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Exhibit 99.1

 

 

Pivotal Reports Second Quarter Fiscal Year 2019 Financial Results

 

·                  Subscription revenue grew 51% year over year; Total revenue grew 30% year over year

·                  Subscription customers increased to 354; 19% growth year over year

·                  Dollar-based net expansion rate of 150%

 

SAN FRANCISCO — September 12, 2018 — Pivotal Software, Inc. (NYSE: PVTL), a leading cloud-native platform provider, today reported results for the fiscal 2019 second quarter ended August 3, 2018.

 

“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. “Organizations that work with Pivotal learn to build iteratively, deliver continuously and operate securely and reliably at scale. We’ve shown that Pivotal’s cloud-native platform, developer tools, and unique methodology provide the elements necessary to modernize an enterprise.”

 

Second Quarter Fiscal Year 2019 Financial Results

 

Revenue: Subscription revenue was $97.5 million, an increase of 51% year over year. Total revenue was $164.4 million, an increase of 30% year over year.

 

Operating Loss: GAAP operating loss was $35.4 million, or 22% of total revenue, compared to a loss of $38.2 million in Q2 of last year. Non-GAAP operating loss was $14.6 million, or 9% of total revenue, compared to a loss of $29.9 million year over year.

 

Net Loss: GAAP net loss was $35.6 million, compared to a loss of $35.4 million year over year. GAAP net loss per share was $0.14, compared to a loss of $0.52 in Q2 of last year. Non-GAAP net loss was $14.8 million, compared to a loss of $27.1 million year over year. Non-GAAP net loss per share was $0.06, compared to a loss of $0.13 in Q2 of last year.

 

Cash Flow: Operating cash flow for the quarter was $18.4 million compared to negative operating cash flow of $56.5 million in Q2 of last year.

 

Cash and cash equivalents were $671.7 million as of August 3, 2018.

 



 

Recent Business Highlights

 

·                  Subscriptions customers grew 19% year over year to 354 in Q2

·                  Dollar-based net expansion rate was 150%

·                  Released significant updates to Pivotal Cloud Foundry in the quarter including:

·                  PAS 2.2 delivered support for deployment on Microsoft Azure Stack along with other enhancements to improve developer productivity and security of the platform

·                  PKS 1.1 included new high-availability deployment options and includes the most recent  version of Kubernetes open-source

·                  Joined Google in launching a new open-source project for serverless functions called Knative. After making significant contributions to Knative, we will use this along with our own project Riff to create Pivotal Functions Service

·                  HCL, a global systems integrator, extended its collaboration with Pivotal to build a global network of ‘Cloud Native Labs’ where enterprises will be able to build new and modernize existing applications for deployment to PCF

·                  Awarded Microsoft Azure US Consumption 2018 Partner of the Year, for the second consecutive year

·                  Winner of the Solstice 2018 Partner of the Year award

 

Financial Outlook

 

For the third quarter of fiscal 2019, Pivotal currently expects:

 

·                  Subscription revenue of $97.5 to $98.5 million

·                  Total revenue of $163 to $165 million

·                  Non-GAAP loss from operations of $23 to $22 million

·                  Non-GAAP net loss per share of 9¢ to 8¢ assuming weighted average shares outstanding of approximately 258 million

 

For the full fiscal year 2019, Pivotal currently expects:

 

·                  Subscription revenue of $386.5 to $390.5 million

·                  Total revenue of $647 to $653 million

·                  Non-GAAP loss from operations of $86 to $83 million

·                  Non-GAAP net loss per share of 36¢ to 34¢, assuming weighted average shares outstanding of approximately 251 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 Pivotal’s financial outlook, regarding Pivotal’s collaboration with HCL, and regarding Knative, Riff and Pivotal Function Service), 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), including Pivotal’s prospectus dated April 19, 2018, and filed pursuant to Rule 424(b) under the U.S. Securities Act of 1933, as amended. Additional information will be made available in Pivotal’s quarterly report on Form 10-Q 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

