VMware Announces FY 2021 Q1 Results; Pat Gelsinger, Zane Rowe Quoted

Zane Rowe
Zane Rowe

VMware has announced financial results for the first quarter of fiscal 2021 on Friday, noting revenue for the first quarter was $2.73 billion, an increase of 12 percent from the first quarter of fiscal 2020.

“In these unprecedented times, we delivered solid performance and strong execution in Q1 FY21,” said Pat Gelsinger, VMware CEO. “Ensuring the safety and well-being of our employees and addressing our customers’ rapidly changing needs have been our top priorities. We serve as an essential digital service to those customers who provide essential services, helping them scale efficiently and more securely.”

The combination of subscription and SaaS and license revenue was $1.23 billion, an increase of 17 percent from the first quarter of fiscal 2020. The company’s subscription and SaaS revenue for the first quarter was $572 million, an increase of 39 percent year-over-year.

VMware GAAP net income for the first quarter was $386 million compared to $380 million for the first quarter of fiscal 2020. Non-GAAP net income for the first quarter was $640 million, up 21 percent per diluted share compared to $535 million for the first quarter of fiscal 2020.

GAAP operating income for the first quarter was $418 million, an increase of 18 percent from the first quarter of fiscal 2020. Non-GAAP operating income for the first quarter was $818 million, an increase of 25 percent from the first quarter of fiscal 2020. The company’s operating cash flow for the first quarter was $1.37 billion and free cash flow for the first quarter was $1.29 billion.

RPO for Q1 totalled $10.1 billion, up 19 percent year-over-year; total revenue plus sequential change in total unearned revenue grew 6 percent year-over-year. The combination of subscription and SaaS and license revenue plus sequential change in unearned subscription and SaaS and license revenue grew 16 percent  year-over-year.

Within the quarter, VMware launched VMware Tanzu, a portfolio of products and services that enable enterprises to deliver better software faster. Customers can use the VMware Tanzu suite to automate the modern app lifecycle, run Kubernetes across clouds, and unify and optimize multi-cloud operations.

The company also acquired Octarine, which will bring intrinsic security to containerized applications running in Kubernetes and build security capabilities into the fabric of the existing IT and DevOps ecosystems.

VMware introduced new security offerings, including new VMware Advanced Security for Cloud Foundation, which will enable customers to replace legacy security solutions and deliver unified protection across private and public clouds.

Deutsche Telekom and VMware announced that they are collaborating on an open and intelligent virtual RAN platform, based on O-RAN standards, to bring agility to radio access networks (RANs) for both existing LTE and future 5G networks.

VMware launched VMware Partner Connect, the new, simplified and flexible program that empowers partners with flexibility to meet customers’ needs, making VMware technologies and services opportunities more accessible.

“Q1 demonstrated our ability to drive a positive ROI and enhanced resilience for customers undergoing digital transformations,” said Zane Rowe, executive vice president and CFO, VMware. “The quarter also highlighted VMware’s strengths and opportunities in a challenging economic environment.”

About VMware

VMware software powers the world’s complex digital infrastructure. The company’s cloud, networking and security, and digital workspace offerings provide a dynamic and efficient digital foundation to customers globally, aided by an extensive ecosystem of partners. Headquartered in Palo Alto, California, VMware is committed to being a force for good, from its breakthrough innovations to its global impact

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