Good day, ladies and gentlemen. Thank you for standing by and welcome to the Everpure first quarter fiscal year 2023 earnings release conference call. At this time, all participants are in listen only mode. At the conclusion of our prepared remarks, there will be a question and answer session. If you would like to request assistance during the conference, please press star zero on your touch tone pad at any time. As a reminder, this call is being recorded. I would now like to introduce your host for today's conference call, Mr. Sanjot Khurana. Khurana, please go ahead. Thank you and good afternoon. Welcome to the Everpure first quarter fiscal 2023 earnings conference call. My name is Sanjot Khurana, Vice President of Investor Relations and Treasurer at Everpure. Joining me today are our CEO, Charlie Giancarlo, our CFO, Kevan Krysler, and our CTO, Rob Lee. Before we begin, I would like to remind you that during this call, management will make forward-looking statements which are subject to various risks and uncertainties. These include statements regarding the COVID-19 pandemic and related disruptions, inflation and macro environment, our growth and sales prospects, competitive industry and technology trends, our strategy and its advantages, our current and future product offerings, our sustainability goals and benefits, and our business and operations. Any forward-looking statements that we make are based on facts and assumptions as of today, and we undertake no obligation to update them. Our actual results may differ materially from the results forecasted, and reported results should not be considered as an indication of future performance. A discussion of some of the risks and uncertainties relating to our business is contained in our filings with the SEC, and we refer you to these public filings. During this call, we will discuss non-GAAP measures in talking about the company's performance and reconciliations to the most directly comparable GAAP measures are provided in our earnings press release and slides. Additionally, when we refer to sales in our prepared remarks, we mean total bookings excluding cancelable orders. This call is being broadcast live on the Everpure Investor Relations website and is being recorded for playback purposes. An archive of the webcast will be available on the IR website and is the property of Everpure. With that, I'll turn the call over to our CEO, Charlie Giancarlo. Hello, everyone, and thank you for joining us today. Everpure once again delivered very strong results this quarter in the midst of a highly dynamic environment. We drove 50% year-over-year revenue growth with exceptional performance in both US and international markets. Enterprise expansion continues, experiencing strong growth year over year. The Pure brand is now both highly recognized and highly respected in enterprise customers worldwide and is considered a must-have in any storage consideration. We were especially delighted this quarter that a large telecom customer expanded their relationship with Pure, selecting our FlashArray product line for their 5G deployments. Our industry-leading subscription services business grew 35% over the same quarter last year. Pure's unique Evergreen and Pure as-a-Service models continue to resonate strongly with customers and differentiate us from the rest of the industry. Next week at our annual Pure//Accelerate in Los Angeles, we will announce further expansions of our Evergreen portfolio. Customers such as Knight Systems, which provides predictive behavioral analytics, will share stories of how multi-generational Evergreen upgrades have provided huge benefits, including lowered operational costs and complexity, increased uptime, and lower energy consumption yielding greater environmental sustainability. On this very topic, we released our first ever environmental, social, and governance, or ESG report this past quarter. Of particular note, we were proud to show that our products make a significant and immediate reduction of data center energy usage. Pure positively improves our customers' environmental footprint by requiring substantially less power, space, and cooling, and by producing less waste than both legacy solutions and current competitive systems. Customers that deploy Pure are able to reduce direct energy usage in their data storage systems by up to 80%. They are also able to reduce their data center's contribution to e-waste. More than 97% of Pure arrays purchased six years ago are still in service, benefiting from our industry-leading Evergreen program, which actively reduces e-waste while also saving customers time, money, and effort. In our ESG report, we commit to extend our leadership by further reducing our Scope 3 emissions by 66% per petabyte by 2030. Operating profit was very strong this quarter, continuing the trend of past quarters and benefiting from the combination of increased scale and prudent expense management. Our investment in research and development remains strong, demonstrating our commitment to innovation and belief that data storage and management is high technology and requires the same level of investment as other critical technologies. Too many competitors in our industry actively promote and invest in storage as a commodity. For both enterprise customers in developing modern, private, and hybrid cloud solutions, as well as cloud service providers, Pure delivers the flexibility, simplicity, and agility required by today's operations and applications environments. A key milestone we achieved last month was releasing both Pure Fusion and Portworx Data Services for general availability. Pure Fusion provides an end-to-end storage as code platform for organizations that want to create a cloud operating model to automate and deliver data services to their organizations. Portworx Data Services delivers single-click deployments of multiple data services for search, event streaming, NoSQL databases, and more. Together, these two products allow customers to create a cloud operating model, automating data management tasks and delivering customized data services to developers and applications through a simple, unified control plane. With these products, customers will be able to modernize their data center operations, avoiding existing highly manual and costly operations for both traditional and cloud-native workloads. FlashArray//C, and FlashBlade all saw strong growth during the quarter, setting multiple individual records. Unstructured file and object data makes up the majority of data worldwide, and FlashBlade has taken the lead in penetrating the file and object workloads that require high performance, such as EDA, advanced analytics in AI, and rapid recovery. However, the vast majority of unstructured data continues to exist primarily on lower-cost disk-based storage systems. Please join us next week at our Pure//Accelerate conference for a game-changing announcement on FlashBlade. We continue our progress towards creating the all-flash data center, expanding into higher performance Tier 0 workloads with FlashArray//XL, while also expanding our leadership in QLC. With our unique DirectFlash technology, we're using QLC to close the price gap with magnetic storage. Using the latest developments in solid-state storage to overtake the lower-cost magnetic market requires sophisticated