VMware Financial Performance

• Company White Paper: VMware
• Business in Russia: VMware Russia

2020: Revenue growth by 9%, to $11.77 billion

In fiscal 2021, VMware raised $11.77 billion, which is 9% higher than a year ago. Sales of subscriptions, SaaS solutions (software as a service) and licenses for software products installed on client computers increased by 11% to $5.6 billion.

Revenues from sales of subscriptions on the site and SaaS solutions increased even more - by 38%, in 2021 this business brought the American company about $2.59 billion. These indicators are closely watched by investors and analysts, as it indicates the degree of success of the company in switching to a new business model, the publication SiliconANGLE notes.

We are very pleased with our subscriptions and portfolio, SaaS says Zane Rowe, CFO and interim head of VMware. - High rate of contract renewal continues, and we see a significant increase in corporate expenses on transactions worth more than $10 million.

VMware revenue in 2020 increased by 9% thanks to subscriptions and SaaS

Service revenue annualized increased from $5.75 billion to $6.15 billion, taking more than half of VMware's annual turnover.

In 2021, VMware's revenue in the United States amounted to $5.88 billion, an increase from the previous year's result of $5.41 billion. In other countries combined, the company increased sales from $5.41 billion to $5.89 billion. VMware's ratio of US to foreign revenue remained at 50% by 50%.

According to the results of the 12-month reporting period, closed at the end of January 2021 of the calendar year, VMware recorded a net profit of $2.06 billion, while a year earlier such profit was measured at $6.41 billion.

VMware reports also show that by the end of 2021, the company has 33,972 employees in the state and $4.69 billion in cash and cash equivalents.^[1]

2019: Record revenue - $10.81 billion

VMware revenue for the 2020 fiscal year, closed January 31, 2020 calendar year, VMware revenue for the first time exceeded $10 billion and reached $10.81 billion.

In 2020, VMware received $3.18 billion from software license sales, compared to $3.04 billion a year earlier. Service revenues reached $5.75 billion, which significantly exceeds the figure of a year ago of $5.27 billion. Software support services brought the American vendor about $4.75 billion in turnover, in fiscal 2019 revenues were measured at $4.35 billion. Revenues from the provision of professional services increased from $917 million to $999 million.

VMware revenue for the first time exceeded $10 billion and reached $10.81 billion

Annual revenue from sales of subscriptions to SaaS solutions amounted to $1.88 billion, which is 44% higher than the result of a year ago. This business accounted for more than 17% of total revenue. This includes VMware Cloud Provider, VMware Cloud on AWS, Pivotal, EUC/Workspace One, Carbon Black, CloudHealth Technologies, VMware VeloCloud, Horizon Cloud, Wavefront, and AppDefense.

VMware's net profit in 2020 was $6.41 billion, an increase of almost 4 times compared to the previous year.

VMware reported a record number of contracts selling software to enterprise customers - 31 compared to 23 a year earlier. The financial report also refers to a "significant increase" in the cost of subscriptions and offers SaaS in the top ten deals. This is more than double the level of a year ago.

By the close of the New York Stock Exchange on the day the financial statements were published, VMware quoted $135.63, which is 6% less than a day earlier. At electronic trading, securities fell by another 6.6%, to $126.66. The stock price declined because the virtualization maker's earnings fell short of Wall Street's expectations.^[2]

2018: Revenue growth by 14% to $8.97 billion

In the reporting year, which ended for VMware on February 1, 2019, the company earned a record $8.97 billion, which is 14% more than a year ago. The rise was facilitated by the transition of VMware to a cloud business model, in which the vendor actively attracts partners.

Software license revenues jumped 18% to $3.79 billion. Service revenue increased from $4.66 billion to $5.18 billion. This included software support services (brought the manufacturer of virtualization tools $4.51 billion, which is $500 million more than a year earlier) and various kinds of professional services (an increase from $630 million to $680 million). Thus, the service business provided the company with 57.8% of annual revenue, and licenses - 42.2%.

VMware Financial Performance

VMware generates most (about 53.1%) of its turnover outside the United States. The company's international revenue for the financial year amounted to $4.77 billion against $4.03 billion a year earlier. Revenues in the US market also increased - from $3.83 billion to $4.21 billion.

