VMware financials

• Main article about the company: VMware
• Business in Russia: VMware Russia (VIEMVARE RUS)

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

In fiscal 2021, VMware raised $11.77 billion, 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.

Even more - by 38% - revenues from the sale of subscriptions on the site and SaaS solutions increased, 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 the transition to a new business model, SiliconANGLE notes.

We are very pleased with our subscriptions and SaaS portfolio, "says Chief Financial Officer and Interim Head of VMware Zane Rowe. - A high rate of contract renewal continues, and we have seen a significant increase in corporate expenses on transactions worth more than $10 million.

VMware revenue up 9% in 2020 thanks to subscriptions and SaaS

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

In fiscal 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 the rest of the countries combined, the company increased sales from $5.41 billion to $5.89 billion. The ratio of American and foreign revenues of VMware remained at around 50% by 50%.

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

From VMware's reporting, it also follows that by the end of the 2021 fiscal year, the company has 33,972 employees on staff and $4.69 billion in cash and cash equivalents.^[1]

2019: Record revenue - $10.81 billion

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

In 2020, VMware received $3.18 billion from sales of software licenses against $3.04 billion a year earlier. Service revenues reached $5.75 billion, which significantly exceeds the one-year-old figure 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. Income 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 products,,, VMware Cloud on AWS Pivotal EUC/(Workspace One part of revenue received as a service),,,,, and Carbon Black CloudHealth Technologies. VMware VeloCloud Horizon Cloud Wavefront AppDefense

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

ON VMware reported a record 31 sales contracts to corporate customers, up from 23 a year earlier. The financial report also refers to a "significant increase" in subscription costs and SaaS offers 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 of publication of the financial statements, VMware quotes amounted to $135.63, which is 6% less than the day before. At electronic trading, securities fell another 6.6% to $126.66. The stock price declined as the virtualization maker's earnings fell short of Wall Street expectations.^[2]

2018: Revenue growth 14% to $8.97 billion

In the reporting year, which ended on February 1, 2019 of the calendar year for VMware, the company gained 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.

Revenues from software license sales 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 with 42.2%.

VMware financials

Most (about 53.1%) of VMware's turnover is generated outside the United States. The company's international revenue for the fiscal year amounted to $4.77 billion against $4.03 billion a year earlier. Revenues in the American market also increased - from $3.83 billion to $4.21 billion.

VMware's annual net profit jumped about 3.5 times, amounting to $2.42 billion. Such a strong inflow occurred due to the receipt of $813 million in income from investments in the software manufacturer Pivotal Software.

By February 1, 2019, $2.85 billion of cash, its equivalents and short-term investments had accumulated in the company's accounts. VMware's free cash flow for the year turned out to be $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 a special dividend.

After the financial statements were released, 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 2018, VMware received record revenue of $7.92 billion. This is 12% more than a year earlier.

For 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. It was affected by one-time expenses of $970 million, which the American company incurred in connection with the tax reform in the United States.

More than half of the turnover of the manufacturer of virtualization solutions is formed by a service business (includes the sale of subscriptions, support and consulting), the volume of which in fiscal 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 earned almost $4.1 billion on user support services for the year, which corresponds to 51.6% in 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 slightly more than in the home market - 50.6% (revenue for the reporting year - $4 billion) versus 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 portfolio and the development of a multi-cloud strategy. The top executive added that collaboration with Amazon and the VMware Cloud on AWS product released under it, which will hit the European market in March 2018, is critical to VMware's long-term prospects.^[4]

2016: Revenue growth of 8% thanks to NSX platform

At the end of January 2017, VMware published its financial statements. The company's revenues have grown steadily largely due to a key product - the virtualization platform for the VMware NSX software-defined data center.

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

VMware Booth Preparation at MWC 2016

By the end of December 2016, VMware had accumulated about $7.51 billion in the form of 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, the volume of VMware's service business (includes the sale of subscriptions, support and consulting) amounted to $4.3 billion against $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 financial results, VMware announced a $1.2 billion share buyback until February 2, 2018. This program will complement the one announced in December 2016: then the company announced the redemption of securities in the amount of $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 CEO Pat Gelsinger. - We are very pleased with the dynamics of product sales and customer enthusiasm for our cloud strategy. We believe we have the most complete and competitive hybrid cloud architecture that offers customers freedom and control over their IT infrastructure solutions.

