[March 14, 2019] |
|
Pivotal Reports Fourth Quarter and Full Fiscal Year 2019 Financial Results
Pivotal Software, Inc. (NYSE: PVTL), a leading cloud-native platform
provider, today reported results for the fourth quarter and full fiscal
year 2019 ended February 1, 2019.
"Pivotal delivered a strong fourth quarter, wrapping up a successful
initial year as a public company. Our unique combination of software and
services is attracting new customers, and driving many of our existing
customers to grow their investments with us," said Rob Mee, CEO of
Pivotal Software. "We are still in the early stages of this high-growth
market. To capitalize on the digital transformation opportunity, we will
continue to fuel innovation by investing in R&D, and at the same time,
continue our relentless focus on satisfying customers as they move more
mission-critical apps to our multi-cloud platform."
Fourth Quarter Fiscal 2019 Financial Results
Revenue: Subscription revenue was $112.5 million, an increase of
50% year over year. Total revenue was $169.2 million, an increase of 27%
year over year.
Operating Loss: GAAP operating loss was $42.0 million, or 25% of
total revenue, compared to a loss of $45.2 million in Q4 of last year.
Non-GAAP operating loss was $20.8 million, or 12% of total revenue,
compared to a loss of $34.0 million in Q4 of last year.
Net Loss: GAAP net loss was $38.9 million, compared to a loss of
$37.2 million in Q4 of last year. GAAP net loss per share was $0.15,
compared to a loss of $0.54 in Q4 of last year. Non-GAAP net loss was
$17.7 million, compared to a loss of $26.1 million in Q4 of last year.
Non-GAAP net loss per share was $0.07, compared to a loss of $0.12 in Q4
of last year.
Cash Flow: Operating cash flow was $8.0 million compared to
negative operating cash flow of $15.7 million in Q4 of last year.
Cash and cash equivalents were $701.7 million as of February 1,
2019.
Full Year Fiscal 2019 Financial Results
Revenue: Subscription revenue was $400.9 million, an increase of
55% year over year. Total revenue was $657.5 million, an increase of 29%
year over year.
Operating Loss: GAAP operating loss was $146.8 million, or 22% of
total revenue, compared to a loss of $168.3 million in FY18. Non-GAAP
operating loss was $71.3 million, or 11% of total revenue, compared to a
loss of $128.5 million in FY18.
Net Loss: GAAP net loss was $141.9 million, compared to a loss of
$163.5 million in FY18. GAAP net loss per share was $0.64, compared to a
loss of $2.38 in FY18. Non-GAAP net loss was $69.6 million, compared to
a loss of $123.7 million in FY18. Non-GAAP net loss per share was $0.28,
compared to a loss of $0.57 in FY18.
Cash Flow: Operating cash flow was negative $5.4 million compared
to operating cash flow of negative $116.5 million for FY18.
Recent Business Highlights
-
Subscription customers grew 18% year over year to 377 in Q4
-
Dollar-based net expansion rate was 149%
-
Released new features to Pivotal Cloud Foundry to help enterprises
achieve meaningful business outcomes through the continuous delivery
of high-quality software and simplified operations including:
-
Pivotal Application Service 2.4 added several new capabilities,
including rolling application deployments to give developers more
control over how application code is deployed
-
Pivotal Container Service 1.3 delivered the latest stable release
of Kubernetes, production support for running on Microsoft Azure,
and improvements to networking and availability
-
The alpha version of Pivotal Function Service offered customers
Kubernetes-based, multi-cloud, event-driven functions
-
Named one of CRN's 20 Coolest Cloud Platform Vendors of the 2019
Financial Outlook
For the first quarter of fiscal 2020, Pivotal currently expects:
-
Subscription revenue of $124.5 to $125.5 million
-
Total revenue of $183 to $185 million
-
Non-GAAP loss from operations of $13.5 to $12.5 million
-
Non-GAAP net loss per share of 6¢ to 5¢, assuming weighted average
shares outstanding of approximately 267 million
For the full fiscal year 2020, Pivotal currently expects:
-
Subscription revenue of $542 to $547 million
-
Total revenue of $798 to $806 million
-
Non-GAAP loss from operations of $38 to $36 million
-
Non-GAAP net loss per share of 15¢ to 13¢, assuming weighted average
shares outstanding of approximately 272 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.
