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 Pivotal Reports Second Quarter Fiscal Year 2020 Financial Results
   Wednesday, September 04, 2019 4:11:00 PM ET
  • Subscription revenue grew 38% year over year
  • Total revenue grew 17% year over year
  • Subscription customers increased 12% year over year to 397
  • Dollar-based net expansion rate of 139%

SAN FRANCISCO--(BUSINESS WIRE)--Pivotal Software, Inc. (NYSE: PVTL), a leading cloud-native platform provider, today reported results for the second quarter fiscal year 2020 ended August 2, 2019.

“Pivotal delivered a solid 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 38% and 17% total revenue growth were driven by customer expansions and new customer wins,” said Rob Mee, CEO of Pivotal Software. “Our platform and strategic services enable enterprises to modernize their development practices and securely operate their most important applications across multi-cloud environments.”



Second Quarter Fiscal 2020 Financial Results

Revenue: Subscription revenue was $135.0 million, an increase of 38% year over year. Total revenue was $193.0 million, an increase of 17% year over year.

Operating Loss: GAAP operating loss was $31.4 million, or 16% of total revenue, compared to a loss of $35.4 million in Q2 of last year. Non-GAAP operating loss was $4.5 million, or 2% of total revenue, compared to a loss of $14.6 million in Q2 of last year.

Net Income (Loss): GAAP net loss was $28.1 million, compared to a loss of $35.6 million in Q2 of last year. GAAP net loss per share was $0.10, compared to a loss of $0.14 in Q2 of last year. Non-GAAP net loss was $1.2 million, compared to a loss of $14.8 million in Q2 of last year. Non-GAAP net income (loss) per share was $0.00, compared to a loss of $0.06 in Q2 of last year.

Cash Flow: Operating cash flow was negative $58.5 million compared to operating cash flow of $18.4 million in Q2 of last year.

Cash and cash equivalents were $808.4 million as of August 2, 2019.

Recent Business Highlights

  • Subscription customers grew 12% year over year to 397
  • Dollar-based net expansion rate was 139%
  • New features added to Pivotal Cloud Foundry (PCF) include:
    • Pivotal Application Service (PAS) 2.6 adds new capabilities to make it easier for developers to build, wire and run cloud native applications. Highlights include the ability to deploy a custom sidecar process alongside your application and new integrations with Spinnaker, the leading tool for multi-cloud continuous delivery
    • Pivotal Container Service (PKS) 1.5 delivers support for Windows .Net on Kubernetes
    • The alpha version of PAS on Kubernetes improves the developer and operator experience when using Kubernetes
    • The alpha version of Pivotal Build Service brings developer productivity and operational excellence to containers in Kubernetes
  • Named to Fast Company’s list of the 50 Best Workplaces for Innovators

Financial Outlook and Webcast

Given the announcement made on August 22, 2019 regarding Pivotal's entry into a definitive agreement to be acquired by VMware, Pivotal will not be providing a financial outlook for its third quarter or for the fiscal year 2020. Pivotal will no longer be hosting a conference call to discuss second quarter fiscal year 2020 financial results.

About Pivotal

Pivotal combines our cloud-native platform, developer tools, and unique methodology to help the world’s largest companies transform the way they build and run their most important applications. Our technology is used by Global 2000 companies to achieve strategic advantages in software development and IT operations. Learn more at pivotal.io .

Non-GAAP Financial Measures

Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section of the tables titled "About Non-GAAP Financial Measures."

Key Metric Definitions

Subscription Customers: Pivotal defines the number of subscription customers as the organizations that have a subscription contract for Pivotal’s software resulting in at least $50,000 of annual revenue in that period.

Dollar-Based Net Expansion Rate: Pivotal’s dollar-based net expansion rate compares its subscription revenue from a common group of customers across comparable periods. Pivotal calculates its dollar-based net expansion rate for all periods on a trailing four-quarter basis.