 

Six Months Ended

 

 

 

August 3,

 

August 4,

 

August 3,

 

August 4,

 

 

 

2018

 

2017

 

2018

 

2017

 

Revenue:

 

 

 

 

 

 

 

 

 

Subscription

 

$

97,494

 

$

64,566

 

$

187,615

 

$

117,989

 

Services

 

66,914

 

61,444

 

132,528

 

129,231

 

Total revenue

 

164,408

 

126,010

 

320,143

 

247,220

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

Subscription

 

8,105

 

7,618

 

16,234

 

15,116

 

Services

 

53,129

 

48,726

 

104,291

 

100,261

 

Total cost of revenue

 

61,234

 

56,344

 

120,525

 

115,377

 

Gross profit

 

103,174

 

69,666

 

199,618

 

131,843

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Sales and marketing

 

70,550

 

52,875

 

139,688

 

105,032

 

Research and development

 

47,001

 

39,661

 

91,429

 

79,679

 

General and administrative

 

21,025

 

15,364

 

37,433

 

33,777

 

Total operating expenses

 

138,576

 

107,900

 

268,550

 

218,488

 

Loss from operations

 

(35,402

)

(38,234

)

(68,932

)

(86,645

)

Other income, net

 

237

 

1,910

 

546

 

2,631

 

Loss before provision for (benefit from) income taxes

 

(35,165

)

(36,324

)

(68,386

)

(84,014

)

Provision for (benefit from) income taxes

 

437

 

(822

)

(227

)

2,832

 

Net loss

 

(35,602

)

(35,502

)

(68,159

)

(86,846

)

Less: Net loss (income) attributable to non-controlling interest

 

(5

)

118

 

37

 

(84

)

Net loss attributable to Pivotal

 

$

(35,607

)

$

(35,384

)

$

(68,122

)

$

(86,930

)

Net loss per share attributable to common stockholders, basic and diluted

 

$

(0.14

)

$

(0.52

)

$

(0.38

)

$

(1.28

)

Weighted average shares outstanding used in computing net loss per share attributable to common stockholders, basic and diluted

 

257,240

 

68,330

 

181,404

 

68,142

 

 



 

Pivotal Software, Inc.

Condensed Consolidated Balance Sheets

(in thousands); (unaudited)

 

 

 

August 3,

 

February 2,

 

 

 

2018

 

2018

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

671,708

 

$

73,012

 

Accounts receivable, less allowance for doubtful accounts of $3,431 and $3,264 as of August 3, 2018 and February 2, 2018, respectively

 

132,443

 

210,677

 

Due from Parent

 

1,531

 

31,096

 

Deferred sales commissions, current

 

35,594

 

38,937

 

Other assets, current

 

15,698

 

13,012

 

Total current assets

 

856,974

 

366,734

 

Property, plant and equipment, net

 

28,772

 

31,985

 

Intangible assets, net

 

21,752

 

26,651

 

Goodwill

 

696,226

 

696,226

 

Deferred income taxes

 

561

 

463

 

Deferred sales commissions, noncurrent

 

23,960

 

24,890

 

Other assets, noncurrent

 

4,834

 

6,448

 

Total assets

 

$

1,633,079

 

$

1,153,397

 

Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

16,477

 

$

17,214

 

Due to Parent

 

11,576

 

15,451

 

Accrued expenses

 

46,935

 

64,251

 

Income taxes payable

 

1,312

 

1,748

 

Deferred revenue, current

 

244,727

 

260,341

 

Other liabilities, current

 

6,704

 

1,109

 

Total current liabilities

 

327,731

 

360,114

 

Deferred revenue, noncurrent

 

61,882

 

57,126

 

Deferred income taxes

 

131

 

427

 

Debt, noncurrent

 

 

20,000

 

Other liabilities, noncurrent

 