software and years of experience. We believe we have a multi-year advantage in delivering this price performant QLC technology, and we'll showcase this next week. This past quarter, I had the opportunity to meet with many of our customers, partners, and team members in Europe and the Middle East for the first time in over two years. It was wonderful to strengthen existing relationships and build new ones, and it's impossible to overstate the pleasure and the effectiveness of resuming face-to-face meetings. These meetings made clear that our customers' confidence in Everpure is high, that our brand is strong and getting stronger, and that we are clearly differentiating ourselves in the market. Simply put, our messages are being embraced that data storage is high technology, not a commodity as our competitors promote. That customers can build the cloud operating model for themselves, and that Evergreen is a better way to buy and operate their infrastructure. We are also aware of current industry and customer concerns. Of course, one of these concerns is supply chain. This remains a challenge across industries and around the world. Everpure's focus on a simplified, consistent, and efficient architecture across our product line has served us and our customers well, as fewer components means lower cost, lower waste, and less supplier risk. Our architecture and world-class hardware design team means that we can quickly address component supply disruptions with design modifications. As we've stated before, we have invested for years in strong relationships with our supply partners and flexible multi-sourced global operations. I'm very proud of the way our extended team have worked together to continue meeting customer demand with minimal disruption. Another area of concern is inflation and its effect on the economy and on demand. We believe inflation will be present for some time and will also cause both stock market rebalancing as well as monetary and fiscal responses. This will certainly have economic effects in our market. However, we believe its influence on IT customer behavior will be muted in aggregate and even less for Pure. First, enterprises have now made digital transformation top on their list for the success of their organizations. Next, we believe Pure has entered a second phase of growth, enabled by an expanding portfolio of highly differentiated and leading products, as well as sales and business models spanning commercial enterprise and cloud customers. Another area of concern is cost inflation coupled with the so-called Great Resignation. We have seen higher than average levels of attrition over the last year, but lower than what has been reported for the industry as a whole. While we do expect somewhat higher labor costs this year, we expect labor cost increases to moderate going forward. Recently reported slowdowns of hiring in the tech space will soften the demand for technology professionals, which will in turn reduce attrition and wage inflation. We believe that this marks the beginning of a return to the old normal. Pure is a great place to work, as validated by both external recognition and our own internal surveys, which has enabled us to recruit and retain top talent. Our brand and our strong talent acquisition team are attracting top performers across industries, and we are hiring to our planned targets. The final item I'd like to touch upon is the European economy, given the effects of general inflation and Russia's invasion of Ukraine. Inflation, especially in energy, is projected to dampen European economies in the near term. While this may somewhat reduce overall investment capacity of European-based businesses, European customers have indicated that investment in IT is required to make up for the loss of other business modalities, as noted earlier. Furthermore, higher energy costs are already increasing demand for IT equipment that is energy efficient, something that Pure excels in. We believe that this represents another opportunity for Pure to pick up more market share. The bottom line is that technology is now the number one driving force of enterprise strategy and business transformation, and Pure is the innovation and customer experience leader in one of the largest segments of technology investment. We believe that we are now positioned to see secular growth less affected by this economic cycle than our competitors. Our full views of the impact of all these events are taken into consideration in our guidance. Overall, we have never been more optimistic about Everpure's opportunity and growth prospects. Despite pandemic, war, and market turmoil, Everpure has thrived and grown. We have only gotten stronger over these last several years, and we expect to delight ever more customers in the years ahead. I'll now turn the call over to our CFO, Kevan Krysler, for a deeper look at the numbers. Thank you, Charlie, and good afternoon. Robust demand across our portfolio, outstanding execution, and high resilience continue to be the constants contributing to our sustaining momentum and our very strong performance this quarter. We again saw solid demand across our portfolio of solutions, services, and geographies. We saw impressive growth in our key international geographies as well as the US. We continue to minimize delays and deliver for our customers as the backdrop of a challenging supply chain environment has not improved. We also achieved increased profitability and cash flows during the quarter, resulting from our revenue growth and continued operational discipline despite broad-based inflationary pressures. The strength of our subscription business continues as subscription annual recurring revenue, or ARR, grew 29% to $900 million. Remaining performance obligations, or RPO, grew to $1.43 billion. Our RPO balance when compared to Q1 of last year reflects a reduction of approximately $32 million relating to product shipments for an outstanding commitment with one of our global system integrators. Excluding these product shipments, our RPO also grew 29% year-over-year. We continue to be very focused on growth of our new customer business, which has improved as we increase our travel. Our total customer count reflects the acquisition of approximately 360 new customers this quarter and includes approximately 54% of the U.S. Fortune 500 customers. Total revenue for the quarter was exceptional, growing over 50% to over $620 million. Approximately $60 million of our product revenue upside this quarter was with several of our larger enterprise customers in the US that we had originally forecasted to close in the second half of our fiscal year. Our customers were pleased we were able to deliver our solutions against the earlier schedule, which is a testament to the agility and resilience of our technology and supply chain. Revenue growth when excluding these transactions was still a very strong 36%. Revenue in the U.S. grew 57%, and international revenue grew 33% year-over-year. Subscription services revenue grew approximately 35% year-over-year and represented approximately 35% of total revenue. Non-GAAP total gross margins were solid at 70.6% this quarter. As we have continued to highlight, we believe our integrated software and hardware designs continue to be a key differentiator that our customers appreciate and