I was a little concerned at the continuing rate of customer growth measured in dozens.
It was 20, right? 319 last quarter, 339 now. The weirder thing, as Epictetus pointed out and I noted as well here (http://discussion.fool.com/sure-they-boast-quot7-of-the-largest-…), is that their fantastic 156% retention rate is probably driven by about 40 of these which are million-dollar plus per year customers. Maybe as much as $10 million each on average…that’s a lot of money from not that many customers. Is one of those customers 10% or 20% of all Pivotal’s revenue?
More importantly, is that 156% destined to drop precipitously? If these customers are increasing their spend that fast, how close are they to saturation (spending as much as they will ever need to with Pivotal)?
Still, amazing quarter, and the 28% revenue growth is completely non-indicative of their true performance, which was incredible. I took a 4% position AH yesterday when I saw the report. I’m still cautious and want to learn more, but great call on this one, SteppenWulf. Along with the others who have said the same, I am grateful you brought it to the board. And Saul, I’m so glad you dug in on it! Thank you both!
Bear