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Pivotal cuts Q2, fiscal 2020 outlook

Company said it is seeing sales execution issues and a more complex tech environment.
Written by Larry Dignan, Contributor

Pivotal Software has cut its revenue targets for the second quarter and fiscal 2020 as the company cited "sales execution and a complex technology landscape."

For the second quarter, Pivotal Software, which is in the Dell Technologies portfolio, projected total revenue of $185 million to $189 million with a non-GAAP loss of 4 cents a share to 3 cents a share.

Wall Street was looking for revenue of $198 million and a non-GAAP loss of 3 cents a share.

For fiscal 2020, Pivotal projected total revenue of $756 million to $767 million with a non-GAAP loss of 15 cents a share to 14 cents a share. The loss guidance was in line, but sales were projected to be $802.6 million for the fiscal year.

CEO Rob Mee said Pivotal saw sales execution issues and that a "complex technology landscape impacted the quarter."

Relative to the outlook provided, Pivotal's first quarter wasn't bad. The company reported a first quarter net loss of $31.7 million, or 12 cents a share, on revenue of $185.7 million. Non-GAAP loss for the first quarter was 3 cents a share.

Wall Street was looking for first quarter revenue of $184.1 million with non-GAAP loss of 5 cents a share.

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