Forward-Looking Statements

This press release contains statements relating to Pivotal’s expectations, projections, beliefs, and prospects, which are "forward-looking statements” within the meaning of the federal securities laws and by their nature are uncertain. Words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "plans," and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are not guarantees of future performance, and you are cautioned not to place undue reliance on these forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements as a result of many factors, including but not limited to: (i) Pivotal’s limited operating history as an independent company, which makes it difficult to evaluate Pivotal’s prospects; (ii) the substantial losses Pivotal has incurred and the risks of not being able to generate sufficient revenue to achieve and sustain profitability; (iii) Pivotal’s future success depending in large part on the growth of Pivotal’s target markets; (iv) Pivotal’s future growth depending largely on Pivotal Cloud Foundry and Pivotal’s platform-related services; (v) Pivotal’s subscription revenue growth rate not being indicative of Pivotal’s future performance or ability to grow; (vi) Pivotal’s business and prospects being harmed if customers do not renew their subscriptions or expand their use of Pivotal’s platform; (vii) any failure by Pivotal to compete effectively; (viii) Pivotal’s long and unpredictable sales cycles that vary seasonally and which can cause significant variation in the number and size of transactions that can close in a particular quarter; (ix) Pivotal’s lack of control of and inability to predict the future course of open-source technologies, including Kubernetes and those used in Pivotal Cloud Foundry; and (x) any security or privacy breaches. All information set forth in this release is current as of the date of this release. These forward-looking statements are based on current expectations and are subject to uncertainties, risks, assumptions, and changes in condition, significance, value and effect as well as other risks disclosed previously and from time to time in documents filed by us with the U.S. Securities and Exchange Commission (SEC). Additional information will be made available in Pivotal’s annual report on Form 10-K and other future reports that Pivotal may file with the SEC, which could cause actual results to vary from expectations. Pivotal disclaims any obligation to, and does not currently intend to, update any such forward-looking statements, whether written or oral, that may be made from time to time except as required by law.

Pivotal Software, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts); (unaudited)
 
Three Months EndedSix Months Ended

August 2,

 

August 3,

 

August 2,

 

August 3,

2019

 

2018

 

2019

 

2018

Revenue:
Subscription

$

134,990

 

$

97,494

 

$

263,846

 

$

187,615

 

Services

 

58,006

 

 

66,914

 

 

114,865

 

 

132,528

 

Total revenue

 

192,996

 

 

164,408

 

 

378,711

 

 

320,143

 

Cost of revenue:
Subscription

 

9,108

 

 

8,105

 

 

17,664

 

 

16,234

 

Services

 

51,417

 

 

53,129

 

 

103,463

 

 

104,291

 

Total cost of revenue

 

60,525

 

 

61,234

 

 

121,127

 

 

120,525

 

Gross profit

 

132,471

 

 

103,174

 

 

257,584

 

 

199,618

 

Operating expenses:
Sales and marketing

 

82,639

 

 

70,550

 

 

164,260

 

 

139,688

 

Research and development

 

58,676

 

 

47,001

 

 

114,931

 

 

91,429

 

General and administrative

 

22,557

 

 

21,025

 

 

44,702

 

 

37,433

 

Total operating expenses

 

163,872

 

 

138,576

 

 

323,893

 

 

268,550

 

Loss from operations

 

(31,401

)

 

(35,402

)

 

(66,309

)

 

(68,932

)

Other income, net

 

3,820

 

 

237

 

 

7,420

 

 

546

 

Loss before provision for (benefit from) income taxes

 

(27,581

)

 

(35,165

)

 

(58,889

)

 

(68,386

)

Provision for (benefit from) income taxes

 

525

 

 

437

 

 

1,000

 

 

(227

)

Net loss

 

(28,106

)

 

(35,602

)

 

(59,889

)

 

(68,159

)

Less: Net loss (income) attributable to non-controlling interest

 

(9

)

 

(5

)

 

37

 

 

37

 

Net loss attributable to Pivotal

$

(28,115

)

$

(35,607

)

$

(59,852

)

$

(68,122

)

Net loss per share attributable to common stockholders, basic and diluted

$

(0.10

)

$

(0.14

)

$

(0.22

)

$

(0.38

)

Weighted average shares outstanding used in computing net loss per share attributable to common stockholders, basic and diluted

 

272,724

 

 

257,240

 

 

270,619

 

 

181,404

 

Pivotal Software, Inc.
Condensed Consolidated Balance Sheets
(in thousands); (unaudited)
 
August 2,February 1,

2019

2019

Assets
Current assets:
Cash and cash equivalents

$

808,432

 

