Pivotal Software Results Beat View, But Shares Plunge

(RTTNews) - Shares of Pivotal Software Inc. (PVTL) plunged nearly 25% in the extended session Wednesday despite the cloud-software company's second-quarter results and outlook came in ahead of Wall Street estimates.

San Francisco, California-based Pivotal Software reported second-quarter loss of $35.6 million or $0.14 per share, compared to a loss of $35.4 million or $0.52 per share.

On an adjusted basis, the company reported loss per share of $0.06, compared to a loss of $0.13 per share a year ago. Analysts polled by Thomson Reuters estimate loss of $0.09 per share.

Total revenues for the quarter grew 30% to $164.4 million from $126.0 million last year. Analysts had a consensus revenue estimate of $158.22 million.

Subscription revenue surged 51% to $97.5 million as subscription customers increased 19 percent to 354.

"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," said Rob Mee, CEO of Pivotal Software.

Looking forward to the third quarter, Pivotal expects revenues of $163 million to $165 million and adjusted loss of $0.09 to $0.08 per share. Analysts currently estimate loss of $0.10 per share and revenues of $162.72 million.

For the full year 2018, the company expects adjusted loss of $0.36 to $0.34 per share and revenues of $647 million to $653 million. Analysts currently estimate loss of $0.39 per share and revenues of $646.8 million.

PVTL closed Wednesday's trading at $28.78, up $0.80 or 2.86%, on the Nasdaq. The stock, however, slipped $6.83 or 23.73% in the after-hours trade.