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Exam Code: 5V0-61.19 Practice test 2022 by Killexams.com team
5V0-61.19 Workspace ONE Unified Endpoint Management Specialist

Exam Details
The Workspace ONE Unified Endpoint Management Specialist (5V0-61.19) which leads to VMware Workspace ONE Unified Endpoint Management Specialist 2019 is a 60-item exam, with a passing score of 300 using a scaled method. Candidates are given an appointment time of 105 minutes, which includes five-minute seating time and adequate time to complete the test for non-native English speakers. real test time is 100 minutes.

Section 1 - Fundamentals of Troubleshooting Workspace
Objective 1.1 Summarize the general logic of Workspace ONE UEM issues troubleshooting.
Objective 1.2 Summarize the workflow topology of each Workspace ONE UEM productivity and integration component.
Section 2 - Workspace ONE UEM Console Troubleshooting
Objective 2.1 Identify common Workspace ONE UEM console issues.
Objective 2.2 Troubleshoot Workspace ONE reporting issues.
Objective 2.3 Troubleshoot issues related to group management and assignments.
Objective 2.4 Collect and analyze Workspace ONE UEM console logs.
Section 3 - Endpoint Troubleshooting
Objective 3.1 Troubleshoot endpoint connectivity issues.
Objective 3.2 Summarize the key factors in collecting and analyzing Workspace ONE UEM
Device Services logs and targeted logging.
Objective 3.3 Troubleshoot DEP enrollment issues.
Section 4 - Workspace ONE UEM Enterprise Integration Troubleshooting
Objective 4.1 Troubleshoot issues related to Cloud Connector.
Objective 4.2 Troubleshoot issues related to directory services integration.
Objective 4.3 Troubleshoot issues related to Certificate Authority (CA) integration.
Objective 4.4 Troubleshoot issues related to VMware Identity Manager integration in Workspace ONE UEM.
Section 5 - Email Troubleshooting
Objective 5.1 Identify common email issues.
Objective 5.2 Troubleshoot Secure Email Gateway (SEG) related issues.
Objective 5.3 Troubleshoot PowerShell integration related issues.
Objective 5.4 Troubleshoot issues related to email compliance policy.
Objective 5.5 Troubleshoot issues related to Email Notification Services (ENS).
Section 6 - Application Troubleshooting
Objective 6.1 Troubleshoot issues related to public application management lifecycle.
Objective 6.2 Troubleshoot issues related to internal application management lifecycle.
Objective 6.3 Troubleshoot issues related to Apple Volume Purchase Program (VPP).
Objective 6.4 Troubleshoot issues related to Windows Store for Business.
Objective 6.5 Troubleshoot issues related to per-app VPN.
Section 7 - Content Troubleshooting
Objective 7.1 Troubleshoot issues related to Content Gateway.
Objective 7.2 Collect and analyze Content Gateway logs.
Objective 7.3 Troubleshoot issues related to an Admin Repository.
Objective 7.4 Troubleshoot issues related to Workspace ONE

Workspace ONE Unified Endpoint Management Specialist
Vmware Management download
Killexams : Vmware Management get - BingNews https://killexams.com/pass4sure/exam-detail/5V0-61.19 Search results Killexams : Vmware Management get - BingNews https://killexams.com/pass4sure/exam-detail/5V0-61.19 https://killexams.com/exam_list/Vmware Killexams : VMware causes Blue Screen on Windows 11/10

If VMware is causing a Blue Screen error on Windows 11/10, the following tips could be handy for you. There are different reasons why your host computer fails to load the VMware virtual machine. This article explains some of the most common causes and solutions to mitigate this issue within moments.

VMware causes blue screen on Windows 11/10

If VMware causes a Blue Screen on Windows 11/10, follow these steps:

  1. Update VMware
  2. Low computer resource
  3. Turn off Hyper-V
  4. Disable other virtual machines
  5. Corrupt ISO file

To know more about these steps, continue reading.

1] Update VMware

It is probably the very first thing you need to check. There could be times when VMware might fail to make your virtual machine up and running due to a glitch or bug. If you have recently updated your VMware app, it might come with a bug that could cause the aforementioned issue.

In most cases, companies recognize the bug and roll out an update almost immediately. If the same thing happens with your VMware installation, chances are they have already released an update. That is why it is recommended to check the official statement and install the update if anything has been released.

2] Low computer resource

Although the official statement says something about the 1.3GHz processor and 2GB of RAM, you might not be able to run a virtual machine smoothly or at all, having such resources. It is always recommended to configure much better hardware than the mentioned one.

If you have an old x64 architecture, you might not be able to run VMware virtual machines. In other words, there is a high chance of getting the blue screen error on the host computer while running the virtual OS. That is why it is recommended to have a better hardware configuration to bypass the BSOD

Pro tip: You can open Task Manager alongside VMware to check which app is consuming more RAM and other resources. Then, you can close such unnecessary apps to assign more CPU resources to VMware.

3] Turn off Hyper-V

Fix VirtualBox Installer Installation failed error

Hyper-V is a Level 1 hypervisor that makes the host computer into a virtual PC. On the other hand, VMware is a Level 2 hypervisor that uses the host computer to build the virtual machine. That is why if you enabled Hyper-V earlier, you might not be able to use VMware or VirtualBox-like virtual machine apps simultaneously. You must disable either of them. In other words, if you want to use VMware, you need to disable Hyper-V.

To disable Hyper-V in Windows 11/10, do the following:

  • Click on the Taskbar search box.
  • Search for windows features.
  • Click on the individual search result.
  • Remove the tick from the Hyper-V checkbox.
  • Click the OK button.
  • Let it finish all the processes.
  • Restart your computer.

Once done, you will be able to use VMware without any BSOD.

4] Disable other virtual machines

Many people often use multiple virtual machine apps, such as VirtualBox, VMware, etc., simultaneously. In most situations, such workflow might cause a blue screen error on your computer. That is why it is recommended to disable other virtual machine software. For that purpose, you can take the help of the Task Manager to terminate all the dependencies.

5] get ISO file again

If VMware causes a blue screen while installing the virtual machine OS, it is suggested to get the ISO file again. If the ISO comes with some corrupt files, there is a chance of getting BSOD while using that ISO in the virtual machine. You can follow this guide to download Windows 11/10 ISO directly.

Read: How to fix VMware Internal Error while powering on

Can VMware cause BSOD?

Yes, VMware can cause BSOD on Windows 11/10 PC. As said earlier, there could be countless reasons why you might get a blue screen error due to having VMware on your computer. For your information, some common reasons are mentioned in this article, and it is recommended to follow them to get rid of this issue.

Is VMware compatible with Windows 11?

Yes, VMware is compatible with Windows 11. If you have successfully installed Windows 11 without compromising the official system requirements, you can easily install VMware on your computer. As per the official statement, VMware requires a minimum of 2GB RAM along with 1.3GHz clock speed. On the other hand, it runs on almost all the x64 architecture without any problem.

Read: VMware does not support the user level monitor of this host.

VMware causes blue screen on Windows 11/10
Mon, 28 Nov 2022 07:23:00 -0600 en-us text/html https://www.thewindowsclub.com/vmware-causes-blue-screen-on-windows
Killexams : Three top VMware executives to leave company

Three senior VMware Inc. executives are leaving the enterprise software company that Broadcom Inc. wants to acquire for $61 billion, VMware’s leader told staff in a memo on Monday.

VMware Chief Executive Raghu Raghuram said the senior vice presidents of cloud infrastructure, Mark Lohmeyer; applications and management business, Ajay Patel; and networking and advanced security, Tom Gillis, are leaving, according to the memo, which was viewed by The Wall Street Journal.

Broadcom in May said it planned to buy VMware as part of a wider push by the chip company into software. VMware would nearly triple the size of Broadcom’s software division and account for nearly 49% of the company’s revenue. The deal is still awaiting regulatory approval.

Computer chip and software giant Broadcom will dole out $61 billion to acquire all outstanding shares of cloud technology firm VMware in a cash and stock transaction.  (istock / iStock)

"As it happens during such transition, we find some executives decide to move on," according to the internal memo. "All three have held leadership positions over several years and drove much impact across the business."

BROADCOM BUYING VMWARE FOR $61B

A VMware spokeswoman confirmed the departures and said the company had named four executives to replace them.

Ticker Security Last Change Change %
VMW VMWARE INC. 122.61 +1.67 +1.38%
AVGO BROADCOM INC. 556.63 +11.91 +2.19%

The U.S.’s Federal Trade Commission has been seeking information from the companies about the combination, according to a previous regulatory filing.

Broadcom is expecting an extended period of reviews of the deal in many jurisdictions across the globe, Chief Executive Hock Tan said in a call with analysts last week, even though it had already received clearance in three countries—Brazil, Canada and South Africa. He said he still expected it to be completed in the company’s 2023 fiscal year, which runs through next October.

Broadcom, with an extensive record of acquisitions, is no stranger to scrutiny of its deals, including on national-security grounds. The company, which was based in Singapore before relocating to the U.S. in 2018, had its $117 billion hostile bid for mobile-phone chip maker Qualcomm Inc. halted by former President Donald Trump over concerns about the implications for the U.S.’s technological face-off with China.

