VMware Reports Fiscal Year 2023 Second Quarter Results

Total Revenue growth of 6% year-over-year

Subscription and SaaS Revenue of $943 million, an increase of 22% year-over-year

PALO ALTO, Calif.–(BUSINESS WIRE)–$VMW #earnings–VMware, Inc. (NYSE: VMW), a leading innovator in enterprise software, today announced financial results for the second quarter of fiscal year 2023:

Quarterly Review

  • Revenue for the second quarter was $3.34 billion, an increase of 6% from the second quarter of fiscal 2022.
  • The combination of subscription and SaaS and license revenue was $1.74 billion for the second quarter, an increase of 15% from the second quarter of fiscal 2022.
  • Subscription and SaaS revenue for the second quarter was $943 million, an increase of 22% year-over-year, constituting 28% of total revenue for the quarter.
  • Subscription and SaaS ARR for the second quarter was $3.89 billion, an increase of 24% year-over-year.
  • GAAP net income for the second quarter was $347 million, or $0.82 per diluted share, down 16% per diluted share compared to $411 million, or $0.97 per diluted share, for the second quarter of fiscal 2022. Non-GAAP net income for the second quarter was $697 million, or $1.64 per diluted share, down 6% per diluted share compared to $739 million, or $1.75 per diluted share, for the second quarter of fiscal 2022.1
  • GAAP operating income for the second quarter was $566 million, an increase of 8% from the second quarter of fiscal 2022. Non-GAAP operating income for the second quarter was $965 million, an increase of 5% from the second quarter of fiscal 2022.
  • Operating cash flow for the second quarter was $397 million. Free cash flow for the second quarter was $284 million.
  • RPO for the second quarter totaled $12.10 billion, up 8% year-over-year.

“We are pleased with our performance in Q2. Our momentum continues next week at VMware Explore where we will showcase new innovative offerings while also highlighting how we are helping customers continue to transform their businesses,” said Raghu Raghuram, CEO, VMware. “We remain committed to helping organizations unlock the full potential of multi-cloud.”

“Our Q2 financial results reflect the continued commitment of the entire VMware team to accelerate innovation for our customers as they move to a multi-cloud environment,” said Zane Rowe, executive vice president and CFO, VMware. “Investments in our Subscription and SaaS offerings helped contribute to ARR growth of 24% year-over-year.”

Business Highlights & Strategic Announcements

  • VMware unveiled VMware vSphere+ and VMware vSAN+ to help organizations bring the benefits of the cloud to their existing on-premises infrastructure with no disruption to their workloads or hosts.
  • VMware became an Official Partner of the McLaren Formula 1 Team. VMware multi-cloud solutions will help McLaren operate with speed and drive confidence no matter where the team is racing in the world.
  • VMware and HCL Technologies announced the formation of HCL’s new dedicated VMware Business Unit, designed to unlock the untapped value of multi-cloud and app modernization. The new unit combines the power of HCL’s CloudSMART Framework with VMware Cross-Cloud services to help enterprises accelerate cloud transformation, scale cloud-native platform operations and empower hybrid workforces.
  • VMware and Wipro Limited announced an expanded collaboration that will enable customers to achieve the cloud freedom they desire with the enterprise control they require as they execute their digital strategies.
  • VMware was named the 2022 HPE Global Technology Partner of the Year, recognizing VMware as an HPE partner that exemplifies commitment and success in delivering value to customers on their digital transformation journey.
  • VMware received the 2021 Google Cloud Technology Partner of the Year Award for Infrastructure Modernization, recognizing VMware for its achievements as part of the Google Cloud ecosystem in helping mutual customers accelerate their enterprise cloud transformation.
  • VMware received industry analyst recognition:

