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Pivotal Reports Third Quarter Fiscal Year 2019 Financial Results

Pivotal Software, Inc., a leading cloud-native platform provider, today reported results for the fiscal 2019 third quarter ended November 2, 2018.

"We generated strong revenue growth in our third quarter and continued to deliver innovative products across our portfolio. We also saw meaningful transactions with both new and existing customers as organizations across industries continue to choose Pivotal as their strategic partner for digital transformation," said Rob Mee, CEO of Pivotal Software. "While enterprises face a fast moving market environment and a complex technology landscape, we remain confident that our unique combination of Pivotal Cloud Foundry and Labs provide customers with a proven model to innovate and modernize at scale."

Third Quarter Fiscal Year 2019 Financial Results

Revenue: Subscription revenue was $100.8 million, an increase of 53% year over year. Total revenue was $168.1 million, an increase of 30% year over year.

Operating Loss: GAAP operating loss was $35.9 million, or 21% of total revenue, compared to a loss of $36.5 million in Q3 of last year. Non-GAAP operating loss was $14.8 million, or 9% of total revenue, compared to a loss of $25.0 million year over year.

Net Loss: GAAP net loss was $34.9 million, compared to a loss of $39.3 million year over year. GAAP net loss per share was $0.13, compared to a loss of $0.57 in Q3 of last year. Non-GAAP net loss was $13.8 million, compared to a loss of $27.9 million year over year. Non-GAAP net loss per share was $0.05, compared to a loss of $0.13 in Q3 of last year.

Cash Flow: Operating cash flow for the quarter was negative $36.2 million compared to negative operating cash flow of $39.8 million in Q3 of last year.

Cash and cash equivalents were $664.8 million as of November 2, 2018.

Recent Business Highlights

  • Subscription customers grew 17% year over year to 368 in Q3
  • Dollar-based net expansion rate was 150%
  • Released new features to Pivotal Cloud Foundry to help enterprises achieve meaningful business outcomes through the continuous delivery of high-quality software and simplification of operations including:
    • PAS 2.3 added greater support for the .NET Framework and simplifies how development teams securely share data across microservices
    • PKS 1.2 expanded multi-cloud support to include AWS and includes the latest Kubernetes release maintaining constant compatibility with Google Kubernetes Engine
  • PKS winner of CRN's 2018 Tech Innovator award

Financial Outlook

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

  • Subscription revenue of $109.5 to $110.5 million
  • Total revenue of $169 to $171 million
  • Non-GAAP loss from operations of $26 to $25 million
  • Non-GAAP net loss per share of 10¢ to 9¢ assuming weighted average shares outstanding of approximately 264 million

For the full fiscal year 2019, Pivotal currently expects:

  • Subscription revenue of $398 to $399 million
  • Total revenue of $657 to $659 million
  • Non-GAAP loss from operations of $76.5 to $75.5 million
  • Non-GAAP net loss per share of 32¢ to 31¢, assuming weighted average shares outstanding of approximately 251 million

Pivotal has not reconciled these forward-looking non-GAAP measures to comparable forward-looking GAAP measures because of the potential variability and uncertainty of incurring these costs and expenses in the future. Accordingly, a reconciliation is not available without unreasonable effort.

Published Tuesday, December 11, 2018 7:21 PM by David Marshall
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