VMware Reports Fiscal 2018 Third Quarter Results

VMware Reports Fiscal 2018 Third Quarter Results

Fast Facts

  • Revenue for the third quarter was $1.98 billion, an increase of 11% from the third quarter of 2016.
  • License revenue for the third quarter was $785 million, an increase of 14% from the third quarter of 2016.
  • GAAP net income for the third quarter was $443 million, or $1.07 per diluted share, up 43% per diluted share compared to $319 million, or $0.75 per diluted share, for the third quarter of 2016. Non-GAAP net income for the quarter was $553 million, or $1.34 per diluted share, up 17% per diluted share compared to $485 million, or $1.14 per diluted share, for the third quarter of 2016.

Executive Quotes

“Coming off of a strong VMworld season, we are excited about the new products and services we have introduced this past quarter demonstrating our commitment to innovation and solving complex customer problems,” commented Pat Gelsinger, chief executive officer, VMware. “We are very pleased with our Q3 results; our strategy continues to resonate with customers as they embrace and leverage our broad portfolio of products and services.”

“We had a solid third quarter,” said Zane Rowe, executive vice president and chief financial officer, VMware. “Our results reflect continued strength across the portfolio and customers’ commitment to VMware as a strategic partner for both on-premises and hybrid-cloud software solutions.”

Recent Highlights & Strategic Announcements

  • At VMworld 2017, VMware hosted over 30,000 customers, partners and influencers in Las Vegas and Barcelona and introduced a wave of new products and services focused on the key technologies across cloud, mobility, networking and security. Highlights include:
    • VMware unveiled an expanded set of products and services as part of VMware Cloud™ that are available through VMware and partners, including:
    • VMware Cloud on AWS is now initially available in AWS U.S. West region. VMware Cloud on AWS brings VMware’s software-defined data center to the AWS Cloud, allowing customers to run applications across operationally consistent VMware vSphere®-based private, public and hybrid cloud environments, with optimized access to AWS services
    • New VMware Cloud Services that enable end-to-end visibility into cloud usage, costs and networks, with consistent networking and security across public clouds and on-premises environments
    • VMware announced its breakthrough solution for securing applications running on virtualized or cloud environments—VMware AppDefense™. It helps to deliver an intentbased security model and enables least privilege environments for critical applications.
    • VMware and Pivotal Software, Inc., in collaboration with Google Cloud, unveiled Pivotal Container Service™ (PKS), a commercial release of the open source Cloud Foundry Container Runtime technology that, when available, will help Global 2000 companies operationalize Kubernetes.
  • VMware announced its intent to acquire VeloCloud Networks, Inc., provider of industry-leading cloud-delivered software-defined wide-area network (SD-WAN) technology for enterprises and service providers. Once the acquisition closes, VeloCloud will enable VMware to build on the success of its industry-leading network virtualization platform—VMware NSX®—and expand its networking portfolio to address end-to-end automation, application continuity, branch transformation and security from data center to cloud to edge.
  • According to IDC’s 2Q2017 Worldwide Quarterly Converged Systems Tracker, VMware, based on sales of hyperconverged solutions running VMware vSAN™, was the largest hyperconverged infrastructure software vendor during the first half of calendar year 2017.(1)