A month has gone by since the last earnings report for Pure Storage (PSTG). Shares have lost about 2.8% in that time frame, outperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Pure Storage due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Pure Storage reported non-GAAP earnings of 32 cents per share in second-quarter fiscal 2023, which beat the Zacks Consensus Estimate of 22 cents. In the prior-year quarter, the company reported 14 cents per share.Total revenues increased 30% from the year-ago quarter to $646.8 million. Moreover, the top line surpassed the Zacks Consensus Estimate by 1.6%.The upside can be attributed to momentum in product and subscription services and revenue growth in the domestic and international segments.Quarter in DetailProduct revenues (contributing 64% to total revenues) amounted to $414.6 million, up 27.6% on a year-over-year basis.Subscription services revenues (36%) of $232.2 million rose 35% on a year-over-year basis. The upside can be attributed to ongoing support contracts and the robust adoption of Evergreen subscription services and synergies from Portworx acquisition .Subscription Annual Recurring Revenues (ARR) amounted to $955 million, up 31% on a year-over-year basis. Subscription ARR includes the annualized value of all active subscription contracts as of the last day of the quarter plus annualized on-demand revenues.Total revenues in the United States moved up 31% and the same in International increased 29% year over year.Pure Storage has also been gaining from its growing clout of FlashArray, FlashArray//C, and FlashBlade, a cost-effective storage array solution. The solution provides customers higher performance capabilities and enables them to run complex cloud workloads on a single platform.In the quarter under review, Pure Storage rolled out a new FlashBlade//S suite of products and announced the general availability of Pure Fusion.Pure Storage added more than 350 customers in the reported quarter. The company’s customer base includes 56% of Fortune 500 companies.Margin HighlightsThe non-GAAP gross margin contracted 10 basis points (bps) from the year-ago quarter to 70.4%.The non-GAAP Product gross margin contracted 130 bps from the year-ago quarter to 69%. The non-GAAP subscription gross margin was 72.9%, which expanded 220 bps on a year-over-year basis.Non-GAAP operating expenses, as a percentage of total revenues, were 54% compared with 61.1% reported in the prior-year quarter.Pure Storage reported a non-GAAP operating profit of $106 million compared with the non-GAAP income of $46.6 million reported in the year-ago quarter. The non-GAAP operating margin stood at 16.4% compared with 9.4% reported in the prior-year quarter.Balance Sheet & Cash FlowPure Storage exited the quarter ended Aug 7, 2022, with cash and cash equivalents and marketable securities of $1.4 billion compared with $1.3 billion as of May 8, 2022.Cash flow from operations amounted to $159.4 million compared with $123.4 million in the prior-year quarter. Free cash flow was $134.2 million compared with $95.7 million in the previous-year quarter.In the fiscal second quarter, the company returned $61 million to shareholders by repurchasing of 2.4 million shares. The company has approximately $123 million remaining under the $250-MILLION share repurchase plan.Deferred revenues increased 29.6% to $1.18 billion in the quarter under review.The remaining performance obligations at the end of the fiscal second quarter totaled $1.5 billion, up 25% year over year. The metric represents total committed non-cancellable future revenues.GuidancePure Storage expects revenues of $670 million for third-quarter fiscal 2023, indicating growth of 19% from the year-ago reported figure. The non-GAAP operating income for the fiscal third quarter is expected to be $85 million. The non-GAAP operating margin is expected to be 12.7%.For fiscal 2023, Pure Storage now expects revenues of $2.75 billion, indicating year-over-year growth of 26%. Earlier, Pure Storage expected revenues of $2.66 billion, indicating year-over-year growth of 22%. The non-GAAP operating income is expected to be $390 million and the non-GAAP operating margin is expected to be 14%. Earlier, the non-GAAP operating income was expected to be $320 million and the non-GAAP operating margin to be 12%.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed an upward trend in estimates revision.The consensus estimate has shifted 82.5% due to these changes.VGM ScoresAt this time, Pure Storage has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Pure Storage has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. 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