What happened
Shares of Pure Storage (PSTG -2.22%), an advanced data storage technology company, spiked this morning after it reported better-than-expected results for its top and bottom lines in the first quarter.
The tech stock was up by an impressive 19.1% as of 11:10 a.m. ET.
So what
Pure Storage reported non-GAAP (adjusted) earnings of $0.08 per share in the quarter, which was down from $0.25 in the year-ago quarter but easily beat Wall Street's consensus estimate of $0.04 per share. The company also impressed investors with its sales of $589.3 million -- down 5% year over year -- compared to analysts' average estimate of $560 million.
"Through innovation, our competitive differentiation is unmatched in providing both high business value and lower total cost of ownership benefits across our portfolio to our customers," Kevan Krysler, Pure Storage's CFO, said in prepared remarks.
Other highlights from the quarter include subscription service revenue climbing 28% to $280 million and subscription annual recurring revenue (ARR) rising 29% to $1.2 billion. The company also ended the quarter with significant cash and cash equivalents of $1.2 billion.
Now what
Investors were also happy with management's guidance for the second quarter, as Pure Storage's leadership estimates sales will be up 5% from the year-ago quarter to $680 million. That guidance easily outpaces Wall Street's estimate of $658 million for the quarter.
Tech investors have been keen to see strong financial results and forward guidance as fears of a recession persist. And Pure Storage shareholders got both today, giving investors plenty to be thankful for.