President Biden signs into law the CHIPS and Science Act of 2022, on the South Lawn of the White House in Washington, Tuesday, August 9, 2022. ((Photo by Demetrius Freeman/The Washington Post via Getty Images) / Getty Images)

Mr. Tan has a history of finding companies with deep links into large corporations’ information-technology setups that would be difficult for them to abandon. The company then cuts costs and gets the most out of their products by "cross-selling and upselling" them, as Broadcom’s head of software, Tom Krause, described the strategy in November of last year.

THOMA BRAVO TO TAKE COUPA SOFTWARE PRIVATE IN $8B DEAL

VMware signaled the departures aren’t expected to affect its operations. The memo pointed to the company’s strong and seasoned set of senior executives who are ready to step into the roles as well as broader efforts to reorient its business. VMware is "preparing to enter the next phase of growth and evolution as a division of Broadcom during 2023," Mr. Raghuram wrote.

Broadcom shares were up 2.2% in Monday trading, with VMware’s stock climbed 1.4%.

Regulators in Washington have taken an increasingly hard line on tech mergers. The FTC last week sued Microsoft Corp. over its planned purchase of videogame maker Activision Blizzard Inc. Chip provider Nvidia Corp. in February called off its deal to buy British chip-design specialist Arm amid regulatory concerns. The FTC on Thursday also asked a judge to halt Meta Platforms Inc.’s planned acquisition of a virtual-reality startup.

The Activision Blizzard Booth during the Electronic Entertainment Expo in Los Angeles, June 13, 2013. (AP Photo/Jae C. Hong / AP Images)

Ticker Security Last Change Change %
MSFT MICROSOFT CORP. 252.51 +7.09 +2.89%
ATVI ACTIVISION BLIZZARD INC. 77.36 +2.20 +2.93%
NVDA NVIDIA CORP. 175.35 +5.34 +3.14%
META META PLATFORMS INC. 114.71 -1.19 -1.03%

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Broadcom has said it is paying in half cash and half stock and would assume $8 billion of VMware’s debt. The deal, if completed, would be one of the tech industry’s largest ever. Broadcom would owe a termination fee of $1.5 billion if the deal falls apart.

Asa Fitch contributed to this article.

Mon, 12 Dec 2022 08:50:00 -0600 en-US text/html https://www.foxbusiness.com/markets/three-top-vmware-executives-leave-company?ref=biztoc.com
Killexams : Enterprise IT Management Tools Market – Business Strategies, Industry Share, Size 2022 to 2030 | By -VMware, Freshworks, AWS

The MarketWatch News Department was not involved in the creation of this content.

Dec 05, 2022 (Heraldkeepers) -- New Jersey, United States- The Enterprise IT Management Tools market research study is a polished document that offers premium insights into the scope of the industry, prevalent trends, motivators, dangers, likely outcomes, and key segments. Based on precise assumptions, the Infinity Business Insights Report projects the market’s future growth. In addition, the research offers useful insights on the Enterprise IT Management Tools market’s potential growth based on feedback from industry experts to help readers come up with successful business plans. The study paints a clear picture of the market’s present demands and potential in the future. Additionally, the report includes data and statistics, tables, and graphics that are used in strategic planning for the company’s growth. The report will be exceptional in its capacity to provide international investors the data they need to create sensible market judgments.

Browse detailed TOC, Tables, Figures, Charts, and Companies mentioned in the Global Enterprise IT Management Tools Market research report 2022-2030

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The Global Enterprise IT Management Tools Market investigation report is segmented by Types (Cloud Based, On Premises), Segmentation & all logical and factual briefs about the Enterprise IT Management Tools Market 2022 Overview, By Technology, CAGR, Production Volume, Sales, and Revenue with the regional analysis covers North America, Europe, Asia-Pacific, South America, Middle East Africa & The Prime Players & Others.

Download – the Enterprise IT Management Tools Market Research Report (2022 -2030) here:

Report Overview: The global Enterprise IT Management Tools market size was valued at USD million in 2021 and is expected to expand at a compound annual growth rate (CAGR) % from 2022 to 2030.

The study closely explores the leading players in the global Enterprise IT Management Tools market, paying particular attention to their industry share, gross margin, net profit, sales, product line, new applications, exact advancements, and other aspects. In terms of both value and volume, this study provides an estimate of the market size. The market size of the Enterprise IT Management Tools market as well as the size of numerous other dependent submarkets in the total market were estimated and validated using both top-down and bottom-up methodologies.

Enterprise IT Management Tools Market Segmentation & Coverage:

Enterprise IT Management Tools Market segment by Type: 
Cloud Based, On Premises

Enterprise IT Management Tools Market segment by Application: 
Large Enterprises, SMEs

The years examined in this study are the following to estimate the Enterprise IT Management Tools market size:

History Year: 2015-2019
Base Year: 2021
Estimated Year: 2022
Forecast Year: 2022 to 2030

Cumulative Impact of COVID-19 on Market:

Enterprise IT Management Tools Market Dynamics: This section provides a detailed analysis of the driving forces, obstacles, and commercial opportunities. Additionally, the Infinity Business Insights study offers a precise analysis of the COVID influence on growth, coupled with a focus on industry policies, the regulatory environment, and current problems affecting growth globally.

Regional Analysis:

Enterprise IT Management Tools market insights will Excellerate the income effect of firms across a range of industries:
Supplying a framework designed to comprehend the level of appeal of distinct products, solutions, and technologies on the Enterprise IT Management Tools Market. Assisting stakeholders in identifying the major issues that their consolidation strategies in the international Enterprise IT Management Tools market are facing and providing solutions. Evaluating the effects of shifting regulatory dynamics in the areas where businesses are eager to grow. Provide insight into disruptive technological developments to aid organizations in making smooth transitions.

The Key companies profiled in the Enterprise IT Management Tools Market:

The study examines the Enterprise IT Management Tools market’s competitive landscape and includes data on important suppliers, including VMware, Freshworks, AWS, Microsoft, Goverlan, SUMMIT Software, Turbonomic, Genuity, ServiceNow, Ivanti, Kaseya, Quest Software, ManageEngine, Riverbed Technology, Oracle, Nicus Software, IBM, BackBox, squaredup, BMC Software, Hashicorp, Apptio, Cireson, Dell, Eracent, CloudCheckr, Micro Focus, Bravura Software, Symphony SUMMIT,& Others

Access a Regional Analysis sample Report of Enterprise IT Management Tools Market here:

Table of Contents:

List of Data Sources:

Chapter 2. Executive Summary
Chapter 3. Industry Outlook
3.1. Enterprise IT Management Tools Global Market segmentation
3.2. Enterprise IT Management Tools Global Market size and growth prospects, 2015 – 2026
3.3. Enterprise IT Management Tools Global Market Value Chain Analysis
3.3.1. Vendor landscape
3.4. Regulatory Framework
3.5. Market Dynamics
3.5.1. Market Driver Analysis
3.5.2. Market Restraint Analysis
3.6. Porter’s Analysis
3.6.1. Threat of New Entrants
3.6.2. Bargaining Power of Buyers
3.6.3. Bargaining Power of Buyers
3.6.4. Threat of Substitutes
3.6.5. Internal Rivalry
3.7. PESTEL Analysis
Chapter 4. Enterprise IT Management Tools Global Market Product Outlook
Chapter 5. Enterprise IT Management Tools Global Market Application Outlook
Chapter 6. Enterprise IT Management Tools Global Market Geography Outlook
6.1. Enterprise IT Management Tools Industry Share, by Geography, 2022 & 2030
6.2. North America
6.2.1. Enterprise IT Management Tools Market 2022 -2030 estimates and forecast, by product
6.2.2. Enterprise IT Management Tools Market 2022 -2030, estimates and forecast, by application
6.2.3. The U.S.
6.2.4. Canada
6.3. Europe
6.3.3. Germany
6.3.4. the UK
6.3.5. France
Chapter 7. Competitive Landscape
Chapter 8. Appendix

Get Full INDEX of Enterprise IT Management Tools Market Research Report 2022-2030 @

FAQs:
1. What are the main determinants of the sector’s demand in the near future?
2. What opportunities exist that can significantly help with Enterprise IT Management Tools market expansion?
3. How does an analysis of the effects of various factors on the growth of the global Enterprise IT Management Tools market fare?
4. What significant business and technology advances influence the Enterprise IT Management Tools market?

Contact Us:
Amit Jain
Sales Co-Ordinator
International: +1 518 300 3575
Email: inquiry@infinitybusinessinsights.com
Website: https://www.infinitybusinessinsights.com

COMTEX_420271647/2582/2022-12-05T23:02:17

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

The MarketWatch News Department was not involved in the creation of this content.

Mon, 05 Dec 2022 13:02:00 -0600 en-US text/html https://www.marketwatch.com/press-release/enterprise-it-management-tools-market-business-strategies-industry-share-size-2022-to-2030-by--vmware-freshworks-aws-2022-12-05
Killexams : New Python-Based Backdoor Targeting VMware ESXi Servers

Security researchers with Juniper Networks’ Threat Labs warn of a new Python-based backdoor targeting VMware ESXi virtualization servers.

The targeted servers were impacted by known security defects (such as CVE-2019-5544 and CVE-2020-3992) that were likely used for initial compromise, but what caught the researchers’ attention was the simplicity, persistence, and capabilities of the deployed backdoor.

