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Yahoo
a day ago
- Business
- Yahoo
Verint Systems Inc (VRNT) Q1 2026 Earnings Call Highlights: Strong AI Growth and Strategic Wins ...
Revenue: $208 million for Q1. ARR Growth: Accelerated to 6% year-over-year. Non-GAAP Diluted EPS: $0.29 for Q1. AI ARR Growth: Increased 24% year-over-year, reaching $354 million. Free Cash Flow Growth: Expected to increase approximately 12% to $145 million for the full year. Annual Revenue Guidance: Targeting $960 million with a range of plus/minus 3%. Annual Non-GAAP Diluted EPS Guidance: $2.93 at the midpoint. Q2 Revenue Expectation: Around $200 million. Q2 Diluted EPS Expectation: $0.26. Net Debt: One times last 12-month EBITDA. Stock Buybacks: Approximately 2.5 million common shares repurchased during the quarter. Revolver Size: Increased to $500 million, extended term to 2030. Warning! GuruFocus has detected 3 Warning Sign with VRNT. Release Date: June 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Verint Systems Inc (NASDAQ:VRNT) reported a strong start to the year with Q1 ARR growth accelerating to 6%, surpassing revenue and EPS guidance. The company achieved significant large deals, including a $13 million TCV order from an insurance company and a $14 million TCV order from a healthcare company, showcasing strong demand for their AI solutions. AI ARR increased by 24% year-over-year, reaching $354 million, indicating robust growth in AI adoption. Verint Systems Inc (NASDAQ:VRNT) is targeting an 8% ARR growth and double-digit free cash flow growth by the end of the year, demonstrating confidence in their financial outlook. The company's hybrid cloud model allows customers to layer AI-powered bots on existing infrastructure, facilitating quick AI deployments and scalability, which is a key differentiator in the market. Despite strong growth, Verint Systems Inc (NASDAQ:VRNT) faces challenges with customer caution due to previous negative experiences with AI bots from other vendors. The market's adoption of AI is still in its early stages, with customers being cautious and requiring proven value before committing to larger investments. There is significant competition from both well-funded software players and start-ups in the AI space, which could impact Verint's market share. The company's quarterly revenue is heavily influenced by the timing of unbundled SaaS renewals, which introduces volatility in financial performance. Verint Systems Inc (NASDAQ:VRNT) needs to continuously innovate and maintain differentiation in a rapidly evolving AI market to sustain its growth trajectory. Q: Can you explain how Verint differentiates in the AI space, particularly with AI voice chatbot usage in customer support? A: Daniel Bodner, CEO, explained that Verint differentiates by focusing on proven AI outcomes and hybrid cloud benefits. Customers can layer AI-powered bots on existing infrastructure, allowing them to start small and scale quickly. This approach has driven a 24% growth in AI ARR in Q1, indicating strong market adoption. Q: How successful has Verint been with its strategy of smaller initial deals with the potential for upselling? A: Daniel Bodner, CEO, highlighted a healthcare company that expanded from initial small-scale deployments to larger commitments, demonstrating the effectiveness of Verint's strategy. The company has seen significant growth in AI ARR, with 50% of its ARR now AI-driven, growing at 24%. Q: Are we at an inflection point for AI-driven voice bots, and what steps is Verint taking to ensure consistent execution? A: Daniel Bodner, CEO, noted that while AI adoption is accelerating, it is not yet at an inflection point due to past poor experiences with AI. Verint's strategy involves working with leading brands to drive innovation and adoption, and the company is focused on delivering tangible AI business outcomes. Q: What is Verint's confidence in achieving its second-half ARR growth targets? A: Grant Highlander, CFO, expressed confidence in achieving the 8% ARR growth target, citing a strong start in Q1 and a 30% year-over-year increase in the SaaS pipeline. The company expects sequential ARR growth each quarter, driven by strong demand for AI solutions. Q: How does Verint differentiate itself in the competitive AI landscape, especially against well-funded competitors? A: Daniel Bodner, CEO, emphasized Verint's differentiation through its platform approach, which integrates multiple AI models and workflows. The company benefits from working with leading brands, which drives innovation and ensures that Verint's solutions deliver real value and outcomes. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Economic Times
