Delaware
|
94-3094578
|
|
(State or other jurisdiction of
|
(I.R.S. Employer
|
|
incorporation or organization)
|
Identification No.)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Class A Common Stock, par value $0.01
|
PVTL
|
New York Stock Exchange
|
Exhibit
Number
|
Description of Exhibit
|
|
Pivotal Software, Inc.
|
|
Date: September 4, 2019
|
/s/ Cynthia Gaylor
|
Cynthia Gaylor
|
|
Senior Vice President and Chief Financial Officer
|
|
Exhibit 99.1
|
●
|
Subscription revenue grew 38% year over year
|
●
|
Total revenue grew 17% year over year
|
●
|
Subscription customers increased 12% year over year to 397
|
●
|
Dollar-based net expansion rate of 139%
|
●
|
Subscription customers grew 12% year over year to 397
|
●
|
Dollar-based net expansion rate was 139%
|
●
|
New features added to Pivotal Cloud Foundry (PCF) include:
|
○
|
Pivotal Application Service (PAS) 2.6 adds new capabilities to make it easier for developers to build, wire and run cloud native applications. Highlights include the ability to deploy a custom
sidecar process alongside your application and new integrations with Spinnaker, the leading tool for multi-cloud continuous delivery
|
○
|
Pivotal Container Service (PKS) 1.5 delivers support for Windows .Net on Kubernetes
|
○
|
The alpha version of PAS on Kubernetes improves the developer and operator experience when using Kubernetes
|
○
|
The alpha version of Pivotal Build Service brings developer productivity and operational excellence to containers in Kubernetes
|
●
|
Named to Fast Company’s list of the 50 Best Workplaces for Innovators
|
|
|
|
|
Pivotal Software, Inc.
|
||||||||||||||||
Condensed Consolidated Statements of Operations
|
||||||||||||||||
(in thousands, except per share amounts); (unaudited)
|
||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
August 2,
|
August 3,
|
August 2,
|
August 3,
|
|||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Revenue:
|
||||||||||||||||
Subscription
|
$
|
134,990
|
$
|
97,494
|
$
|
263,846
|
$
|
187,615
|
||||||||
Services
|
58,006
|
66,914
|
114,865
|
132,528
|
||||||||||||
Total revenue
|
192,996
|
164,408
|
378,711
|
320,143
|
||||||||||||
Cost of revenue:
|
||||||||||||||||
Subscription
|
9,108
|
8,105
|
17,664
|
16,234
|
||||||||||||
Services
|
51,417
|
53,129
|
103,463
|
104,291
|
||||||||||||
Total cost of revenue
|
60,525
|
61,234
|
121,127
|
120,525
|
||||||||||||
Gross profit
|
132,471
|
103,174
|
257,584
|
199,618
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Sales and marketing
|
82,639
|
70,550
|
164,260
|
139,688
|
||||||||||||
Research and development
|
58,676
|
47,001
|
114,931
|
91,429
|
||||||||||||
General and administrative
|
22,557
|
21,025
|
44,702
|
37,433
|
||||||||||||
Total operating expenses
|
163,872
|
138,576
|
323,893
|
268,550
|
||||||||||||
Loss from operations
|
(31,401
|
)
|
(35,402
|
)
|
(66,309
|
)
|
(68,932
|
)
|
||||||||
Other income, net
|
3,820
|
237
|
7,420
|
546
|
||||||||||||
Loss before provision for (benefit from) income taxes
|
(27,581
|
)
|
(35,165
|
)
|
(58,889
|
)
|
(68,386
|
)
|
||||||||
Provision for (benefit from) income taxes
|
525
|
437
|
1,000
|
(227
|
)
|
|||||||||||
Net loss
|
(28,106
|
)
|
(35,602
|
)
|
(59,889
|
)
|
(68,159
|
)
|
||||||||
Less: Net loss (income) attributable to non-controlling interest
|
(9
|
)
|
(5
|
)
|
37
|
37
|
||||||||||
Net loss attributable to Pivotal
|
$
|
(28,115
|
)
|
$
|
(35,607
|
)
|
$
|
(59,852
|
)
|
$
|
(68,122
|
)
|
||||
Net loss per share attributable to common stockholders, basic and diluted
|
$
|
(0.10
|
)
|
$
|
(0.14
|
)
|
$
|
(0.22
|
)
|
$
|
(0.38
|
)
|
||||
Weighted average shares outstanding used in computing net loss per share attributable to common stockholders, basic and diluted
|
272,724
|
257,240
|
270,619
|
181,404
|
|
|
Pivotal Software, Inc.
