VMware has announced financial results for the first quarter of fiscal year 2020:
Revenue for the first quarter was $2.27 billion, an increase of 13% from the first quarter of fiscal 2019.
License revenue for the first quarter was $869 million, an increase of 12% from the first quarter of fiscal 2019.
GAAP net income for the first quarter was $505 million, including an unrealized gain of $132 million on an investment in Pivotal Software, or $1.21 per diluted share, compared to $942 million, or $2.29 per diluted share, for the first quarter of fiscal 2019. Non-GAAP net income for the first quarter was $553 million, or $1.32 per diluted share, up 5% per diluted share compared to $516 million, or $1.26 per diluted share, for the first quarter of fiscal 2019.
GAAP operating income for the first quarter was $415 million, an increase of 9% from the first quarter of fiscal 2019. Non-GAAP operating income for the first quarter was $667 million, an increase of 12% from the first quarter of fiscal 2019.
Operating cash flow for the first quarter was $1.27 billion. Free cash flow for the first quarter was $1.20 billion.
Total revenue plus sequential change in total unearned revenue grew 25%
License revenue plus sequential change in unearned license revenue grew 23%
The company also announced that its Board of Directors has
authorized the repurchase of up to $1.5 billion of its Class A common stock
through fiscal 2021, which ends on January 29, 2021. Stock will be repurchased
from time to time, in the open market or through private transactions, subject
to market conditions. This stock authorization is in addition to the Company's
ongoing $1 billion stock repurchase program announced in August 2017, which had
$243 million remaining at the end of the first quarter.
"Q1 was a good start to fiscal 2020 with strength across our comprehensive solutions portfolio," commented Pat Gelsinger, CEO, VMware. "We were especially pleased to announce a number of agreements during the quarter with key partners Amazon Web Services, Dell and Microsoft as customers continue to turn to VMware's cloud infrastructure technology to enable their digital transformations."
"Our Q1 results reflect continued progress in expanding VMware's broad platform for hybrid and multi-cloud environments," said Zane Rowe, executive vice president and CFO, VMware. "We're reiterating our full-year fiscal 2020 guidance and are pleased to announce that the board has authorized an incremental $1.5 billion dollars in stock repurchases through the end of fiscal year 2021."
Quarterly Business Highlights & Strategic Announcements
VMware and AWS announced an expansion of their partnership, with AWS now able to resell VMware Cloud on AWS. The service is now available in 14 regions globally, including recent availability in the Canada, Mumbai, Paris and Singapore zones.
At Dell Technologies World, Dell, Microsoft and VMware announced the following partnership expansions:
Microsoft will deliver a fully native, supported, and certified VMware cloud infrastructure on Microsoft Azure called Azure VMware Solutions.
VMware Workspace ONE will be able to manage Office 365 across devices via cloud-based integration with Microsoft Intune and Azure Active Directory and the extension of VMware Horizon Cloud on Azure to include Microsoft Windows Virtual Desktop.
Microsoft and VMware are exploring initiatives to drive further integration between VMware infrastructure and Azure such as integration of VMware NSX with Azure Networking and integration of specific Azure services with VMware management solutions. They will also be exploring bringing specific Azure services to the VMware on-premises customers.
VMware introduced VMware Cloud on Dell EMC, which will provide simple, more secure and scalable infrastructure delivered as-a-service to customers' on-premises data center and edge locations.
VMware updated VMware NSX-T Data Center 2.4 and NSX Cloud, expanding capabilities for enterprise customers', large and small, along with communications service providers' adoption of Network Function Virtualization (NFV).
At the RSA Conference, VMware introduced the VMware Service-defined Firewall, an innovative approach to internal firewalling that reduces the attack surface for on-premises and cloud environments with security that is an intrinsic part of the infrastructure.
VMware Essential PKS and Enterprise PKS 1.4 was made generally available. PKS streamlines DevOps workflows and takes advantage of new networking, security, and automation features designed for Kubernetes (K8s) at scale.
New advancements were made across the VMware vRealize cloud management platform helping IT enable developers and IT admins to quickly build and deliver applications in hybrid cloud environments with more secure and consistent operations.
VMware acquired Bitnami, a leader in application packaging solutions providing the largest catalog of click-to-deploy applications and development stacks for major cloud and Kubernetes environments. VMware also completed the acquisition of AetherPal, a provider of remote support solutions that enable IT to remotely view, control, troubleshoot, and fix devices and applications in the field.
At its Partner Leadership Summit, VMware unveiled VMware Partner Connect, a new, dramatically simplified and flexible program that will go live early next year. The new partner program will enable partners to do business with VMware in a way that aligns to their business models.