8,520

 

7,931

 

Total liabilities

 

398,264

 

445,598

 

Redeemable convertible preferred stock

 

 

1,248,327

 

Stockholders’ equity (deficit):

 

 

 

 

 

Class A common stock

 

819

 

43

 

Class B common stock

 

1,755

 

650

 

Additional paid-in capital

 

2,436,568

 

595,113

 

Accumulated deficit

 

(1,210,722

)

(1,142,600

)

Accumulated other comprehensive income

 

5,720

 

5,554

 

Total Pivotal stockholders’ equity (deficit)

 

1,234,140

 

(541,240

)

Non-controlling interest

 

675

 

712

 

Total stockholders’ equity (deficit)

 

1,234,815

 

(540,528

)

Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit)

 

$

1,633,079

 

$

1,153,397

 

 



 

Pivotal Software, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands); (unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

August 3,

 

August 4,

 

August 3,

 

August 4,

 

 

 

2018

 

2017

 

2018

 

2017

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

Net loss

 

$

(35,602

)

$

(35,502

)

$

(68,159

)

$

(86,846

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

4,599

 

5,750

 

9,354

 

11,073

 

Stock-based compensation expense

 

19,044

 

5,402

 

29,805

 

11,409

 

Provision for doubtful accounts

 

388

 

 

619

 

 

Deferred income taxes

 

64

 

(122

)

(405

)

209

 

Gain on sale of investment

 

 

 

(3,234

)

 

Other

 

1,449

 

1,230

 

1,461

 

855

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

Accounts receivable

 

46,454

 

(28,362

)

76,340

 

13,764

 

Due from Parent

 

(7

)

 

(236

)

 

Deferred sales commissions

 

3,075

 

452

 

4,272

 

3,024

 

Other assets

 

(3,920

)

(3,237

)

(2,457

)

(3,746

)

Accounts payable

 

3,984

 

3,056

 

(547

)

4,640

 

Due to Parent

 

(2,130

)

(16,962

)

(3,185

)

(23,128

)

Deferred revenue

 

(31,218

)

5,238

 

(10,554

)

(7,774

)

Accrued expenses

 

5,692

 

7,827

 

(16,213

)

13,468

 

Other liabilities

 

6,497

 

(1,287

)

5,959

 

2,086

 

Net cash provided by (used in) operating activities

 

18,369

 

(56,517

)

22,820

 

(60,966

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

Additions to property, plant and equipment

 

(2,173

)

(3,036

)

(4,052

)

(8,458

)

Proceeds from sale of investment

 

 

 

3,234

 

 

Net cash used in investing activities

 

(2,173

)

(3,036

)

(818

)

(8,458

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

Proceeds from the initial public offering, net of issuance costs paid

 

(2,580

)

 

544,674

 

 

Proceeds from the issuance of common stock

 

2,814

 

2,145

 

9,424

 

3,935

 

Contribution from DellEMC

 

9,300

 

25,800

 

41,277

 

25,800

 

Borrowings on credit facility

 

 

 

15,000

 

 

Repayments on credit facility

 

 

 

(35,000

)

 

Net cash provided by financing activities

 

9,534

 

27,945

 

575,375

 

29,735

 

Effect of exchange rate changes on cash and cash equivalents

 

512

 

(1,484

)

1,319

 

(1,798

)

Net increase (decrease) in cash and cash equivalents

 

26,242

 

(33,092

)

598,696

 

(41,487

)

Cash and cash equivalents at beginning of period

 

645,466

 

125,478

 

73,012

 

133,873

 

Cash and cash equivalents at end of period

 

$

671,708

 

$

92,386

 

$

671,708

 

$

92,386

 

 



 

Pivotal Software, Inc.