$

701,733

 

Accounts receivable, net of allowance of $5,965 and $4,266 as of August 2, 2019 and February 1, 2019, respectively

 

122,713

 

 

308,492

 

Due from Parent

 

30,081

 

 

951

 

Deferred sales commissions, current

 

36,124

 

 

39,572

 

Other assets, current

 

12,948

 

 

16,738

 

Total current assets

 

1,010,298

 

 

1,067,486

 

Property, plant and equipment, net

 

27,462

 

 

27,879

 

Operating lease right-of-use assets

 

130,102

 

 

Intangible assets, net

 

15,981

 

 

18,680

 

Goodwill

 

696,226

 

 

696,226

 

Deferred income taxes

 

342

 

 

258

 

Deferred sales commissions, noncurrent

 

32,865

 

 

35,522

 

Other assets, noncurrent

 

7,416

 

 

4,417

 

Total assets

$

1,920,692

 

$

1,850,468

 

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable

$

11,554

 

$

18,421

 

Due to Parent

 

12,007

 

 

20,241

 

Accrued expenses

 

60,260

 

 

64,723

 

Income taxes payable

 

1,113

 

 

1,232

 

Deferred revenue, current

 

304,977

 

 

376,985

 

Operating lease liabilities, current

 

21,820

 

 

Other liabilities, current

 

5,356

 

 

4,373

 

Total current liabilities

 

417,087

 

 

485,975

 

Deferred revenue, noncurrent

 

55,429

 

 

89,603

 

Operating lease liabilities, noncurrent

 

121,520

 

 

Other liabilities, noncurrent

 

2,157

 

 

9,412

 

Total liabilities

 

596,193

 

 

584,990

 

Stockholders’ equity:
Class A common stock

 

986

 

 

901

 

Class B common stock

 

1,755

 

 

1,755

 

Additional paid-in capital

 

2,660,012

 

 

2,540,921

 

Accumulated deficit

 

(1,344,355

)

 

(1,284,503

)

Accumulated other comprehensive income

 

5,421

 

 

5,687

 

Total Pivotal stockholders’ equity

 

1,323,819

 

 

1,264,761

 

Non-controlling interest

 

680

 

 

717

 

Total stockholders’ equity

 

1,324,499

 

 

1,265,478

 

Total liabilities and stockholders’ equity

$

1,920,692

 

$

1,850,468

 

Pivotal Software, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands); (unaudited)
 
Three Months EndedSix Months Ended
August 2,August 3,August 2,August 3,

2019

 

2018

 

2019

 

2018

Cash flows from operating activities:
Net loss

$

(28,106

)

$

(35,602

)

$

(59,889

)

$

(68,159

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization of intangible assets

 

4,336

 

 

4,599

 

 

8,434

 

 

9,354

 

Amortization of lease right-of-use assets and other expense

 

7,804

 

 

-

 

 

15,417

 

 

-

 

Stock-based compensation expense

 

25,427

 

 

19,044

 

 

47,397

 

 

29,805

 

Provision for doubtful accounts

 

(257

)

 

388

 

 

(197

)

 

619

 

Deferred income taxes

 

(12

)

 

64

 

 

(103

)

 

(405

)

Gain on sale of investment

 

-

 

 

-

 

 

(746

)

 

(3,234

)

Other

 

(16

)

 

1,449

 

 

497

 

 

1,461

 

Changes in assets and liabilities:
Accounts receivable

 

(5,003

)

 

46,454

 

 

185,566

 

 

76,340

 

Due from Parent

 

(265

)

 

(7

)

 

(2,230

)

 

(236

)

Deferred sales commissions

 

(348

)

 

3,075

 

 

6,105

 

 

4,272

 

Other assets

 

1,075

 

 

(3,920

)

 

2,788

 

 

(2,457

)

Accounts payable

 

(4,948

)

 

3,984

 

 

(7,150

)

 

(547

)

Due to Parent

 

(1,653

)

 

(2,130

)

 

(8,119

)

 

(3,185

)

Deferred revenue

 

(56,667

)

 

(31,218

)

 

(106,276

)

 

(10,554

)

Accrued expenses

 

12,885

 

 

5,692

 

 

(3,916

)

 