30-05-2025
- Business
- Economic Times
Birlasoft shares slide over 6% in 2 days post Q4 earnings miss; Nuvama slashes target price on bleak outlook
Shares of Birlasoft Ltd have dropped 6.4% over two sessions since the company reported its fourth-quarter earnings, with the stock falling as much as 5.8% on Friday to Rs 396 on the BSE. The slide comes after the IT services firm posted a sequential decline in revenue and a tepid outlook, prompting Nuvama Institutional Equities to slash its target price and reiterate a negative stance. ADVERTISEMENT Nuvama lowered its 12-month target price on Birlasoft to Rs 350 from Rs 370, maintaining a 'reduce' rating. The revised target implies a potential downside of about 11.6% from Friday's low. "Birlasoft reported weak Q4FY25 results," Nuvama said in a post-results note, adding that the company missed the brokerage's estimates. 'Birlasoft continues to disappoint on revenue growth,' it added, citing the weakest annual growth across its coverage universe apart from Wipro. For the March quarter, Birlasoft's consolidated revenue fell 3.36% QoQ to Rs 1,316.89 crore, and 3.35% YoY. In dollar terms, revenue stood at USD 152.2 million, down 5.4% QoQ and 7.2% YoY. Constant currency revenue fell 5.3% the revenue miss, operating margins improved, with EBITDA rising 6.2% QoQ to Rs 173.6 crore. EBITDA margin expanded to 13.2% from 12% in the previous quarter, although it was down from 16.3% a year earlier. EBIT margin also rose by 110 basis points QoQ to 11.5%, beating Nuvama's estimate of 10.7%.Management attributed the margin gains to operating efficiencies and one-off benefits, including lower variable pay and currency gains, which contributed around 200 basis points to the expansion. ADVERTISEMENT The top-line pressure was largely due to project closures and ramp-downs in key verticals. 'Revenue declined 5.3% CC QoQ/6.9% CC YoY due to higher-than-usual furloughs extending into January, some project closures and ramp-downs in a couple of large accounts, mainly in the Manufacturing and Lifesciences segments,' Nuvama said. ADVERTISEMENT The company highlighted leadership changes in underperforming verticals, including Manufacturing and the MedTech segment within Lifesciences. The ERP segment also continued to decline, falling 7% verticals, Energy & Utilities (E&U) was the only segment to post growth, rising 1.9% QoQ, while Lifesciences, Manufacturing, and BFSI declined 7.2%, 6.8% and 5.7% QoQ, respectively. ADVERTISEMENT The management indicated a muted Q1 FY26, with growth expected to pick up from Q2 onwards, while margins are expected to remain in a narrow band through FY26."Management highlighted a muted Q1 in terms of growth and deal-wins with growth starting from Q2. Management's endeavour is a better FY26 than FY25 while EBITDA margin are likely to remain in a similar range," Nuvama said noting the company's post-earnings call. ADVERTISEMENT Full-year FY25 performance remained soft, with constant currency revenue flat, margins contracting 280 basis points, and total TCV declining 13% YoY. Net new deal TCV was down 20% YoY.'Birlasoft has had a disappointing FY25 on all fronts,' Nuvama said. 'A weak exit run rate in Q4 along with tepid TCV in FY25 raises serious concern about FY26 growth prospects. We continue to be negative as we see little respite in the near term.'Total contract value (TCV) for Q4 came in at $236 million, up 4% QoQ but down 2% YoY, including $112 million in new deals and $124 million in renewals. Net new deal wins grew 5% YoY, indicating some momentum despite the overall soft said it is using 'its specialised domain expertise within each of the verticals and sub-verticals together with technology capabilities to create an offering.' The company is also focusing on organic growth, with no mention of M&A-led post-earnings decline suggests investor concerns about the company's weak growth visibility and execution risks. Birlasoft's efforts to revive momentum through leadership changes and operational efficiencies have yet to reassure the market, as the stock now trades close to the revised target price set by analysts.'Growth remains elusive,' Nuvama concluded, underscoring persistent challenges for the mid-tier IT firm as it navigates a tough demand environment and attempts to rebuild its growth engine in FY26. Also read | Market surge leads to Rs 50,000 crore worth stake sales by promoters and shareholders (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Business Standard