value. High performance, simplicity, sustainability, and resilience of our solutions are key factors contributing to our product gross margins of 70% this quarter. Non-GAAP subscription services gross margins also continue to be strong at 71.5% this quarter. We were very pleased with achieving non-GAAP operating profits of over $85 million and non-GAAP operating margins of 13.8% this quarter. The strength of our operating profit and margin during the quarter was further improved by transactions that occurred during the quarter but were forecasted to close later in the year that I mentioned earlier. Now let's turn to the balance sheet and cash flows. We ended the quarter with over $1.29 billion in cash and approximately 4,400 employees. Cash flow from operations was over $220 million this quarter. High collections benefited both from a robust sales in both Q4 and Q1. Higher profitability was also a contributing factor. Capital expenditures were approximately $33 million during the quarter. As mentioned last quarter, our outstanding credit revolver balance of $250 million was paid at the beginning of this fiscal quarter. We returned approximately $66 million of capital to repurchase slightly over 2.1 million shares during the quarter. We have approximately $184 million remaining from our $250 million share repurchase program. Now turning to guidance. Clearly, we are executing well against our strategy of driving strong revenue growth and continued improvement in profitability. We expect continued demand strength in Q2, with estimated revenue to be approximately $635 million, growing approximately 28%. We expect non-GAAP operating profit to be approximately $75 million in Q2, representing approximately 11.8% non-GAAP operating margin. Given our Q1 performance and outlook for Q2, as well as consideration of the current macro environment, we are raising our annual guidance for the full fiscal year. We now expect that revenue for FY 2023 will be $2.66 billion, growing approximately 22%. non-GAAP operating profit is estimated to be approximately $320 million, representing approximately 12% non-GAAP operating margin. Revenue and estimated profits from transactions that were projected to close later in the year but closed during Q1 were included in our original annual guidance. In closing, our team and partners continued to deliver as the results this quarter were exceptional. Our sustained commitment to innovation provides our customers with solutions that are highly performant and reliable on integrated software and hardware that require fewer components, consume substantially less energy and space, and produce less waste than other flash storage alternatives in the market. Strong demand for our market-leading solutions and excellent execution, in particular to our supply chain, providing our leading storage and data management solutions to our customers when and where they need it will help us deliver 22% annual revenue growth along with 12% non-GAAP operating margins. With that, I will turn it over to the operator so we can get to your questions. Operator? Thank you. Ladies and gentlemen, if you have a question, please press star one on your touch tone keypad. In the interest of time, we ask that you please limit yourself to one question and one follow-up question. Once your questions have been answered, please jump back in the question and answer queue. We'll pause for just a moment to compile the Q&A roster. The first question is from the line of Simon Leopold with Raymond James. You may proceed. Thanks for taking the question. I wanted to first get a little help on Charlie, your comments around the macro. It sounds like you're acknowledging the environment's more difficult, yet you sound quite upbeat. I'd like a better understanding of what's really informing your view of how Pure should be more resilient than its peers, and essentially, what are your customers telling you that give you the kind of confidence that you're essentially giving us, yet acknowledgment that the macro is more challenging? How do we put these things together? Just as a very quick follow-up, if you guys could give us a little bit of insight regarding the recent announcement you made with a partnership with Snowflake. I'd like to hear about that as well. Thank you. Very good. Thank you, Simon. Hope you're well. Simon, you know, what we're seeing is strong momentum in the market overall. You know, all of our products, customers buying more. The fact that we have a stronger and broader portfolio now being brought into a much greater set of opportunities in large existing customers and a stronger brand that's allowing us to penetrate, you know, net new logos and to penetrate with larger opportunities in larger companies as a net new logo. We're actually seeing strength. Just to address your question, I would say that the way we're looking at the macro is a little bit different. I would say we have not yet seen effects, the macro affecting us or the customers that we speak to, but we are not blind to the fact that the macro, you know, and the possibility of economic slowdown can affect us going forward. I would say what we're currently seeing, what I'm currently seeing in the market, you know, through last quarter, you know, continues to be strong demand by IT customers and then a greater acceptance for Pure overall, just the strengthening, if you will, of our brand and our value proposition, and the breadth of our value proposition to our customers. I'll let Rob answer the question on Snowflake. Yeah, Simon, this is Rob. To answer your question on Snowflake, look, we're super excited about the joint hybrid cloud analytics solution that we announced earlier this month. This is the first step in a strategic partnership that we're forging with Snowflake, and we think that this joint solution is gonna be a great fit, really for customers who would benefit from the power of cloud-based data warehousing, but would also benefit from holding either tighter control over their data or you know wanna manage and operate that data in their on-premises environment. We see early customer demand for these types of solutions. You know, for security reasons, customers that need to hold, you know, and manage the data more tightly for security compliance, as well as customers who are generating a lot of data in the on-premise environment that may wanna share that data across multiple tool sets. Like I said, early days, but we're seeing good signs of early interest, and we think this is just a great joint solution to bring the two technologies together for customers. Great. Thank you very much. Thank you. The next question is from the line of Pinjalim Bora with JP Morgan. You may proceed. Oh, great. Thank you very much for taking the questions. Charlie, Kevan Krysler, and everyone else, seems like a really solid quarter. I had to look at the number twice again, I guess for the second quarter in a row. Charlie, I wanted to ask you on supply chain. Everpure obviously has done an incredible job in managing the supply chain till now, and it seems like you're not getting affected at all. However, we do see casualties all over in the field. So, as this kind of elongates or prolongs, I should say, for longer time, are you seeing any strains developing which investors should be aware of, you know, that might