Conference Call and Webcast Information
Pivotal will host a conference call at 2:00pm PDT (5:00pm EDT) today to
discuss our financial results. A live audio webcast of the conference
call will be accessible on Pivotal's investor relations web page at https://pivotal.io/investors.
A replay of the webcast will be available following the conference call.
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 (including statements
regarding fueling innovation by investing in R&D and Pivotal's financial
outlook), 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 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 Ended
|
|
|
Fiscal Year Ended
|
|
|
February 1,
|
|
February 2,
|
|
|
February 1,
|
|
February 2,
|
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
$
|
112,476
|
|
|
$
|
74,979
|
|
|
|
$
|
400,866
|
|
|
$
|
259,018
|
|
Services
|
|
|
56,732
|
|
|
|
58,265
|
|
|
|
|
256,628
|
|
|
|
250,418
|
|
Total revenue
|
|
|
169,208
|
|
|
|
133,244
|
|
|
|
|
657,494
|
|
|
|
509,436
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
|
8,095
|
|
|
|
7,729
|
|
|
|
|
32,142
|
|
|
|
30,472
|
|
Services
|
|
|
51,103
|
|
|
|
49,786
|
|
|
|
|
208,573
|
|
|
|
197,922
|
|
Total cost of revenue
|
|
|
59,198
|
|
|
|
57,515
|
|
|
|
|
240,715
|
|
|
|
228,394
|
|
Gross profit
|
|
|
110,010
|
|
|
|
75,729
|
|
|
|
|
416,779
|
|
|
|
281,042
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
76,077
|
|
|
|
61,860
|
|
|
|
|
286,385
|
|
|
|
221,187
|
|
Research and development
|
|
|
53,097
|
|
|
|
41,036
|
|
|
|
|
196,406
|
|
|
|
160,947
|
|
General and administrative
|
|
|
22,823
|
|
|
|
18,022
|
|
|
|
|
80,802
|
|
|
|
67,204
|
|
Total operating expenses
|
|
|
151,997
|
|
|
|
120,918
|
|
|
|
|
563,593
|
|
|
|
449,338
|
|
Loss from operations
|
|
|
(41,987
|
)
|
|
|
(45,189
|
)
|
|
|
|
(146,814
|
)
|
|
|
(168,296
|
)
|
Other income (expense), net
|
|
|
3,074
|
|
|
|
1,615
|
|
|
|
|
5,486
|
|
|
|
2,145
|
|
Loss before provision for (benefit from) income taxes
|
|
|
(38,913
|
)
|
|
|
(43,574
|
)
|
|
|
|
(141,328
|
)
|
|
|
(166,151
|
)
|
Provision for (benefit from) income taxes
|
|
|
21
|
|
|
|
(6,255
|
)
|
|
|
|
570
|
|
|
|
(2,637
|
)
|
Net loss
|
|
|
(38,934
|
)
|
|
|
(37,319
|
)
|
|
|
|
(141,898
|
)
|
|
|
(163,514
|
)
|
Less: Net loss (income) attributable to non-controlling interest
|
|
|
3
|
|
|
|
83
|
|
|
|
|
(5
|
)
|
|
|
(1
|
)
|
Net loss attributable to Pivotal
|
|
$
|
(38,931
|
)
|
|
$
|
(37,236
|
)
|
|
|
$
|
(141,903
|
)
|
|
$
|
(163,515
|
)
|
Net loss per share attributable to common stockholders, basic and
diluted
|
|
$
|
(0.15
|
)
|
|
$
|
(0.54
|
)
|
|
|
$
|
(0.64
|
)
|
|
$
|
(2.38
|
)
|
Weighted average shares outstanding used in computing net loss per
share attributable to common stockholders, basic and diluted
|
|
|
263,381
|
|
|
|
69,260
|
|
|
|
|
221,149
|
|
|
|
68,574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pivotal Software, Inc.
