Everpure Q2 Earnings Call Highlights

Evercore NYSE: P reported second-quarter fiscal 2027 results that exceeded its guidance, with revenue rising 38% year over year and operating profit increasing 77% to $230 million. Chief Executive Officer Charlie Giancarlo said growth was broad-based across geographies, products and business segments, while the company raised its full-year outlook on continued demand strength and improved visibility into supply availability. Giancarlo said the company’s revenue growth has accelerated over the past eight quarters and that management believes the higher growth rate can be sustained “for some time.” He attributed the momentum to the expansion of Evercore’s product portfolio, its unified Purity software platform, its DirectFlash technology, and the growth of its Evergreen//One storage-as-a-service offering. “We have entered into breakout territory in our core enterprise market,” Giancarlo said, citing the company’s product architecture, go-to-market expansion and broader brand recognition across enterprise, mid-market and government customers. Product revenue increased 54% year over year to $687 million in the quarter. Subscription services revenue rose 20% to $499 million and represented 42% of total company revenue. Annual recurring revenue increased 20% to more than $2 billion, while remaining performance obligations increased 44% to more than $4 billion. Chief Financial Officer Tarek Robbiati said the results marked the company’s third consecutive quarter above the Rule of 40, a measure combining revenue growth and profitability. Total gross margin was 69.9%, including product gross margin of 66.2% and subscription-services margin of 74.9%. Management said demand remained resilient despite higher component costs and price increases. Robbiati said the quarter’s growth reflected pricing, a shift toward higher-performance configurations and higher capacity per system, while overall system unit volumes declined. Deals above $5 million grew 59% year over year. Deals above $20 million increased 385% year over year. U.S. revenue was $688 million, up 19%. International revenue was $498 million, up 75% and accounted for 42% of total revenue. Giancarlo said Evercore is deliberately operating at the lower end of its long-term 65% to 70% product gross-margin range in order to share component-cost pressures with customers and support market-share gains. Robbiati said the company expects margins to move toward the upper end of that range after semiconductor costs stabilize closer to original levels. Evergreen//One Momentum Evergreen//One total contract value reached an annualized run rate above $1 billion for fiscal 2027, according to management. Storage-as-a-service portfolio TCV, which includes Evergreen//One, rose 121% year over year to $277 million in t...