VMware expects revenue from NSX platform sales 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 name of the customer is not disclosed.^[5]

2015: Revenue growth 9% to $6.57 billion

On January 26, 2016, VMware released its financial statement 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 climbed 12%. Net profit approached $1 billion, amounting to $997 million, while in 2014 this figure was measured at $886 million.

VMware Year 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 revenues against $3.4 billion in 2014. The implementation of software licenses brought VMware about $2.7 billion against $2.6 billion a year earlier.

The company's report also shows that the business volume associated with the network virtualization platform for VMware NSX software data centers increased by 100% in 2015, and the total number of customer orders exceeded $600 million. Sales of VMware End-User Computing solutions rose by 30%, and the volume of orders - up to $1.2 billion.

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

Along with the publication of the financial statements, VMware announced the reduction of about 800 jobs with a total headcount 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 operating directors at VMware, as well as executive vice president, was also announced. Zane Rowe will become the new financial director and executive vice president of the company on March 1, 2016^[6]

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

2014: Revenue growth 16% to $6.04 billion

On January 28, 2015, VMware released an annual report, from which it follows that the company's profits fell by 13%, which is to blame for the costs associated with the acquisition of AirWatch and the purchase of shares.^[7]

According to the 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 security, a year earlier.

The drop in revenues is due to the cost of acquiring mobile security technology developer AirWatch (the deal was closed in the first quarter of 2014) and share buybacks. 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 program, which will last until the end of 2017.

In 2014, VMware's operating profit decreased by 6% on an annualized basis, amounting 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 kinds of professional services brought the company $422 million in 2014, which is $48 million more than the previous year.

By the end of 2014, VMware's accounts had accumulated about $7.08 billion in the form of 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.

The VMware report also reports that the number of customers using the VMware NSX network virtualization platform has exceeded 400. The base of AirWatch users around the world has reached 15 thousand. In 2014, VMware's share price declined by about 14%.

Results for 2014:

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

2013: Revenue growth to $5.21 billion

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

• Operating profit for 2013 amounted to $1.09 billion, which is 25% higher than in 2012. 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 free cash flow for 2013 amounted to $2.19 billion, which is 32% more than in 2012.
• As of December 31, 2013, cash, cash equivalents and short-term investments amounted to $6.18 billion, and deferred revenues amounted to $4.09 billion.

2012: Revenue growth of 22% to $4.61 billion

Revenue for 2012 amounted to $4.61 billion, which is 22% higher than in 2011. Operating income for 2012 amounted to $872 million, which is 19% higher than in 2011. Non-GAAP operating income for 2012 was $1.49 billion, up 28% from 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 amount of cash in the operating budget in 2012 amounted to $1.90 billion, having decreased by 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. As of December 31, 2012, cash, cash equivalents and short-term investments amounted to $4.63 billion, and future income - $3.46 billion.

Revenue in the territory USA for 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 amounted to $2.09 billion, which is 13% higher than in 2011. Revenue from services, which includes technical support ON and professional services, for 2012 amounted to 2.52 billion, which is 31% higher than in 2011.

Total revenue for 2013 is projected to range from $5.230 billion to $5.350 billion, which is 14-16% higher than in 2012. Annual revenue from licenses is also expected to grow by 8-11%. Total revenue in the first quarter of 2013 is projected to range 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, strong results were achieved," says Pat Gelsinger, CEO of VMware. - Our activity is fully focused on the interests of clients, so 2013 opens up wide prospects for the company. VMware is a pioneer in the development of virtualization technologies; From the data center to the virtual workspace, the technologies we develop dramatically simplify the entire IT infrastructure. "

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

2011: Revenue growth 32% to $3.77 billion

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

In the IV quarter of 2010, the vendor expected revenue for the entire 2011 year in the range of $3.45-3.55 billion. After the release of the financial report in January 2011, the value of VMware's share during the extended trading session decreased by 4.9% to $83.4. Analysts were disappointed by the company's forecasts that total revenue and revenue from license sales would grow at a slower pace in 2011.

2010: Revenue growth 41% to $2.9 billion

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

The company's revenue in its 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 the sale of licenses increased by 36% to $1.4 billion, from the provision of services, including software support, - by 46% to $1.5 billion.

Revenue for the fourth quarter of 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

The global VMware 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 trend of virtualization.

Notes