|
||||||||
Condensed Consolidated Balance Sheets
|
||||||||
(in thousands); (unaudited)
|
||||||||
August 2,
|
February 1,
|
|||||||
2019
|
2019
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
808,432
|
$
|
701,733
|
||||
Accounts receivable, net of allowance of $5,965 and $4,266 as of August 2, 2019 and February 1, 2019, respectively
|
122,713
|
308,492
|
||||||
Due from Parent
|
30,081
|
951
|
||||||
Deferred sales commissions, current
|
36,124
|
39,572
|
||||||
Other assets, current
|
12,948
|
16,738
|
||||||
Total current assets
|
1,010,298
|
1,067,486
|
||||||
Property, plant and equipment, net
|
27,462
|
27,879
|
||||||
Operating lease right-of-use assets
|
130,102
|
—
|
||||||
Intangible assets, net
|
15,981
|
18,680
|
||||||
Goodwill
|
696,226
|
696,226
|
||||||
Deferred income taxes
|
342
|
258
|
||||||
Deferred sales commissions, noncurrent
|
32,865
|
35,522
|
||||||
Other assets, noncurrent
|
7,416
|
4,417
|
||||||
Total assets
|
$
|
1,920,692
|
$
|
1,850,468
|
||||
Liabilities and Stockholders’ Equity
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
11,554
|
$
|
18,421
|
||||
Due to Parent
|
12,007
|
20,241
|
||||||
Accrued expenses
|
60,260
|
64,723
|
||||||
Income taxes payable
|
1,113
|
1,232
|
||||||
Deferred revenue, current
|
304,977
|
376,985
|
||||||
Operating lease liabilities, current
|
21,820
|
—
|
||||||
Other liabilities, current
|
5,356
|
4,373
|
||||||
Total current liabilities
|
417,087
|
485,975
|
||||||
Deferred revenue, noncurrent
|
55,429
|
89,603
|
||||||
Operating lease liabilities, noncurrent
|
121,520
|
—
|
||||||
Other liabilities, noncurrent
|
2,157
|
9,412
|
||||||
Total liabilities
|
596,193
|
584,990
|
||||||
Stockholders’ equity:
|
||||||||
Class A common stock
|
986
|
901
|
||||||
Class B common stock
|
1,755
|
1,755
|
||||||
Additional paid-in capital
|
2,660,012
|
2,540,921
|
||||||
Accumulated deficit
|
(1,344,355
|
)
|
(1,284,503
|
)
|
||||
Accumulated other comprehensive income
|
5,421
|
5,687
|
||||||
Total Pivotal stockholders’ equity
|
1,323,819
|
1,264,761
|
||||||
Non-controlling interest
|
680
|
717
|
||||||
Total stockholders’ equity
|
1,324,499
|
1,265,478
|
||||||
Total liabilities and stockholders’ equity
|
$
|
1,920,692
|
$
|
1,850,468
|
|
|
Pivotal Software, Inc.
