Categories Earnings, Technology

Pivotal Software Q2 loss narrows on top-line growth

Pivotal Software Inc. (NYSE: PVTL) reported a narrower loss in the second quarter of 2020 helped by a 17% growth in the total revenues. The results exceeded analysts’ expectations.

Net loss was $28.1 million or $0.10 per share, narrower than a loss of $35.6 million or $0.14 per share in the prior-year quarter. The adjusted per-share results swung to breakeven from a loss of $0.06 a year ago.

Total revenue increased by 17% to $193 million and subscription revenue climbed by 38% to $135 million. The growths were driven by customer expansions and new customer wins.

Pivotal Software Q2 earnings review
Photo Courtesy: Pivotal Software / Facebook post

Given the announcement made on August 22, 2019, regarding Pivotal agreed to be acquired by VMware (NYSE: VMW), Pivotal will not provide a financial outlook for its third quarter or for fiscal 2020. Pivotal will no longer be hosting a conference call to discuss second-quarter fiscal 2020 financial results.

For the second quarter, subscription customers grew 12% year-over-year to 397. The dollar-based net expansion rate was 139%. The subscription revenue growth rate has slowed compared to the previous year as the company added few new customers and retained lesser existing customers during the quarter.

Read: Roku stock soars to record high

It is expected that the new customers are waiting for the acquisition to be completed so that they can sign up with new owners for the subscriptions. The future results are likely to be impacted by the ability to attract new customers, retain existing customers, and expand their use of its platform.

The company’s business model focuses on the large and growing market, rapidly growing subscription revenue at scale, and strong customer adoption and expansion. It also includes strategic services to accelerate customer adoption as well as improving gross margins and operating leverage.

We’re on Apple News! Follow us to receive the latest stock market, earnings, and financial news at your fingertips

Most Popular

Infographic: How Alaska Air Group (ALK) performed in Q1 2024

Alaska Air Group (NYSE: ALK) reported its first quarter 2024 earnings results today. Total operating revenue increased 2% year-over-year to $2.23 billion. Net loss amounted to $132 million, or $1.05 per

KMI Earnings: Kinder Morgan Q1 2024 adjusted profit increases; revenue drops

Kinder Morgan, Inc. (NYSE: KMI) reported higher adjusted earnings for the first quarter of 2024 despite a decrease in revenues. The energy infrastructure company also issued guidance for the full

What to expect when Altria (MO) reports first quarter 2024 earnings results

Shares of Altria Group, Inc. (NYSE: MO) stayed green on Wednesday. The stock has dropped 8% over the past one month. The tobacco giant is scheduled to report its first

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top