29-05-2025
- Business
- Business Standard
Birlasoft Q4 PAT rises 4% QoQ to Rs 122 cr
Birlasoft reported a 4.42% increase in consolidated net profit to Rs 122.11 crore in Q4 FY25, up from Rs 116.94 crore in Q3 FY25. However, revenue from operations decreased 3.36% quarter-on-quarter (QoQ) to Rs 1,316.89 crore in Q4 FY25. As compared to Q4 FY24, the companys consolidated net profit fell 32.19% and revenue declined 3.35%. EBITDA stood at Rs 173.6 crore in Q4 FY25, up 6.2% QoQ but down 21.7% year-on-year (YoY). EBITDA margin improved to 13.2% in Q4 FY25 compared to 12% in Q3 FY25, though it declined from 16.3% in Q4 FY24. In dollar terms, the companys revenue was $152.2 million, registering a decline of 5.4% QoQ and 7.2% YoY. In constant currency terms, revenue declined 5.3% QoQ. The company signed deals with a total contract value (TCV) of $236 million during the quarter, up 4% QoQ, comprising new deal wins worth $112 million and renewals worth $124 million. Active client count stood at 254 in Q4 FY25, down from 265 in Q3 FY25 and 259 in Q4 FY24, reflecting some rationalization of the tail. Cash and cash equivalents rose to $259.5 million at the end of Q4 FY25, compared to $240.1 million at the end of Q3 FY25. In rupee terms, cash and cash equivalents increased to Rs 22,177 million at the end of Q4 FY25 from Rs 20,552 million at the end of the previous quarter. The workforce strength stood at 11,930 as of 31 March 2025, with an attrition rate of 12.8% during Q4 FY25. Angan Guha, chief executive officer and managing director of Birlasoft, said, We are pleased to report a steady year in the face of a soft demand environment owing to sustained macro-economic challenges, with revenue during FY2025 growing 1.8% over the preceding year. We continue to generate consistently strong cashflows. We also saw a noticeable uptick in our deal wins during the second-half of the year under review, with a sequential increase in TCV of deals won during the quarter under review to $236 million led by higher new deals, demonstrating the strength of our pipeline and our ability to pursue deal closures. While our near-term outlook is likely to reflect the impact of shifts in customer priorities, we continue to invest in our capabilities such as generative AI, where we have been early adopters. Kamini Shah, chief financial officer, Birlasoft, said, "Our consolidated revenue during FY25 has grown 1.8% over the preceding year to Rs 53,752 million. Our EBITDA margin performance for the year reflects the investments we have been making in our business as well as higher furloughs, consolidation deals, and growth in the Infra business. For the quarter under review, revenue stood at $152.2 million and the EBITDA margin expanded 119 basis points sequentially to 13.2%. Cash flow from operations during the year and the quarter were 88.3% and 88.1%, respectively, of EBITDA, led by sustained focus on collections. We have ended the year with a robust balance sheet and believe that we are well-positioned to successfully navigate through the prevalent macroeconomic environment." Meanwhile, the companys board has recommended a final dividend of Rs 4 per equity share for the financial year 2024-25, subject to approval by the members at the upcoming Annual General Meeting (AGM) of the company. The date of the AGM will be intimated in due course, and the dividend, if declared by the members, will be paid within the statutory timelines. Further, the companys board has approved that Manjunath Kygonahally, senior management personnel (SMP) and currently chief executive officer for rest of the world (CEO-ROW), will take on an additional role as Global Head of Strategic Growth Initiatives, effective 28 May 2025. He will be designated as CEO-ROW and Global HeadStrategic Growth Initiatives. Birlasoft, part of the CK Birla Group, provides digital and information technology consulting, services, solutions and products for organizations across industries worldwide. The counter shed 0.77% to Rs 420.05 on the BSE.