|
Condensed Consolidated Balance Sheets
|
(in thousands); (unaudited)
|
|
|
|
|
|
|
|
February 1,
|
|
February 2,
|
|
|
2019
|
|
2018
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
701,733
|
|
|
$
|
73,012
|
|
Accounts receivable, less allowance for doubtful accounts of
$4,266 and $3,264 as of February 1, 2019 and February 2, 2018,
respectively
|
|
|
308,492
|
|
|
|
210,677
|
|
Due from Parent
|
|
|
951
|
|
|
|
31,096
|
|
Deferred sales commissions, current
|
|
|
39,572
|
|
|
|
38,937
|
|
Other assets, current
|
|
|
16,738
|
|
|
|
13,012
|
|
Total current assets
|
|
|
1,067,486
|
|
|
|
366,734
|
|
Property, plant and equipment, net
|
|
|
27,879
|
|
|
|
31,985
|
|
Intangible assets, net
|
|
|
18,680
|
|
|
|
26,651
|
|
Goodwill
|
|
|
696,226
|
|
|
|
696,226
|
|
Deferred income taxes
|
|
|
258
|
|
|
|
463
|
|
Deferred sales commissions, noncurrent
|
|
|
35,522
|
|
|
|
24,890
|
|
Other assets, noncurrent
|
|
|
4,417
|
|
|
|
6,448
|
|
Total assets
|
|
$
|
1,850,468
|
|
|
$
|
1,153,397
|
|
Liabilities, Redeemable Convertible Preferred Stock and
Stockholders' Equity (Deficit)
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
18,421
|
|
|
$
|
17,214
|
|
Due to Parent
|
|
|
20,241
|
|
|
|
15,451
|
|
Accrued expenses
|
|
|
64,723
|
|
|
|
64,251
|
|
Income taxes payable
|
|
|
1,232
|
|
|
|
1,748
|
|
Deferred revenue, current
|
|
|
376,985
|
|
|
|
260,341
|
|
Other liabilities, current
|
|
|
4,373
|
|
|
|
1,109
|
|
Total current liabilities
|
|
|
485,975
|
|
|
|
360,114
|
|
Deferred revenue, noncurrent
|
|
|
89,603
|
|
|
|
57,126
|
|
Deferred income taxes
|
|
|
-
|
|
|
|
427
|
|
Debt, noncurrent
|
|
|
-
|
|
|
|
20,000
|
|
Other liabilities, noncurrent
|
|
|
9,412
|
|
|
|
7,931
|
|
Total liabilities
|
|
|
584,990
|
|
|
|
445,598
|
|
Redeemable convertible preferred stock
|
|
|
-
|
|
|
|
1,248,327
|
|
Stockholders' equity (deficit):
|
|
|
|
|
Class A common stock
|
|
|
901
|
|
|
|
43
|
|
Class B common stock
|
|
|
1,755
|
|
|
|
650
|
|
Additional paid-in capital
|
|
|
2,540,921
|
|
|
|
595,113
|
|
Accumulated deficit
|
|
|
(1,284,503
|
)
|
|
|
(1,142,600
|
)
|
Accumulated other comprehensive income
|
|
|
5,687
|
|
|
|
5,554
|
|
Total Pivotal stockholders' equity (deficit)
|
|
|
1,264,761
|
|
|
|
(541,240
|
)
|
Non-controlling interest
|
|
|
717
|
|
|
|
712
|
|
Total stockholders' equity (deficit)
|
|
|
1,265,478
|
|
|
|
(540,528
|
)
|
Total liabilities, redeemable convertible preferred stock and
stockholders' equity (deficit)
|
|
$
|
1,850,468
|
|
|
$
|
1,153,397
|
|
|
|
|
|
|
|
|
|
|
Pivotal Software, Inc.
