limited to our views relating to future period financial and business results, demand for our products and subscription services, including Evergreen//One, our technology and product strategy, specifically customer priorities around sustainability, the benefits to our customers of using our products, our ability to perform during current macro conditions and expand market share, our sustainability goals and benefits, our ability to capture storage workloads for AI environments and hyperscalers, the timing and magnitude of large orders, the impact of inflation, economic or supply chain disruptions, our expectations regarding our product and technology differentiation, including the E//Family, new customer acquisition, and other statements regarding our products, business, operations and results. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements.
Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption "Risk Factors" and elsewhere in our filings and reports with the U.S. Securities and Exchange Commission, which are available on our Investor Relations website at investor.purestorage.com and on the SEC website at www.sec.gov. Additional information is also set forth in our Annual Report on Form 10-K for the year ended February 4, 2024. All information provided in this release and in the attachments is as of May 29, 2024, and Pure undertakes no duty to update this information unless required by law.
Key Performance Metrics
Subscription ARR is a key business metric that refers to total annualized contract value of all active subscription agreements on the last day of the quarter, plus on-demand revenue for the quarter multiplied by four.
Total Contract Value (TCV) Sales, or bookings, of Pure's Evergreen//One and Evergreen//Flex offerings is an operating metric, representing the value of orders received and/or expected to be received during the fiscal year.
Non-GAAP Financial Measures
To supplement our unaudited condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, Pure uses the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share, and free cash flow.
We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses such as stock-based compensation expense, payments to former shareholders of acquired companies, payroll tax expense related to stock-based activities, amortization of debt issuance costs related to debt, amortization of intangible assets acquired from acquisitions, acquisition-related transaction and integration expenses, restructuring costs related to severance and termination benefits, and costs associated with the impairment and early exit of certain leased facilities that may not be indicative of our ongoing core business operating results. Pure believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and planning, forecasting, and analyzing future periods. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.
For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables captioned "Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures" and "Reconciliation from net cash provided by operating activities to free cash flow," included at the end of this release.
Contacts
Paul Ziots -- Investor Relations, Pure Storage
ir@purestorage.com
Rena Fallstrom -- Global Communications, Pure Storage
pr@purestorage.com
PURE STORAGE, INC.
Condensed Consolidated Balance Sheets
(in thousands, unaudited)
| At the End of | ||||
|---|---|---|---|---|
| First Quarter of Fiscal 2025 | Fiscal 2024 | |||
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 900,615 | $ | 702,536 |
| Marketable securities | 823,397 | 828,557 | ||