As part of the attack, the threat actor modified a total of four files on the target, which the system backs up and restores after reboot, to ensure the persistent execution of a Python script at startup.

The attackers also attempted to hide the backdoor’s presence on the system by modifying file timestamps and by choosing specific files that would raise little suspicion on a virtualization host.

According to Juniper Threat Labs, the Python script can be used on Linux and other UNIX-like systems as well, but it appears to have been designed to target ESXi specifically.

The Python script was designed to launch a simple webserver that can execute remote commands or launch a reverse shell on the host, based on received password-protected POST requests.

The reverse shell, which can bypass firewall restrictions and can be used even if the infected system is not connected to the internet, supports a sequence of piped commands that is meant “to work around limitations in the netcat version available on ESXi.”

According to Juniper Threat Labs, the attackers also modified the configuration of the ESXi reverse HTTP proxy, so that a reverse proxy is instructed to forward to port 8307 specific external requests, which provides the attackers with access to the malicious webserver.

The same as the Python script, the reverse proxy configuration is persistent.

To stay protected, organizations are advised to ensure that their appliances are properly patched and that incoming network connections are restricted to trusted hosts. VMware ESXi users are also advised to check the contents of the four targeted files and to check all persistent system files for any signs of unauthorized modifications.

Related: Hackers Possibly From China Using New Method to Deploy Persistent ESXi Backdoors

Related: VMware Plugs Security Holes in Workstation, Fusion and ESXi

Related: Patch for Critical VMware ESXi Vulnerability Incomplete

Ionut Arghire is an international correspondent for SecurityWeek.
Previous Columns by Ionut Arghire:
Mon, 12 Dec 2022 22:14:00 -0600 en text/html https://www.securityweek.com/new-python-based-backdoor-targeting-vmware-esxi-servers
Killexams : Broadcom and VMware: Investing for Customer Value

By Hock Tan, Broadcom President & CEO

In October I shared my thoughts about what a combined Broadcom and VMware will mean for customers. I wrote about the conversations I’ve had to date, the future of multi-cloud, and our philosophy on pricing, and I reiterated Broadcom’s commitment to keeping customers at the center of our business.

Nonetheless, I’ve continued to see questions in press reports about whether we intend to raise prices on VMware products. The answer is simple: No.

Given the continued interest, I wanted to expand on my thoughts about the pending transaction and share more on how Broadcom will support VMware customers and innovate VMware products once the transaction closes.

Building on Our Commitment

It’s important to remember that Broadcom is an engineering-first company. Our commitment to innovating leading-edge technology, ensuring successful deployments of our solutions, and delivering value for our customers is what drives our growth.

The addition of VMware will further Broadcom’s commitment in each of these three areas.

Our business model is predicated on adding long-term value to our products and improving them over time. Following the transaction’s close, we’re going to focus on making VMware’s products better for all of our customers, including enterprise customers who want products that are even easier to use. And, to be clear, we intend to continue serving customers of all sizes. VMware has a robust partner ecosystem that we will build upon to help us serve even the smallest companies. In short, we plan to take a “no customer left behind” approach.

Innovating for Success

How will we spur higher growth and drive customers of all sizes to buy more VMware products than ever before? We’ll do it the way we’ve always done it: through our laser-focus on execution and innovation.

Broadcom has the scale and capacity to invest major resources in R&D innovation and build on VMware’s talented team by recruiting the best engineers — an advantage that has historically allowed us to develop better technology and product solutions than the competition, whether it’s in broadband, ethernet switching, or endpoint protection.

By investing and innovating in infrastructure software and VMware’s broad portfolio — including multi-cloud and cloud-native capabilities — we will bring our customers greater flexibility and deliver new solutions to help them connect, scale and protect their IT infrastructure. 

Post-close, we intend to apply this formula for success by investing in and operating VMware with a concerted focus on growth and innovation, while furthering our track record of delivering consistent, justifiable value with our fairly priced solutions.

Greater Customer Choice

As we look to our shared future, we know what goes into successful customer relationships. We also know that if customers don’t find consistent value in the solutions we deploy, they’ll go elsewhere.

Don’t just take my word for it. IDC highlighted in a exact report that any vendor looking to cultivate successful customer partnerships has to first offer products, support and services that translate into real value.

In the report, IDC shared a comment from a CIO of a large, global financial services company who noted that, “This acquisition is unique, and it makes sense for [Broadcom and VMware] to form one organization that can increase productivity and deliver a more complete customer experience. Together, Broadcom and VMware will provide us [customers] more power to modernize and transform our IT infrastructure to meet the needs of an ever-evolving world, ensuring secure, reliable, and flexible, choices.”

This CIO is exactly right. As workloads continue to grow rapidly across environments and multi-cloud options expand, a combined Broadcom and VMware will be focused on giving customers greater choice and flexibility over where and how they run their critical operations. We will invest in and innovate VMware’s products to create the next generation of technology that solves customers’ most complex IT challenges.

To stay updated on the news about the transaction, click here.


Cautionary Statement Regarding Forward-Looking Statements

This communication relates to a proposed business combination transaction between Broadcom Inc. (“Broadcom”) and VMware, Inc. (“VMware”).  This communication includes forward-looking statements within the meaning of Section 21E of the U.S. Securities Exchange Act of 1934, as amended, and Section 27A of the U.S. Securities Act of 1933, as amended.  These forward-looking statements include but are not limited to statements that relate to the expected future business and financial performance, the anticipated benefits of the proposed transaction, the anticipated impact of the proposed transaction on the combined business, the expected amount and timing of the synergies from the proposed transaction, and the anticipated closing date of the proposed transaction.  These forward-looking statements are identified by words such as “will,” “expect,” “believe,” “anticipate,” “estimate,” “should,” “intend,” “plan,” “potential,” “predict,” “project,” “aim,” and similar words or phrases.  These forward-looking statements are based on current expectations and beliefs of Broadcom management and current market trends and conditions. 

These forward-looking statements involve risks and uncertainties that are outside Broadcom’s control and may cause real results to differ materially from those contained in forward-looking statements, including but not limited to: the effect of the proposed transaction on our ability to maintain relationships with customers, suppliers and other business partners or operating results and business; the ability to implement plans, achieve forecasts and meet other expectations with respect to the business after the completion of the proposed transaction and realize expected synergies; business disruption following the proposed transaction; difficulties in retaining and hiring key personnel and employees due to the proposed transaction and business combination; the diversion of management time on transaction-related issues; the satisfaction of the conditions precedent to consummation of the proposed transaction, including the ability to secure regulatory approvals on the terms expected, at all or in a timely manner; significant indebtedness, including indebtedness incurred in connection with the proposed transaction, and the need to generate sufficient cash flows to service and repay such debt; the disruption of current plans and operations; the outcome of legal proceedings related to the transaction; the ability to consummate the proposed transaction on a timely basis or at all; the ability to successfully integrate VMware’s operations; cyber-attacks, information security and data privacy; global political and economic conditions, including cyclicality in the semiconductor industry and in Broadcom’s other target markets, rising interest rates, the impact of inflation and challenges in manufacturing and the global supply chain; the impact of public health crises, such as pandemics (including COVID-19) and epidemics and any related company or government policies and actions to protect the health and safety of individuals or government policies or actions to maintain the functioning of national or global economies and markets; and events and trends on a national, regional and global scale, including those of a political, economic, business, competitive and regulatory nature.

These risks, as well as other risks related to the proposed transaction, are included in the registration statement on Form S-4 and proxy statement/prospectus that has been filed with the Securities and Exchange Commission (“SEC”) in connection with the proposed transaction.  While the list of factors presented here is, and the list of factors presented in the registration statement on Form S-4 are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties.  For additional information about other factors that could cause real results to differ materially from those described in the forward-looking statements, please refer to Broadcom’s and VMware’s respective periodic reports and other filings with the SEC, including the risk factors identified in Broadcom’s and VMware’s most exact Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K.  The forward-looking statements included in this communication are made only as of the date hereof.  Neither Broadcom nor VMware undertakes any obligation to update any forward-looking statements to reflect subsequent events or circumstances, except as required by law.

No Offer or Solicitation

This communication is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.  No offering of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.  

Additional Information about the Transaction and Where to Find It

In connection with the proposed transaction, Broadcom has filed with the SEC a registration statement on Form S-4 that includes a proxy statement of VMware and that also constitutes a prospectus of Broadcom.  Each of Broadcom and VMware may also file other relevant documents with the SEC regarding the proposed transaction.  The registration statement  was declared effective by the SEC on October 3, 2022 and the definitive proxy statement/prospectus has been mailed to VMware’s stockholders. This document is not a substitute for the proxy statement/prospectus or registration statement or any other document that Broadcom or VMware may file with the SEC.   INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.  Investors and security holders may obtain free copies of the registration statement and proxy statement/prospectus and other documents containing important information about Broadcom, VMware and the proposed transaction, once such documents are filed with the SEC through the website maintained by the SEC at http://www.sec.gov.  Copies of the documents filed with the SEC by Broadcom may be obtained free of charge on Broadcom’s website at https://investors.broadcom.com.  Copies of the documents filed with the SEC by VMware may be obtained free of charge on VMware’s website at ir.vmware.com.