|
Condensed Consolidated Statements of Cash Flows
|
(in thousands); (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Fiscal Year Ended
|
|
|
February 1,
|
|
February 2,
|
|
|
February 1,
|
|
February 2,
|
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(38,934
|
)
|
|
$
|
(37,319
|
)
|
|
|
$
|
(141,898
|
)
|
|
$
|
(163,514
|
)
|
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
4,334
|
|
|
|
5,505
|
|
|
|
|
18,158
|
|
|
|
22,237
|
|
Stock-based compensation expense
|
|
|
19,800
|
|
|
|
8,695
|
|
|
|
|
69,033
|
|
|
|
28,629
|
|
Provision for doubtful accounts
|
|
|
(257
|
)
|
|
|
529
|
|
|
|
|
2,104
|
|
|
|
609
|
|
Deferred income taxes
|
|
|
(3
|
)
|
|
|
(7,284
|
)
|
|
|
|
(150
|
)
|
|
|
(6,969
|
)
|
Gain on sale of investment
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(3,234
|
)
|
|
|
-
|
|
Other
|
|
|
(21
|
)
|
|
|
328
|
|
|
|
|
1,470
|
|
|
|
1,178
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(143,755
|
)
|
|
|
(80,338
|
)
|
|
|
|
(99,860
|
)
|
|
|
(66,136
|
)
|
Due from Parent
|
|
|
508
|
|
|
|
(438
|
)
|
|
|
|
545
|
|
|
|
(1,096
|
)
|
Deferred sales commissions
|
|
|
(17,965
|
)
|
|
|
(14,166
|
)
|
|
|
|
(11,268
|
)
|
|
|
(10,360
|
)
|
Other assets
|
|
|
192
|
|
|
|
2,989
|
|
|
|
|
(2,566
|
)
|
|
|
2,647
|
|
Accounts payable
|
|
|
3,398
|
|
|
|
(1,305
|
)
|
|
|
|
1,357
|
|
|
|
12,636
|
|
Due to Parent
|
|
|
9,247
|
|
|
|
(960
|
)
|
|
|
|
5,910
|
|
|
|
(34,984
|
)
|
Deferred revenue
|
|
|
159,533
|
|
|
|
89,960
|
|
|
|
|
149,344
|
|
|
|
74,360
|
|
Accrued expenses
|
|
|
17,654
|
|
|
|
17,539
|
|
|
|
|
1,468
|
|
|
|
21,549
|
|
Other liabilities
|
|
|
(5,738
|
)
|
|
|
542
|
|
|
|
|
4,232
|
|
|
|
2,723
|
|
Net cash provided by (used in) operating activities
|
|
|
7,993
|
|
|
|
(15,723
|
)
|
|
|
|
(5,355
|
)
|
|
|
(116,491
|
)
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and equipment
|
|
|
(2,482
|
)
|
|
|
(1,828
|
)
|
|
|
|
(9,411
|
)
|
|
|
(12,877
|
)
|
Proceeds from sale of investment
|
|
|
-
|
|
|
|
-
|
|
|
|
|
3,234
|
|
|
|
-
|
|
Net cash used in investing activities
|
|
|
(2,482
|
)
|
|
|
(1,828
|
)
|
|
|
|
(6,177
|
)
|
|
|
(12,877
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from the initial public offering, net of issuance costs paid
|
|
|
(253
|
)
|
|
|
-
|
|
|
|
|
544,421
|
|
|
|
-
|
|
Proceeds from the issuance of common stock
|
|
|
19,584
|
|
|
|
3,207
|
|
|
|
|
61,436
|
|
|
|
9,757
|
|
Proceeds from employee stock plans
|
|
|
9,371
|
|
|
|
-
|
|
|
|
|
9,371
|
|
|
|
-
|
|
Contribution from Dell
|
|
|
3,009
|
|
|
|
17,074
|
|
|
|
|
44,286
|
|
|
|
42,874
|
|
Borrowings on credit facility, net of debt issuance costs
|
|
|
-
|
|
|
|
19,670
|
|
|
|
|
15,000
|
|
|
|
18,815
|
|
Repayments on credit facility
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(35,000
|
)
|
|
|
-
|
|
Net cash provided by financing activities
|
|
|
31,711
|
|
|
|
39,951
|
|
|
|
|
639,514
|
|
|
|
71,446
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(293
|
)
|
|
|
(1,617
|
)
|
|
|
|
739
|
|
|
|
(2,939
|
)
|
Net increase (decrease) in cash and cash equivalents
|
|
|
36,929
|
|
|
|
20,783
|
|
|
|
|
628,721
|
|
|
|
(60,861
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
664,804
|
|
|
|
52,229
|
|
|
|
|
73,012
|
|
|
|
133,873
|
|
Cash and cash equivalents at end of period
|
|
$
|
701,733
|
|
|
$
|
73,012
|
|
|
|
$
|
701,733
|
|
|
$
|
73,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pivotal Software, Inc.
