Pure Storage S-1 Analysis (PSTG)

Exchange: TBD

Proposed Symbol: PSTG

CEO: Scott Dietzen

Offer Amount: $300 mm

No. of Shares to be sold in IPO: TBD

No. of Shares Outstanding: 159.657 mm

Price Range: TBD

Mkt Cap at Latest Round of Funding: $3 bn

Expected IPO Date: TBD

Overview from S-1: “Our mission is to deliver data storage that transforms business through a dramatic increase in performance and reduction in complexity and costs. Our innovative technology replaces storage systems designed for mechanical disk with all-flash systems optimized end-to-end for solid-state memory. At the same time, our innovative business model replaces the traditional forklift upgrade cycle with an evergreen storage model of hardware and software upgrades and maintenance. Our next-generation storage platform and business model are the result of our team’s substantial experience in enterprise storage and web-scale infrastructure, as well as frustration with the industry’s status quo. This deep industry understanding led to the development of our three-part integrated platform: the Purity Operating Environment, our flash-optimized software, FlashArray, our modular and scalable all-flash array hardware, and Pure1, our cloud-based management and support. Our platform can deliver a 10X acceleration in business applications over legacy disk-based storage. It is also designed to be compatible with existing infrastructure, substantially more reliable and power and space efficient. Our business model builds on our technology innovations to reverse the traditional storage business model. Instead of moving data between old and new systems via forklift upgrades, we keep business data and applications in place and upgrade technology around it. Our platform and business model are designed to add value to customers for a decade or more, reducing total cost of storage ownership while increasing loyalty. Our innovations help rebalance the datacenter by closing the performance gap between legacy storage technology and servers and networks. But it is the simplicity of our platform and business model that is revolutionizing the enterprise storage experience. Together, our innovations have helped our customers realize the promise of the cloud model for IT and the benefits of Moore’s Law. This has yielded industry-leading Net Promoter scores, based on the results of customer satisfaction surveys we conducted.”


  • Lead Underwriter: Morgan Stanley, Goldman Sachs, Barclays, Allen & Company, BofA Merrill Lynch
  • Co Managers: Pacific Crest Securities, Stifel, Raymond James, Evercore ISI

Competitors: Nimble Storage, Violin Memory, Cisco, Dell, EMC, HP, Hitachi Data Systems, IBM, Lenovo, NetApp, Crossroads Systems, Dot Hill Systems, QLogic, Tintri, Tegile Systems, Nutanix, Fusion-io (Sandisk)

Revenue (fiscal year ended January 31):

  • 2013 = $6.077 mm
  • 2014 = $42.733 mm
  • 2015 = $174.451 mm

R & D Expenses:

  • 2013 = $12.383 mm
  • 2014 = $36.081 mm
  • 2015 = $92.707 mm

Sales & Marketing Expenses:

  • 2013 = $10.727 mm
  • 2014 = $54.750 mm
  • 2015 = $152.320 mm

Net Loss:

  • 2013 = $23.372 mm
  • 2014 = $78.561 mm
  • 2015 = $183.231 mm

No. of Subscribers:

  • 2013 = 108K
  • 2014 = 140K
  • 2015 = 194K


  • 2013 = $50.120 mm
  • 2014 = $130.885 mm
  • 2015 = $192.707 mm

Total Assets:

  • 2013 = $61.600 mm
  • 2014 = $185.004 mm
  • 2015 = $361.819 mm

Other Notes

  • Based in Mountain View, CA
  • Founded in 2009
  • Pure Storage is an all-flash enterprise storage company that enables broad deployment of flash in data centers.
    • Most similar public companies are Nimble Storage (NMBL) and Violin Memory (VMEM)
    • Both had IPOs in late 2013
    • NMBL has a 26.7% return from its IPO and VMEM has a -74% return from its IPO.
  • Funding Rounds:
    • Series A — $5 mm
      • Oct 1, 2009
      • Investors: Sutter Hill Ventures
    • Series B — $20 mm
      • Aug 1, 2010
    • Series C — $30 mm
      • Aug 23, 2011
      • Investors: Greylock Partners, Sutter Hill Ventures, Redpoint Ventures
    • Series D — $40 mm
      • Aug 15, 2012
      • Investors: Greylock Partners, Sutter Hill Ventures, Redpoint Ventures, Index Ventures
    • Series E — $150 mm
      • Aug 29, 2013
      • Investors: T. Rowe Price, Tiger Global Management , Fidelity Ventures, Glynn Capital Management, Greylock Partners, In-Q-Tel Index Ventures, Institutional Venture Partners, Redpoint Ventures, Samsung Ventures, Sutter Hill Ventures
    • Series F — $225 mm
      • Apr 22, 2014
      • Investors: T. Rowe Price, Greylock Partners, Index Ventures, Redpoint Ventures, Sutter Hill Ventures, Tiger Global Management, Wellington Management
    • Secondary Market — $60 mm
      • Aug 11, 2014
      • Investors: T. Rowe Price, Tiger Global Management, Wellington Management
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