What happened

Shares of Pure Storage (NYSE:PSTG), which provides an enterprise data storage platform, fell sharply on Friday. By the time the market closed, shares were down 15.1%.

The growth stock's pullback followed the company's third-quarter earnings report, which included revenue and non-GAAP (adjusted) earnings per share that missed analysts' average forecasts. And the company's fourth-quarter outlook was below expectations.

A chalkboard sketch of a chart showing a stock price declining

Image source: Getty Images.

So what

Pure Storage's third-quarter revenue increased 15% year over year to $428.4 million, management announced after market close on Thursday. Non-GAAP earnings per share were $0.13. Analysts on average were expecting revenue of $440 million and adjusted EPS of $0.09. 

But it's notable that Pure Storage's revenue was within management's guidance range for the period -- and management seemed pleased with the results. "Our continued market-beating growth is a result of ever more customers realizing the superior value that our solutions offer," said CEO Charles Giancarlo.

Now what

Also serving as a reason for the Street's bearish response to the report, Pure Storage's fourth-quarter revenue outlook missed expectations.

Management said it expects revenue in the quarter to be between $484 million and $496 million. Analysts on average were expecting revenue of $512 million during the period.