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Pivotal Software released its first quarterly earnings report since the joint venture between VMware and EMC went public in April. $PVTL soared 25% after the company beat expectations and raised guidance.

Pivotal Labs Cloud

Earnings

Pivotal reported a fiscal first-quarter net loss of $32.5 million, or 31 cents a share, on sales of $155.7 million, with revenue rising 28% from the same quarter a year ago and the net loss being trimmed from 76 cents a share. After adjusting for stock-based compensation Pivotal claimed a loss of 10 cents a share, from adjusted losses of 20 cents a share a year ago. Analysts on average expected adjusted earnings of 13 cents a share on sales of $140.4 million, according to FactSet.

Pivotal Software Inc NYSE: $PVTL

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 At June 13, 11:53 AM EDT

CEO Rob Mee said on the earnings call "We generated total revenue of $155.7 million, up 28% compared to Q1 last year, driven by strong subscription revenue growth of 69% year-over-year to $90.1 million. In addition, we saw continued customer momentum in Q1, ending the quarter with 339 subscription customers, up 20% year-over-year. The strength of Q1 is a result of our compelling product strategy, focus on customer success, accelerating go-to-market initiatives and a large and growing partner ecosystem."

Highlights

  • Subscription revenue grew 69% year over year;
  • Total revenue grew 28% year over year
  • Subscription customers increased to 339;
  • 20% growth year over year
  • Dollar-based net expansion rate of 156%
  • Pivotal added 20 net new subscription customers from Q4 of fiscal 2018 for a total of 339 subscription customers in Q1
  • Dollar-based net expansion rate was 156%
  • Released Pivotal Cloud Foundry PAS version 2.1 which is designed to deliver a world class experience for .NET developers, support for Windows Server 2016, and Windows native containerization technology
  • Launched Pivotal Container Service (PKS) version 1.0, a joint collaboration among Pivotal, VMware, and Google engineered to deliver secure enterprise-grade Kubernetes

Pivotal Cloud Enterprise Market

Outlook

Pivotal forecast full-year adjusted losses of 37 cents to 39 cents a share on revenue of $642 million to $649 million, ahead of the average analyst estimate of a loss of 45 cents a share on sales of $622 million, according to FactSet.

For the second quarter of fiscal 2019, Pivotal currently expects:

  • Subscription revenue of $92 to $93 million
  • Total revenue of $157 to $159 million
  • Non-GAAP loss from operations of $23 to $22 million
  • Non-GAAP net loss per share of 10¢ to 9¢, assuming weighted average shares outstanding of approximately 249 million

For the full fiscal year 2019, Pivotal currently expects:

  • Subscription revenue of $380 to $384 million
  • Total revenue of $642 to $649 million
  • Non-GAAP loss from operations of $96 to $91 million
  • Non-GAAP net loss per share of 39¢ to 37¢, assuming weighted average shares outstanding of approximately 244 million

About Pivotal

The software company is a joint venture from VMware Inc. VMW and EMC, which is now majority owned by Dell Technologies Inc. The PVTL cloud-native platform, Pivotal Cloud Foundry, enables developers to spend more time writing code, and operators to improve security and uptime. Pivotal’s products are used by Global 2000 companies and developers to make software development and IT operations a strategic advantage.

 

Source: Pivotal software

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