(16,213

)

Operating lease liabilities

 

(7,024

)

 

-

 

 

(14,811

)

 

-

 

Other liabilities

 

(5,695

)

 

6,497

 

 

973

 

 

5,959

 

Net cash provided by (used in) operating activities

 

(58,467

)

 

18,369

 

 

63,740

 

 

22,820

 

Cash flows from investing activities:
Additions to property, plant and equipment

 

(2,732

)

 

(2,173

)

 

(4,936

)

 

(4,052

)

Proceeds from sale of investment

 

-

 

 

-

 

 

1,929

 

 

3,234

 

Net cash used in investing activities

 

(2,732

)

 

(2,173

)

 

(3,007

)

 

(818

)

Cash flows from financing activities:
Proceeds from the initial public offering, net of issuance costs paid

 

-

 

 

(2,580

)

 

-

 

 

544,674

 

Proceeds from the issuance of common stock

 

5,962

 

 

2,814

 

 

36,542

 

 

9,424

 

Proceeds from employee stock plans

 

8,967

 

 

-

 

 

8,967

 

 

-

 

Contribution from Dell

 

-

 

 

9,300

 

 

-

 

 

41,277

 

Borrowings on credit facility

 

-

 

 

-

 

 

-

 

 

15,000

 

Repayments on credit facility

 

-

 

 

-

 

 

-

 

 

(35,000

)

Net cash provided by financing activities

 

14,929

 

 

9,534

 

 

45,509

 

 

575,375

 

Effect of exchange rate changes on cash and cash equivalents

 

487

 

 

512

 

 

457

 

 

1,319

 

Net increase (decrease) in cash and cash equivalents

 

(45,783

)

 

26,242

 

 

106,699

 

 

598,696

 

Cash and cash equivalents at beginning of period

 

854,215

 

 

645,466

 

 

701,733

 

 

73,012

 

Cash and cash equivalents at end of period

$

808,432

 

$

671,708

 

$

808,432

 

$

671,708

 

Pivotal Software, Inc.
GAAP to Non-GAAP Reconciliation
(in thousands, except percentages and per share amounts); (unaudited)
 
Three Months Ended August 2, 2019
GAAPStock-based
compensation
expense
Amortization of
acquired
intangibles
Gain on sale of
investment
Non-GAAP
Cost of subscription revenue

$

9,108

 

$

(602

)

$

(51

)

$

-

 

$

8,455

 

Subscription gross margin

 

93.3

%

 

0.4

%

 

0.0

%

-

%

 

93.7

%

Cost of services revenue

 

51,417

 

 

(5,533

)

 

-

 

 

-

 

 

45,884

 

Services gross margin

 

11.4

%

 

9.5

%

-

%

-

%

 

20.9

%

Gross profit

 

132,471

 

 

6,135

 

 

51

 

 

-

 

 

138,657

 

Gross margin

 

68.6

%

 

3.2

%

 

0.0

%

-

%

 

71.8

%

Sales and marketing

 

82,639

 

 

(7,610

)

 

(1,107

)

 

-

 

 

73,922

 

Research and development

 

58,676

 

 

(7,635

)

 

-

 

 

-

 

 

51,041

 

General and administrative

 

22,557

 

 

(4,047

)

 

(356

)

 

-

 

 

18,154

 

Total operating expenses

 

163,872

 

 

(19,292

)

 

(1,463

)

 

-

 

 

143,117

 

Loss from operations

 

(31,401

)

 

25,427

 

 

1,514

 

 

-

 

 

(4,460

)

Operating margin

 

(16.3

%)

 

13.2

%

 

0.8

%

-

%

 

(2.3

%)

Other income, net

 

3,820

 

 

-

 

 

-

 

 

-

 

 

3,820

 

Net loss attributable to Pivotal

$

(28,115

)

$

25,427

 

$

1,514

 

$

-

 

$

(1,174

)

Net income (loss) per share, basic and diluted (1)

$

(0.10

)

$

0.00

 

 
(1) GAAP and Non-GAAP net income (loss) per common share calculated based upon 272,724 basic and diluted weighted average shares outstanding of common stock.
 
