VMware beats Q3 estimates with revenue up 11%

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Stephanie Condon

By

Stephanie Condon

for Between the Lines

| November 23, 2021

| Topic: Virtualization

VMware on Tuesday published its third quarter financial results, beating market expectations and delivering 25% growth in Subscription and SaaS ARR.

The company’s non-GAAP net income for the third quarter was $725 million, or $1.72 per diluted share. Revenue for the third quarter was $3.19 billion, an increase of 11% from the third quarter of fiscal 2021. 

Analysts were expecting earnings of $1.54 per share on revenue of $3.12 billion.

“We are pleased with our continued strong performance in Q3. This quarter, as we unveiled many new offerings at VMworld, we showcased how we are helping customers transform their businesses today and that our innovation engine is thriving,” CEO Raghu Raghuram said in a statement. “Our mission is to be the trusted software foundation to accelerate our customers’ innovation without compromise. We are committed to helping organizations unlock the full potential of multi-cloud.”

The combination of subscription and SaaS and license revenue in Q3 was $1.53 billion, an increase of 16% from the third quarter of fiscal 2021. 

Subscription and SaaS revenue for the third quarter was $820 million, an increase of 21% year-over-year. Subscription and SaaS annual recurring revenue (ARR) for the third quarter was $3.31 billion, an increase of 25% year-over-year.

Non-GAAP operating income for the third quarter was $935 million, an increase of 5% from a year prior.

Operating cash flow for the third quarter was $1.09 billion. Free cash flow for the third quarter was $984 million.

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