Everpure beats on revenue and earnings but free cash flow drop sends shares lower
Shares in Everpure Inc., formerly Pure Storage Inc., fell more than 7% in late trading today despite the data storage company beating expectations on revenue and earnings in its fiscal 2027 first quarter and raising its full-year outlook.
For its the quarter that on ended May 3, Everpure reported adjusted earnings per share of 47 cents, up from 29 cents in the same quarter a year earlier, on revenue of $1.05 billion, up 35% year-over-year. Analysts were expecting adjusted earnings of 40 cents per share on revenue of $1 billion.
Product revenue was a standout, climbing 55% year-over-year to $577 million. Subscription services revenue rose 17% to $476 million, while subscription annual recurring revenue reached $2 billion, up 19%. Remaining performance obligations, a measure of contracted work yet to be delivered, grew 41% to $3.8 billion.
Adjusted gross margin came in at 70.1% and adjusted operating income reached $159 million, well above the year-earlier figure. On a non-adjusted basis, the company swung to net income of $24 million, or 7 cents per share, from a loss of $14 million a year earlier.