 
Three Months Ended August 3, 2018
GAAPStock-based
compensation
expense
Amortization of
acquired
intangibles
Gain on sale of
investment
Non-GAAP
Cost of subscription revenue

$

8,105

 

$

(411

)

$

(433

)

$

-

 

$

7,261

 

Subscription gross margin

 

91.7

%

 

0.4

%

 

0.4

%

-

%

 

92.6

%

Cost of services revenue

 

53,129

 

 

(4,188

)

 

-

 

 

-

 

 

48,941

 

Services gross margin

 

20.6

%

 

6.3

%

-

%

-

%

 

26.9

%

Gross profit

 

103,174

 

 

4,599

 

 

433

 

 

-

 

 

108,206

 

Gross margin

 

62.8

%

 

2.8

%

 

0.3

%

-

%

 

65.8

%

Sales and marketing

 

70,550

 

 

(5,688

)

 

(910

)

 

-

 

 

63,952

 

Research and development

 

47,001

 

 

(5,386

)

 

-

 

 

-

 

 

41,615

 

General and administrative

 

21,025

 

 

(3,371

)

 

(384

)

 

-

 

 

17,270

 

Total operating expenses

 

138,576

 

 

(14,445

)

 

(1,294

)

 

-

 

 

122,837

 

Loss from operations

 

(35,402

)

 

19,044

 

 

1,727

 

 

-

 

 

(14,631

)

Operating margin

 

(21.5

%)

 

11.6

%

 

1.1

%

-

%

 

(8.9

%)

Other income, net

 

237

 

 

-

 

 

-

 

 

-

 

 

237

 

Net loss attributable to Pivotal

$

(35,607

)

$

19,044

 

$

1,727

 

$

-

 

$

(14,836

)

Net loss per share, basic and diluted (1)

$

(0.14

)

$

(0.06

)

 
(1) GAAP and Non-GAAP net loss per common share calculated based upon 257,240 basic and diluted weighted average shares outstanding of common stock.
 
Six Months Ended August 2, 2019
GAAPStock-based
compensation
expense
Amortization of
acquired
intangibles
Gain on sale of
investment
Non-GAAP
Cost of subscription revenue

$

17,664

 

$

(1,108

)

$

(120

)

$

-

 

$

16,436

 

Subscription gross margin

 

93.3

%

 

0.4

%

 

0.0

%

-

%

 

93.8

%

Cost of services revenue

 

103,463

 

 

(10,211

)

 

-

 

 

-

 

 

93,252

 

Services gross margin

 

9.9

%

 

8.9

%

-

%

-

%

 

18.8

%

Gross profit

 

257,584

 

 

11,319

 

 

120

 

 

-

 

 

269,023

 

Gross margin

 

68.0

%

 

3.0

%

 

0.0

%

-

%

 

71.0

%

Sales and marketing

 

164,260

 

 

(14,421

)

 

(1,867

)

 

-

 

 

147,972

 

Research and development

 

114,931

 

 

(14,109

)

 

-

 

 

-

 

 

100,822

 

General and administrative

 

44,702

 

 

(7,548

)

 

(712

)

 

-

 

 

36,442

 

Total operating expenses

 

323,893

 

 

(36,078

)

 

(2,579

)

 

-

 

 

285,236

 

Loss from operations

 

(66,309

)

 

47,397

 

 

2,699

 

 

-

 

 

(16,213

)

Operating margin

 

(17.5

%)

 

12.5

%

 

0.7

%

-

%

 

(4.3

%)

Other income, net

 

7,420

 

 

-

 

 

-

 

 

-

 

 

7,420

 

Net loss attributable to Pivotal

$

(59,852

)

$

47,397

 

$

2,699

 

$

-

 

$

(9,756

)

Net loss per share, basic and diluted (1)

$

(0.22

)

$

(0.04

)

 
(1) GAAP and Non-GAAP net loss per common share calculated based upon 270,619 basic and diluted weighted average shares outstanding of common stock.
 