| Accounts receivable, net of allowance of $965 and $1,060 | 423,454 | 662,179 | ||
| Inventory | 40,674 | 42,663 | ||
| Deferred commissions, current | 85,386 | 88,712 | ||
| Prepaid expenses and other current assets | 174,238 | 173,407 | ||
| Total current assets | 2,447,764 | 2,498,054 | ||
| Property and equipment, net | 368,153 | 352,604 | ||
| Operating lease right-of-use-assets | 126,435 | 129,942 | ||
| Deferred commissions, non-current | 211,240 | 215,620 | ||
| Intangible assets, net | 29,156 | 33,012 | ||
| Goodwill | 361,427 | 361,427 | ||
| Restricted cash | 9,595 | 9,595 | ||
| Other assets, non-current | 69,840 | 55,506 | ||
| Total assets | $ | 3,623,610 | $ | 3,655,760 |
| Liabilities and Stockholders' Equity | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 55,709 | $ | 82,757 |
| Accrued compensation and benefits | 137,669 | 250,257 | ||
| Accrued expenses and other liabilities | 127,885 | 135,755 | ||
| Operating lease liabilities, current | 44,819 | 44,668 | ||
| Deferred revenue, current | 860,221 | 852,247 | ||
| Total current liabilities | 1,226,303 | 1,365,684 | ||
| Long-term debt | 100,000 | 100,000 | ||
| Operating lease liabilities, non-current | 120,709 | 123,201 | ||
| Deferred revenue, non-current | 741,255 | 742,275 | ||
| Other liabilities, non-current | 61,370 | 54,506 | ||
| Total liabilities | 2,249,637 | 2,385,666 | ||
| Stockholders’ equity: | ||||
| Common stock and additional paid-in capital | 2,890,317 | 2,749,627 | ||
| Accumulated other comprehensive loss | (5,584) | (3,782) | ||
| Accumulated deficit | (1,510,760) | (1,475,751) | ||
| Total stockholders' equity | 1,373,973 | 1,270,094 | ||
| Total liabilities and stockholders' equity | $ | 3,623,610 | $ | 3,655,760 |
PURE STORAGE, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share data, unaudited)
| First Quarter of Fiscal | ||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| Revenue: | ||||
| Product | $ | 347,384 | $ | 308,963 |
| Subscription services | 346,095 | 280,344 | ||
| Total revenue | 693,479 | 589,307 | ||
| Cost of revenue: | ||||
| Product (1) | 100,753 | 96,213 | ||
| Subscription services (1) | 97,020 | 79,747 | ||
| Total cost of revenue | 197,773 | 175,960 | ||
| Gross profit | 495,706 | 413,347 | ||
| Operating expenses: | ||||
| Research and development (1) | 193,820 | 185,331 | ||
| Sales and marketing (1) | 250,972 | 232,446 | ||
| General and administrative (1) | 76,787 | 67,384 | ||
| Restructuring and impairment (2) | 15,901 | — | ||
| Total operating expenses | 537,480 | 485,161 | ||
| Loss from operations | (41,774) | (71,814) | ||
| Other income (expense), net | 14,091 | 11,749 | ||
| Loss before provision for income taxes | (27,683) | (60,065) | ||
| Income tax provision | 7,326 | 7,336 | ||
| Net loss | $ | (35,009) | $ | (67,401) |
| Net loss per share attributable to common stockholders, basic and diluted | $ | (0.11) | $ | (0.22) |
| Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 322,589 | 305,863 |
(1) Includes stock-based compensation expense as follows:
| Cost of revenue -- product | $ | 2,782 | $ | 2,655 |
|---|---|---|---|---|
| Cost of revenue -- subscription services | 8,871 | 5,647 | ||
| Research and development | 50,294 | 38,232 | ||
| Sales and marketing | 23,519 | 17,181 | ||
| General and administrative | 27,528 | 14,115 | ||
| Total stock-based compensation expense | $ | 112,994 | $ | 77,830 |
(2) Includes expenses for severance and termination benefits related to workforce realignment and lease impairment and abandonment charges associated with cease-use of our former corporate headquarters.
