Q3 FISCAL 2019 RESULTS

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1 Q3 FISCAL 2019 RESULTS November 19,

2 FORWARD LOOKING STATEMENTS AND NON-GAAP INFORMATION This presentation contains forward-looking statements that are based on our beliefs and assumptions and on information currently available to us. Such forward-looking statements include statements concerning our possible or expected future financial or operating results, business strategies, product development plans, technical and business advantages, competitive position, industry trends and potential growth opportunities. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as anticipate, believe, could, seek, estimate, intend, may, plan, potential, predict, project, should, will, would or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements, including risks, uncertainties and other factors relating to our financial guidance, results and growth, our technological leadership and market opportunity, introduction of new functionality and products, product acceptance and our products and business model, customer spending priorities, our competitive position and industry dynamics, and relationships with third parties, including partners and customers. Additional risks, uncertainties and other factors are included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," in our reports and registration statement previously filed with the SEC, which are available on our website at investor.purestorage.com and on the SEC's website at Forward-looking statements represent our beliefs and assumptions only as of the date of this presentation. Except as required by law, we assume no obligation to update these forwardlooking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. This presentation includes certain non-gaap financial measures as defined by SEC rules. As required by Regulation G, we have provided reconciliations of those measures to the most directly comparable GAAP measures, which are available in the Appendix. We have not reconciled guidance for non-gaap gross margin and non-gaap operating margin to their most directly comparable GAAP measures because items such as stock-based compensation expense and payroll tax expense related to stock-based activities that impact these measures are not within our control and/or cannot be reasonably predicted. Accordingly, a reconciliation of the non-gaap financial measure guidance to the corresponding GAAP measures is not available without unreasonable effort. 2

3 $35B TAM SUBSTANTIAL MOMENTUM WITH LARGE OPPORTUNITY AHEAD FOCUSED ON MARKETS THAT MATTER $35B Storage and Storage Software Spend I. TOP CLOUD COMPANIES II. NEXT-GEN OPPORTUNITIES III. CLOUD-IFICATION OF IT $1.38B* Pure Revenue FY2019 *Mid point of our revenue guidance for FY2019 3

4 Q3 FY19 KEY HIGHLIGHTS TAM +$35B +500 Leading Clouds Next-Generation Data Cloud-ification of IT Growth $373M Total revenue, up 34% Y/Y 29% Revenue from International Customers >5,450 >300 adds Q/Q, 36% growth Y/Y ~$11 >$2 Incremental purchases from top 25 customers within 18 months of initial purchase of $1 >35% >30% of Fortune 500 Liquidity $1.1B Incremental purchases from all customers within 24 months of initial purchase of $1 Cloud customers (SaaS, IaaS, & consumer cloud) Cash and investments at quarter end GAAP 66.8% Gross margin (+1.3 ppts Y/Y) +3.4ppts Y/Y improvement in operating margin $28.5M Cash flow from operations (+7.6% of revenue) Leverage Non-GAAP 68.1%* Gross margin (+1.7 ppts Y/Y) +5.4ppts* Y/Y improvement in operating margin $30.6M* Free cash flow excluding ESPP impact (+8.2.% of revenue) 4 * See GAAP to non-gaap reconciliation in our appendix

5 QUARTERLY REVENUE Prior year revenue has been adjusted to reflect adoption impact of ASC 606, which we adopted in FY19 Q1. +34% Q3 FY19 Y/Y TOTAL REVENUE GROWTH $372.8 $339.9 $199.2 $32.7 $166.5 $231.5 $37.3 $194.2 $182.6 $39.8 $142.8 $224.7 $45.0 $179.7 $277.6 $49.8 $227.8 $55.7 $284.2 $255.9 $60.5 $195.4 $308.9 $67.8 $241.1 $73.9 $298.9 FY17 Q3 FY17 Q4 FY18 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY19 Q1 FY19 Q2 FY19 Q3 5 Product Revenue (Millions) See ASC606 to ASC605 reconciliation in our appendix Support Subscription Revenue (Millions)

6 CUSTOMERS >5,450 NUMBER OF CUSTOMERS TO DATE >2600 >3050 >3350 >3700 >4000 >4500 >4800 >5150 >5450 FY17 Q3 FY17 Q4 FY18 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY19 Q1 FY19 Q2 FY19 Q3 Number of Customers 36% Y/Y, >1,450 ADDS Y/Y >300 ADDS Q/Q ~$11 Incremental purchases from top 25 customers within 18 months of initial purchase of $1 >$2 Incremental purchases from all customers within 24 months of initial purchase of $1 >35% OF FORTUNE 500 6