GAAP to Non-GAAP Reconciliation

(in thousands, except percentages and per share amounts); (unaudited)

 

 

 

Three Months Ended August 3, 2018

 

 

 

GAAP

 

Stock-based
compensation
expense

 

Amortization of
acquired
intangibles

 

Gain on sale of
investment

 

Non-GAAP

 

Cost of subscription revenue

 

$

8,105

 

$

(411

)

$

(433

)

$

 

$

7,261

 

Subscription gross margin

 

92

%

0

%

0

%

%

93

%

Cost of services revenue

 

53,129

 

(4,188

)

 

 

48,941

 

Services gross margin

 

21

%

6

%

%

%

27

%

Gross profit

 

103,174

 

4,599

 

433

 

 

108,206

 

Gross margin

 

63

%

3

%

0

%

%

66

%

Sales and marketing

 

70,550

 

(5,688

)

(910

)

 

63,952

 

Research and development

 

47,001

 

(5,386

)

 

 

41,615

 

General and administrative

 

21,025

 

(3,371

)

(384

)

 

17,270

 

Total operating expenses

 

138,576

 

(14,445

)

(1,294

)

 

122,837

 

Loss from operations

 

(35,402

)

19,044

 

1,727

 

 

(14,631

)

Operating margin

 

(22

)%

12

%

1

%

%

(9

)%

Other income (expense), net

 

237

 

 

 

 

237

 

Net loss attributable to Pivotal

 

$

(35,607

)

$

19,044

 

$

1,727

 

$

 

$

(14,836

)

Net loss per share, basic and diluted (1)

 

$

(0.14

)

 

 

 

 

 

 

$

(0.06

)

 


(1) GAAP and Non-GAAP net loss per common share calculated based upon 257,240 basic and diluted weighted average shares outstanding of common stock.

 

 

 

Three Months Ended August 4, 2017

 

 

 

GAAP

 

Stock-based
compensation
expense

 

Amortization of
acquired
intangibles

 

Gain on sale of
investment

 

Non-GAAP

 

Cost of subscription revenue

 

$

7,618

 

$

(87

)

$

(1,318

)

$

 

$

6,213

 

Subscription gross margin

 

88

%

0

%

2

%

%

90

%

Cost of services revenue

 

48,726

 

(1,186

)

 

 

47,540

 

Services gross margin

 

21

%

2

%

%

%

23

%

Gross profit

 

69,666

 

1,273

 

1,318

 

 

72,257

 

Gross margin

 

55

%

1

%

1

%

%

57

%

Sales and marketing

 

52,875

 

(1,697

)

(1,232

)

 

49,946

 

Research and development

 

39,661

 

(1,372

)

 

 

38,289

 

General and administrative

 

15,364

 

(1,060

)

(359

)

 

13,945

 

Total operating expenses

 

107,900

 

(4,129

)

(1,591

)

 

102,180

 

Loss from operations

 

(38,234

)

5,402

 

2,909

 

 

(29,923

)

Operating margin

 

(30

)%

4

%

2

%

%

(24

)%

Other income (expense), net

 

1,910

 

 

 

 

1,910

 

Net loss attributable to Pivotal

 

$

(35,384

)

$

5,402

 

$

2,909

 

$

 

$

(27,073

)

Net loss per share, basic and diluted (1)

 

$

(0.52

)

 

 

 

 

 

 

$

(0.13

)

 


 

(1) GAAP net loss per common share calculated based upon 68,330 basic and diluted weighted average shares outstanding of common stock. Non-GAAP net loss per common share calculated based upon 216,209 basic and diluted weighted average shares outstanding of common stock.