    • VMware has been positioned as a Leader in three recent IDC MarketScape reports related to the Unified Endpoint Management (UEM) space2: WW UEM Software 2022 Vendor Assessment, WW UEM Software for Apple Devices 2022 Vendor Assessment, WW UEM Software for Ruggedized/Internet of Things Device Deployments 2022 Vendor Assessment.
    • VMware was named a Visionary in the 2022 Gartner® Magic Quadrant™ for Application Performance Monitoring and Observability3 for its observability platform, Tanzu Observability by Wavefront. VMware has been recognized for its vision and execution. Organizations are increasingly adopting multi-cloud strategies and modern application development to meet the requirements of being a modern digital business.
  • VMware posted its 2022 Environmental Social and Governance (ESG) Report and 2022 Diversity, Equity and Inclusion (DEI) Report, continuing to enhance ESG disclosures.
  • VMware has recently been recognized for human capital commitments by ranking as a Top 100 U.S. company supporting healthy families and communities by JUST Capital.
  • VMware received a 100% score on the 2022 Disability Equality Index and being recognized as a Best Place to Work for Disability Inclusion by Disability:IN and AAPD for the second year in a row.
  • VMware recently joined more than 80 companies in supporting the development of the IFRS Sustainability Disclosure Standards, underlying the importance of better standardization and transparency in ESG disclosures for the investor community.

1 Our annual estimated tax rate is based upon, among other things, current tax law regarding the impacts of Internal Revenue Code Section 174 (“Section 174”) research and development expense capitalization, which became effective beginning VMware’s fiscal 2023. Although the U.S. Congress continues to consider various legislative options that would defer the amortization requirement to later years, the financial results for the six months ended July 29, 2022 reflect the impact of the tax law in effect as of July 29, 2022. The provided estimated tax adjustment range, in the table accompanying this release, reflects the non-GAAP adjustment we would expect should the capitalization provisions of Section 174 be deferred or repealed with effect for fiscal 2023.

2 IDC MarketScape: Worldwide Unified Endpoint Management Software 2022 Vendor Assessment (doc #US48325122, May 2022); IDC MarketScape: Worldwide Unified Endpoint Management Software for Apple Devices 2022 Vendor Assessment (doc #US48325222, May 2022); IDC MarketScape: Worldwide Unified Endpoint Management Software for Ruggedized/Internet of Things Device Deployments 2022 Vendor Assessment (doc #US48325322, May 2022)

3 Gartner, Inc., Magic Quadrant for Application Performance Monitoring and Observability, Padraig Byrne and Gregg Siegfried, 07 June 2022. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. Gartner and Magic Quadrant are registered trademarks and service marks of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.

About VMware

VMware is a leading provider of multi-cloud services for all apps, enabling digital innovation with enterprise control. As a trusted foundation to accelerate innovation, VMware software gives businesses the flexibility and choice they need to build the future. Headquartered in Palo Alto, California, VMware is committed to building a better future through the company’s 2030 Agenda. For more information, please visit vmware.com/company.

Definitive Agreement to be Acquired by Broadcom

VMware has entered into a definitive agreement to be acquired by Broadcom Inc. (“Broadcom”). The transaction, which is expected to be completed in Broadcom’s fiscal year 2023, is subject to the receipt of regulatory approvals and other customary closing conditions, including approval by VMware shareholders. Please refer to the May 26, 2022 announcement entitled, “Broadcom to Acquire VMware for Approximately $61 Billion in Cash and Stock,” available on news.vmware.com.

Additional Information

VMware’s website is located at vmware.com, and its investor relations website is located at ir.vmware.com. VMware’s goal is to maintain the investor relations website as a portal through which investors can easily find or navigate to pertinent information about VMware, all of which is made available free of charge. The additional information includes: materials that VMware files with the SEC; announcements of investor conferences, speeches and events at which its executives talk about its products, services and competitive strategies; webcasts of its earnings calls, investor conferences and events (archives of which are also available for a limited time); additional information on its financial metrics, including reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures; press releases on quarterly earnings, product and service announcements, legal developments and international news; corporate governance information; ESG (environmental, social and governance) information; other news, blogs and announcements that VMware may post from time to time that investors may find useful or interesting; and opportunities to sign up for email alerts and RSS feeds to have information pushed in real time.