Participants in the Solicitation

Broadcom, VMware and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction.  Information about the directors and executive officers of Broadcom, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in Broadcom’s proxy statement for its 2022 Annual Meeting of Stockholders, which was filed with the SEC on February 18, 2022, and Broadcom’s Annual Report on Form 10-K for the fiscal year ended October 31, 2021, which was filed with the SEC on December 17, 2021.  Information about the directors and executive officers of VMware, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in VMware’s proxy statement for its 2022 Annual Meeting of Stockholders, which was filed with the SEC on May 27, 2022, VMware’s Annual Report on Form 10-K for the fiscal year ended January 28, 2022, which was filed with the SEC on March 24, 2022, a Form 8-K filed by VMware on April 22, 2022 and a Form 8-K filed by VMware on May 2, 2022.  Other information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, are or will be contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC regarding the proposed transaction when such materials become available.  Investors should read the proxy statement/prospectus carefully before making any voting or investment decisions.  You may obtain free copies of these documents from Broadcom or VMware using the sources indicated above.


About Hock Tan:

Broadcom Software

Broadcom Software

Hock Tan is Broadcom President, Chief Executive Officer and Director. He has held this position since March 2006. From September 2005 to January 2008, he served as chairman of the board of Integrated Device Technology. Prior to becoming chairman of IDT, Mr. Tan was the President and Chief Executive Officer of Integrated Circuit Systems from June 1999 to September 2005. Prior to ICS, Mr. Tan was Vice President of Finance with Commodore International from 1992 to 1994, and previously held senior management positions with PepsiCo and General Motors. Mr. Tan served as managing director of Pacven Investment, a venture capital fund in Singapore from 1988 to 1992, and served as managing director for Hume Industries in Malaysia from 1983 to 1988.

Wed, 07 Dec 2022 00:14:00 -0600 en-US text/html https://www.cio.com/article/415219/broadcom-and-vmware-investing-for-customer-value.html
Killexams : VMware Sales Rise To $3.2B Helped By Surging SaaS Revenue

Channel News

O’Ryan Johnson

Broadcom CEO Hock Tan said at the May announcement of the $61 billion takeover that he wants more of VMware’s revenue to come through subscription. VMware, which has also been aiming for higher subscription revenue rates, delivered 20 percent growth in subscription revenue growth, and 24 percent growth to its annual recurring revenue.

 ARTICLE TITLE HERE

VMware CEO Raghu Raghuram said the company’s sales met expectations this past quarter, rising one-percent, aided by double-digit subscription revenue growth as the company’s potential takeover by chipmaker Broadcom marches forward.

“This past quarter we demonstrated that our innovation engine is flourishing, as we unveiled many new offerings across our portfolio, including VMware vSphere 8, VMware vSAN 8 and VMware Aria,” Raghuram said in a statement Tuesday. “We remain committed to and engaged in helping customers transform their businesses and unlock the full potential of multi-cloud.”

Sales for its third quarter of fiscal year 2023 came in at $3.21 billion, up from $3.18 billion a year ago. Net income for the quarter meanwhile was down 42 percent to $231 million from a year ago when it came in at $398 million.

[RELATED STORY: Broadcom’s Golden Parachute For Top 5 VMware Execs May Total $169.4M]

Broadcom CEO Hock Tan said at the May announcement of the $61 billion takeover that he wants more of VMware’s revenue to come through subscription. VMware, which has also been aiming for higher subscription revenue rates, delivered 20 percent growth in subscription revenue growth, and 24 percent growth to its annual recurring revenue.

All told, subscription revenue now accounts for 31 percent of the Palo Alto, Calif.-based company’s total third quarter sales.

“SaaS ARR growth of 24 percent reflects increased adoption of our multi-cloud product portfolio and recently introduced customer programs,” said Zane Rowe, executive vice president and CFO, VMware, in a statement. “By continuing to meet the evolving needs of our customers, we increased our mix of subscription and SaaS revenue to 31 percent of our total revenue this quarter.”

VMware has not hosted a public call to discuss earnings and take questions from analysts since Broadcom announced its intentions to buy the company on May 26. CRN reached out to VMware asking why it now forgoes the practice but did not immediately hear back.

VMware shareholders approved the merger on Nov. 4. The deal is now in the hands of regulators in the U.S. and in Europe.

One of the top customer concerns around the merger is how Broadcom may change pricing, said Gartner analyst Andrew Lerner. VMware CEO Raghu Raghuram spoke with CRN in October telling VMware partners to renew their customers now if they are afraid of Broadcom raising prices.

“For customers that are panic that Broadcom will come in and raise prices post-close, there’s plenty of time. There are customers who have said, I want to come in and do an early engagement with VMware, do an early renewal, and we are doing that all day long,” he said. “For the partners, you have to be aware of that. If customers express a high degree of uncertainty and say, ‘What is VMware going to do?’ Introduce certainty (by offering early renewal).”

VMware was forced to pay $8 million by the SEC in September for misleading investors for two years by carrying forward sales from one quarter to the future quarter in order to help meet revenue targets. In fiscal year 2020, VMware would have missed its earnings estimates in three quarters, the SEC said, had it not shifted sales figures from one quarter to another.

O’Ryan Johnson

O’Ryan Johnson is a veteran news reporter. He covers the data center beat for CRN and hopes to hear from channel partners about how he can Excellerate his coverage and write the stories they want to read. He can be reached at ojohnson@thechannelcompany.com..

Tue, 22 Nov 2022 06:34:00 -0600 en text/html https://www.crn.com/news/channel-news/vmware-sales-rise-to-3-2b-helped-by-surging-saas-revenue Killexams : VMware Reports Fiscal Year 2023 Third Quarter Results

VMware Reports Fiscal Year 2023 Third Quarter Results

Total Revenue of $3.21 billion

Subscription and SaaS Revenue of $988 million, an increase of 20% year-over-year

VMware, Inc. (NYSE: VMW), a leading innovator in enterprise software, today announced financial results for the third quarter of fiscal year 2023:

Quarterly Review

  • Revenue for the third quarter was $3.21 billion, an increase of 1% from the third quarter of fiscal 2022.
  • The combination of subscription and SaaS and license revenue was $1.61 billion for the third quarter, an increase of 5% from the third quarter of fiscal 2022.
  • Subscription and SaaS constituted 31% of our total revenue for the quarter.
  • Subscription and SaaS revenue for the third quarter was $988 million, an increase of 20% year-over-year.
  • Subscription and SaaS ARR for the third quarter was $4.10 billion, an increase of 24% year-over-year.
  • GAAP net income for the third quarter was $231 million, or $0.54 per diluted share, down 43% per diluted share compared to $398 million, or $0.94 per diluted share, for the third quarter of fiscal 2022. Non-GAAP net income for the third quarter was $626 million, or $1.47 per diluted share, down 15% per diluted share compared to $725 million, or $1.72 per diluted share, for the third quarter of fiscal 2022.1
  • GAAP operating income for the third quarter was $390 million, a decrease of 25% from the third quarter of fiscal 2022. Non-GAAP operating income for the third quarter was $857 million, a decrease of 8% from the third quarter of fiscal 2022.
  • Operating cash flow for the third quarter was $1.26 billion. Free cash flow for the third quarter was $1.16 billion.
  • RPO for the third quarter totaled $11.90 billion, up 7% year-over-year.

“Q3 results met our expectations. This past quarter we demonstrated that our innovation engine is flourishing, as we unveiled many new offerings across our portfolio, including VMware vSphere 8, VMware vSAN 8 and VMware Aria,” said Raghu Raghuram, CEO, VMware. “We remain committed to and engaged in helping customers transform their businesses and unlock the full potential of multi-cloud.”

“Our Q3 subscription and SaaS ARR growth of 24% reflects increased adoption of our multi-cloud product portfolio and recently introduced customer programs,” said Zane Rowe, executive vice president and CFO, VMware. “By continuing to meet the evolving needs of our customers, we increased our mix of subscription and SaaS revenue to 31% of our total revenue this quarter.”