 



 

 

 

Six Months Ended August 3, 2018

 

 

 

GAAP

 

Stock-based
compensation
expense

 

Amortization of
acquired
intangibles

 

Gain on sale of
investment

 

Non-GAAP

 

Cost of subscription revenue

 

$

16,234

 

$

(638

)

$

(865

)

$

 

$

14,731

 

Subscription gross margin

 

91

%

0

%

0

%

%

92

%

Cost of services revenue

 

104,291

 

(6,477

)

 

 

97,814

 

Services gross margin

 

21

%

5

%

%

%

26

%

Gross profit

 

199,618

 

7,115

 

865

 

 

207,598

 

Gross margin

 

62

%

2

%

0

%

%

65

%

Sales and marketing

 

139,688

 

(9,259

)

(1,816

)

 

128,613

 

Research and development

 

91,429

 

(8,250

)

 

 

83,179

 

General and administrative

 

37,433

 

(5,181

)

(767

)

 

31,485

 

Total operating expenses

 

268,550

 

(22,690

)

(2,583

)

 

243,277

 

Loss from operations

 

(68,932

)

29,805

 

3,448

 

 

(35,679

)

Operating margin

 

(22

)%

9

%

1

%

%

(11

)%

Other income (expense), net

 

546

 

 

 

(3,234

)

(2,688

)

Net loss attributable to Pivotal

 

$

(68,122

)

$

29,805

 

$

3,448

 

$

(3,234

)

$

(38,103

)

Net loss per share, basic and diluted (1)

 

$

(0.38

)

 

 

 

 

 

 

$

(0.16

)

 


(1) GAAP net loss per common share calculated based upon 181,404 basic and diluted weighted average shares outstanding of common stock. Non-GAAP net loss per common share calculated based upon 240,719 basic and diluted weighted average shares outstanding of common stock.

 

 

 

Six Months Ended August 4, 2017

 

 

 

GAAP

 

Stock-based
compensation
expense

 

Amortization of
acquired
intangibles

 

Gain on sale of
investment

 

Non-GAAP

 

Cost of subscription revenue

 

$

15,116

 

$

(180

)

$

(2,618

)

$

 

$

12,318

 

Subscription gross margin

 

87

%

0

%

2

%

%

90

%

Cost of services revenue

 

100,261

 

(2,505

)

 

 

97,756

 

Services gross margin

 

22

%

2

%

%

%

24

%

Gross profit

 

131,843

 

2,685

 

2,618

 

 

137,146

 

Gross margin

 

53

%

1

%

1

%

%

55

%

Sales and marketing

 

105,032

 

(3,352

)

(2,469

)

 

99,211

 

Research and development

 

79,679

 

(3,084

)

 

 

76,595

 

General and administrative

 

33,777

 

(2,288

)

(710

)

 

30,779

 

Total operating expenses

 

218,488

 

(8,724

)

(3,179

)

 

206,585

 

Loss from operations

 

(86,645

)

11,409

 

5,797

 

 

(69,439

)

Operating margin

 

(35

)%

5

%

2

%

%

(28

)%

Other income (expense), net

 

2,631

 

 

 

 

2,631

 

Net loss attributable to Pivotal

 

$

(86,930

)

$

11,409

 

$

5,797

 

$

 

$

(69,724

)

Net loss per share, basic and diluted (1)

 

$

(1.28

)

 

 

 

 

 

 

$

(0.32

)

 


(1) GAAP net loss per common share calculated based upon 68,142 basic and diluted weighted average shares outstanding of common stock. Non-GAAP net loss per common share calculated based upon 216,021 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

 

Six Months Ended

 

 

 

August 3,

 

August 4,

 

August 3,

 

August 4,

 

 

 

2018

 

2017

 

2018

 

2017

 

GAAP weighted average shares outstanding, basic and diluted

 

257,240

 

68,330

 

181,404

 

68,142

 

Assumed preferred stock conversion

 

 

147,879

 

59,315

 

147,879

 

Non-GAAP weighted average shares outstanding, basic and diluted

 

257,240

 

216,209

 

240,719

 

216,021

 

 



 

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: 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 intangible assets 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 intangible assets 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

 

Pivotal Software

Investor Contact:

Helyn Corcos

hcorcos@pivotal.io

or

Media Contact:

press@pivotal.io

 

©2018 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.