PURE STORAGE, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
| First Quarter of Fiscal | ||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| Cash flows from operating activities | ||||
| Net loss | $ | (35,009) | $ | (67,401) |
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||
| Depreciation and amortization | 33,943 | 29,690 | ||
| Stock-based compensation expense | 112,994 | 77,830 | ||
| Lease impairment and abandonment charges | 6,375 | — | ||
| Other | 2,343 | (1,804) | ||
| Changes in operating assets and liabilities: | ||||
| Accounts receivable, net | 238,768 | 221,205 | ||
| Inventory | 2,406 | 308 | ||
| Deferred commissions | 7,707 | (2,331) | ||
| Prepaid expenses and other assets | (9,219) | (6,095) | ||
| Operating lease right-of-use assets | 8,122 | 11,001 | ||
| Accounts payable | (26,581) | (3,993) | ||
| Accrued compensation and other liabilities | (116,716) | (89,082) | ||
| Operating lease liabilities | (10,587) | (6,100) | ||
| Deferred revenue | 6,954 | 10,019 | ||
| Net cash provided by operating activities | 221,500 | 173,247 | ||
| Cash flows from investing activities | ||||
| Purchases of property and equipment (1) | (48,818) | (51,424) | ||
| Purchases of marketable securities and other | (165,123) | (128,788) | ||
| Sales of marketable securities | 37,689 | 43,040 | ||
| Maturities of marketable securities | 127,857 | 288,373 | ||
| Net cash provided by (used in) investing activities | (48,395) | 151,201 | ||
| Cash flows from financing activities | ||||
| Net proceeds from exercise of stock options | 13,223 | 4,630 | ||
| Proceeds from issuance of common stock under employee stock purchase plan | 25,328 | 21,219 | ||
| Principal payments on borrowings and finance lease obligations | (1,099) | (576,780) | ||
| Proceeds from borrowing | — | 100,000 | ||
| Tax withholding on vesting of equity awards | (12,478) | (6,759) | ||
| Repurchases of common stock | — | (69,911) | ||
| Net cash provided by (used in) financing activities | 24,974 | (527,601) | ||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 198,079 | (203,153) | ||
| Cash, cash equivalents and restricted cash, beginning of period | 712,131 | 591,398 | ||
| Cash, cash equivalents and restricted cash, end of period | $ | 910,210 | $ | 388,245 |
(1) Includes capitalized internal-use software costs of $4.5 million and $5.3 million for the first quarter of fiscal 2025 and 2024.
Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures
The following table presents non-GAAP gross margins by revenue source before certain items (in thousands except percentages, unaudited):
| First Quarter of Fiscal 2025 | First Quarter of Fiscal 2024 | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| GAAP<br>results | GAAP<br>gross<br>margin (a) | Adjustment | Non-<br>GAAP<br>results | Non-<br>GAAP<br>gross<br>margin (b) | GAAP<br>results | GAAP<br>gross<br>margin (a) | Adjustment | Non-<br>GAAP<br>results | Non-<br>GAAP<br>gross<br>margin (b) | |||||||||||||
| $ | 2,782 | (c) | $ | 2,655 | (c) | |||||||||||||||||
| 296 | (d) | 147 | (d) | |||||||||||||||||||
| 20 | (e) | — | ||||||||||||||||||||
| 3,306 | (f) | 3,306 | (f) | |||||||||||||||||||
| Gross profit --product | $ | 246,631 | 71.0 | % | $ | 6,404 | $ | 253,035 | 72.8 | % | $ | 212,750 | 68.9 | % | $ | 6,108 | $ | 218,858 | 70.8 | % | ||
| $ | 8,871 | (c) | $ | 5,647 | (c) | |||||||||||||||||
| 867 | (d) | 338 | (d) | |||||||||||||||||||
| 309 | (e) | — | ||||||||||||||||||||
| — | 13 | (g) | ||||||||||||||||||||
| Gross profit -- subscription services | $ | 249,075 | 72.0 | % | $ | 10,047 | $ | 259,122 | 74.9 | % | $ | 200,597 | 71.6 | % | $ | 5,998 | $ | 206,595 | 73.7 | % | ||
| $ | 11,653 | (c) | $ | 8,302 | (c) | |||||||||||||||||
| 1,163 | (d) | 485 | (d) | |||||||||||||||||||
| 329 | (e) | — | ||||||||||||||||||||
| 3,306 | (f) | 3,306 | (f) | |||||||||||||||||||
| — | 13 | (g) | ||||||||||||||||||||
| Total gross profit | $ | 495,706 | 71.5 | % | $ | 16,451 | $ | 512,157 | 73.9 | % | $ | 413,347 | 70.1 | % | $ | 12,106 | $ | 425,453 | 72.2 | % |
(a) GAAP gross margin is defined as GAAP gross profit divided by revenue.
(b) Non-GAAP gross margin is defined as non-GAAP gross profit divided by revenue.
(c) To eliminate stock-based compensation expense.
(d) To eliminate payroll tax expense related to stock-based activities.
(e) To eliminate expenses for severance and termination benefits related to workforce realignment.