impact Everpure over the 6-12 months if this kind of environment prolongs in the supply chain tight? Thank you, Pinjal. It's a great question. Let me characterize the supply chain environment now. Generally, and if you were to ask our supply chain operations team or our engineering, they would tell you that the situation has not gotten better. It's changed in character perhaps a bit, but we still see surprises on decommits. Obviously, things like Shanghai shutting down means a lot of background work to rebalance and to find new sources of supply for various sub-assemblies and so forth. It's a constant stream of challenges that are being thrown at us from a supply chain perspective. I would say that we've, you know, minimized to the point of almost nonexistent the effect on our customers, but it's certainly affecting us a lot. Our teams are, you know, very, very busy, and I wanna take my hat off to them, because they. There's a lot of work that goes into this. As I, as Kevan mentioned, as did I in our prepared remarks, you know, we have fewer parts that we need to worry about that gives us more optionality. 'Cause we design our own hardware rather than most of our competitors are using commodity parts, they have less choice, less flexibility. It gives us greater flexibility. You know, our goal is to make sure we have a minimum effect on our customers. We were fortunate to actually be able to accelerate some of the shipments this quarter, as Kevan noted. You know, I knock on wood as I talk about these things, because the supply chain remains challenging. Two other things I'd add to that is high confidence with the risks that Charlie alluded to. I'd say the other thing I'd add to it is our supply partners are doing a terrific job as well. The three factors combined, I think really drives the sustainability confidence that we have around the supply chain, even acknowledging the risks that we've alluded to. The other thing I'd point out is, you know, NAND is not subject to the same types of challenges and constraints that we see across really around the IC side and semiconductor side. Obviously that's the biggest part of our BOM and materials, and that's an important call-out as well. Understood. Thank you. Quick follow-up for Kevin. I had to really squint to find hopeful calls in the press release. I wanted to ask you on the subscription revenue side. It seems it was in line with consensus. When I look at the sequential growth, it seems like it's not that much. Then when I look at subscription ARR net new growth, it seems like it's decelerated a bit. Was this mainly kind of a CapEx-led quarter versus unified subscription-led? I think that's right. That's a good way to be thinking about it. I mean, we had a lot of volume coming through on the CapEx side. Look, the subscription business, you know, continues to be strong, ARR growing 29%. You know, I would be expecting variability quarter to quarter. We're very focused on accelerating growth with our partner ecosystem. A lot of great energy out there and looking forward to accelerating and talking to our partners around Pure as-a-Service. We've got some key milestones that we've identified around general availability for Pure Fusion and Portworx Data Services. Really this takes us on a roadmap that we've talked about, that Charlie's laid out around really establishing a cloud operating model for every customer, no matter where their workloads are being run. I'd say stay tuned, too. We're very excited with some new announcements at Evergreen at Accelerate as well. Got it. Congrats again, and thank you for taking the questions. Thank you. Thank you. The next question is from the line of Aaron Rakers with Wells Fargo. You may proceed. Yeah. Thanks for taking the questions, and congrats on the great results. I guess the first question I wanted to ask is that when I look at your gross margin at 70% on the product line, it would really imply that you've not seen any incremental deployments with one of your large hyperscale cloud customers. So I guess- You know, first question is that a fair assessment? I guess on the heels of that, how are you thinking about that hyperscale customer Meta fully deploying their AI project through the course of this year? How's that factored into the expectations? Yeah. Thanks, Aaron. You're correct. We've not seen in this quarter substantial revenues from the nature of the hyperscaler that you spoke about before. We do, but you know, we've also been making good progress on both the discounting front, you know, as the market has stabilized, if you will, from a pricing standpoint, as well as the ability to extract more value from our products overall. I would say that, you know, we've been able to manage the gross margin, I think, very well. I'll let Kevan answer the question. Well, actually, I'll take care of this one. You know, as we discussed when we first started speaking about the Meta win, and that was before they permitted the use of their name, we indicated that these types of sales, you know, tend to be somewhat episodic as they build out their data centers in specific quarters. You know, this is one of the light quarters, but we continue working with them. We're certainly optimistic on future orders, but it'll be on their time frames. Yeah. I think to be clear, that was expected, right? Very much expected. We're not expecting their sales this quarter. That's correct, right? Yep. That's very helpful. I guess, you know, I'm just curious, given the momentum that you not only saw this last quarter, but you've seen these last, you know, couple of quarters, you know, how has the competitive landscape reacted? What have you seen? I know that Dell EMC saw a little bit of growth, 9% growth this last quarter in their storage business. I'm just curious, have you seen any changes on the competitive landscape at all? Yeah. It's relatively minor, to be honest with you. You know, we tend to be competing against the same set of products in the same type of environments with the same set of customers. Obviously, you know, as we expand our sales force, we're competing across a greater set of customers, a larger set of customers, which is a good thing. We get in more fights and more at bats. You know, our win rates are very good. I would say, and our brand is certainly helping. The fact that, you know, we're now, you know, I think customers believe that we have to be in any competitive bake off that they may be performing. I would say that, and I'll let Rob contribute here, but I haven't seen anything terribly substantial from the competitors in this space. Yeah, Aaron, you know, I'll just add, I think the biggest takeaway is that, you know, from my view, we really remain standouts, you know, as we look at the competitive set in terms of having, you know, really differentiated technology as well as Charlie talked about in his prepared remarks. You know, our thesis in investing in innovation to further expand that differentiated technology. You know, if you look at what we're doing with QLC to go after disk and hybrid, if you look at what we're doing with FlashArray and extending that family into XL to go after higher performance, with Pure Fusion now GA and with Portworx Data Services, and not to mention significantly more to come next week. You know, I think this is just an area