|
GAAP to Non-GAAP Reconciliation
|
(in thousands, except percentages and per share amounts); (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended February 1, 2019
|
|
|
|
GAAP
|
|
|
Stock-based compensation expense
|
|
|
Amortization of acquired intangibles
|
|
|
Gain on sale of investment
|
|
|
Non-GAAP
|
Cost of subscription revenue
|
|
|
$
|
8,095
|
|
|
|
$
|
(427
|
)
|
|
|
$
|
(234
|
)
|
|
|
$
|
-
|
|
|
|
$
|
7,434
|
|
Subscription gross margin
|
|
|
|
92.8
|
%
|
|
|
|
0.4
|
%
|
|
|
|
0.2
|
%
|
|
|
|
-
|
%
|
|
|
|
93.4
|
%
|
Cost of services revenue
|
|
|
|
51,103
|
|
|
|
|
(4,237
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
46,866
|
|
Services gross margin
|
|
|
|
9.9
|
%
|
|
|
|
7.5
|
%
|
|
|
|
-
|
%
|
|
|
|
-
|
%
|
|
|
|
17.4
|
%
|
Gross profit
|
|
|
|
110,010
|
|
|
|
|
4,664
|
|
|
|
|
234
|
|
|
|
|
-
|
|
|
|
|
114,908
|
|
Gross margin
|
|
|
|
65.0
|
%
|
|
|
|
2.8
|
%
|
|
|
|
0.1
|
%
|
|
|
|
-
|
%
|
|
|
|
67.9
|
%
|
Sales and marketing
|
|
|
|
76,077
|
|
|
|
|
(5,969
|
)
|
|
|
|
(832
|
)
|
|
|
|
-
|
|
|
|
|
69,276
|
|
Research and development
|
|
|
|
53,097
|
|
|
|
|
(5,726
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
47,371
|
|
General and administrative
|
|
|
|
22,823
|
|
|
|
|
(3,441
|
)
|
|
|
|
(371
|
)
|
|
|
|
-
|
|
|
|
|
19,011
|
|
Total operating expenses
|
|
|
|
151,997
|
|
|
|
|
(15,136
|
)
|
|
|
|
(1,203
|
)
|
|
|
|
-
|
|
|
|
|
135,658
|
|
Loss from operations
|
|
|
|
(41,987
|
)
|
|
|
|
19,800
|
|
|
|
|
1,437
|
|
|
|
|
-
|
|
|
|
|
(20,750
|
)
|
Operating margin
|
|
|
|
(24.8
|
%)
|
|
|
|
11.7
|
%
|
|
|
|
0.8
|
%
|
|
|
|
-
|
%
|
|
|
|
(12.3
|
%)
|
Other income (expense), net
|
|
|
|
3,074
|
|
|
|
|
-
|
|
|
|
|
|
|
|
-
|
|
|
|
|
3,074
|
|
Net loss attributable to Pivotal
|
|
|
$
|
(38,931
|
)
|
|
|
$
|
19,800
|
|
|
|
$
|
1,437
|
|
|
|
$
|
-
|
|
|
|
$
|
(17,694
|
)
|
Net loss per share, basic and diluted (1)
|
|
|
$
|
(0.15
|
)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(0.07
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) GAAP and Non-GAAP net loss per common share
calculated based upon 263,381 basic and diluted weighted average
shares outstanding of common stock.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended February 2, 2018
|
|
|
|
GAAP
|
|
|
Stock-based compensation expense
|
|
|
Amortization of acquired intangibles
|
|
|
Gain on sale of investment
|
|
|
Non-GAAP
|
Cost of subscription revenue
|
|
|
$
|
7,729
|
|
|
|
$
|
(178
|
)
|
|
|
$
|
(977
|
)
|
|
|
$
|
-
|
|
|
|
$
|
6,574
|
|
Subscription gross margin
|
|
|
|
89.7
|
%
|
|
|
|
0.2
|
%
|
|
|
|
1.3
|
%
|
|
|
|
-
|
%
|
|
|
|
91.2
|
%
|
Cost of services revenue
|
|
|
|
49,786
|
|
|
|
|
(1,988
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
47,798
|
|
Services gross margin
|
|
|
|
14.6
|
%
|
|
|
|
3.4
|
%
|
|
|
|
-
|
%
|
|
|
|
-
|
%
|
|
|
|
18.0
|
%
|
Gross profit
|
|
|
|
75,729
|
|
|
|
|
2,166
|
|
|
|
|
977
|
|
|
|
|
-
|
|
|
|
|
78,872
|
|
Gross margin
|
|
|
|
56.8
|
%
|
|
|
|
1.6
|
%
|
|
|
|
0.7
|
%
|
|
|
|
-
|
%
|
|
|
|
59.2
|
%
|
Sales and marketing
|
|
|
|
61,860
|
|
|
|
|
(2,693
|
)
|
|
|
|
(1,110
|
)
|
|
|
|
-
|
|
|
|
|
58,057
|
|
Research and development