VMware's annual net profit jumped about 3.5 times to $2.42 billion. So strong inflow happened owing to receiving $813 million income from investments into the producer program obespecheniyapivotal Software.

By February 1, 2019, $2.85 billion of cash, their equivalents and short-term investments accumulated in the company's accounts. VMware's free cash flow for the year was $3.42 billion.

Commenting on the results, VMware Executive Vice President and CFO Zane Rowe noted that the company is satisfied with the annual performance, as well as the return of $11 billion to shareholders through special dividends.

After the release of financial statements, VMware shares rose 3%, as the company's sales were above Wall Street expectations. In 2018, the quotation rate increased by 30%.^[3]

2017: Record revenue - $7.92 billion (+ 12 %)

In fiscal year 2018, VMware received a record revenue of $7.92 billion. This is 12% more than a year earlier.

During the reporting 12-month period, which ended on February 2, 2018, VMware's net profit amounted to $570 million, which is about half the profit a year ago. Here, one-time expenses of $970 million that the American company incurred in connection with the tax reform in the United States affected.

More than half of the turnover of the manufacturer of virtualization solutions is formed by the service business (including the sale of subscriptions, support and consulting), the volume of which in fiscal year 2018 reached $4.7 billion against $4.3 billion in 2017. The implementation of software licenses brought VMware about $3.2 billion in revenue, while a year earlier the figure was measured at $2.8 billion.

VMware software earned almost $4.1 billion in user support services over the year, which corresponds to 51.6% of total revenue. The share of income from all kinds of professional services amounted to 8.1% ($639 million), and the share of license sales exceeded 40%.

VMware does not specify revenues in certain regions and only indicates that outside the United States the company earns a little more than in the home market - 50.6% (revenue at the end of the reporting year - $4 billion) against 49.4% ($3.9 billion), respectively.

Commenting on the financial results in a conversation with investors, VMware CEO Pat Gelsinger noted that the company's revenue growth is primarily due to the expansion of the hybrid cloud product portfolio and the development of a multi-cloud strategy. The top manager added that cooperation with Amazon and the VMware Cloud on AWS product released within its framework, which will appear in the European market in March 2018, are crucial for VMware's long-term prospects.^[4]

2016: 8% revenue growth thanks to NSX platform

At the end of January 2017, VMware published financial statements. The company's revenue has grown steadily thanks in large part to the key product - the virtualization platform for the VMware NSX software-defined data center.

In 2016, VMware's revenue reached $7.09 billion, which is 8% more than a year earlier. Net profit during this time rose 19% to $1.19 billion.

VMware Stand Preparation at MWC 2016

By the end of December 2016, VMware had accumulated about $7.51 billion in cash and cash equivalents, as well as short-term investments. In 2016, the company's free cash flow amounted to $2.23 billion.

In 2016, VMware's service business (including subscription sales, support and consulting) amounted to $4.3 billion compared to $3.9 billion in 2015. The implementation of software licenses brought VMware about $2.8 billion, and a year earlier the figure was measured at $2.7 billion.

Together with the publication of the financial results, VMware announced a repurchase of shares worth $1.2 billion until February 2, 2018. This program will supplement the one that was announced in December 2016: then the company reported a buyback of securities worth $500 million.

The fourth quarter, which closed a strong 2016 fiscal year, turned out to be one of the most balanced for VMware in recent years, says Pat Gelsinger, CEO of the company. - We are very pleased with the dynamics of product sales and the enthusiasm of customers towards our cloud strategy. We believe that we have the most complete and competitive hybrid cloud architecture that offers customers freedom and control over their IT infrastructure solutions.

VMware expects NSX platform revenue to exceed $1 billion in 2017. In the fourth quarter of 2016, the company received the largest NSX implementation contract in its history, its cost was $10 million. The customer name is not disclosed.^[5]

2015: Revenue growth by 9%

On January 26, 2016, VMware published a financial report and reported job cuts, to which investors responded positively.

At the end of 2015, VMware received revenue of $6.57 billion, which is 9% more than a year earlier. Excluding currency fluctuations, sales rose 12%. Net profit approached $1 billion, amounting to $997 million, while in 2014 this figure was measured at $886 million.

