Investing.com – Pure Storage stock (NYSE:PSTG) climbed 12% in Thursday’s premarket trading as the company’s second-quarter revenue beat estimates and its net loss narrowed.
In a surprise move, the company also raised its annual revenue guidance. It had so far stuck to its previous guidance of 14%-15% revenue growth, but now expects revenue to be $2.04 billion for the year, up 21% from 2020.
Third-quarter revenue is seen at $530 million.
According to Chief Financial Officer Kevan Krysler, growth in the previous quarters had just been too strong to not shift the stance against a revised guidance.
Chef Executive Officer Charles Giancarlo predicted stronger growth for the company as more businesses return to office work and seek more Cloud-based products and services.
Operating profit of $46.6 million was highest for any quarter and total sales of $496.8 million were highest for a second quarter.
Subscription services revenue grew approximately 31% year over year, and was approximately 35% of the total. Product revenue was also strong during the quarter, growing 19%.
Second-quarter total revenue grew 23% year-over-year to $496.8 million. Net losses narrowed to $45.3 million from $65.0 million as expenses rose at a slower pace.