Yahoo
28-05-2025
- Business
- Yahoo
Pure Storage Announces First Quarter Fiscal 2026 Financial Results
Q1 total revenue growth of 12% year-over-year Storage as a Service offerings TCV sales growth of 70% SANTA CLARA, Calif., May 28, 2025 /PRNewswire/ -- Today Pure Storage (NYSE: PSTG), the IT pioneer that delivers the world's most advanced data storage technologies and services, announced financial results for its first quarter fiscal year 2026 ended May 4, 2025. "Pure continues to demonstrate the superiority of our technology and strategy through our steady growth and the expansion of our products and services," said Pure Storage CEO and Chairman, Charles Giancarlo. "Pure's platform enables customers to unify, virtualize and modernize their data footprints, across all workloads, over the entire range of performance, capacity and formats, and all with our single, advanced Purity Operating Environment." First Quarter Financial Highlights Revenue $778.5 million, up 12% year-over-year Subscription services revenue $406.3 million, up 17% year-over-year Subscription annual recurring revenue (ARR) $1.7 billion, up 18% year-over-year Remaining performance obligations (RPO) $2.7 billion, up 17% year-over-year GAAP gross margin 68.9%; non-GAAP gross margin 70.9% GAAP operating loss $(31.2) million; non-GAAP operating income $82.7 million GAAP operating margin (4.0%); non-GAAP operating margin 10.6% Operating cash flow $283.9 million; free cash flow $211.6 million Total cash, cash equivalents, and marketable securities $1.6 billion Returned approximately $120 million to stockholders through share repurchases of 2.5 million shares. "Q1 FY26 was a solid start to the year, with strong revenue growth," said Pure Storage CFO, Kevan Krysler. "Looking ahead, we remain committed to executing on our strategic priorities, driving growth, and maintaining the flexibility to navigate evolving market conditions." Leadership Update Pure also announced that Kevan Krysler has decided to leave the company after more than five years of service. Krysler will remain at Pure Storage until a successor has been named. "I want to thank Kevan for his partnership, dedication and loyal service to Pure. Of his numerous contributions to the company, he helped grow the business to over $3 billion in revenue and led our transition to subscriptions, which are now roughly 50% of our revenue," Giancarlo continued. First Quarter Company Highlights Accelerating Innovation Through Product Advancements Introduced the FlashBlade//EXA platform, the industry's leading data storage platform, designed to meet the rigorous demands of AI and high-performance computing, delivering unmatched performance, scalability, and metadata management. Launched Portworx Enterprise 3.3, an enterprise-grade container data management platform that aims to support VM workloads at an enterprise level. Strengthening Leadership with Deepened Industry Collaborations Announced a partnership with Nutanix to provide a joint, integrated solution to provide customers with a seamless way to deploy and manage virtual workloads on a scalable, modern infrastructure. Integrated the NVIDIA AI Data Platform reference design into its FlashBlade® line, cementing Pure Storage's position as a leader in enterprise data storage. Achieved certifications from NVIDIA, including recognition as a high-performance storage platform for NVIDIA Partner Network Cloud Partners; also secured NVIDIA-Certified Storage Partner approval at both the Foundation and Enterprise levels. Delivering Cyber Resilience and Performance Expanded its partnership with Rubrik to deliver a comprehensive solution to securely manage unstructured data at scale, providing bolstered protection against advanced threats, improved management capabilities, and exponential data efficiency. Industry Recognition and Accolades Amy Fowler, GM, Commercial Line of Business, and Hope Galley, VP, Americas Partner Sales, were recognized as 2025 Women of the Channel by CRN. Recognized as part of CRN's AI 100, Data Center 50, and 50 Coolest Software-Defined Storage Vendors for 2025. Awarded for Storage Excellence as part of ITPro's Excellence Awards. Second Quarter and FY26 Guidance Q2FY26 Revenue $845M Revenue YoY Growth Rate 10.6 % Non-GAAP Operating Income $125M Non-GAAP Operating Margin 14.8 %FY26 Revenue $3.515B Revenue YoY Growth Rate 11 % Non-GAAP Operating Income $595M Non-GAAP Operating Margin 17.0 % These statements are forward-looking and actual results may differ materially. Refer to the Forward Looking Statements section below for information on the factors that could cause our actual results to differ materially from these statements. Pure has not reconciled its guidance for non-GAAP operating income and non-GAAP operating margin to their most directly comparable GAAP measures because certain items that impact these measures are not within Pure's control and/or cannot be reasonably