VMware Results: 9% Revenue Growth and Layoffs

In the structure of the annual revenue of the American company, the service direction (includes the sale of subscriptions, support and consulting) took $3.9 billion in revenue compared to $3.4 billion in 2014. The implementation of software licenses brought VMware about $2.7 billion against $2.6 billion a year earlier.

Also follows from the report of the company that the volume of the business connected with the platform of virtualization of network for program date-tsentrovVMware of NSX in 2015 increased by 100%, and the total number of client orders exceeded $600 million. Sales of VMware End-User Computing solutions rose 30%, and the volume of orders - up to $1.2 billion.

By the end of December 2015, VMware had accumulated about $7.51 billion in cash and cash equivalents, as well as short-term investments. In 2015, the company's free cash flow reached $1.9 billion.

Simultaneously with the publication of financial statements, VMware announced a reduction in about 800 jobs for a total of 18 thousand people. It is planned to spend about $55-65 million on the dismissal procedure in the first half of 2016.

The resignation of Jonathan Chadwick, who held the positions of financial and operational directors, as well as executive vice president, was also announced at VMware. The new financial director and executive vice president of the company on March 1, 2016 will be Zane Rowe^[6]

On the day of the release of the annual results and the announcement of job cuts, VMware shares rose in price by more than 1%.

2014: Revenue growth by 16%

On January 28, 2015, VMware released an annual report, which shows that the company's profit fell by 13%, which is to blame for the costs associated with acquiring AirWatch and buying shares.^[7]

According to published results, in 2014, VMware received a net profit of $886 million, or $2.04 per share, against $1.01 billion, or $2.34 per vendor's securities, a year earlier.

The fall in revenues is due to the cost of acquiring the developer of information security technologies for mobile devices AirWatch (the transaction was closed in the first quarter of 2014) and the repurchase of shares. In August 2014, VMware announced a $1 billion buyback program. During the publication of the annual reports, it became known about the doubling of the volume of the program, which will last until the end of 2017.

In 2014, VMware's operating profit decreased by 6% year-on-year to $1.03 billion. Revenue reached $6.04 billion, an increase of 16% compared to 2013. More than 48% of the company's sales are generated outside the United States.

In the structure of annual revenue, revenues from software support services exceeded $3 billion against $2.6 billion a year earlier. Revenues from the sale of licenses jumped over the year from $2.3 billion to $2.6 billion. Various professional services brought the company $422 million in 2014, which is $48 million more compared to the previous year.

By the end of 2014, VMware had accumulated about $7.08 billion in cash and cash equivalents, as well as short-term investments. In 2014, the company's free cash flow decreased by 17% to $1.83 billion.

In the report of VMware it is also reported that the number of the clients using the platform network virtualizatsiiVMware NSX exceeded 400. The AirWatch user base worldwide reached 15 thousand. In 2014, the value of VMware shares decreased by about 14%.

Results for 2014:

• Revenue amounted to $6.04 billion, which is 16% more than in 2013.
• Operating profit (GAAP) amounted to $1.03 billion, which is 6% less than a year earlier.
• Operating profit (non-GAAP) was $1.88 billion, up 6% from a year earlier in the fourth quarter.
• Net income was $886 million, down 13% from $1.01 billion a year earlier.
• Operating cash flows amounted to $2.18 billion.
• Cash, its equivalents and short-term investments total $7.08 billion.

2013: Revenue growth to $5.21 billion

Revenue for 2013 year amounted to $5.21 billion, which is 13% higher compared to 2012 year. Excluding GoPivotal revenue and all assets disposed of in 2013, 2013 revenue increased by 17% compared to 2012.

• Operating profit for 2013 year amounted to $1.09 billion, which is 25% higher than the results of 2012 year. Non-GAAP operating profit for 2013 was $1.77 billion, an increase of 19% compared to 2012.
• Net income for 2013 was $1.01 billion, or $2.34 per diluted share, up 36% from $746 million or $1.72 per diluted share in 2012. Non-GAAP net income for 2013 was $1.46 billion, corresponding to $3.37 per diluted share. This is an 18% increase from $1.24 billion or $2.85 per diluted share in 2012.
• Cash revenues from core activities for 2013 amounted to $2.54 billion, which means an increase of 34% compared to 2012. The flow of free cash for 2013 year amounted to $2.19 billion, which is 32% more than in 2012 year.
• For December 31, 2013 the money, their equivalents and short-term investments were $6.18 billion, and income of future periods - $4.09 billion.