|
||||||||||||||||
Condensed Consolidated Statements of Cash Flows
|
||||||||||||||||
(in thousands); (unaudited)
|
||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
August 2,
|
August 3,
|
August 2,
|
August 3,
|
|||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net loss
|
$
|
(28,106
|
)
|
$
|
(35,602
|
)
|
$
|
(59,889
|
)
|
$
|
(68,159
|
)
|
||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
|
||||||||||||||||
Depreciation and amortization of intangible assets
|
4,336
|
4,599
|
8,434
|
9,354
|
||||||||||||
Amortization of lease right-of-use assets and other expense
|
7,804
|
-
|
15,417
|
-
|
||||||||||||
Stock-based compensation expense
|
25,427
|
19,044
|
47,397
|
29,805
|
||||||||||||
Provision for doubtful accounts
|
(257
|
)
|
388
|
(197
|
)
|
619
|
||||||||||
Deferred income taxes
|
(12
|
)
|
64
|
(103
|
)
|
(405
|
)
|
|||||||||
Gain on sale of investment
|
-
|
-
|
(746
|
)
|
(3,234
|
)
|
||||||||||
Other
|
(16
|
)
|
1,449
|
497
|
1,461
|
|||||||||||
Changes in assets and liabilities:
|
||||||||||||||||
Accounts receivable
|
(5,003
|
)
|
46,454
|
185,566
|
76,340
|
|||||||||||
Due from Parent
|
(265
|
)
|
(7
|
)
|
(2,230
|
)
|
(236
|
)
|
||||||||
Deferred sales commissions
|
(348
|
)
|
3,075
|
6,105
|
4,272
|
|||||||||||
Other assets
|
1,075
|
(3,920
|
)
|
2,788
|
(2,457
|
)
|
||||||||||
Accounts payable
|
(4,948
|
)
|
3,984
|
(7,150
|
)
|
(547
|
)
|
|||||||||
Due to Parent
|
(1,653
|
)
|
(2,130
|
)
|
(8,119
|
)
|
(3,185
|
)
|
||||||||
Deferred revenue
|
(56,667
|
)
|
(31,218
|
)
|
(106,276
|
)
|
(10,554
|
)
|
||||||||
Accrued expenses
|
12,885
|
5,692
|
(3,916
|
)
|
(16,213
|
)
|
||||||||||
Operating lease liabilities
|
(7,024
|
)
|
-
|
(14,811
|
)
|
-
|
||||||||||
Other liabilities
|
(5,695
|
)
|
6,497
|
973
|
5,959
|
|||||||||||
Net cash provided by (used in) operating activities
|
(58,467
|
)
|
18,369
|
63,740
|
22,820
|
|||||||||||
Cash flows from investing activities:
|
||||||||||||||||
Additions to property, plant and equipment
|
(2,732
|
)
|
(2,173
|
)
|
(4,936
|
)
|
(4,052
|
)
|
||||||||
Proceeds from sale of investment
|
-
|
-
|
1,929
|
3,234
|
||||||||||||
Net cash used in investing activities
|
(2,732
|
)
|
(2,173
|
)
|
(3,007
|
)
|
(818
|
)
|
||||||||
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
|
5,962
|
2,814
|
36,542
|
9,424
|
||||||||||||
Proceeds from employee stock plans
|
8,967
|
-
|
8,967
|
-
|
||||||||||||
Contribution from Dell
|
-
|
9,300
|
-
|
41,277
|
||||||||||||
Borrowings on credit facility
|
-
|
-
|
-
|
15,000
|
||||||||||||
Repayments on credit facility
|
-
|
-
|
-
|
(35,000
|
)
|
|||||||||||
Net cash provided by financing activities
|
14,929
|
9,534
|
45,509
|
575,375
|
||||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
487
|
512
|
457
|
1,319
|
||||||||||||
Net increase (decrease) in cash and cash equivalents
|
(45,783
|
)
|
26,242
|
106,699
|
598,696
|
|||||||||||
Cash and cash equivalents at beginning of period
|
854,215
|
645,466
|
701,733
|
73,012
|
||||||||||||
Cash and cash equivalents at end of period
|
$
|
808,432
|
$
|
671,708
|
$
|
808,432
|
$
|
671,708
|
|
|
|
|
|
|
Pivotal Software, Inc.
|
||||||||||||||||
GAAP to Non-GAAP Weighted Average Shares Outstanding Reconciliation
|
||||||||||||||||
(in thousands); (unaudited)
|
||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
August 2,
|
August 3,
|
August 2,
|
August 3,
|
|||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
GAAP weighted average shares outstanding, basic and diluted
|
272,724
|
257,240
|
270,619
|
181,404
|
||||||||||||
Assumed preferred stock conversion
|
–
|
–
|
–
|
59,315
|
||||||||||||
Non-GAAP weighted average shares outstanding, basic and diluted
|
272,724
|
257,240
|
270,619
|
240,719
|
|
|