where, you know, we see a great opportunity set out there for us, a lot of runway ahead of us to go grab more market share. I think the biggest standout is that, you know, we don't see any of the competitive announcements materially changing that landscape. Actually, Aaron, let me also answer with one additional comment, which is we're just playing a different game than our competitors. You know, our competitors play a commodity game. They've been marketing their products. They've been marketing storage as a commodity. The customers should only care about price and nothing else. We're playing a high technology game. We invest in it like it's high technology. It's an entirely different business strategy, and it's going to be very difficult, I think, for them to respond. Thank you. Thank you. The next question is from the line of Amit Daryanani with Evercore. You may proceed. Yep. Thanks for taking my question, and congrats on a great quarter. You know, I guess my first one is really, you know, Charlie, you sort of talked in your prepared comments about Pure has entered a second phase of growth in its journey. I'm hoping you could talk a little bit about, you know, what does that mean for Pure, because when I look at your new customer addition, for example, that definitely inflected higher pretty materially. What does the second phase of growth mean for the company? Are you seeing engagements with bigger enterprises, or are you seeing, you know, a quicker land and expand? Just maybe help frame what does this mean, and does that potentially inflect- Yeah. growth higher as you go forward? Yeah. What we mean by second phase. If we look back, our first phase of growth was building, you know, an award-winning product in a unique environment where really for many years it was the only product of its type and therefore allowed us, you know, very rapid early growth. As you know, as our competitors started to respond, you know, they were able to use their larger sales forces and their greater portfolio to compete with us more effectively, and so our growth slowed a bit. We've responded, you know, over the last several years as our longtime investors know, with continued investment in R&D and in particular an investment in broadening out our sales focus and capabilities, sales and support such that we could support enterprise customers with a larger portfolio. Now we're seeing the fruits of that bear out. The second phase of growth is the fact that we can penetrate more and larger customers with an expanded and superior portfolio, and that's going to give us, you know, a runway, you know, a pretty long runway to continue what I believe is going to be a second phase of growth. You know, we're now we now have the scale, if you will, to compete with any of our competitors, and deploy our unfair advantage of leadership products. So that's how I phrase the second phase of growth. Got it. Then if I could just follow up really quick. You know, the upside in growth in revenues, I'm sorry, that we saw in the quarter, right? I think, Kevin, the way you laid it out, it was something like $60 million, I'd call it, was from pull-in from the back half and $40 million was more organic. You know, I'm curious, I mean, is the outgrowth that Pure is seeing more a reflection of the fact that, you know, you are resonating better with customers and they're engaging with you more, Charlie, sort of what you talked about? Or is it very simply the fact that you probably have better supply ability and so you're getting incremental market share because you are the one with better supply versus your peers? I'm curious, do you think better supply is playing a part in this outgrowth, or is it more fundamentally driven? Well, look, I mean, this is Kevan. I'll start with that, and I'll let Charlie add to it. I'm not sure it makes sense to decouple supply versus the power of our portfolio and our technology. I mean, when you look at the architecture of our technology and how we're leveraging software and how we, you know, from an architecture standpoint, require less components, simpler in terms of architecture, that's obviously helping us a lot on the supply side. Then that's also what really resonates for customers, right? It's performant, it's resilient, it's simple to use. You know, our ESG report, we've got some just kind of stunning stats in terms of what we're doing in terms of sustainability and energy reduction with the architecture that we're leveraging with our portfolio. I would actually say that the two go together, from my perspective. All right. Charlie, any other thoughts? I think that says it all, Kevan. I really do. Mic drop. Mic perfect. Thank you, guys. Yeah, thanks, Vince. Thank you. The next question is from the line of Rod Hall with Goldman Sachs. You may proceed. Yeah. Hey, guys. Thanks for the question. I wanted to go back to the $60 million and just try to understand how we should be thinking about that. In other words, should we be thinking about it as backlog that, you know, you had good execution against supply, so you were able to kind of go ahead and deliver it? Or more a customer coming back to you and going, "Hey, you know, we were thinking about doing this in H2, we really want to accelerate that." I'm just kind of trying to figure out, you know, how we should commonsensically think about that $60 million, and then I have a quick follow-up. Rod, it's a great question, and it's very much the latter. We, you know, obviously we have visibility with these large enterprise customers in terms of our plan in terms of our discussions. They came back to us requesting earlier delivery. You know, I could appreciate those requests given the environment, but it's really the latter to your point, Rod. Okay, great, Charlie. Thank you. On Portworx, I noticed all these, you know, the Portworx GA announcements mid-month, and, you know, I feel like that's a pretty exciting part of the services portfolio. I'm just curious what you think the funnel looks like there. You know, what kind of interest have you had expressed? Kinda how does that affect ARR as we move through the next few quarters? Yeah. Well, you know, as we spoke about in the past, Portworx is still a relatively new product, and because it is, as you point out, it's ratable and goes into ARR. We are seeing very good growth in that product line overall. As I mentioned in my opening remarks, I've spent a lot of time this past quarter, or actually over the last quarter and this quarter, in Europe and the Middle East. A lot of excitement by customers and our sales teams and partners in the product. So I think it has a, you know, We believe it has a really strong future as we go forward. You know, obviously, it'll take a little bit of time before it really starts making a tangible difference, a reportable difference, if you will, in our ARR. Great. Okay. Thanks a lot, Charlie. I appreciate it. Yep. Thank you. The next question comes from the line of Jason Ader with William Blair. You may proceed. Yeah, thank you. I guess I want to understand, Kevan, on the comment on macro and how you know, when you thought about the guidance for the year, you baked in macro. Does that mean that you changed any of your assumptions on close rates or deal sizes or geographies or customer behavior? Yeah, it's a great question, Jason, and I