2012: Revenue growth by 22% to $4.61 billion

Revenue for the 2012 year amounted to $4.61 billion, which is 22% higher than in 2011. Operating income for the 2012 year amounted to $872 million, which is 19% higher than in 2011. Operating income not according to the GAAP standard for 2012 was $1.49 billion, which is 28% higher than in 2011.

Net income in 2012 was $746 million, or $1.72 per diluted share, while in 2011 net income was $724 million, or $1.68 per diluted share. Non-GAAP net income in 2012 was $1.24 billion, or $2.85 per diluted share, while in 2011 net income was $936 million, or $2.17 per diluted share. Non-GAAP annual net income per diluted share was $2.85, up 31.4% from 2011.

The volume of cash in the operating budget in 2012 amounted to $1.90 billion, a decrease of 6% compared to last year, and the volume of free cash flow amounted to $1.66 billion, which is 7% less than in the fourth quarter of 2011. For December 31, 2012 the volume of cash, an equivalent of cash and short-term investments was $4.63 billion, and income of future period - $3.46 billion.

Income in the United States in 2012 increased by 22% compared to 2011 and amounted to $2.23 billion. Income in other countries in 2012 increased by 22% compared to 2011 and amounted to $2.38 billion. Revenue from licenses for 2012 year amounted to $2.09 billion, which is 13% higher than in 2011. Revenue from services, which include software technical support and professional services, for 2012 year amounted to 2.52 billion, which is 31% higher than in 2011 year.

Total revenue for 2013 is projected from $5.230 to $5.350 billion, which is 14-16% higher than in 2012. It is also expected to increase annual income from licenses by 8-11%. Total revenue in the first quarter of 2013 is projected from $1.170 billion to $1.190 billion, which is about 11-13% more than in the first quarter of 2012. "2012 was a successful year for VMware, and in the fourth quarter, despite the difficult economic situation, high results were achieved," said Pat Gelsinger, CEO of VMware. - Our activities are fully customer-oriented, therefore 2013 opens up wide prospects for the company. VMware is a pioneer in the development of virtualization technologies; The technologies we are developing dramatically simplify the entire IT infrastructure - from the data center to the virtual workspace. "

VMware plans to reduce 900 jobs. The company's management is trying to focus on the most promising areas, while the number of employees employed in some other areas - for example, in the development of the online presentation editor SlideRocket - will be reduced. However, the total number of VMware employees in 2013 should grow by another thousand. Now the company employs approximately 13,800 people.

2011: Revenue growth by 32% to $3.77 billion

In 2011, the company recorded revenue of $3.77 billion. This is 32% more compared to 2010. Net profit increased by 2 times - from $357 million to $724 million.

In Q4 2010, the vendor expected revenue for the whole of 2011 in the range of $3.45-3.55 billion. Following the January 2011 financial report, VMware's stock value declined 4.9% to $83.4 during the extended trading session. Analysts were disappointed by the company's forecasts, according to which total revenue and revenue from the sale of licenses in 2011 will grow at a slower pace.

2010: Revenue growth by 41% to $2.9 billion

VMware revenue in 2010 increased by 41% to $2.9 billion. Operating profit amounted to $428 million, 95% more compared to 2009. Net profit increased by 81% to $357 million.

The company's revenue in the native US market in 2010 increased by 40% to $1.5 billion. Revenue outside the United States - by 43% to $1.4 billion, respectively. Revenue from license sales increased by 36% to $1.4 billion, from the provision of services, including software support, by 46% to $1.5 billion.

Revenue for Q4 2010 increased by 37% to $836 million. Net profit increased more than 2 times to $120 million against $56 million a year earlier.

• As of September 2010, the company has more than 170,000 customers and more than 25,000 partners worldwide.
• In the region of Russia and the CIS - more than 500 partners, customers in the first half of 2010 - more than 2,500 thousand.

2009: Revenue growth to $2 billion

Global VMware's revenue in 2009 was about $2 billion. The company's operating profit is more than 25%. Foreign exchange reserves - $2.5 billion.

2009 was a turning point for the company, as the supply of virtual machines in the world exceeded the number of physical servers. There is a tendency to spread. virtualizations

Notes