VMware reports 11% YOY Revenue Growth- Q3 earnings

VMware, Inc., (NYSE: VMW) released its FY22 Q3 earnings call on Tuesday after the market closed. Reported Revenue for the third quarter was $3.19 billion, an increase of 11% compared to Q3 2021.

Key Highlights

  • Revenue for the third quarter was $3.19 billion, an increase of 11% from the third quarter of fiscal 2021.
  • Subscription and SaaS ARR for the third quarter was $3.31 billion, an increase of 25% year-over-year.
  • GAAP net income for the third quarter was $398 million, or $0.94 per diluted share, down 8% per diluted share compared to $434 million, or $1.02 per diluted share, for the third quarter of fiscal 2021. 
  • Non-GAAP net income for the third quarter was $725 million, or $1.72 per diluted share, up 3% per diluted share compared to $704 million, or $1.66 per diluted share, for the third quarter of fiscal 2021.
  • GAAP operating income for the third quarter was $519 million, an increase of 21% from the third quarter of fiscal 2021. 
  • Non-GAAP operating income for the third quarter was $935 million, an increase of 5% from the third quarter of fiscal 2021.
  • Operating cash flow for the third quarter was $1.09 billion. Free cash flow for the third quarter was $984 million.

“We are pleased with our continued strong performance in Q3. This quarter, as we unveiled many new offerings at VMworld, we showcased how we are helping customers transform their businesses today and that our innovation engine is thriving.”

Raghu Raghuram, CEO of VMware, Inc.

Analysts Expectations

EPS – $0.92

Revenue – $3.12 billion

Earnings History

On August 25th, 2021, VMware released its most recent quarterly results report. The virtualization software company reported $1.75 per share for the quarter, $0.11 higher than the consensus expectation of $1.64. Revenue for the quarter was $3.14 billion, compared to a consensus forecast of $3.10 billion. Over the previous year, VMware has made $4.87 earnings per share ($4.87 diluted earnings per share) and has a price-to-earnings ratio of 24.4. VMware’s earnings are predicted to rise 3.48 percent this year, from $4.60 to $4.76 per share.

Recent News and Announcements

At the Wells Fargo Virtual TMT Summit, VMware will give a presentation on December 1, 2021. 

For the second year in a row, VMware was invited to be a member of the Dow Jones Sustainability Indices (DJSI), one of the world’s premier environmental, social, and governance (ESG) benchmarks, the company announced on November 19, 2021.

About VMware

VMware, Inc., is an American cloud computing and virtualization technology company with a market cap of $49.70 billion. It is a prominent provider of multi-cloud services for all apps, allowing enterprises to innovate while maintaining control. VMware software provides businesses with the flexibility and choice they need to build the future as a trusted foundation for accelerating innovation. VMware, based in Palo Alto, California, is dedicated to creating a brighter future through its 2030 Agenda.

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