think the simple answer is no. There were no significant changes to our assumptions. You know, now look, the first thing we evaluated pretty carefully was demand signals. As Charlie mentioned, demand continues to be quite strong. Obviously, a lot of noise out there from a macro perspective that, you know, we're digesting and understanding what, if any, impact that will have for us in second half. You know, when I really break it down and look and compare against our, you know, our initial guide for the year, you know, we're outperforming. We saw that from a demand standpoint in Q1. We see that in terms of our guide for Q2 and obviously increasing our annual guide for the year. You know, I think it's business as usual with the outperformance that we're seeing in Q1 and Q2. Okay, great. Then Charlie, for you, I mean, the last couple of quarters have been off the charts, and you know, I understand that there's been some kind of, let's call it a you know near-term spikiness to the business and you're gonna have some deceleration as you move through the year here. But is the storage market just that much better right now than it's been in a while? Or is it just that you guys are taking just gobs of share? You know, it's an interesting question, Jason. Yeah, obviously, the numbers speak for themselves. We're clearly taking share. The market is very benign at the moment. You know, it's a strong market despite everything that's going on. You know, prices and ASPs have stayed strong. That's always helpful. So I think it's been a benign market, and we're taking share is probably the best way to put it. Is there a lot of pent-up demand still from the pandemic that's helping? In other words, should we be, you know, moderating our expectations for fiscal 2024 because of, you know, pent-up demand sort of will be, you know, that tailwind will be gone in 2024? You know, honestly, we've not really been seeing, even over the last year, pent-up demand playing a role here. It's usually new developments, you know, new infrastructure, expansions, you know, fundamental expansions, not pent-up demand. I would say pent-up demand, at least for us, has not been playing a big role. Remember, we don't get refreshes of equipment. Our Evergreen means that, you know, the equipment is always upgraded, you know, on a regular basis. When customers need additional capacity, they pay for that, but they don't pay for any replacement of existing capacity. We don't get the same benefit that maybe some of our competitors get, you know, by pent-up demand because, we don't have replacements. We have Evergreen. I would say again that pent-up demand has not really been a factor for us. This is all basically new demand or expansion of existing environments. Yeah, it is interesting too, Jason, when you look at seasonality, pre-COVID for us and growth rates, and you normalize for the $60 million that we alluded to, I'll tell you that the seasonality is matching kind of the pre-COVID days, in terms of first half, second half growth rates. That's another data point for thoughts as well. Thank you, guys. Good luck. Thank you. The next question is from the line of Meta Marshall with Morgan Stanley. You may proceed. Great. Thanks. Maybe taking it away from macro, but a little bit more micro into your. You know, you guys do have about 30% exposure to cloud customers, and so just want to get a sense, just as we're seeing some kind of, you know, changes in the technology hiring environment, whether that's trickled down to anything you're seeing from that customer set. And then, you know, just maybe diving into the $40 million kind of additional kind of upside that you guys saw in the quarter, just any indications of whether that's from more like your commercial or enterprise customers? Thanks. Overall, I would say, you know, we've seen just strong demand and growth across the entire set of customer segments that, you know, commercial, enterprise, you know, what we characterized as cloud in the past. You know, these were all strong segments for us. I don't think other than the continuing exceptional growth of enterprise, you know, I wouldn't say there's been a dramatic change in the overall character of the revenues coming in. I'll let Kevin answer the question on the accelerated shipments. I would call out actually that you know, international had a fantastic quarter along with US. To Charlie's point on broad-based performance, you know, we saw that from a geography standpoint. I was really pleased with what we saw on the international side, which really when you normalize for the $60 million in the U.S., is really tracking with the U.S. growth rates. As Charlie talked about commercial, you know, we saw some good strength there. Public sector was a highlight for us as well in terms of how we look at it. Again, when we look at the $40 million of outperformance, I would again talk about the power of the portfolio we have. Enterprise is absolutely a workhorse for us, but we're seeing it across the board. Great. Thanks. Thank you. The next question is from the line of Sidney Ho with Deutsche Bank. You may proceed. Thanks for taking my questions, and congrats on the quarter. I wanna go back to the full year guidance. Obviously, you raised it by a little bit, but that would imply second half will be up about 10% year-over-year, but maybe 15% to account for the revenue pulling you talked about. Can you walk us through your thought process there? Are you just being prudent in your guidance, or are there more revenue being pulled in from second half into second quarter? The follow-up to that is, if I look at the operating profits, you also raised it. But you're seeing high revenue in second half, but the operating profit dollar is roughly flat in the first half of the year. Just can you walk us through, maybe that dynamics as well? Yeah, that sounds great, Sidney. Let me start with revenue growth. Look, we're very pleased with the raise of our annual guide to 22%. I think that's very strong. Obviously an outlier in terms of what we're seeing, especially in this environment. So no backing away from that annual growth rate, which I think is very strong. Yet you're seeing strong growth in the first half, and you're seeing some moderation in the second half. Some of that is seasonality, the $60 million that we alluded to that really was contemplated and forecasted for second half. When normalizing for this seasonality, you know, the expected growth rate in the back half is still in the high teens, which is quite strong. Then again, as I talked with Jason about, when you look at our growth rates first half, second half from a seasonality standpoint, we're kind of getting back to what we saw in the pre-COVID days, which is great. You know, a couple other thoughts. As we progress through the year, you know, we're also working with strong comps. I mean, we had a fantastic year last year, and that's only growing. We also had an extra week in the fourth quarter, so that's a consideration as well. We are being thoughtful about the macro environment as well. You know, without a doubt, we're pleased with our revenue growth outlook for the year. Now, if I move to operating profits, which was really the second piece of your question, feel really good about the current view and increasing profitability. This is our execution