predicted. Accordingly, reconciliations of these non-GAAP financial measures guidance to the corresponding GAAP measures are not available without unreasonable effort. Conference Call Information Pure will host a teleconference to discuss the first quarter fiscal 2026 results at 2:00 pm PT today, May 28, 2025. A live audio broadcast of the conference call will be available on the Pure Storage Investor Relations website. Pure will also post its earnings presentation and prepared remarks to this website concurrent with this release. A replay will be available following the call on the Pure Storage Investor Relations website or for two weeks at 1-800-770-2030 (or 1-647-362-9199 for international callers) with passcode 5667482. Additionally, Pure is scheduled to participate at the following investor conferences: William Blair's 45th Annual Growth Stock ConferenceDate: Tuesday, June 3, 2025Time: 6:00 a.m. PT / 9:00 a.m. ETChief Technology Officer Rob Lee Bank of America 2025 Global Tech ConferenceDate: Tuesday, June 3, 2025Time: 11:00 a.m. PT / 2:00 p.m. ETChairman and CEO Charles GiancarloChief Financial Officer Kevan Krysler The presentations will be webcast live and archived on Pure's Investor Relations website at Updated Date and Location for Product & Technology-Focused Meeting for Financial Analysts at Pure//Accelerate 2025 in New York Date: Thursday, September 25, 2025 Join us at Pure//Accelerate® 2025 in New York on September 25, 2025, as we make history, changing the future of storage and the industry. Pure Storage executives - including Pure Storage CEO, Charles Giancarlo - and partners will share insights, strategies, and their vision for the future. The financial analyst meeting presentation will be webcast live and archived on the Pure Storage Investor Relations website at About Pure Storage Pure Storage (NYSE: PSTG) delivers the industry's most advanced data storage platform to store, manage, and protect the world's data at any scale. With Pure Storage, organizations have ultimate simplicity and flexibility, saving time, money, and energy. From AI to archive, Pure Storage delivers a cloud experience with one unified Storage as-a-Service platform across on premises, cloud, and hosted environments. Our platform is built on our Evergreen architecture that evolves with your business – always getting newer and better with zero planned downtime, guaranteed. Our customers are actively increasing their capacity and processing power while significantly reducing their carbon and energy footprint. It's easy to fall in love with Pure Storage, as evidenced by the highest Net Promoter Score in the industry. For more information, visit Connect with Pure BlogLinkedInTwitterFacebook Pure Storage, the Pure P Logo, Portworx, and the marks on the Pure Storage Trademark List are trademarks or registered trademarks of Pure Storage Inc. in the U.S. and/or other countries. The Trademark List can be found at Other names may be trademarks of their respective owners. Forward Looking Statements This press release contains forward-looking statements regarding our products, business and operations, including but not limited to our views relating to our opportunity relating to hyperscale and AI environments, our ability to meet hyperscalers' performance and price requirements, our ability to meet the needs of hyperscalers for the entire spectrum of their online storage use cases, the timing and magnitude of large orders, including sales to hyperscalers, the timing and amount of revenue from hyperscaler licensing and support services, future period financial and business results, demand for our products and subscription services, including Evergreen//One, the relative sales mix between our subscription and consumption offerings and traditional capital expenditure sales, our technology and product strategy, specifically customer adoption of FlashBlade//EXA, Pure Fusion™ and priorities around sustainability and energy saving benefits to our customers of using our products, our ability to perform during current macro conditions and expand market share, our sustainability goals and benefits, the impact of inflation, tariffs, economic or supply chain disruptions, our expectations regarding our product and technology differentiation, new technology investments and partnerships, and other statements regarding our products, business, operations and results. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption "Risk Factors" and elsewhere in our filings and reports with the U.S. Securities and Exchange Commission, which are available on our Investor Relations website at and on the SEC website at Additional information is also set forth in our Annual Report on Form 10-K for the fiscal year ended February 2, 2025. All information provided in this release and in the attachments is as of May 28, 2025, and Pure undertakes no duty to update this information unless required by law. Key Performance Metrics Subscription ARR is a key business metric that refers to total annualized contract value of all active subscription agreements on the last day of the quarter, plus on-demand revenue for the quarter multiplied by four. Total Contract Value (TCV) Sales, or bookings, of Pure's Evergreen//One and similar consumption- and subscription-based offerings is an operating metric, representing the value of orders received during the period. Non-GAAP Financial Measures To supplement our unaudited condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, Pure uses the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share, and free cash flow. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses such as stock-based compensation expense, payroll tax expense related to stock-based activities, amortization of debt issuance costs related to debt, amortization of intangible assets acquired from acquisitions, restructuring costs related to severance and termination benefits, costs associated with the impairment and early exit of certain leased facilities, and unrealized gains and losses from mark-to-market adjustments on strategic investments that may not be indicative of our ongoing core business operating results. Pure believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and planning, forecasting, and analyzing future periods. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies. For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables captioned "Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures" and "Reconciliation from net cash provided by operating activities to free cash flow," included at the end of this release. PURE STORAGE, Consolidated Balance Sheets(in thousands, unaudited)At the End of First Quarter of Fiscal 2026Fiscal 2025Assets Current assets: Cash and cash equivalents$ 739,336$ 723,583 Marketable securities839,748798,237 Accounts receivable, net of allowance of $959 and $940411,319680,862 Inventory37,54842,810 Deferred commissions, current101,28899,286 Prepaid expenses and other current assets270,988222,501 Total current assets2,400,2272,567,279 Property and equipment, net503,527461,731 Operating lease right-of-use-assets138,423146,655 Deferred commissions, non-current230,989229,334 Intangible assets, net15,10819,074 Goodwill361,427361,427 Restricted cash 19,04612,553 Other assets, non-current141,618165,889 Total assets$ 3,810,365$ 3,963,942Liabilities and Stockholders' Equity Current liabilities: Accounts payable$ 83,858$ 112,385 Accrued compensation and benefits142,333230,040 Accrued expenses and other liabilities157,733156,791 Operating lease liabilities, current41,26643,489 Deferred revenue, current969,321953,836 Debt, current100,000100,000 Total current liabilities1,494,5111,596,541 Operating lease liabilities, non-current129,735137,277 Deferred revenue, non-current858,224841,467 Other liabilities, non-current83,84082,182 Total liabilities2,566,3102,657,467 Stockholders' equity: Common stock and additional paid-in capital2,625,2312,674,533 Accumulated other comprehensive income1,831954 Accumulated deficit(1,383,007)(1,369,012) Total stockholders' equity1,244,0551,306,475 Total liabilities and stockholders' equity$ 3,810,365$ 3,963,942 PURE STORAGE, Consolidated Statements of Operations(in thousands, except per share data, unaudited) First Quarter of Fiscal20262025 Revenue:Product $ 372,144$ 347,384 Subscription services 406,341346,095 Total revenue 778,485693,479 Cost of revenue:Product (1) 141,050100,753 Subscription services (1) 101,28297,020 Total cost of revenue 242,332197,773 Gross profit 536,153495,706 Operating expenses:Research and development (1) 221,740193,820 Sales and marketing (1) 278,512250,972 General and administrative (1) 67,07276,787 Restructuring and impairment (2) —15,901 Total operating expenses 567,324537,480 Loss from operations (31,171)(41,774) Other income (expense), net 31,65514,091 Income (loss) before provision for income taxes 484(27,683) Income tax provision 14,4797,326 Net loss $ (13,995)$ (35,009) Net loss per share attributable to common stockholders, basic and diluted $ (0.04)$ (0.11) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 326,539322,589 (1) Includes stock-based compensation expense as follows: Cost of revenue -- product $ 3,266$ 2,782 Cost of revenue -- subscription services 7,1628,871 Research and development 49,24250,294 Sales and marketing 22,08423,519 General and administrative 14,52127,528 Total stock-based compensation expense $ 96,275$ 112,994 (2) Includes expenses for severance and termination benefits related to workforce realignment and lease impairment and abandonment charges associated with cease-use of our former corporate headquarters. PURE STORAGE, Consolidated Statements of Cash Flows(in thousands, unaudited) First Quarter of Fiscal20262025 Cash flows from operating activitiesNet loss $ (13,995)$ (35,009) Adjustments to reconcile net loss to net cash provided