VMware, vSphere+, vSAN+, Tanzu, and Wavefront are registered trademarks or trademarks of VMware, Inc. or its subsidiaries in the United States and other jurisdictions. All other marks and names mentioned herein may be trademarks of their respective organizations.

Use of Non-GAAP Financial Measures

Reconciliations of non-GAAP financial measures to VMware’s financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section of the tables titled “About Non-GAAP Financial Measures.”

Annual Recurring Revenue (“ARR”)

ARR is an operating measure VMware uses to assess the strength of the Company’s subscription and SaaS offerings. ARR is a performance metric and should be viewed independently of, and not as a substitute for or combined with, revenue and unearned revenue. ARR represents the annualized value of VMware’s committed customer subscription and SaaS contracts as of the end of the reporting period, assuming any contract that expires during the next 12 months is renewed on its existing terms, except that, for consumption-based subscription and SaaS offerings, ARR represents the annualized quarterly revenue based on revenue recognized for the current reporting period.

Forward-Looking Statements

This press release contains forward-looking statements including, among other things, statements regarding the expected benefits to customers and partners of VMware’s strategy and offerings, as well as the proposed acquisition of VMware by Broadcom and related timing of its consummation. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to: (1) the satisfaction of the conditions precedent to consummation of the proposed acquisition, and the ability to consummate the proposed acquisition, on a timely basis or at all; (2) business disruption following the announcement of the proposed transaction, including disruption of current plans and operations; (3) the effects of the proposed acquisition, the spin-off of VMware from Dell and changes in VMware’s and Dell’s commercial relationships and go-to-market strategy, on VMware’s ability to (a) enter into, maintain and extend strategically effective partnerships, collaborations and alliances (b) maintain and establish new relationships with customers, partners and suppliers, and (c) maintain operating results and its business generally; (4) difficulties in retaining and hiring key personnel and employees, including due to the proposed acquisition; (5) the ability to implement plans, forecasts and other expectations with respect to the business after the completion of the proposed acquisition and realize synergies; (6) the impact of the COVID-19 pandemic on VMware’s operations, financial condition, VMware’s customers, the business environment and global and regional economies; (7) the ability of VMware to adapt its offerings, business operations and go-to-market activities to changes in how customers consume information technology resources, such as through subscription and SaaS offerings; (8) changes to VMware’s and Dell’s respective financial conditions and strategic directions, including potential effects of the proposed acquisition of VMware by Broadcom, that could adversely impact the VMware-Dell commercial relationship and collaborations; (9) the continued risk of litigation and regulatory actions, including the outcome of any legal proceedings related to the proposed acquisition; (10) adverse changes in general economic or market conditions; (11) delays or reductions in consumer, government and information technology spending, including due to the announced acquisition; (12) competitive factors, such as pricing pressures, industry consolidation, entry of new competitors into the industries in which VMware competes, as well as new product and marketing initiatives by VMware’s competitors; (13) rapid technological changes in the virtualization software and cloud, end user, edge security and mobile computing and telecom industries; (14) the uncertainty of VMware’s customers’ acceptance of and ability to transition to emerging technologies and new offerings and computing strategies in the industries in which VMware competes; (15) VMware’s ability to protect its proprietary technology; (16) changes to product and services development timelines; (17) risks associated with cyber-attacks, information security and data privacy; (18) disruptions resulting from key management changes; (19) risks associated with international sales, such as fluctuating currency exchange rates and increased trade barriers; (20) changes in VMware’s financial condition; and (21) other business effects, including those related to industry, market, economic, political, regulatory and global health conditions. These forward-looking statements are made as of the date of this press release, are based on current expectations and are subject to uncertainties and changes in condition, significance, value and effect as well as other risks detailed in documents filed with the Securities and Exchange Commission, including VMware’s most recent reports on Form 10-K and Form 10-Q and current reports on Form 8- K that VMware may file from time to time, which could cause actual results to vary from expectations. VMware assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release.