|
|
|
|
41,036
|
|
|
|
|
(2,394
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
38,642
|
|
General and administrative
|
|
|
|
18,022
|
|
|
|
|
(1,442
|
)
|
|
|
|
(368
|
)
|
|
|
|
-
|
|
|
|
|
16,212
|
|
Total operating expenses
|
|
|
|
120,918
|
|
|
|
|
(6,529
|
)
|
|
|
|
(1,478
|
)
|
|
|
|
-
|
|
|
|
|
112,911
|
|
Loss from operations
|
|
|
|
(45,189
|
)
|
|
|
|
8,695
|
|
|
|
|
2,455
|
|
|
|
|
-
|
|
|
|
|
(34,039
|
)
|
Operating margin
|
|
|
|
(33.9
|
%)
|
|
|
|
6.5
|
%
|
|
|
|
1.8
|
%
|
|
|
|
-
|
%
|
|
|
|
(25.5
|
%)
|
Other income (expense), net
|
|
|
|
1,615
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
1,615
|
|
Net loss attributable to Pivotal
|
|
|
$
|
(37,236
|
)
|
|
|
$
|
8,695
|
|
|
|
$
|
2,455
|
|
|
|
$
|
-
|
|
|
|
$
|
(26,086
|
)
|
Net loss per share, basic and diluted (1)
|
|
|
$
|
(0.54
|
)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(0.12
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) GAAP net loss per common share calculated based upon
69,260 basic and diluted weighted average shares outstanding of
common stock. Non-GAAP net loss per common share calculated based
upon 217,139 basic and diluted weighted average shares outstanding
of common stock.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended February 1, 2019
|
|
|
|
GAAP
|
|
|
Stock-based compensation expense
|
|
|
Amortization of acquired intangibles
|
|
|
Gain on sale of investment
|
|
|
Non-GAAP
|
Cost of subscription revenue
|
|
|
$
|
32,142
|
|
|
|
$
|
(1,469
|
)
|
|
|
$
|
(1,439
|
)
|
|
|
$
|
-
|
|
|
|
$
|
29,234
|
|
Subscription gross margin
|
|
|
|
92.0
|
%
|
|
|
|
0.4
|
%
|
|
|
|
0.4
|
%
|
|
|
|
-
|
%
|
|
|
|
92.7
|
%
|
Cost of services revenue
|
|
|
|
208,573
|
|
|
|
|
(14,962
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
193,611
|
|
Services gross margin
|
|
|
|
18.7
|
%
|
|
|
|
5.8
|
%
|
|
|
|
-
|
%
|
|
|
|
-
|
%
|
|
|
|
24.6
|
%
|
Gross profit
|
|
|
|
416,779
|
|
|
|
|
16,431
|
|
|
|
|
1,439
|
|
|
|
|
-
|
|
|
|
|
434,649
|
|
Gross margin
|
|
|
|
63.4
|
%
|
|
|
|
2.5
|
%
|
|
|
|
0.2
|
%
|
|
|
|
-
|
%
|
|
|
|
66.1
|
%
|
Sales and marketing
|
|
|
|
286,385
|
|
|
|
|
(21,082
|
)
|
|
|
|
(3,557
|
)
|
|
|
|
-
|
|
|
|
|
261,746
|
|
Research and development
|
|
|
|
196,406
|
|
|
|
|
(19,497
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
176,909
|
|
General and administrative
|
|
|
|
80,802
|
|
|
|
|
(12,023
|
)
|
|
|
|
(1,521
|
)
|
|
|
|
-
|
|
|
|
|
67,258
|
|
Total operating expenses
|
|
|
|
563,593
|
|
|
|
|
(52,602
|
)
|
|
|
|
(5,078
|
)
|
|
|
|
-
|
|
|
|
|
505,913
|
|
Loss from operations
|
|
|
|
(146,814
|
)
|
|
|
|
69,033
|
|
|
|
|
6,517
|
|
|
|
|
-
|
|
|
|
|
(71,264
|
)
|
Operating margin
|
|
|
|
(22.3
|
%)
|
|
|
|
10.5
|
%
|
|
|
|
1.0
|
%
|
|
|
|
-
|
%
|
|
|
|
(10.8
|
%)
|
Other income (expense), net
|
|
|
|
5,486
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(3,234
|
)
|
|
|
|
2,252
|
|
Net loss attributable to Pivotal
|
|
|
$
|
(141,903
|
)
|
|
|
$
|
69,033
|
|
|
|
$
|
6,517
|
|
|
|
$
|
(3,234
|
)
|
|
|
$
|
(69,587
|
)
|
Net loss per share, basic and diluted (1)
|
|
|
$
|
(0.64
|
)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(0.28