against our strategy that Charlie laid out, which is absolutely prioritizing innovation and growth while at the same time improving profitability, and that's what you're seeing here. We're quite pleased with the operating profits in the quarter. Expect 12% operating margin for the year. And obviously our profit overachievement this quarter was helped by the transactions that were moved into Q1. We're also doing very well on hiring in Q1. We've made great progress in hiring talent, and we continue to invest thoughtfully. We'll continue to be focused on operating discipline and operating leverage as we monitor the effects of inflation as time goes on. Hopefully that answers your question. Yep, that's helpful. Maybe one quick follow-up. If I look at the product gross margin for Q1, it definitely improved more than we expected. Was NAND pricing a headwind in the quarter as you expected, that maybe you're able to raise prices to offset that? The real question is, how are you thinking about gross margin for both product and subscription services for Q2 and the rest of the year? Yeah, we might be a broken record on, you know, the product gross margins. You know, look, I still think longer term, I'm very happy with product gross margins being in the high 60s%. I think once again, we've overachieved. I'm very pleased. I think the sales team is doing a tremendous job selling the value of our solution, and we're seeing that in the average selling prices as we navigated Q1. I think that's a you know large driver on it. You know, in terms of subscription gross margins, you know, what we've been tracking is pretty consistent in the low 70s%, and that's a good kind of a corridor that I like in terms of subscription gross margins. Okay, great. Thank you. Yep. Thank you. The next question is from the line of Nehal Chokshi with Northland Capital Markets. You may proceed. Oh, yeah. Thank you, and fantastic quarter, fantastic execution. Hate to pick on this, but subscription year-over-year growth did decelerate to 35% year-over-year growth from 42% in the prior quarter. Why did that happen? Why subscription ARR growing slower than the revenue line? I think you did mention that there's some lumpiness, and so if you could go into why there's that lumpiness, that would be helpful as well. Yeah, I mean, look, I think when you look at the subscription revenue growth, I mean, that's a really late indicator. I mean, that's revenue coming off the balance sheet over time. I think when I really look at the health of our subscription business, I'm looking at our subscription ARR balance as well as how we're doing from an RPO standpoint, which grew 29%. Look, I'm very pleased with that. That's very strong growth. We're set up well. We've got a lot of good things happening in terms of our Accelerate announcements on Evergreen. Obviously, you're gonna get a little bit of variability on subscription ARR as well as RPO growth. Again, if I'm looking at the revenue and rolling off the balance sheet to the top line, I think that's really not a strong indicator in terms of the health of the subscription business. Now, the other thing I would, Nehal, that I would highlight to you is when you're comparing quarter to quarter, and you've gotta build in the extra week in Q4, which would have a bearing on that as well. Okay. All right. Understood on that. That's a good point. Charlie, in an earlier question, you had made a point of saying Pure Storage is doing a technology sell versus competitors doing a commodity sell. Can you expand on what you actually really mean by that? You bet. You know, I'll take it back to R&D. We invest heavily in R&D, which means that we consistently build a product that leads the market. Our competitors generally, our largest competitors spend less than 5% on R&D. You know, I used to run a very large R&D shop. You can barely keep the lights on at 5% R&D. They can't keep up with us. You know, from a technology development perspective. If we're correct that data storage and management is high technology and requires you know, continuing development of advanced capability, it's gonna be very difficult for them to change their business models to you know, accommodate that higher R&D. You know, not just from a financial standpoint, but from the standpoint of you know, managing a top-tier, top-class R&D staff. You get a reputation. As I said, we play a very different game and, you know, customers had been used to buying storage as a commodity, used to substandard support and capability and assuming that all of them were alike. They're learning very quickly that Pure is very different than the other vendors, that we require far less labor, that we're highly automated, that we require less space, power and cooling, and that they have a superior experience overall with our product. That's being now increasingly appreciated. You know, I think the results of that are pretty apparent if you look across the portfolio. If you look at FlashArray//C, you know, we've been shipping that product for 2.5 years now, going after hybrid and disk, completely unmatched out in the market. You look at FlashBlade, what we're doing for some of the high value use cases out there, whether it's analytics and AI, whether it's technical computing, chip design, simulation, modernizing data protection, rapid recovery. If you look at Portworx, and the entire suite of products that we have there, you know, that just gives you some small hints of, you know, really the results that this focus on R&D and innovation is driving, much less, you know, what we have to discuss next week at Accelerate. Great. Thank you both. Very helpful. Thank you. The next question is from the line of Wamsi Mohan with Bank of America. Please go ahead. Yes, thank you. I was wondering, and I apologize if this is already being answered, jumping across calls here. Can you talk about the second half guide? I mean, you're attributing about $60 million to pull forward, but also effectively lowering the second half implied guide by the same amount. Are you actually saying that the demand environment has not changed? Because I mean, there's all the companies are saying that the demand remains robust. There are supply chain issues, but demand remains robust. Just want to clarify if you're saying that the macro environment is not actually impacting demand thus far. And what's the methodology where you're, you know, effectively calculating the $60 million pull forward? I know you have obviously visibility into the deals in your pipeline. Can you talk about how broad-based that was in terms of, you know, was it just an isolated like, you know, few customers where you saw this pull forward? Was it much more broader? And if you could address profit seasonality as well in the second half, relative to the first half. Thank you so much. Yeah, you bet. We can only report on what we are actually seeing, and what we're actually seeing is demand remains robust. At the same time, we're certainly taking note of the increase in inflation, the public debate around a slowdown in the economy, you know, possible, you know, even some discussion about possible recession. We, you know, our outlook has to be a bit more, you know, has to keep that in mind and not get ahead of ourselves. You know, I think that our forecast reflects, you know, exactly