VMware (VMW) Tops Q1 EPS by 32c, Revenues Beat

VMware (NYSE: VMW) reported Q1 EPS of $1.52, $0.32 better than the analyst estimate of $1.20. Revenue for the quarter came in at $2.73 billion versus the consensus estimate of $2.65 billion.

• Revenue for the first quarter was $2.73 billion, an increase of 12% from the first quarter of fiscal 2020.
• The combination of subscription and SaaS and license revenue was $1.23 billion, an increase of 17% from the first quarter of fiscal 2020.
• Subscription and SaaS revenue for the first quarter was $572 million, an increase of 39% year-over-year.
• GAAP net income for the first quarter was $386 million, or $0.92 per diluted share, compared to $380 million, or $0.89 per diluted share, for the first quarter of fiscal 2020. Non-GAAP net income for the first quarter was $640 million, or $1.52 per diluted share, up 21% per diluted share compared to $535 million, or $1.25 per diluted share, for the first quarter of fiscal 2020.
• GAAP operating income for the first quarter was $418 million, an increase of 18% from the first quarter of fiscal 2020. Non-GAAP operating income for the first quarter was $818 million, an increase of 25% from the first quarter of fiscal 2020.
• Operating cash flow for the first quarter was $1.37 billion. Free cash flow for the first quarter was $1.29 billion.
• RPO for Q1 totalled $10.1 billion, up 19% year-over-year; total revenue plus sequential change in total unearned revenue grew 6% 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% year-over-year.

“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.”

“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.”

For earnings history and earnings-related data on VMware (VMW) click here.

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