Business Highlights & Strategic Announcements

  • At VMware Explore U.S. 2022, the company announced new and enhanced portfolio offerings, Cross-Cloud services and expanded partnerships to deliver a faster and smarter path to cloud for digital businesses. New technology offerings included:
    • VMware vSphere 8, which introduces a new era of computing by supporting DPUs (Data Processing Units) alongside CPUs and GPUs—making the future of modern infrastructure accessible to all enterprises.
    • VMware vSAN 8 for breakthrough performance and hyper-efficiency.
    • VMware Aria, a new multi-cloud management portfolio, which provides a set of end-to-end solutions for managing cloud native applications and infrastructure.
    • VMware Cloud Foundation+, introducing a cloud-connected architecture for managing and operating full stack HCI in data centers.
    • Project Northstar, a preview of a major advancement of the VMware NSX platform, for multi-cloud networking, security and end-to-end visibility.
    • VMware Tanzu for Kubernetes Operations, which includes VMware Tanzu Mission Control, VMware Aria Operations for Apps and VMware Tanzu Kubernetes Grid, will simplify Kubernetes delivery, management and reliability.
    • The extension of Workspace ONE Freestyle Orchestrator to mobile devices and third-party apps, for multi-platform automation and orchestration.
  • VMware recently announced an expansion of our partnership with IBM to help clients in regulated industries more easily move workloads to the cloud, with IBM Consulting now serving as a GSI partner for VMware.
  • VMware extended its ongoing collaboration with Microsoft to help customers with an Azure-first strategy to modernize enterprise VMware vSphere workloads quickly and cost-effectively in Microsoft Azure.
  • VMware and AWS announced new capabilities in the jointly engineered VMware Cloud on AWS service and broad availability of VMware Cross-Cloud services on AWS Marketplace to help customers accelerate moving VMware workloads to modern and more secure infrastructure in AWS to support enterprise cloud transformation.
  • VMware introduced VMware Carbon Black Workload for AWS, which delivers advanced protection purpose-built for securing both traditional and modern workloads.
  • VMware received industry analyst recognition:
    • VMware was positioned by Gartner, Inc. as a Leader in the 2022 Gartner Magic Quadrant for SD-WAN.2 Previously known as the Gartner Magic Quadrant for WAN Edge Infrastructure, this year’s report marks the fifth consecutive year that Gartner has recognized VMware as a Leader in SD-WAN.
    • VMware was positioned by Gartner, Inc. as a Leader in the 2022 Magic Quadrant for Unified Endpoint Management (UEM) Tools.3 This is the fifth consecutive year VMware has been named. We believe Gartner recognized VMware as a Leader in this Magic Quadrant because of our Workspace One product.
    • Analyst firm IDC ranked VMware No. 1 in the worldwide IT automation and configuration management (ITACM) 4 software market for 2021. This year’s report marks the fifth consecutive year that customers have helped VMware top the list in Worldwide IT Automation and Configuration.

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 nine months ended October 28, 2022 reflect the impact of the tax law in effect as of October 28, 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 Gartner, Magic Quadrant for SD-WAN, By Jonathan Forest, Naresh Singh, Andrew Lerner, Karen Brown, 12 September 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 of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved. This document was renamed from Magic Quadrant of WAN Edge Infrastructure to Magic Quadrant for SD-WAN in 2022.

 

3 Gartner Magic Quadrant for Unified Endpoint Management Tools, Tom Cipolla, Dan Wilson, Chris Silva, Craig Fisler, August 1, 2022.

 

4 The IDC report, “Worldwide IT Automation and Configuration Management Software Market Shares, 2021: Economic Recovery Drives Growth,” (doc #US49218922, June 2022) analyzed revenue and growth rate for the total market in calendar 2021, as well as revenues, shares and growth rates of select leading vendors.

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. 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, VMware vSAN, VMware Aria, Explore, NSX, Tanzu, Workspace ONE, and Carbon Blackare 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 and any applicable termination for convenience clauses are not exercised, 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, partners and stockholders of VMware’s strategy and offerings, as well as the proposed acquisition of VMware by Broadcom and related timing of its consummation. real 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 VMware’s 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, 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 on-going and new 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, 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 exact 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 real 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

 

Nine Months Ended

 

 

October 28,

 

October 29,

 

October 28,

 

October 29,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenue:

 

 

 

 

 

 

 

 

License

 

$

621

 

 

$

710

 

 

$

1,990

 

 

$

2,093

 

Subscription and SaaS

 

 

988

 

 

 

820

 

 

 

2,830

 

 

 

2,336

 

Services

 

 

1,602

 

 

 

1,658

 

 

 

4,815

 

 

 

4,891

 

Total revenue

 

 

3,211

 

 

 

3,188

 

 

 

9,635

 

 

 

9,320

 

Operating expenses(1):

 

 

 

 

 

 

 

 

Cost of license revenue

 

 

39

 

 

 

37

 

 

 

113

 

 

 

111

 

Cost of subscription and SaaS revenue

 

 

196

 

 

 

175

 

 

 

583

 

 

 

502

 

Cost of services revenue

 

 

384

 

 

 

362

 

 

 

1,128

 

 

 

1,051

 

Research and development

 

 

832

 

 

 

768

 

 

 

2,409

 

 

 

2,251

 

Sales and marketing

 

 

1,081

 

 

 

1,011

 

 

 

3,216

 

 

 

2,993

 

General and administrative

 

 

289

 

 

 

316

 

 

 

815

 

 

 

808

 

Realignment

 

 

 

 

 

 

 

 

7

 

 

 

1

 

Operating income

 

 

390

 

 

 

519

 

 

 

1,364

 

 

 

1,603

 

Investment income

 

 

20

 

 

 

 

 

 

28

 

 

 

1

 

Interest expense

 

 

(77

)

 

 

(74

)

 

 

(222

)

 

 

(173

)

Other income (expense), net

 

 

(14

)

 

 

12

 

 

 

(44

)

 

 

(7

)

Income before income tax

 

 

319

 

 

 

457

 

 

 

1,126

 

 

 

1,424

 

Income tax provision

 

 

88

 

 

 

59

 

 

 

306

 

 

 

190

 

Net income

 

$

231

 

 

$

398

 

 

$

820

 

 

$

1,234

 

Net income per weighted-average share, basic

 

$

0.55

 

 

$

0.95

 

 

$

1.94

 

 

$

2.94

 

Net income per weighted-average share, diluted

 

$

0.54

 

 

$

0.94

 

 

$

1.93

 

 

$

2.92

 

Weighted-average shares, basic

 

 

423,993

 

 

 

419,456

 

 

 

422,194

 

 

 

419,309

 

Weighted-average shares, diluted

 

 

426,328

 

 

 

421,763

 

 

 

424,490

 

 

 

422,201

 

__________

 

 

 

 

 

 

 

 

(1) Includes stock-based compensation as follows:

 

 

 

 

 

 

 

 

Cost of license revenue

 

$

 

 

$

 

 

$

1

 

 

$

1

 

Cost of subscription and SaaS revenue

 

 

7

 

 

 

5

 

 

 

18

 

 

 

16

 

Cost of services revenue

 

 

31

 

 

 

21

 

 

 

79

 

 

 

70

 

Research and development

 

 

163

 

 

 

125

 

 

 

441

 

 

 

402

 

Sales and marketing

 

 

104

 

 

 

74

 

 

 

278

 

 

 

227

 

General and administrative

 

 

43

 

 

 

33

 

 

 

124

 

 

 

97

 

VMware, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

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

(unaudited)

 

 

 

 

 

October 28,

 

January 28,

 

 

2022

 

 

 

2022

 

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

3,972

 

 

$

3,614

 

Short-term investments

 

 

 

 

19

 

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

 

1,909

 

 

 

2,297

 

Due from related parties

 

821

 

 

 

1,438

 

Other current assets

 

616

 

 

 

598

 

Total current assets

 

7,318

 

 

 

7,966

 

Property and equipment, net

 

1,597

 

 

 

1,461

 

Deferred tax assets

 

6,090

 

 

 

5,906

 

Intangible assets, net

 

526

 

 

 

714

 

Goodwill

 

9,598

 

 

 

9,598

 

Due from related parties

 

189

 

 

 

199

 

Other assets

 

2,808

 

 

 

2,832

 

Total assets

$

28,126

 

 

$

28,676

 

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

297

 

 

$

234

 

Accrued expenses and other

 

2,566

 

 

 

2,806

 

Current portion of long-term debt

 

1,000

 

 

 

 

Unearned revenue

 

6,339

 

 

 

6,479

 

Due to related parties

 

201

 

 

 

132

 

Total current liabilities

 

10,403

 

 

 

9,651

 

Long-term debt

 

9,686

 

 

 

12,671

 

Unearned revenue

 

4,878

 

 

 

4,743

 

Income tax payable

 

260

 

 

 

242

 

Operating lease liabilities

 

849

 

 

 

927

 

Due to related parties

 

804

 

 

 

909

 

Other liabilities

 

440

 

 

 

409

 

Total liabilities

 

27,320

 

 

 

29,552

 

Contingencies

 

 

 

Stockholders’ equity (deficit):

 

 

 

Class A common stock, par value $0.01; authorized 2,500,000 shares; issued and outstanding 424,613 and 418,808 shares

 

4

 

 

 

4

 

Additional paid-in capital

 

870

 

 

 

 

Accumulated other comprehensive loss

 

(13

)

 

 

(5

)

Accumulated deficit

 

(55

)

 

 

(875

)

Total stockholders’ equity (deficit)

 

806

 

 

 

(876

)

Total liabilities and stockholders’ equity (deficit)

$

28,126

 

 

$

28,676

 

VMware, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

October 28,

 

October 29,

 

October 28,

 

October 29,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Operating activities:

 

 

 

 

 

 

 

Net income

$

231

 

 

$

398

 

 

$

820

 

 

$

1,234

 

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

 

 

 

 

 

 

 

Depreciation and amortization

 

316

 

 

 

281

 

 

 

906

 

 

 

825

 

Stock-based compensation

 

348

 

 

 

258

 

 

 

941

 

 

 

813

 

Deferred income taxes, net

 

(101

)

 

 

(61

)

 

 

(181

)

 

 

(92

)

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

 

1

 

 

 

(9

)

 

 

(11

)

 

 

29

 

Other

 

3

 

 

 

3

 

 

 

6

 

 

 

6

 

Changes in assets and liabilities, net of acquisitions:

 

 

 

 

 

 

 

Accounts receivable

 

162

 

 

 

41

 

 

 

384

 

 

 

247

 

Other current assets and other assets

 

(92

)

 

 

(77

)

 

 

(512

)

 

 

(467

)

Due from related parties

 

446

 

 

 

255

 

 

 

627

 

 

 

777

 

Accounts payable

 

79

 

 

 

17

 

 

 

48

 

 

 

87

 

Accrued expenses and other liabilities

 

(208

)

 

 

37

 

 

 

(527

)

 

 

(181

)

Income taxes payable

 

94

 

 

 

53

 

 

 

208

 

 

 

24

 

Unearned revenue

 

(15

)

 

 

(106

)

 

 

(6

)

 

 

(82

)

Due to related parties

 

1

 

 

 

 

 

 

(36

)

 

 

 

Net cash provided by operating activities

 

1,265

 

 

 

1,090

 

 

 

2,667

 

 

 

3,220

 

Investing activities:

 

 

 

 

 

 

 

Additions to property and equipment

 

(108

)

 

 

(106

)

 

 

(327

)

 

 

(263

)

Sales of investments in equity securities

 

 

 

 

34

 

 

 

20

 

 

 

68

 

Purchases of strategic investments

 

(3

)

 

 

(1

)

 

 

(11

)

 

 

(7

)

Proceeds from disposition of assets

 

 

 

 

4

 

 

 

91

 

 

 

5

 

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

 

 

 

 

 

 

 

(4

)

 

 

(15

)

Net cash used in investing activities

 

(111

)

 

 

(69

)

 

 

(231

)

 

 

(212

)

Financing activities:

 

 

 

 

 

 

 

Proceeds from issuance of common stock

 

124

 

 

 

128

 

 

 

248

 

 

 

267

 

Proceeds from issuance of senior notes, net of issuance costs

 

 

 

 

5,944

 

 

 

 

 

 

5,944

 

Repayment of term loan

 

(500

)

 

 

 

 

 

(2,000

)

 

 

 

Repayment of note payable to Dell

 

 

 

 

(270

)

 

 

 

 

 

(270

)

Repurchase of common stock

 

 

 

 

(143

)

 

 

(89

)

 

 

(872

)

Shares repurchased for tax withholdings on vesting of restricted stock

 

(48

)

 

 

(48

)

 

 

(253

)

 

 

(291

)

Principal payments on finance lease obligations

 

(1

)

 

 

(1

)

 

 

(4

)

 

 

(3

)

Net cash provided by (used in) financing activities

 

(425

)

 

 

5,610

 

 

 

(2,098

)

 

 

4,775

 

Net increase in cash, cash equivalents and restricted cash

 

729

 

 

 

6,631

 

 

 

338

 

 

 

7,783

 

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

 

3,272

 

 

 

5,922

 

 

 

3,663

 

 

 

4,770

 

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

$

4,001

 

 

$

12,553

 

 

$

4,001

 

 

$

12,553

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

 

Cash paid for interest

$

86

 

 

$

49

 

 

$

226

 

 

$

146

 

Cash paid for taxes, net

 

94

 

 

 

73

 

 

 

278

 

 

 

276

 

Non-cash items:

 

 

 

 

 

 

 

Changes in capital additions, accrued but not paid

$

14

 

 

$

(2

)

 

$

23

 

 

$

9

 

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

 

October 28,

 

October 29,

 

 

2022

 

 

 

2021

 

Total revenue, as reported

$

3,211

 

 

$

3,188

 

Sequential change in unearned revenue(1)

 

(14

)

 

 

(105

)

Total revenue plus sequential change in unearned revenue

$

3,197

 

 

$

3,083

 

Change (%) over prior year, as reported

 

4

%

 

 

 

 

 

 

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

 

 

 

 

 

Three Months Ended

 

October 28,

 

October 29,

 

 

2022

 

 

 

2021

 

Total license and subscription and SaaS revenue, as reported

$

1,609

 

 

$

1,530

 

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

 

253

 

 

 

27

 

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

$

1,862

 

 

$

1,557

 

Change (%) over prior year, as reported

 

20

%

 

 

__________

 

 

 

(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

 

 

 

 

 

October 28,

 

October 29,

 

 

2022

 

 

 

2021

Remaining performance obligations(3)

$

11,902

 

 

$

11,123

Change (%) over prior year

 

7

%

 

 

 

 

 

 

Remaining performance obligations, current(4)

$

6,660

 

 

$

6,232

Change (%) over prior year

 

7

%

 

 

__________

 

 

 

(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.

VMware, Inc.

SUPPLEMENTAL UNEARNED REVENUE SCHEDULE

(in millions)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

October 28,

 

July 29,

 

April 29,

 

January 28,

 

October 29,

 

July 30,

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

2021

 

 

2021

Unearned revenue as reported:

 

 

 

 

 

 

 

 

 

 

 

License

$

28

 

$

20

 

$

20

 

$

19

 

$

17

 

$

20

Subscription and SaaS

 

3,197

 

 

2,952

 

 

2,671

 

 

2,669

 

 

2,238

 

 

2,208

Services

 

 

 

 

 

 

 

 

 

 

 

Software maintenance

 

6,636

 

 

6,903

 

 

6,877

 

 

7,208

 

 

6,773

 

 

6,916

Professional services

 

1,356

 

 

1,356

 

 

1,298

 

 

1,326

 

 

1,205

 

 

1,194

Total unearned revenue

$

11,217

 

$

11,231

 

$

10,866

 

$

11,222

 

$

10,233

 

$

10,338

VMware, Inc.

RECONCILIATION OF GAAP TO NON-GAAP DATA

For the Three Months Ended October 28, 2022

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

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

Stock-Based

Compensation

 

Employer

Payroll Taxes

on Employee

Stock Transactions

 

Intangible

Amortization

 

Acquisition, Disposition

and Other

Items

 

Tax
Adjustment(1)

 

Non-GAAP
As Adjusted(2)

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of license revenue

$

39

 

 

 

 

 

 

 

 

 

(9

)

 

 

 

 

 

 

 

$

29

 

Cost of subscription and SaaS revenue

$

196

 

 

 

(7

)

 

 

 

 

 

(36

)

 

 

 

 

 

 

 

$

153

 

Cost of services revenue

$

384

 

 

 

(31

)

 

 

 

 

 

 

 

 

(8

)

 

 

 

 

$

345

 

Research and development

$

832

 

 

 

(163

)

 

 

 

 

 

(2

)

 

 

 

 

 

 

 

$

666

 

Sales and marketing

$

1,081

 

 

 

(104

)

 

 

(1

)

 

 

(15

)

 

 

(7

)

 

 

 

 

$

956

 

General and administrative

$

289

 

 

 

(43

)

 

 

 

 

 

 

 

 

(41

)

 

 

 

 

$

205

 

Operating income

$

390

 

 

 

348

 

 

 

1

 

 

 

62

 

 

 

56

 

 

 

 

 

$

857

 

Operating margin(2)

 

12.1

%

 

 

10.8

%

 

 

%

 

 

1.9

%

 

 

1.7

%

 

 

 

 

 

26.7

%

Other income (expense), net(3)

$

(14

)

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

$

(13

)

Income before income tax

$

319

 

 

 

348

 

 

 

1

 

 

 

62

 

 

 

57

 

 

 

 

 

$

787

 

Income tax provision

$

88

 

 

 

 

 

 

 

 

 

 

 

73

 

 

$

161

 

Tax rate(2)

 

27.6

%

 

 

 

 

 

 

 

 

 

 

 

 

20.5

%

Net income

$

231

 

 

 

348

 

 

 

1

 

 

 

62

 

 

 

57

 

 

 

(73

)

 

$

626

 

Net income per weighted-average share, diluted(2)(4)

$

0.54

 

 

$

0.82

 

 

$

 

 

$

0.15

 

 

$

0.13

 

 

$

(0.17

)

 

$

1.47

 

__________

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Non-GAAP financial information for the quarter is adjusted for a tax rate equal to our annual estimated tax rate on non-GAAP income. This rate is based on our estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating the non-GAAP financial measures presented above as well as significant tax adjustments. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses, changes to our corporate structure and other significant events. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our real tax liabilities.

(2) Totals may not sum, due to rounding. Operating margin, tax rate and net income per weighted average share information are calculated based upon the respective underlying, non-rounded data.

(3) Non-GAAP adjustment to other income (expense), net includes gains or losses on investments in equity securities, whether realized or unrealized.

(4) Calculated based upon 426,328 diluted weighted-average shares of common stock.

VMware, Inc.

SUPPLEMENTAL RECONCILIATION OF GAAP TO NON-GAAP DATA

IMPACT OF INTERNAL REVENUE CODE SECTION 174

For the Three Months Ended October 28, 2022

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

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

Tax Adjustment (1)

 

Non-GAAP

As Adjusted

 

Estimated Tax Adjustment Excluding Section 174 Impact (2)

 

Non-GAAP As Adjusted

Excluding Section 174 Impact (3)

Income before income tax

$

319

 

 

 

 

$

787

 

 

 

 

 

 

$

 

 

787

 

Income tax provision

$

88

 

 

$

73

 

$

161

 

 

$

(31

)

-

(39

)

 

$

130

-

122

 

Tax rate (4)

 

27.6

%

 

 

 

 

20.5

%

 

 

 

 

 

 

16.5

-

15.5

%

Net income

$

231

 

 

 

 

$

626

 

 

 

 

 

 

$

657

-

665

 

Net income per weighted-average share, diluted (4)(5)

$

0.54

 

 

 

 

$

1.47

 

 

 

 

 

 

$

1.54

-

1.56

 

__________

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Non-GAAP financial information for the quarter is adjusted for a tax rate equal to our annual estimated tax rate on non-GAAP income. This rate is based on our estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating the non-GAAP financial measures presented above as well as significant tax adjustments. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses, changes to our corporate structure and other significant events. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our real tax liabilities.

