VMware reports fiscal year 2022 second quarter results

PALO ALTO, Calif. -- VMware, Inc. (NYSE: VMW), a leading innovator in enterprise software, today announced financial results for the second quarter of fiscal year 2022:

• Revenue for the second quarter was $3.14 billion, an increase of 9% from the second quarter of fiscal 2021.
• The combination of subscription and SaaS and license revenue was $1.51 billion, an increase of 12% from the second quarter of fiscal 2021.
• Subscription and SaaS revenue for the second quarter was $776 million, an increase of 23% year-over-year.
• Subscription and SaaS ARR for the second quarter was $3.15 billion, an increase of 26% year-over-year.
• GAAP net income for the second quarter was $411 million, or $0.97 per diluted share, down 8% per diluted share compared to $447 million, or $1.06 per diluted share, for the second quarter of fiscal 2021. Non-GAAP net income for the second quarter was $739 million, or $1.75 per diluted share, down 3% per diluted share compared to $766 million, or $1.81 per diluted share, for the second quarter of fiscal 2021.
• GAAP operating income for the second quarter was $525 million, a decrease of 2% from the second quarter of fiscal 2021. Non-GAAP operating income for the second quarter was $924 million, a decrease of 3% from the second quarter of fiscal 2021.
• Operating cash flow for the second quarter was $864 million. Free cash flow for the second quarter was $777 million.
• RPO for the second quarter totaled $11.2 billion, up 8% year-over-year.
• Company remains on track for planned spin-off from Dell Technologies Inc. in early November 2021.

“Our customers are evolving their strategies from a ‘cloud first’ to a ‘cloud smart’ philosophy where they are picking the right clouds and cloud services for the right workload, and turning to a multi-cloud environment,” said Raghu Raghuram, VMware CEO. “We are delivering the multi-cloud platform for all applications, enabling the digital innovation and enterprise control that our customers need to accelerate their businesses today and in the future.”

“We are pleased with our Q2 financial performance with Subscription and SaaS ARR increasing 26% year-over-year to $3.2 billion,” said Zane Rowe, executive vice president and CFO, VMware. “Our performance in Q2 reflects strong year-over-year product bookings growth in major categories, including our multi-cloud and modern applications businesses along with End-User Computing.”

Business Highlights & Strategic Announcements

• VMware introduced VMware Anywhere Workspace, a solution that brings together VMware Workspace ONE, VMware SASE and VMware Carbon Black Cloud, empowering organizations to manage multi-modal employee experiences, better secure the distributed edge and automate the workspace.
• VMware is working with Zoom Video Communications, Inc. to enable a better and more secure collaboration experience for hybrid work environments. The effort will deliver interoperability between VMware Anywhere Workspace and the Zoom collaboration platform to further improve ease of use, application and network performance and security.
• VMware and Vapor IO announced they are building a Multi-Cloud Services Grid that integrates the VMware Telco Cloud Platform with Vapor IO’s Kinetic Grid platform, designed to greatly simplify and lower the costs of deploying distributed 5G systems and real-time applications.
• Cohere Technologies and VMware are developing an open radio access network (O-RAN) solution to help communications service providers improve network and spectrum efficiencies and deliver new and differentiated services and experiences for their customers.
• VMware announced expanded SaaS innovations to VMware Horizon, the company’s industry-leading virtual desktop infrastructure (VDI) and Desktop-as-a-Service (DaaS) platform. These new capabilities will make it easier for IT organizations to manage Horizon deployments wherever they may be, on-premises or in the cloud.
• VMware received further recognition from leading industry analysts:
  • VMware was positioned as a Leader in “The Forrester Wave™: Endpoint Security Software As A Service, Q2 2021.”1
  • IDC ranked VMware No. 1 in worldwide IT automation and configuration management (ITACM) 2020 Market Share.2
  • IDC ranked VMware No. 1 in software-defined compute for 2020 market share.3

1 Forrester, Chris Sherman, The Forrester Wave™: Endpoint Security Software As A Service, Q2, 2021, May 13, 2021
2 IDC, “Worldwide IT Automation and Configuration Management Software Market Shares, 2020: Moderate Growth Amid Pandemic Disruption,” doc #US47758721, June 2021
3 IDC, “Worldwide Software-Defined Compute Software Market Shares, 2020: Growth Shifts to Containers,” doc #US47298521, June 2021

The company will host a conference call today at 1:30 p.m. PT/ 4:30 p.m. ET to review financial results and business outlook. A live web broadcast of the event will be available on the VMware investor relations website at http://ir.vmware.com. Slides will accompany the web broadcast. The replay of the webcast and slides will be available on the website for two months. In addition, six quarters of historical data for unearned revenue will also be made available at http://ir.vmware.com in conjunction with the conference call.

About VMware

VMware software powers the world’s complex digital infrastructure. The company’s cloud, app modernization, networking, security, and digital workspace offerings help customers deliver any application on any cloud across any device. Headquartered in Palo Alto, California, VMware is committed to being a force for good, from its breakthrough technology innovations to its global impact. For more information, please visit https://www.vmware.com/company.html.