VMware Reports Fiscal Year 2023 Second Quarter Results
VMware, a leading innovator in enterprise software, has announced its financial results for the second quarter of the fiscal year 2023.
Quarterly Review
. Revenue for the second quarter was $3.34 billion, an increase of 6% from the second quarter of fiscal 2022.
. The combination of subscription and SaaS and license revenue was $1.74 billion for the second quarter, an increase of 15% from the second quarter of fiscal 2022.
. Subscription and SaaS revenue for the second quarter was $943 million, an increase of 22% year-over-year, constituting 28% of total revenue for the quarter.
. Subscription and SaaS ARR for the second quarter was $3.89 billion, an increase of 24% year-over-year.
. GAAP net income for the second quarter was $347 million, or $0.82 per diluted share, down 16% per diluted share compared to $411 million, or $0.97 per diluted share, for the second quarter of fiscal 2022. Non-GAAP net income for the second quarter was $697 million, or $1.64 per diluted share, down 6% per diluted share compared to $739 million, or $1.75 per diluted share, for the second quarter of fiscal 2022.1
. GAAP operating income for the second quarter was $566 million, an increase of 8% from the second quarter of fiscal 2022. Non-GAAP operating income for the second quarter was $965 million, an increase of 5% from the second quarter of fiscal 2022.
. Operating cash flow for the second quarter was $397 million. Free cash flow for the second quarter was $284 million.
. RPO for the second quarter totaled $12.10 billion, up 8% year-over-year.
“We are pleased with our performance in Q2. Our momentum continued at VMware Explore where we showcased new innovative offerings while also highlighting how we are helping customers continue to transform their businesses,” said Raghu Raghuram, CEO, of VMware. “We remain committed to helping organisations unlock the full potential of multi-cloud.”
“Our Q2 financial results reflect the continued commitment of the entire VMware team to accelerate innovation for our customers as they move to a multi-cloud environment,” said Zane Rowe, executive vice president and CFO of VMware. “Investments in our Subscription and SaaS offerings helped contribute to ARR growth of 24% year-over-year.”
Business Highlights & Strategic Announcements
VMware unveiled VMware vSphere+ and VMware vSAN+ to help organizations bring the benefits of the cloud to their existing on-premises infrastructure with no disruption to their workloads or hosts.
VMware became an Official Partner of the McLaren Formula 1 Team. VMware multi-cloud solutions will help McLaren operate with speed and drive confidence no matter where the team is racing in the world.
VMware and HCL Technologies announced the formation of HCL’s new dedicated VMware Business Unit, designed to unlock the untapped value of multi-cloud and app modernisation. The new unit combines the power of HCL’s CloudSMART Framework with VMware Cross-Cloud services to help enterprises accelerate cloud transformation, scale cloud-native platform operations and empower hybrid workforces.
VMware and Wipro Limited announced an expanded collaboration that will enable customers to achieve the cloud freedom they desire with the enterprise control they require as they execute their digital strategies.
VMware was named the 2022 HPE Global Technology Partner of the Year, recognizing VMware as an HPE partner that exemplifies commitment and success in delivering value to customers on their digital transformation journey.
VMware received the 2021 Google Cloud Technology Partner of the Year Award for Infrastructure Modernisation, recognising VMware’s achievements as part of the Google Cloud ecosystem in helping mutual customers accelerate their enterprise cloud transformation.
VMware received industry analyst recognition:
VMware has been positioned as a Leader in three recent IDC MarketScape reports related to the Unified Endpoint Management (UEM) space2: WW UEM Software 2022 Vendor Assessment, WW UEM Software for Apple Devices 2022 Vendor Assessment, WW UEM Software for Ruggedized/Internet of Things Device Deployments 2022 Vendor Assessment.
VMware was named a Visionary in the 2022 Gartner® Magic Quadrant™ for Application Performance Monitoring and Observability3 for its observability platform, Tanzu Observability by Wavefront. VMware has been recognized for its vision and execution. Organisations are increasingly adopting multi-cloud strategies and modern application development to meet the requirements of being a modern digital business.
VMware posted its 2022 Environmental Social and Governance (ESG) Report and 2022 Diversity, Equity, and Inclusion (DEI) Report, continuing to enhance ESG disclosures.
VMware has recently been recognised for human capital commitments by ranking as a Top 100 U.S. company supporting healthy families and communities by JUST Capital.
VMware received a 100% score on the 2022 Disability Equality Index and being recognized as a Best Place to Work for Disability Inclusion by Disability:IN and AAPD for the second year in a row.
VMware recently joined more than 80 companies in supporting the development of the IFRS Sustainability Disclosure Standards, underlying the importance of better standardisation and transparency in ESG disclosures for the investor community.
1 Our annual estimated tax rate is based upon, among other things, current tax law regarding the impacts of Internal Revenue Code Section 174 (“Section 174”) research and development expense capitalisation, which became effective beginning VMware’s fiscal 2023. Although the U.S. Congress continues to consider various legislative options that would defer the amortization requirement to later years, the financial results for the six months ended July 29, 2022, reflect the impact of the tax law in effect as of July 29, 2022. The provided estimated tax adjustment range in the table accompanying this release reflects the non-GAAP adjustment we would expect should the capitalization provisions of Section 174 be deferred or repealed with effect for fiscal 2023.
2 IDC MarketScape: Worldwide Unified Endpoint Management Software 2022 Vendor Assessment (doc #US48325122, May 2022); IDC MarketScape: Worldwide Unified Endpoint Management Software for Apple Devices 2022 Vendor Assessment (doc #US48325222, May 2022); IDC MarketScape: Worldwide Unified Endpoint Management Software for Ruggedized/Internet of Things Device Deployments 2022 Vendor Assessment (doc #US48325322, May 2022)
3 Gartner, Inc., Magic Quadrant for Application Performance Monitoring and Observability, Padraig Byrne and Gregg Siegfried, 07 June 2022. Gartner does not endorse any vendor, product or service depicted in its research publications and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner’s research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, concerning this research, including any warranties of merchantability or fitness for a particular purpose. Gartner and Magic Quadrant are registered trademarks and service marks of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved.