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Pivotal Software's first public earnings whiz past Wall Street estimates

The cloud company narrowed its net loss and beat profit and revenue estimates for its fiscal first quarter
cloud
Pivotal made its public debut last April and is majority-owned by Dell Technologies

Shares of Pivotal Software Inc (NYSE:PVTL) jumped in pre-market trade after the maker of software for cloud computing platforms narrowed its net loss in its first quarter as a public company and whizzed past Wall Street estimates.

The company posted a net loss in its fiscal first quarter for 2019 of US$32.5mln, or US$0.31 per share, which beat the market’s consensus estimate of a loss of US$0.13 per share. Its revenue for the quarter came in at US$155.7mln, which trounced the market estimate of US$140.44mln.

Investors welcomed the news, sending Pivotal shares up as much as 8.4% to US$23 in pre-market trade.

READ: Pivotal Software shares start strong in first day of trading

The results were an improvement over the year-ago loss of US$51.5mln or US$0.76.

In the quarter, Pivotal’s revenue from its subscriptions, which represents a more predictable income generator, rose 69% to US$90.1mln and it now counts as many as 339 subscribers.

Pivotal is forecasting full-year adjusted losses of US$0.37 to US$0.39 on revenue of US$642mln to US$649mln.

Pivotal made its public debut last April and is majority-owned by Dell Technologies Inc (NYSE:DVMT), which owns about 70% of its shares and keeps a firm grasp on almost all of its voting rights.

Pivotal’s most important offering is Pivotal Cloud Foundry, a software application that IT groups use to build and manage cloud-based software.

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