by operating activities:Depreciation and amortization 33,77033,943 Stock-based compensation expense 96,275112,994 Noncash portion of lease impairment and abandonment —3,270 Other 7051,606 Changes in operating assets and liabilities:Accounts receivable, net 269,542238,768 Inventory 2,669(1,705) Deferred commissions (3,657)7,707 Prepaid expenses and other assets (19,440)(9,219) Operating lease right-of-use assets 8,3978,122 Accounts payable (26,991)(26,581) Accrued compensation and other liabilities (84,343)(109,124) Operating lease liabilities (11,238)(10,226) Deferred revenue 32,2426,954 Net cash provided by operating activities 283,936221,500 Cash flows from investing activitiesPurchases of property and equipment (1) (72,346)(48,818) Purchase of strategic investment —(5,000) Purchases of marketable securities (114,896)(160,123) Sales of marketable securities 18,20737,689 Maturities of marketable securities 57,253127,857 Net cash used in investing activities (111,782)(48,395) Cash flows from financing activitiesProceeds from exercise of stock options 5,35913,223 Proceeds from issuance of common stock under employee stock purchase plan 27,24025,328 Principal payments on borrowings and finance lease obligations (1,125)(1,099) Tax withholding on vesting of equity awards (61,300)(12,478) Repurchases of common stock (119,936)— Net cash provided by (used in) financing activities (149,762)24,974 Net increase in cash, cash equivalents and restricted cash 22,392198,079 Cash, cash equivalents and restricted cash, beginning of period 737,750712,131 Cash, cash equivalents and restricted cash, end of period $ 760,142$ 910,210 (1) Includes capitalized internal-use software costs of $6.9 million and $4.5 million for the first quarter of fiscal 2026 and 2025. Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measuresThe following table presents non-GAAP gross margins by revenue source before certain items (in thousands except percentages, unaudited):First Quarter of Fiscal 2026First Quarter of Fiscal 2025 GAAP resultsGAAP gross margin (a)AdjustmentNon- GAAP resultsNon- GAAP gross margin (b)GAAP resultsGAAP gross margin (a)AdjustmentNon- GAAP resultsNon- GAAP gross margin (b)$ 3,266(c)$ 2,782(c) 240(d)296(d) 208(e)20(e) 3,306(f)3,306(f) Gross profit --product$ 231,09462.1 %$ 7,020$ 238,11464.0 %$ 246,63171.0 %$ 6,404$ 253,03572.8 %$ 7,162(c)$ 8,871(c) 743(d)867(d) 632(e)309(e) Gross profit -- subscription services$ 305,05975.1 %$ 8,537$ 313,59677.2 %$ 249,07572.0 %$ 10,047$ 259,12274.9 %$ 10,428(c)$ 11,653(c) 983(d)1,163(d) 840(e)329(e) 3,306(f)3,306(f) Total gross profit$ 536,15368.9 %$ 15,557$ 551,71070.9 %$ 495,70671.5 %$ 16,451$ 512,15773.9 % (a) GAAP gross margin is defined as GAAP gross profit divided by revenue. (b) Non-GAAP gross margin is defined as non-GAAP gross profit divided by revenue. (c) To eliminate stock-based compensation expense. (d) To eliminate payroll tax expense related to stock-based activities. (e) To eliminate expenses for severance and termination benefits related to workforce realignment. (f) To eliminate amortization expense of acquired intangible assets. The following table presents certain non-GAAP consolidated results before certain items (in thousands, except per share amounts and percentages, unaudited): First Quarter of Fiscal 2026First Quarter of Fiscal 2025GAAP resultsGAAP operating margin (a)AdjustmentNon- GAAP resultsNon- GAAP operating margin (b)GAAP resultsGAAP operating margin (a)Adjustment Non- GAAP resultsNon- GAAP operating margin (b) $ 96,275(c)$ 112,994(c) 8,615(d)9,400(d) 3,536(e)3,536(e) 5,489(f)9,855(f) —6,375(g)Operating income (loss) $ (31,171)(4.0 %)$ 113,915$ 82,74410.6 %$ (41,774)(6.0 %)$ 142,160 $ 100,38614.5 % $ 96,275(c)$ 112,994(c) 8,615(d)9,400(d) 3,536(e)3,536(e) 5,489(f)9,855(f) —6,375(g) 153(h)153(h) (2,435)(i)—Net income (loss) $ (13,995)$ 111,633$ 97,638$ (35,009)$ 142,313 $ 107,304Net income (loss) per share -- diluted $ (0.04)$ 0.29$ (0.11) $ 0.32 Weighted-average shares used in per share calculation -- diluted 326,5399,470(j)336,009322,58915,959(j) 338,548 (a) GAAP operating margin is defined as GAAP operating loss divided by revenue. (b) Non-GAAP operating margin is defined as non-GAAP operating income divided by revenue. (c) To eliminate stock-based compensation expense. (d) To eliminate payroll tax expense related to stock-based activities. (e) To eliminate amortization expense of acquired intangible assets. (f) To eliminate expenses for severance and termination benefits related to workforce realignment. (g) To eliminate lease impairment and abandonment charges associated with cease-use of our former corporate headquarters. (h) To eliminate amortization expense of debt issuance costs related to our debt. (i) To eliminate unrealized gain from mark-to-market adjustment on strategic investment. (j) To include effect of dilutive securities (employee stock options, restricted stock, and shares from employee stock purchase plan). Reconciliation from net cash provided by operating activities to free cash flow (in thousands except percentages, unaudited): First Quarter of Fiscal20262025 Net cash provided by operating activities $ 283,936$ 221,500 Less: purchases of property and equipment (1) (72,346)(48,818) Free cash flow (non-GAAP) $ 211,590$ 172,682 (1) Includes capitalized internal-use software costs of $6.9 million and $4.5 million for the first quarter of fiscal 2026 and 2025. View original content to download multimedia: SOURCE Pure Storage Sign in to access your portfolio
