Pivotal Software Inc. (NYSE: PVTL)
Shares of Pivotal Software Inc., dropped in premarket trading on Thursday despite the cloud software firm reporting second-quarter results that topped estimates. The stock lost nearly 6 dollars during the session.
Revenue during the quarter increased by 30% from the year-ago period. Pivotal Software also issued its earnings guidance for the third quarter that was slightly above estimates as its revenue projections fell in line with Wall Street expectations.
Investors appear to have been hoping for better results than what the firm delivered. The California-based company went public in April and priced at $15 a share. The stock has almost doubled since the company since then, and ended regular trading on Wednesday at $28.78.
PVTL Earnings & Outlook
Net loss during the quarter was $35.6 million, or $0.14 per share, compared to a loss of $35.4 million, or $0.52 per share in the same period last year. Excluding non-recurring items, the company lost $0.06 per share, while revenue increased to $164 million. Analysts expected an adjusted loss of $0.09 per share on sales of $158.1 million.
Pivotal Software said subscription revenue climbed 51% to $97.5 million beating analyst consensus estimate of $93 million. The firm projects a loss of $0.08 cents to $0.09 per share on sales of $163 million to $165 million for the third quarter. Wall Street predict an adjusted loss of $0.09 per share on revenue $162.9 million for the current quarter.
The software maker expects full-year loss of $0.36 to $0.34 per share on revenue of $647 million to $653 million. Analysts on average expect an adjusted loss of $0.39 on per share on sales of $646.8 million for the full year.
Pivotal Software CEO Comments
Pivotal Software Chief executive Robert Mee said, “Pivotal delivered another strong performance in the second quarter. We remain focused on customer success and winning new customers with our differentiated, multi-cloud platform. Subscription revenue growth of 51% and 30% total revenue growth were driven by customer expansions and new customer wins.”
“Organizations that work with Pivotal learn to build iteratively, deliver continuously and operate securely and reliably at scale. We’ve shown that Pivotal’s cloud-native platform, developer tools, and unique methodology provide the elements necessary to modernize an enterprise,” Mr. Mee added.
Pivotal Software Inc., Company Profile
Pivotal Software, Inc., together with its subsidiaries, provides an integrated solution that combines a cloud-native application platform and services in the United States. Its cloud-native platform, Pivotal Cloud Foundry (PCF), accelerates and streamlines software development by reducing the complexity of building, deploying, and operating modern applications.
The company also enables its customers to accelerate their adoption of a modern software development process and their business success using its platform through its strategic services, Pivotal Labs (Labs). Pivotal Software, Inc. markets and sells PCF and Labs through its sales force and ecosystem partners.
The company was founded by Paul Maritz, Robert C. Mee and Scott Yara in 2013 and is headquartered in San Francisco, California. It competes with Sabre Corporation, Micro Focus International PLC and EPAM Systems Incorporated. –YahooFinance