 

VMware, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(amounts in millions, except per share amounts, and shares in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

July 29,

 

July 30,

 

July 29,

 

July 30,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenue:

 

 

 

 

 

 

 

 

License

 

$

796

 

 

$

738

 

 

$

1,369

 

 

$

1,384

 

Subscription and SaaS

 

 

943

 

 

 

776

 

 

 

1,842

 

 

 

1,516

 

Services

 

 

1,597

 

 

 

1,624

 

 

 

3,213

 

 

 

3,232

 

Total revenue

 

 

3,336

 

 

 

3,138

 

 

 

6,424

 

 

 

6,132

 

Operating expenses(1):

 

 

 

 

 

 

 

 

Cost of license revenue

 

 

39

 

 

 

37

 

 

 

74

 

 

 

75

 

Cost of subscription and SaaS revenue

 

 

196

 

 

 

170

 

 

 

387

 

 

 

327

 

Cost of services revenue

 

 

369

 

 

 

352

 

 

 

744

 

 

 

689

 

Research and development

 

 

803

 

 

 

775

 

 

 

1,577

 

 

 

1,483

 

Sales and marketing

 

 

1,080

 

 

 

1,023

 

 

 

2,134

 

 

 

1,981

 

General and administrative

 

 

276

 

 

 

256

 

 

 

527

 

 

 

492

 

Realignment

 

 

7

 

 

 

 

 

 

7

 

 

 

1

 

Operating income

 

 

566

 

 

 

525

 

 

 

974

 

 

 

1,084

 

Investment income

 

 

7

 

 

 

1

 

 

 

8

 

 

 

1

 

Interest expense

 

 

(74

)

 

 

(49

)

 

 

(145

)

 

 

(99

)

Other income (expense), net

 

 

(20

)

 

 

3

 

 

 

(30

)

 

 

(19

)

Income before income tax

 

 

479

 

 

 

480

 

 

 

807

 

 

 

967

 

Income tax provision

 

 

132

 

 

 

69

 

 

 

218

 

 

 

131

 

Net income

 

$

347

 

 

$

411

 

 

$

589

 

 

$

836

 

Net income per weighted-average share, basic

 

$

0.82

 

 

$

0.98

 

 

$

1.40

 

 

$

1.99

 

Net income per weighted-average share, diluted

 

$

0.82

 

 

$

0.97

 

 

$

1.39

 

 

$

1.98

 

Weighted-average shares, basic

 

 

422,002

 

 

 

419,355

 

 

 

421,294

 

 

 

419,235

 

Weighted-average shares, diluted

 

 

424,125

 

 

 

422,802

 

 

 

423,561

 

 

 

422,419

 

__________

 

 

 

 

 

 

 

 

(1) Includes stock-based compensation as follows:

 

 

 

 

 

 

 

 

Cost of license revenue

 

$

 

 

$

 

 

$

1

 

 

$

1

 

Cost of subscription and SaaS revenue

 

 

6

 

 

 

5

 

 

 

11

 

 

 

11

 

Cost of services revenue

 

 

25

 

 

 

24

 

 

 

48

 

 

 

49

 

Research and development

 

 

146

 

 

 

150

 

 

 

278

 

 

 

277

 

Sales and marketing

 

 

93

 

 

 

81

 

 

 

174

 

 

 

153

 

General and administrative

 

 

41

 

 

 

33

 

 

 

81

 

 

 

64

 

 

VMware, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(amounts in millions, except per share amounts, and shares in thousands)

(unaudited)

 

 

 

 

 

July 29,

 

January 28,

 

 

2022

 

 

 

2022

 

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

3,242

 

 

$

3,614

 

Short-term investments

 

 

 

 

19

 

Accounts receivable, net of allowance of $9 and $10

 

2,073

 

 

 

2,297

 

Due from related parties

 

1,267

 

 

 

1,438

 

Other current assets

 

636

 

 

 

598

 

Total current assets

 

7,218

 

 

 

7,966

 

Property and equipment, net

 

1,550

 

 

 

1,461

 

Deferred tax assets

 

5,986

 

 

 

5,906

 

Intangible assets, net

 

589

 

 

 

714

 

Goodwill

 

9,598

 

 

 

9,598

 

Due from related parties

 

189

 

 

