- Industry leader Pure Storage continues to be affected by the pandemic and declines in product revenue, with a 4% YoY drop in Q3'21 revenue.
- Despite the anemic performance, Pure Storage still outperformed its main competitors in the enterprise data storage market.
- The company is in the early stages of converting from product sales to subscription services. This transformation masks revenue growth and lowers margins.
- The company underperforms on the ESE (forward-looking Rule of 40) but so do its main competitors, apart from major cloud platforms.
- I am neutral on Pure Storage based on competition from major public cloud players and lack of growth in the external storage market.
For further details see:
Pure Storage: Great Company In A Challenging Market Niche