that thinking. You know, for you know through the last quarter, you know, demand remained strong, without you know, and even at the end of April, even though at that time there were warning clouds on the horizon with respect to economies, certainly energy prices in Europe, et cetera. At the same time, we were hearing from our IT customers that their budgets and their focus on investment in IT was remaining strong. Yeah. Just to answer your question, in terms of the $60 million, you know, that would have been, you know, a couple of large customers, you know, so it was limited. Obviously, for these large enterprise customers, we're working with them very closely with their demand planning. I would put it in more of the isolated bucket, very easy for us to quantify. You know, very binary in terms of understanding in our demand planning with the customer that was second half. That's a shift in seasonality, and that's how I view it, is simply a shift in seasonality, has nothing to do in my mind with demand drop off, as one might have alluded to, in the second half. Demand looks strong. Revenue, as I mentioned, I went through a fair amount of detail, Wamsi, in terms of revenue first half, second half, as well as operating profit first half and second half, and we can take you through that in more detail as well. Okay, thank you so much. Thank you. The next question is from the line of Tim Long with Barclays. You may proceed. Thank you. Yeah, T2, if I could as well. First, Charlie, you mentioned something about a win with a large telco for FlashArray for 5G. Could you talk a little bit about kind of, you know, application there, and just give us a little color on, you know, this is a potential new vertical. How, you know, how important can this be as, you know, the wireless world moves to more of a data centric architecture? And secondly, just one more on the op margin. You know, 22% revenue growth, but only moving overall op margins a little over 100 basis points for the year. Can you talk about what's limiting that? Is that just return to office and T&E, or is there any other reason we're not seeing as much leverage on a really strong revenue growth year? Thanks. Thanks, Tim. I'll let Kevan handle the second part. As far as 5G, what an exciting opportunity and an exciting call-out we were able to make for this quarter. You know, it's one of the top telcos in the world. They're not the only ones we're talking to about 5G, but it was great to, you know, get one of the first large orders associated with 5G deployments. You know, the fact that we're smaller, we're denser, you know, more power-efficient and generally more performance than other products in the market have certainly helped, you know, in this environment. As I mentioned, we are talking to quite a few other telcos about 5G deployments. I'm optimistic about this space. I'm gonna invite Rob who worked on this opportunity to tell us a little bit more about this specific deployment. You know, I think this is a testament really to the quality of our products and the reliability and performance, all the attributes that Charlie just mentioned, and really the suitability of those attributes to 5G deployments. In many ways, you know, it's a great validation that just like the hyperscale environments, which we've spoken to you previously about, and these large telecom environments really share a lot of the same requirements. They're highly available, you know, highly performance demanding, a very mission-critical environment. Highly automated. Highly automated as well. You know, I think those are all attributes where Pure's products and services are uniquely well-positioned to go and serve. You know, I think we're super pleased with the win. I think, you know, I'd also mention that in this particular environment, we were chosen to replace what was initially a custom design built around open source software, as customer had really tried to build out part of the environment themselves and then turned back to us to, you know, when they couldn't achieve the reliability, performance, and really the ease of management and automation required of these very demanding environments. I'll just hit the operating profit question again, and really this just comes back down to our strategy really around prioritizing innovation and growth. That's paying off. We're seeing it, and we've been seeing it for several quarters. And at the same time, we're increasing our profitability. Now, you know, we're balancing that. We had some great hiring, as I mentioned. I think we, you know, quarter over quarter, hired over 170 folks, new talent, worldwide, which we're really pleased with. We are navigating some higher wage costs as to be expected, and all that's being balanced and incorporated while we're increasing profitability for the year. So hopefully that's a helpful context. All right. Thank you. Thank you. The next question is from the line of Eric Martinuzzi with Lake Street. You may proceed. Yeah. I was just curious. I wanted to go a layer deeper on the product gross margins. Curious to see if there's any letup. You know, obviously you're putting up good gross margins in a tough supply chain environment, but expedite shipping fees, anything there where you're seeing relief or forecasting relief? I would say not at the moment. You know, we had hoped back in Q3 and Q4 that the supply chain constraints would start to ease by Q1 or Q2. Unfortunately, we've not seen that. You know, one situation after another just continues to extend. It changes the nature of the supply chain problems, but it extends the supply chain problems. To be clear, we've not seen it get worse, but we've not seen it get better either. It's across the board as you're pointing out, you know, everything from logistics, shipping. The ones that we can absorb all of that. The ones that always concern us is components and availability of components because that can get you, or border closures, right? Those are the ones we're most concerned about. It's still across the board. Where the advantage again comes to us is really around the fact that we have less parts that we have to navigate in terms of exposure. That's really paying off for us both on the inflationary side as well as supply constraints and how we've been able to navigate against that headwind. Got it. Thanks for taking my question. Thank you. This concludes the question and answer session. At this time, I will turn the call back over to Charlie Giancarlo for closing remarks. Thank you, operator. You know, our strategy to deliver a simple and Evergreen data platform enabling our customers and companies around the world to turn their data and innovation, it continues to deliver exceptional results, you know, across our business. We're growing share in our market segments as customers turn to our leadership in digital transformation, and that's critical to their future, and this promises to sustain us for quite a few quarters and hopefully years ahead. I wanna thank once again our customers, our partners for their trust, our suppliers for their collaboration, and to all of our employees for their innovation and their hard work. I'd like to thank all of our listeners today and look forward to seeing you next week at Accelerate. Thank you. This concludes today's conference call. You may now disconnect.