What happened

Shares of enterprise data storage platform Pure Storage (NYSE:PSTG) climbed as much as 19.5% Wednesday after the company posted its second-quarter results for fiscal year 2019. At 11:23 a.m. EDT, shares were up 15.5%.

The stock's gain is likely because second-quarter results were well above consensus analyst forecasts. In addition, the midpoint of management's outlook for its third-quarter revenue was above analysts' average forecast.

A digital-looking cloud

Image source: Getty Images.

So what

Pure Storage reported non-GAAP earnings per share of $0.01, up from a non-GAAP loss of $0.10 in the year-ago quarter. On average, analysts expected a non-GAAP loss per share of $0.06. Revenue rose from $224.7 million in the year-ago quarter to $308.9 million in the company's second quarter of fiscal year 2019. This beat a consensus forecast for revenue of $301 million.

Pure Storage also announced the acquisition of privately held StorReduce, a cloud-based storage software vendor. The move marked Pure Storage's first acquisition as a public company.

"We are excited about the natural integration points with both our current on-premise product portfolio and also its contribution to Pure's cloud integration and cloud services capability," said Pure Storage CEO Charles Giancarlo about the acquisition during the company's second-quarter earnings call.

Now what

With this strong quarter behind it, management raised its outlook for full-year revenue, guiding for its top line in fiscal year 2019 to be between $1.35 billion and $1.38 billion. Previously, management expected fiscal year 2019 revenue between $1.32 billion and $1.37 billion. Management also increased its expectation for its gross margin. Now management expects full-year non-GAAP gross margin between 65.5% and 67.5%, up from a previous outlook for 63.5% and 66.5%.

For its third quarter, management guided for revenue between $361 million and $369 million. On average, the consensus forecast for Pure Storage's third-quarter revenue was $362.9 million.