Six Months Ended August 3, 2018
GAAPStock-based
compensation
expense
Amortization of
acquired
intangibles
Gain on sale of
investment
Non-GAAP
Cost of subscription revenue

$

16,234

 

$

(638

)

$

(865

)

$

-

 

$

14,731

 

Subscription gross margin

 

91.3

%

 

0.3

%

 

0.5

%

-

%

 

92.1

%

Cost of services revenue

 

104,291

 

 

(6,477

)

 

-

 

 

-

 

 

97,814

 

Services gross margin

 

21.3

%

 

4.9

%

-

%

-

%

 

26.2

%

Gross profit

 

199,618

 

 

7,115

 

 

865

 

 

-

 

 

207,598

 

Gross margin

 

62.4

%

 

2.2

%

 

0.3

%

-

%

 

64.8

%

Sales and marketing

 

139,688

 

 

(9,259

)

 

(1,816

)

 

-

 

 

128,613

 

Research and development

 

91,429

 

 

(8,250

)

 

-

 

 

-

 

 

83,179

 

General and administrative

 

37,433

 

 

(5,181

)

 

(767

)

 

-

 

 

31,485

 

Total operating expenses

 

268,550

 

 

(22,690

)

 

(2,583

)

 

-

 

 

243,277

 

Loss from operations

 

(68,932

)

 

29,805

 

 

3,448

 

 

-

 

 

(35,679

)

Operating margin

 

(21.5

%)

 

9.3

%

 

1.1

%

-

%

 

(11.1

%)

Other income (expense), net

 

546

 

 

-

 

 

-

 

 

(3,234

)

 

(2,688

)

Net loss attributable to Pivotal

$

(68,122

)

$

29,805

 

$

3,448

 

$

(3,234

)

$

(38,103

)

Net loss per share, basic and diluted (1)

$

(0.38

)

$

(0.16

)

 
(1) GAAP net loss per common share calculated based upon 181,404 basic and diluted weighted average shares outstanding of common stock. Non-GAAP net loss per common share calculated based upon 240,719 basic and diluted weighted average shares outstanding of common stock.
Pivotal Software, Inc.
GAAP to Non-GAAP Weighted Average Shares Outstanding Reconciliation
(in thousands); (unaudited)
 
Three Months EndedSix Months Ended
August 2,August 3,August 2,August 3,

2019

2018

2019

2018

GAAP weighted average shares outstanding, basic and diluted

272,724

257,240

270,619

181,404

Assumed preferred stock conversion

59,315

Non-GAAP weighted average shares outstanding, basic and diluted

272,724

257,240

270,619

240,719

About Non-GAAP Financial Measures

To supplement Pivotal’s consolidated financial statements, which are prepared and presented in accordance with GAAP, Pivotal provides investors with certain non-GAAP financial measures, including but not limited to: non-GAAP cost of subscription, non-GAAP cost of services, non-GAAP gross profit, non-GAAP gross margin, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss, non-GAAP net loss per share, and non-GAAP weighted average shares outstanding. Certain of these non-GAAP financial measures exclude stock-based compensation, amortization of acquired intangibles and gain on sale of investment. For more information on the comparable GAAP to non-GAAP financial measures, please see the reconciliation table included with this release.

Management believes non-GAAP information is useful in evaluating the operating results, ongoing operations, and for internal planning and forecasting purposes. Management also believes that non-GAAP financial measures provide consistency and comparability with past financial performance and assist investors with comparing Pivotal to other companies, some of which use similar non-GAAP financial measures to supplement their GAAP results. Management believes non-GAAP financial measures are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP and may be different from similarly-titled non-GAAP financial measures used by other companies.

Pivotal excludes stock-based compensation because it is non-cash in nature and excludes it in order to facilitate comparisons to other companies’ results. Pivotal excludes amortization of acquired intangibles because it is consistent with how management evaluates operating results and prepares financial plans and forecasts. While the purchase accounting for an acquisition reflects the accounting value assigned to intangible assets, management believes the GAAP impact of acquired intangible assets is not representative of long term operating results. Pivotal excludes gains/losses on sales of strategic investments because management believes these are more reflective of discrete events and less reflective of results in a particular period.

Source: Pivotal Investor Relations

©2019 Pivotal Software, Inc. All rights reserved. Pivotal is a trademark and/or registered trademark of Pivotal Software, Inc. in the United States and/or other countries.

Pivotal Software
Investor Contact:
Helyn Corcos
hcorcos@pivotal.io
or
Media Contact:
Joseph Roualdes
jroualdes@pivotal.io

Source: Pivotal Software, Inc.



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