(2) 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 in VMware’s fiscal 2023. Although the U.S. Congress is considering various legislative options that would defer the capitalization requirement to later years and such possible deferral was considered in our full year guidance provided on February 28, 2022, the financial results for the three months ended October 28, 2022 reflect the impact of the tax law in effect as of October 28, 2022. The provided estimated tax adjustment range reflects the non-GAAP adjustment we would expect should the capitalization provisions of Section 174 be deferred or repealed with effect for fiscal 2023.

(3) Represents the estimated non-GAAP results excluding the impact of Section 174 capitalization under the tax law in effect as of October 28, 2022.

(4) Totals may not sum, due to rounding. Tax rate and net income per weighted average share information are calculated based upon the respective underlying, non-rounded data.

(5) Calculated based upon 426,328 diluted weighted-average shares of common stock.

VMware, Inc.

RECONCILIATION OF GAAP TO NON-GAAP DATA

For the Three Months Ended October 29, 2021

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

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

Stock-Based

Compensation

 

Employer

Payroll Taxes

on Employee

Stock Transactions

 

Intangible

Amortization

 

Acquisition, Disposition

and Other

Items

 

Tax
Adjustment(1)

 

Non-GAAP
As Adjusted(2)

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of license revenue

$

37

 

 

 

 

 

 

 

 

 

(10

)

 

 

 

 

 

 

 

$

27

 

Cost of subscription and SaaS revenue

$

175

 

 

 

(5

)

 

 

 

 

 

(43

)

 

 

 

 

 

 

 

$

127

 

Cost of services revenue

$

362

 

 

 

(21

)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

341

 

Research and development

$

768

 

 

 

(125

)

 

 

 

 

 

(2

)

 

 

 

 

 

 

 

$

641

 

Sales and marketing

$

1,011

 

 

 

(74

)

 

 

(1

)

 

 

(20

)

 

 

 

 

 

 

 

$

915

 

General and administrative

$

316

 

 

 

(33

)

 

 

 

 

 

 

 

 

(82

)

 

 

 

 

$

202

 

Operating income

$

519

 

 

 

258

 

 

 

1

 

 

 

75

 

 

 

82

 

 

 

 

 

$

935

 

Operating margin(2)

 

16.3

%

 

 

8.1

%

 

 

%

 

 

2.4

%

 

 

2.6

%

 

 

 

 

 

29.3

%

Other income (expense), net(3)

$

12

 

 

 

 

 

 

 

 

 

 

 

 

(10

)

 

 

 

 

$

2

 

Income before income tax

$

457

 

 

 

258

 

 

 

1

 

 

 

75

 

 

 

72

 

 

 

 

 

$

863

 

Income tax provision

$

59

 

 

 

 

 

 

 

 

 

 

 

79

 

 

$

138

 

Tax rate(2)

 

12.9

%

 

 

 

 

 

 

 

 

 

 

 

 

16.0

%

Net income

$

398

 

 

 

258

 

 

 

1

 

 

 

75

 

 

 

72

 

 

 

(79

)

 

$

725

 

Net income per weighted-average share, diluted for Classes A and B(2)(4)

$

0.94

 

 

$

0.61

 

 

$

 

 

$

0.18

 

 

$

0.17

 

 

$

(0.19

)

 

$

1.72

 

__________

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Non-GAAP financial information for the quarter is adjusted for a tax rate equal to our annual estimated tax rate on non-GAAP income. This rate is based on our estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating the non-GAAP financial measures presented above as well as significant tax adjustments. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses, changes to our corporate structure and other significant events. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our real tax liabilities.

(2) Totals may not sum, due to rounding. Operating margin, tax rate and net income per weighted average share information are calculated based upon the respective underlying, non-rounded data.

(3) Non-GAAP adjustment to other income (expense), net includes gains or losses on investments in equity securities, whether realized or unrealized.

(4) Calculated based upon 421,763 diluted weighted-average shares for Classes A and B.

VMware, Inc.

RECONCILIATION OF GAAP TO NON-GAAP DATA

For the Nine Months Ended October 28, 2022

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

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

Stock-Based

Compensation

 

Employer

Payroll Taxes

on Employee

Stock Transactions

 

Intangible

Amortization

 

Realignment

Charges

 

Acquisition, Disposition

and Other

Items

 

Tax
Adjustment(1)

 

Non-GAAP
As Adjusted(2)

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of license revenue

$

113

 

 

 

(1

)

 

 

 

 

 

(28

)

 

 

 

 

 

 

 

 

 

 

$

83

 

Cost of subscription and SaaS revenue

$

583

 

 

 

(18

)

 

 

 

 

 

(109

)

 

 

 

 

 

 

 

 

 

 

$

456

 

Cost of services revenue

$

1,128

 

 

 

(79

)

 

 

(1

)

 

 

 

 

 

 

 

 

(8

)

 

 

 

 

$

1,040

 

Research and development

$

2,409

 

 

 

(441

)

 

 

(1

)

 

 

(7

)

 

 

 

 

 

 

 

 

 

 

$

1,959

 

Sales and marketing

$

3,216

 

 

 

(278

)

 

 

(4

)

 

 

(48

)

 

 

 

 

 

(7

)

 

 

 

 

$

2,881

 

General and administrative

$

815

 

 

 

(124

)

 

 

(1

)

 

 

 

 

 

 

 

 

(69

)

 

 

 

 

$

622

 

Realignment

$

7

 

 

 

 

 

 

 

 

 

 

 

 

(7

)

 

 

 

 

 

 

 

$

 

Operating income

$

1,364

 

 

 

941

 

 

 

7

 

 

 

192

 

 

 

7

 

 

 

84

 

 

 

 

 

$

2,594

 

Operating margin(2)

 

14.2

%

 

 

9.8

%

 

 

0.1

%

 

 

2.0

%

 

 

0.1

%

 

 

0.9

%

 

 

 

 

 

26.9

%

Other income (expense), net(3)

$

(44

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10

)

 

 

 

 

$

(54

)

Income before income tax

$

1,126

 

 

 

941

 

 

 

7

 

 

 

192

 

 

 

7

 

 

 

74

 

 

 

 

 

$

2,346

 

Income tax provision

$

306

 

 

 

 

 

 

 

 

 

 

 

 

 

175

 

 

$

481

 

Tax rate(2)

 

27.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20.5

%

Net income

$

820

 

 

 

941

 

 

 

7

 

 

 

192

 

 

 

7

 

 

 

74

 

 

 

(175

)

 

$

1,865

 

Net income per weighted-average share, diluted(2)(4)

$

1.93

 

 

$

2.22

 

 

$

0.02

 

 

$

0.45

 

 

$

0.02

 

 

$

0.17

 

 

$

(0.41

)

 

$

4.39

 

__________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Non-GAAP financial information for the quarter is adjusted for a tax rate equal to our annual estimated tax rate on non-GAAP income. This rate is based on our estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating the non-GAAP financial measures presented above as well as significant tax adjustments. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses, changes to our corporate structure and other significant events. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our real tax liabilities.

(2) Totals may not sum, due to rounding. Operating margin, tax rate and net income per weighted average share information are calculated based upon the respective underlying, non-rounded data.

(3) Non-GAAP adjustment to other income (expense), net includes gains or losses on investments in equity securities, whether realized or unrealized.

(4) Calculated based upon 424,490 diluted weighted-average shares of common stock.

VMware, Inc.

SUPPLEMENTAL RECONCILIATION OF GAAP TO NON-GAAP DATA

IMPACT OF INTERNAL REVENUE CODE SECTION 174

For the Nine Months Ended October 28, 2022

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

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

Tax Adjustment (1)

 

Non-GAAP

As Adjusted

 

Estimated Tax Adjustment Excluding Section 174 Impact (2)

 

Non-GAAP As Adjusted

Excluding Section 174 Impact (3)

Income before income tax

$

1,126

 

 

 

 

$

2,346

 

 

 

 

 

 

$

 

 

2,346

 

Income tax provision

$

306

 

 

$

175

 

$

481

 

 

$

(94

)

-

(117

)

 

$

387

-

364

 

Tax rate (4)

 

27.2

%

 

 

 

 

20.5

%

 

 

 

 

 

 

16.5

-

15.5

%

Net income

$

820

 

 

 

 

$

1,865

 

 

 

 

 

 

$

1,959

-

1,982

 

Net income per weighted-average share, diluted (4)(5)

$

1.93

 

 

 

 

$

4.39

 

 

 

 

 

 

$

4.61

-

4.67

 

__________

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Non-GAAP financial information for the quarter is adjusted for a tax rate equal to our annual estimated tax rate on non-GAAP income. This rate is based on our estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating the non-GAAP financial measures presented above as well as significant tax adjustments. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses, changes to our corporate structure and other significant events. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our real tax liabilities.

