{
  "docId": "019dd923-622c-750b-8b98-491cf8c853e8",
  "docSlug": "3b36a8e60d92",
  "documentTitle": "Pure Storage, Inc. (PSTG)",
  "authorId": "53_Kerrisdale_Capital",
  "authorName": "Kerrisdale Capital",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2025-09-01 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 28,
  "pageCount": 35,
  "prevPage": 27,
  "nextPage": 29,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 33,
  "notes": "Includes a direct quote from the CEO regarding the subscription model transition.",
  "elementsJson": [
    "data_table",
    "line_chart",
    "paragraph",
    "quote_block"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-491cf8c853e8/28",
  "deckHref": "/decks/019dd923-622c-750b-8b98-491cf8c853e8",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-491cf8c853e8.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-491cf8c853e8#slide-28",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "More concerning, after years of consistent ~25% growth, YoY growth in Pure’s remaining performance obligation (RPO) has sharply deteriorated.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-fb90-708a-8691-b5d45a84db1f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.78,
        "x": 0.11,
        "y": 0.255
      },
      "kind": "chart",
      "text": "Pure YoY RPO Growth chart",
      "attrs": null,
      "subkind": "line",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "081cdaea-0c91-4043-bed9-5e55242c9cb4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "RPO growth",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd952-fb90-708a-8691-be9f7e08e6c1",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "paragraph",
      "text": "More concerning, after years of consistent ~25% growth, YoY growth in Pure’s remaining performance obligation (RPO) has sharply deteriorated.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0eababeb-b58b-4921-b3a6-2da9c7dcfbb7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "paragraph",
      "text": "Pure’s attractive gross margins, which have exceeded 70% over five of the past six fiscal years, have long served as justification to view Pure as deserving of SaaS-like valuation multiples. However, investors cannot have it both ways...",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e25f0a75-4500-4baf-bdc3-71c4cbfe21f4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "…from a P&L point of view, what is a traditional product sale on day 1 by year 3 or year 4 transitions to a full as-a-service subscription recognition…the benefit we have is we don't have to go and replace our installed base.",
      "attrs": null,
      "subkind": "pull-quote",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1401b745-dfcd-4e3b-81e5-7834bb4277c5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "“…from a P&L point of view, what is a traditional product sale on day 1 by year 3 or year 4 transitions to a full as-a-service subscription recognition…the benefit we have is we don’t have to go and replace our installed base. In our model, we don’t have that replacement sale, right? …we are able to keep that original array, modernize it. Well, if” — CEO Giancarlo",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd952-fb90-708a-8691-b9effddea6b8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.78,
        "x": 0.11,
        "y": 0.09
      },
      "kind": "table",
      "text": "Pure YoY Revenue Growth table",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "939fb1c8-a7df-495e-a203-2ca6b346382d",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 31,
      "from": 26,
      "beatId": "b7b9d07d-8a29-40c7-aabc-41ddb9147aac",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Research Note",
      "beatSlug": null,
      "evidence": "The document presents research notes on Pure Storage's competitive positioning and financials",
      "position": 3,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [
    {
      "to": 32,
      "from": 5,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "f175e9df-40bd-4f68-b964-eed15e12ff5a",
      "evidence": "The document highlights the risks of investing in Pure Storage",
      "position": 0,
      "objective": "To highlight the risks of investing in Pure Storage",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.7,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}