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) GAAP net loss per common share calculated based upon
221,149 basic and diluted weighted average shares outstanding of
common stock. Non-GAAP net loss per common share calculated based
upon 250,806 basic and diluted weighted average shares outstanding
of common stock.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended February 2, 2018
|
|
|
|
GAAP
|
|
|
Stock-based compensation expense
|
|
|
Amortization of acquired intangibles
|
|
|
Gain on sale of investment
|
|
|
Non-GAAP
|
Cost of subscription revenue
|
|
|
$
|
30,472
|
|
|
|
$
|
(520
|
)
|
|
|
$
|
(4,913
|
)
|
|
|
$
|
-
|
|
|
|
$
|
25,039
|
|
Subscription gross margin
|
|
|
|
88.2
|
%
|
|
|
|
0.2
|
%
|
|
|
|
1.9
|
%
|
|
|
|
-
|
%
|
|
|
|
90.3
|
%
|
Cost of services revenue
|
|
|
|
197,922
|
|
|
|
|
(6,548
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
191,374
|
|
Services gross margin
|
|
|
|
21.0
|
%
|
|
|
|
2.6
|
%
|
|
|
|
-
|
%
|
|
|
|
-
|
%
|
|
|
|
23.6
|
%
|
Gross profit
|
|
|
|
281,042
|
|
|
|
|
7,068
|
|
|
|
|
4,913
|
|
|
|
|
-
|
|
|
|
|
293,023
|
|
Gross margin
|
|
|
|
55.2
|
%
|
|
|
|
1.4
|
%
|
|
|
|
1.0
|
%
|
|
|
|
-
|
%
|
|
|
|
57.5
|
%
|
Sales and marketing
|
|
|
|
221,187
|
|
|
|
|
(8,619
|
)
|
|
|
|
(4,811
|
)
|
|
|
|
-
|
|
|
|
|
207,757
|
|
Research and development
|
|
|
|
160,947
|
|
|
|
|
(7,833
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
153,114
|
|
General and administrative
|
|
|
|
67,204
|
|
|
|
|
(5,109
|
)
|
|
|
|
(1,437
|
)
|
|
|
|
-
|
|
|
|
|
60,658
|
|
Total operating expenses
|
|
|
|
449,338
|
|
|
|
|
(21,561
|
)
|
|
|
|
(6,248
|
)
|
|
|
|
-
|
|
|
|
|
421,529
|
|
Loss from operations
|
|
|
|
(168,296
|
)
|
|
|
|
28,629
|
|
|
|
|
11,161
|
|
|
|
|
-
|
|
|
|
|
(128,506
|
)
|
Operating margin
|
|
|
|
(33.0
|
%)
|
|
|
|
5.6
|
%
|
|
|
|
2.2
|
%
|
|
|
|
-
|
%
|
|
|
|
(25.2
|
%)
|
Other income (expense), net
|
|
|
|
2,145
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
2,145
|
|
Net loss attributable to Pivotal
|
|
|
$
|
(163,515
|
)
|
|
|
$
|
28,629
|
|
|
|
$
|
11,161
|
|
|
|
$
|
-
|
|
|
|
$
|
(123,725
|
)
|
Net loss per share, basic and diluted (1)
|
|
|
$
|
(2.38
|
)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(0.57
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) GAAP net loss per common share calculated based upon
68,574 basic and diluted weighted average shares outstanding of
common stock. Non-GAAP net loss per common share calculated based
upon 216,453 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 Ended
|
|
|
Fiscal Year Ended
|
|
|
|
February 1,
|
|
|
February 2,
|
|
|
February 1,
|
|
|
February 2,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
GAAP weighted average shares outstanding, basic and diluted
|
|
|
263,381
|
|
|
69,260
|
|
|
221,149
|
|
|
68,574
|
Assumed preferred stock conversion
|
|
|
-
|
|
|
147,879
|
|
|
29,657
|
|
|
147,879
|
Non-GAAP weighted average shares outstanding, basic and diluted
|
|
|
263,381
|
|
|
217,139
|
|
|
250,806
|
|
|
216,453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190314005751/en/
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