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What Drove Pure Storage’s Revenue in Q3

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Nov. 22 2018, Updated 1:05 p.m. ET

Record gross margins

In the previous part of this series, we saw that Pure Storage reported record revenue of $372.8 million in the third quarter of fiscal 2019. Pure Storage (PSTG) reported record gross margins of 68.1% with an operating margin of 9.1%.

The company exited the quarter with a customer base of 5,450 and added over 300 new customers. Pure Storage focuses on the enterprise, cloud, and public-sector verticals, which have driven its revenue growth.

The company gained traction in the Fortune 500 space, and 40% of these firms are now Pure Storage customers. The company’s cloud segments easily outpaced overall company growth in the last quarter.

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Partnership with several tech companies

Pure Storage has partnered with several tech giants across sectors over the last few quarters. This expansion of partnership deals has also contributed to the company’s revenue growth. Pure Storage claimed that its partnerships with Cisco (CSCO) and NVIDIA (NVDA) continue to thrive with its converged infrastructure solutions. It also announced deeper integrations with Splunk (SPLK) and Veritas.

During the company’s earnings call, President David Hatfield stated, “Our progress with the largest national resellers was strong, with two notable partner CEOs, specifically highlighting All Flash and NVMe as key growth drivers for their storage businesses. As part of our focus on the large enterprise and federal markets, we made solid progress with several GSIs including Accenture and FSIs this quarter.”

Pure Storage entered into a partnership with IBM to deliver service solutions. It’s optimistic about its differentiated product portfolio, which is operating at scale.

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