7 NON-GAAP GROSS MARGIN & PROFIT Prior year information has been adjusted to reflect adoption impact of ASC 606, which we adopted in FY19 Q % 67.2% 66.4% 65.9% 66.4% 66.3% 66.3% 68.0% 68.1% LONG-TERM GM TARGET RANGE 68% 63% $131.1 $154.3 $121.3 $150.9 $184.4 $225.4 $169.8 $210.0 $253.9 FY17 Q3 FY17 Q4 FY18 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY19 Q1 FY19 Q2 FY19 Q3 Non-GAAP Gross Profit (Millions) Non-GAAP Gross Margin 7 See GAAP to non-gaap and ASC606 to ASC605 reconciliation in our appendix

8 NON-GAAP OPERATING EXPENSE AS A PERCENTAGE OF REVENUE Prior year information has been adjusted to reflect adoption impact of ASC 606, which we adopted in FY19 Q % 23.2% 66.9% 21.6% 80.3% 77.5% 27.1% 22.7% 62.7% 18.2% 59.0% 16.3% 72.3% 22.0% 67.7% 19.7% 59.0% 17.6% 39.9% 38.0% 44.3% 47.1% 37.6% 36.5% 42.0% 40.6% 34.0% 9.8% 7.3% 8.9% 7.7% 6.9% 6.2% 8.3% 7.4% 7.4% FY17 Q3 FY17 Q4 FY18 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY19 Q1 FY19 Q2 FY19 Q3 G&A S&M R&D See GAAP to non-gaap and ASC606 to ASC605 reconciliation in our appendix 8

9 NON-GAAP OPERATING MARGIN AND PROFIT Prior year information has been adjusted to reflect adoption impact of ASC 606, which we adopted in FY19 Q Y/Y PPTS IMPROVEMENT -0.3% $24.9 $ % 7.3% $0.9 $ % -7.1% $(14.1) $(0.7) -13.9% $(25.3) -10.3% $(23.1) -6.0% $(15.3) 0.3% FY17 Q3 FY17 Q4 FY18 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY19 Q1 FY19 Q2 FY19 Q3 9 Non-GAAP Operating Income (Loss) (Millions) See GAAP to non-gaap and ASC606 to ASC605 reconciliation in our appendix Non-GAAP Operating Margin

10 FREE CASH FLOW (FCF) $30.6M FCF EXCLUDING ESPP IMPACT Free cash flow (non-gaap) * (Millions) Free cash flow as % of revenue Free Cash Flow (1) -18.2% (2) -$ % $25.3 (2) -14.8% -$ % -$ % $ % $ % -3.9% -$3.7 -$ % $28.5 FY17 Q3 FY17 Q4 FY18 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY19 Q1 FY19 Q2 FY19 Q3 Free cash flow without ESPP impact (non-gaap) * (Millions) Free cash flow without ESPP impact as % of revenue Free Cash Flow (1) (excluding ESPP Impact) (2) -$ % $ % (2) -$17.4 -$ % -10.0% $ % $ % $ % -$ % $ % FY17 Q3 FY17 Q4 FY18 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY19 Q1 FY19 Q2 FY19 Q3 10 (1.) See GAAP to non-gaap reconciliation in our appendix. (2.) Excludes a one-time $30.0 million legal settlement charge.

11 GUIDANCE. Q4 FY19 FY19 Revenue $438M to $446M $1.376B to $1.384B Non-GAAP Gross Margin (1) 64.5% to 67.5% 66.6% to 67.6% Non-GAAP Operating Margin (1) 8.0% to 12.0% 3.9% to 5.3% (1) We have not reconciled guidance for non-gaap gross margin and non-gaap operating margin to their most directly comparable GAAP measures because items such as stock-based compensation expense and payroll tax expense related to stock-based activities that impact these measures are not within our control and/or cannot be reasonably predicted. Accordingly, a reconciliation of the non-gaap financial measure guidance to the corresponding GAAP measures is not available without unreasonable effort. 11

12 LONG-TERM TARGET OPERATING MODEL NON-GAAP As a % of Revenue (Non-GAAP) Q3 FY19 TARGET MODEL Gross Margin 68.1% 63 68% R&D 17.6% 15 20% S&M 34.0% 25 30% G&A 7.4% 5 7% Operating Margin 9.1% 15 20% 12 See GAAP to non-gaap reconciliation in our appendix

13 APPENDIX Q3 FISCAL 2019 RESULTS 13

14 REVENUE ASC 606 TO ASC 605 RECONCILIATION 14

15 GROSS MARGIN GAAP TO NON-GAAP AND ASC 606 TO ASC 605 RECONCILIATION 15

16 OPERATING EXPENSES, MARGIN & NET INCOME (LOSS) GAAP TO NON-GAAP AND ASC 606 TO ASC 605 RECONCILIATION 16

17 FREE CASH FLOW GAAP TO NON-GAAP RECONCILIATION 17

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