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Shares in Pivotal Software rise after 3Q results beat Street on strong revenue

CEO Rob Mee said the company saw “meaningful transactions” with customers as they chose Pivotal as their partner for digital transformation
Cloud software
Pivotal made its public debut last April and is majority-owned by Dell Technologies

Shares in Pivotal Software Inc (NYSE:PVTL) climbed in premarket trade Wednesday after the maker of software for cloud computing platforms narrowed its net loss in the third quarter and blew past Wall Street estimates.

For the quarter ended October 2018, the San Francisco cloud computing company reported a loss of $34.9 million, or $0.12 per share on revenue of $168.1 million. The consensus estimate was a loss of $0.17 per share on revenue of $163.6 million.

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

For the fourth quarter, Pivotal expects a loss of 10 cents to 9 cents a share on revenue of $169 million to $171 million, while analysts forecasted a loss of 9 cents a share on revenue of $167.6 million.

Shares in the cloud application platform and services company climbed 4.2% to $18.55.

“We generated strong revenue growth in our third quarter and continued to deliver innovative products across our portfolio. We also saw meaningful transactions with both new and existing customers as organizations across industries continue to choose Pivotal as their strategic partner for digital transformation,” Pivotal Software CEO Rob Mee said in a statement.

“While enterprises face a fast moving market environment and a complex technology landscape, we remain confident that our unique combination of Pivotal Cloud Foundry and Labs provide customers with a proven model to innovate and modernize at scale,” Mee.

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.

 

Contact Uttara Choudhury at [email protected]

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