 

199

 

Other assets

 

2,863

 

 

 

2,832

 

Total assets

$

27,993

 

 

$

28,676

 

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

208

 

 

$

234

 

Accrued expenses and other

 

2,683

 

 

 

2,806

 

Unearned revenue

 

6,388

 

 

 

6,479

 

Due to related parties

 

202

 

 

 

132

 

Total current liabilities

 

9,481

 

 

 

9,651

 

Long-term debt

 

11,181

 

 

 

12,671

 

Unearned revenue

 

4,843

 

 

 

4,743

 

Income tax payable

 

253

 

 

 

242

 

Operating lease liabilities

 

889

 

 

 

927

 

Due to related parties

 

802

 

 

 

909

 

Other liabilities

 

404

 

 

 

409

 

Total liabilities

 

27,853

 

 

 

29,552

 

Contingencies

 

 

 

Stockholders’ equity (deficit):

 

 

 

Class A common stock, par value $0.01; authorized 2,500,000 shares; issued and outstanding 422,622 and 418,808 shares

 

4

 

 

 

4

 

Additional paid-in capital

 

435

 

 

 

 

Accumulated other comprehensive loss

 

(13

)

 

 

(5

)

Accumulated deficit

 

(286

)

 

 

(875

)

Total stockholders’ equity (deficit)

 

140

 

 

 

(876

)

Total liabilities and stockholders’ equity (deficit)

$

27,993

 

 

$

28,676

 

 

VMware, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

July 29,

 

July 30,

 

July 29,

 

July 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Operating activities:

 

 

 

 

 

 

 

Net income

$

347

 

 

$

411

 

 

$

589

 

 

$

836

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

302

 

 

 

275

 

 

 

590

 

 

 

544

 

Stock-based compensation

 

311

 

 

 

293

 

 

 

593

 

 

 

555

 

Deferred income taxes, net

 

(37

)

 

 

17

 

 

 

(80

)

 

 

(31

)

(Gain) loss on equity securities and disposition of assets, net

 

(3

)

 

 

1

 

 

 

(12

)

 

 

37

 

Other

 

 

 

 

2

 

 

 

3

 

 

 

4

 

Changes in assets and liabilities, net of acquisitions:

 

 

 

 

 

 

 

Accounts receivable

 

(453

)

 

 

(189

)

 

 

222

 

 

 

206

 

Other current assets and other assets

 

(175

)

 

 

(229

)

 

 

(418

)

 

 

(390

)

Due from related parties

 

(621

)

 

 

(162

)

 

 

180

 

 

 

522

 

Accounts payable

 

(3

)

 

 

5

 

 

 

(31

)

 

 

70

 

Accrued expenses and other liabilities

 

345

 

 

 

412

 

 

 

(319

)

 

 

(218

)

Income taxes payable

 

41

 

 

 

(110

)

 

 

114

 

 

 

(29

)

Unearned revenue

 

366

 

 

 

138

 

 

 

9

 

 

 

24

 

Due to related parties

 

(23

)

 

 

 

 

 

(38

)

 

 

 

Net cash provided by operating activities

 

397

 

 

 

864

 

 

 

1,402

 

 

 

2,130

 

Investing activities:

 

 

 

 

 

 

 

Additions to property and equipment

 

(113

)

 

 

(87

)

 

 

(219

)

 

 

(157

)

Sales of investments in equity securities

 

 

 

 

26

 

 

 

20

 

 

 

34

 

Purchases of strategic investments

 

 

 

 

(6

)

 

 

(8

)

 

 

(7

)

Proceeds from disposition of assets

 

84

 

 

 

1

 

 

 

90

 

 

 

1

 

Business combinations, net of cash acquired, and purchases of intangible assets

 

(1

)

 

 

(6

)

 

 

(4

)

 

 

(15

)

Net cash used in investing activities

 

(30

)

 

 

(72

)

 

 

(121

)

 

 

(144

)

Financing activities:

 

 

 

 

 

 

 

Proceeds from issuance of common stock

 

5

 

 

 

8

 

 

 

