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.
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.