Mint
21-05-2025
- Business
- Mint
Zydus bets big on vaccines and medtech
Mumbai: Zydus Lifesciences Ltd is looking to ramp up its vaccines and medtech portfolio over the next few years, the company's top executive told investors during an earnings call Tuesday evening. The drugmaker, which announced its Q4FY25 results the same day, expects double-digit revenue growth in FY26, led by strong performance in both domestic and international markets, as well as newer businesses such as biologics, vaccines, and medtech. '...led by strong growths in India and international markets and also our new growth themes like biologics, vaccines and all scaling up,' managing director Sharvil Patel told investors. The company expects to outperform the Indian pharmaceutical market in FY26, while projecting single-digit growth in the US. The management has guided for an Ebitda margin of about 26% in FY26. Zydus closed FY25 with its highest-ever operating profit and margins. Consolidated revenue rose 19% year-on-year to ₹ 23,241.5 crore, with an Ebitda margin of 30.4%. Patel said he is 'quite upbeat and positive on the overall trajectory for the business and the opportunity' in vaccines. In FY25, Zydus began development of the world's first combination vaccine for shigellosis (bacillary dysentery) and typhoid, with support from the Gates Foundation. 'We shall conduct early stage development, animal immunogenicity studies and the regulatory preclinical tox studies for this combination vaccine,' he said. The company also received regulatory approval to begin phase 2 clinical trials for its bivalent TCV vaccine in the March quarter. '...with potential access now to both India's public [market] and the WHO pre-qualified public markets we are seeing a good trajectory for the vaccines in terms of scaling it up,' he said. Zydus' vaccine strategy spans three core areas, according to Patel. In India, the business is performing well, and the company expects to be a significant contender in upcoming public tenders. 'We believe that we are a critical contender in the public tenders for the MR (Measles Rubella) vaccine that has come out, and we believe that will be an important MR tender supply for Zydus in the coming year,' he said. It is also seeing demand from multilateral agencies. '...we will be able to participate in some of these tenders. So that could offer additional opportunities in the coming years,' Patel said, referring to UNICEF and the Pan American Health Organisation (PAHO). The company plans to register some of its products in markets such as Egypt, which could open up further opportunities. 'Our non-tender sales are doing very well. We are selling, I think, the highest doses of the flu vaccines now. We are selling out all capacities on our rabies vaccine. We have the other two vaccines that are coming up and the new vaccines that are getting added to the portfolio,' Patel said. Zydus entered the medtech space last fiscal with the acquisition of a majority stake in French orthopaedic company Amplitude Surgical SA. The company is also developing capabilities in nephrology and cardiovascular devices organically. 'Medical devices is an important area for the organization and we have had important both organic as well as inorganic opportunities that we have looked at and have been successful at,' Patel said. 'Some of these are already revenue generating and profit making businesses. So, we will look to add more geographies, bring down cost and increase and grow this business,' he added. 'It is not going to be short term…the scale up we'll really get to see after three years.' Zydus is forecasting high single-digit growth in the US market in FY26, though it faces pressure from tapering sales of its Revlimid generic and a decline in market share for its Asacol HD generic. The company has a pipeline of 14-15 critical launches lined up for FY27, and believes its base business in the US–now over $1 billion in revenue–remains strong. Addressing concerns over potential import tariffs in the US, Patel said the company is evaluating opportunities for local manufacturing. 'But any of these decisions will require a lot of time for setting up, so it's not something that can happen in the short term,' he said. 'We have committed to making a good amount of investments in the US with our foray into specialty and other areas.'