124

 

 

 

139

 

Repayment of term loan

 

(750

)

 

 

 

 

 

(1,500

)

 

 

 

Repurchase of common stock

 

 

 

 

(358

)

 

 

(89

)

 

 

(729

)

Shares repurchased for tax withholdings on vesting of restricted stock

 

(111

)

 

 

(186

)

 

 

(205

)

 

 

(242

)

Principal payments on finance lease obligations

 

(1

)

 

 

(1

)

 

 

(2

)

 

 

(2

)

Net cash used in financing activities

 

(857

)

 

 

(537

)

 

 

(1,672

)

 

 

(834

)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

(490

)

 

 

255

 

 

 

(391

)

 

 

1,152

 

Cash, cash equivalents and restricted cash at beginning of the period

 

3,762

 

 

 

5,667

 

 

 

3,663

 

 

 

4,770

 

Cash, cash equivalents and restricted cash at end of the period

$

3,272

 

 

$

5,922

 

 

$

3,272

 

 

$

5,922

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

 

Cash paid for interest

$

59

 

 

$

50

 

 

$

140

 

 

$

97

 

Cash paid for taxes, net

 

114

 

 

 

166

 

 

 

184

 

 

 

204

 

Non-cash items:

 

 

 

 

 

 

 

Changes in capital additions, accrued but not paid

$

16

 

 

$

8

 

 

$

9

 

 

$

11

 

 

VMware, Inc.

GROWTH IN REVENUE PLUS SEQUENTIAL CHANGE IN UNEARNED REVENUE

(in millions)

(unaudited)

 

 

Growth in Total Revenue Plus Sequential Change in Unearned Revenue

 

 

 

 

 

Three Months Ended

 

July 29,

 

July 30,

 

2022

 

2021

Total revenue, as reported

$

3,336

 

 

$

3,138

Sequential change in unearned revenue(1)

 

365

 

 

 

138

Total revenue plus sequential change in unearned revenue

$

3,701

 

 

$

3,276

Change (%) over prior year, as reported

 

13

%

 

 

 

 

 

 

Growth in License and Subscription and SaaS Revenue Plus Sequential Change in Unearned License and Subscription and SaaS Revenue

 

 

 

 

 

Three Months Ended

 

July 29,

 

July 30,

 

2022

 

2021

Total license and subscription and SaaS revenue, as reported

$

1,739

 

 

$

1,514

Sequential change in unearned license and subscription and SaaS revenue(2)

 

281

 

 

 

148

Total license and subscription and SaaS revenue plus sequential change in unearned license and subscription and SaaS revenue

$

2,020

 

 

$

1,662

Change (%) over prior year, as reported

 

22

%

 

 

__________

 

 

 

(1) Consists of the change in total unearned revenue from the preceding quarter. Total unearned revenue consists of current and non-current unearned revenue amounts presented in the condensed consolidated balance sheets.

(2) Consists of the change in unearned license and subscription and SaaS revenue from the preceding quarter.

REMAINING PERFORMANCE OBLIGATIONS

(in millions)

(unaudited)

 

 

Growth in Remaining Performance Obligations

 

 

 

 

 

July 29,

 

July 30,

 

2022

 

2021

Remaining performance obligations(3)

$

12,103

 

 

$

11,201

Change (%) over prior year

 

8

%

 

 

 

 

 

 

Remaining performance obligations, current(4)

$

6,767

 

 

$

6,249

Change (%) over prior year

 

8

%

 

 

__________

 

 

 

(3) Remaining performance obligations represent the aggregate amount of the transaction price in contracts allocated to performance obligations not delivered, or partially undelivered, as of the end of the reporting period. Remaining performance obligations include unearned revenue, multi-year contracts with future installment payments and certain unfulfilled orders against accepted customer contracts at the end of any given period.

(4) Current remaining performance obligations represent the amount expected to be recognized as revenue over the next twelve months.

Contacts

Paul Ziots

VMware Investor Relations

[email protected]
650-427-3267

Michael Thacker

VMware Global PR

[email protected]
650-427-4454

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