(f) To eliminate amortization expense of acquired intangible assets.
(g) To eliminate payments to former shareholders of acquired company.
The following table presents certain non-GAAP consolidated results before certain items (in thousands, except per share amounts and percentages, unaudited):
| First Quarter of Fiscal 2025 | First Quarter of Fiscal 2024 | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| GAAP<br>results | GAAP<br>operating<br>margin (a) | Adjustment | Non-<br>GAAP<br>results | Non-<br>GAAP<br>operating<br>margin (b) | GAAP<br>results | GAAP<br>operating<br>margin (a) | Adjustment | Non-<br>GAAP<br>results | Non-<br>GAAP<br>operating<br>margin (b) | |||||||||||||
| $ | 112,994 | (c) | $ | 77,830 | (c) | |||||||||||||||||
| — | 885 | (d) | ||||||||||||||||||||
| 9,400 | (e) | 4,815 | (e) | |||||||||||||||||||
| — | 4,070 | (f) | ||||||||||||||||||||
| 3,536 | (g) | 3,839 | (g) | |||||||||||||||||||
| 9,855 | (h) | — | ||||||||||||||||||||
| 6,375 | (i) | — | ||||||||||||||||||||
| Operating income (loss) | $ | (41,774) | -6.0 | % | $ | 142,160 | $ | 100,386 | 14.5 | % | $ | (71,814) | -12.2 | % | $ | 91,439 | $ | 19,625 | 3.3 | % | ||
| $ | 112,994 | (c) | $ | 77,830 | (c) | |||||||||||||||||
| — | 885 | (d) | ||||||||||||||||||||
| 9,400 | (e) | 4,815 | (e) | |||||||||||||||||||
| — | 4,070 | (f) | ||||||||||||||||||||
| 3,536 | (g) | 3,839 | (g) | |||||||||||||||||||
| 9,855 | (h) | — | ||||||||||||||||||||
| 6,375 | (i) | — | ||||||||||||||||||||
| 153 | (j) | 647 | (j) | |||||||||||||||||||
| Net income (loss) | $ | (35,009) | $ | 142,313 | $ | 107,304 | $ | (67,401) | $ | 92,086 | $ | 24,685 | ||||||||||
| Net income (loss) per share -- diluted | $ | (0.11) | $ | 0.32 | $ | (0.22) | $ | 0.08 | ||||||||||||||
| Weighted-average shares used in per share calculation -- diluted | 322,589 | 15,959 | (k) | 338,548 | 305,863 | 11,134 | (k) | 316,997 |
(a) GAAP operating margin is defined as GAAP operating loss divided by revenue.
(b) Non-GAAP operating margin is defined as non-GAAP operating income divided by revenue.
(c) To eliminate stock-based compensation expense.
(d) To eliminate payments to former shareholders of acquired company.
(e) To eliminate payroll tax expense related to stock-based activities.
(f) To eliminate duplicate lease costs during the transition of our corporate headquarters.
(g) To eliminate amortization expense of acquired intangible assets.
(h) To eliminate expenses for severance and termination benefits related to workforce realignment.
(i) To eliminate lease impairment and abandonment charges associated with cease-use of our former corporate headquarters.
(j) To eliminate amortization expense of debt issuance costs related to our debt.
(k) To include effect of dilutive securities (employee stock options, restricted stock, and shares from employee stock purchase plan).
Reconciliation from net cash provided by operating activities to free cash flow (in thousands except percentages, unaudited):
| First Quarter of Fiscal | ||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| Net cash provided by operating activities | $ | 221,500 | $ | 173,247 |
| Less: purchases of property and equipment (1) | (48,818) | (51,424) | ||
| Free cash flow (non-GAAP) | $ | 172,682 | $ | 121,823 |
(1) Includes capitalized internal-use software costs of $4.5 million and $5.3 million for the first quarter of fiscal 2025 and 2024.
10