(2) 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 in VMware’s fiscal 2023. Although the U.S. Congress is considering various legislative options that would defer the capitalization requirement to later years and such possible deferral was considered in our full year guidance provided on February 28, 2022, the financial results for the nine months ended October 28, 2022 reflect the impact of the tax law in effect as of October 28, 2022. The provided estimated tax adjustment range reflects the non-GAAP adjustment we would expect should the capitalization provisions of Section 174 be deferred or repealed with effect for fiscal 2023.

(3) Represents the estimated non-GAAP results excluding the impact of Section 174 capitalization under the tax law in effect as of October 28, 2022.

(4) Totals may not sum, due to rounding. Tax rate and net income per weighted average share information are calculated based upon the respective underlying, non-rounded data.

(5) Calculated based upon 424,490 diluted weighted-average shares of common stock.

VMware, Inc.

RECONCILIATION OF GAAP TO NON-GAAP DATA

For the Nine Months Ended October 29, 2021

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

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

Stock-Based

Compensation

 

Employer

Payroll Taxes

on Employee

Stock Transactions

 

Intangible

Amortization

 

Realignment

Charges

 

Acquisition, Disposition

and Other Items

 

Tax
Adjustment(1)

 

Non-GAAP
As Adjusted(2)

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of license revenue

$

111

 

 

 

(1

)

 

 

 

 

 

(30

)

 

 

 

 

 

 

 

 

 

 

$

80

 

Cost of subscription and SaaS revenue

$

502

 

 

 

(16

)

 

 

 

 

 

(128

)

 

 

 

 

 

 

 

 

 

 

$

358

 

Cost of services revenue

$

1,051

 

 

 

(70

)

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

979

 

Research and development

$

2,251

 

 

 

(402

)

 

 

(1

)

 

 

(5

)

 

 

 

 

 

 

 

 

 

 

$

1,842

 

Sales and marketing

$

2,993

 

 

 

(227

)

 

 

(5

)

 

 

(66

)

 

 

 

 

 

 

 

 

 

 

$

2,696

 

General and administrative

$

808

 

 

 

(97

)

 

 

(1

)

 

 

 

 

 

 

 

 

(126

)

 

 

 

 

$

584

 

Realignment

$

1

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

$

 

Operating income

$

1,603

 

 

 

813

 

 

 

8

 

 

 

229

 

 

 

1

 

 

 

126

 

 

 

 

 

$

2,781

 

Operating margin(2)

 

17.2

%

 

 

8.7

%

 

 

0.1

%

 

 

2.5

%

 

 

%

 

 

1.4

%

 

 

 

 

 

29.8

%

Other income (expense), net(3)

$

(7

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

28

 

 

 

 

 

$

20

 

Income before income tax

$

1,424

 

 

 

813

 

 

 

8

 

 

 

229

 

 

 

1

 

 

 

154

 

 

 

 

 

$

2,629

 

Income tax provision

$

190

 

 

 

 

 

 

 

 

 

 

 

 

 

231

 

 

$

421

 

Tax rate(2)

 

13.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16.0

%

Net income

$

1,234

 

 

 

813

 

 

 

8

 

 

 

229

 

 

 

1

 

 

 

154

 

 

 

(231

)

 

$

2,208

 

Net income per weighted-average share, diluted for Classes A and B(2)(4)

$

2.92

 

 

$

1.93

 

 

$

0.02

 

 

$

0.54

 

 

$

 

 

$

0.36

 

 

$

(0.55

)

 

$

5.23

 

__________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Non-GAAP financial information for the quarter is adjusted for a tax rate equal to our annual estimated tax rate on non-GAAP income. This rate is based on our estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating the non-GAAP financial measures presented above as well as significant tax adjustments. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses, changes to our corporate structure and other significant events. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our real tax liabilities.

(2) Totals may not sum, due to rounding. Operating margin, tax rate and net income per weighted average share information are calculated based upon the respective underlying, non-rounded data.

(3) Non-GAAP adjustment to other income (expense), net includes gains or losses on investments in equity securities, whether realized or unrealized.

(4) Calculated based upon 422,201 diluted weighted-average shares for Classes A and B.

VMware, Inc.

REVENUE BY TYPE

(in millions)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

October 28,

 

October 29,

 

October 28,

 

October 29,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenue:

 

 

 

 

 

 

 

 

License

 

$

621

 

 

$

710

 

 

$

1,990

 

 

$

2,093

 

Subscription and SaaS

 

 

988

 

 

 

820

 

 

 

2,830

 

 

 

2,336

 

Total license and subscription and SaaS

 

 

1,609

 

 

 

1,530

 

 

 

4,820

 

 

 

4,429

 

Services:

 

 

 

 

 

 

 

 

Software maintenance

 

 

1,298

 

 

 

1,354

 

 

 

3,907

 

 

 

4,011

 

Professional services

 

 

304

 

 

 

304

 

 

 

908

 

 

 

880

 

Total services

 

 

1,602

 

 

 

1,658

 

 

 

4,815

 

 

 

4,891

 

Total revenue

 

$

3,211

 

 

$

3,188

 

 

$

9,635

 

 

$

9,320

 

Percentage of revenue:

 

 

 

 

 

 

 

 

License

 

 

19.3

%

 

 

22.3

%

 

 

20.6

%

 

 

22.5

%

Subscription and SaaS

 

 

30.8

%

 

 

25.7

%

 

 

29.4

%

 

 

25.0

%

Total license and subscription and SaaS

 

 

50.1

%

 

 

48.0

%

 

 

50.0

%

 

 

47.5

%

Services:

 

 

 

 

 

 

 

 

Software maintenance

 

 

40.4

%

 

 

42.5

%

 

 

40.5

%

 

 

43.0

%

Professional services

 

 

9.5

%

 

 

9.5

%

 

 

9.5

%

 

 

9.5

%

Total services

 

 

49.9

%

 

 

52.0

%

 

 

50.0

%

 

 

52.5

%

Total revenue

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

VMware, Inc.

REVENUE BY GEOGRAPHY

(in millions)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

October 28,

 

October 29,

 

October 28,

 

October 29,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenue:

 

 

 

 

 

 

 

United States

$

1,614

 

 

$

1,582

 

 

$

4,780

 

 

$

4,587

 

International

 

1,597

 

 

 

1,606

 

 

 

4,855

 

 

 

4,733

 

Total revenue

$

3,211

 

 

$

3,188

 

 

$

9,635

 

 

$

9,320

 

Percentage of revenue:

 

 

 

 

 

 

 

United States

 

50.3

%

 

 

49.6

%

 

 

49.6

%

 

 

49.2

%

International

 

49.7

%

 

 

50.4

%

 

 

50.4

%

 

 

50.8

%

Total revenue

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

VMware, Inc.

RECONCILIATION OF GAAP CASH FLOWS FROM OPERATING ACTIVITIES

TO FREE CASH FLOWS

(A NON-GAAP FINANCIAL MEASURE)

(in millions)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

October 28,

 

October 29,

 

October 28,

 

October 29,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

GAAP cash flows from operating activities

$

1,265

 

 

$

1,090

 

 

$

2,667

 

 

$

3,220

 

Capital expenditures

 

(108

)

 

 

(106

)

 

 

(327

)

 

 

(263

)

Free cash flows

$

1,157

 

 

$

984

 

 

$

2,340

 

 

$

2,957

 

About Non-GAAP Financial Measures

To provide investors and others with additional information regarding VMware’s results, VMware has disclosed in this earnings release the following non-GAAP financial measures: non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share, free cash flow, non-GAAP income tax provision as adjusted for the impact of Internal Revenue Code Section 174 (“Section 174”) and non-GAAP revenue as adjusted for the impact of the suspension of our business operations in Russia and foreign currency. VMware has provided a reconciliation of each non-GAAP financial measure used in this earnings release to the most directly comparable GAAP financial measure. Other than free cash flow, non-GAAP income tax provision as adjusted for the impact of Section 174 and non-GAAP revenue as adjusted for the impact of the suspension of our business operations in Russia and foreign currency, these non-GAAP financial measures differ from GAAP in that they exclude stock-based compensation, employer payroll taxes on employee stock transactions, amortization of acquired intangible assets, realignment charges, acquisition, disposition and other items, and discrete items that impacted our GAAP tax rate, each as discussed below. Our non-GAAP financial measures also reflect the application of our non-GAAP tax rate. Free cash flow differs from GAAP cash flow from operating activities with respect to the treatment of capital expenditures.

VMware’s management uses these non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, to calculate bonus payments and to evaluate VMware’s financial performance, the performance of its individual functional groups and the ability of operations to generate cash. Management believes these non-GAAP financial measures reflect VMware’s ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in VMware’s business, as they exclude charges and gains that are not reflective of ongoing operating results. Management also believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating VMware’s operating results and future prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies. Additionally, management believes information regarding free cash flow provides investors and others with an important perspective on the cash available to make strategic acquisitions and investments, to repurchase shares, to fund ongoing operations and to fund other capital expenditures.

Management believes these non-GAAP financial measures are useful to investors and others in assessing VMware’s operating performance due to the following factors:

  • Stock-based compensation. Stock-based compensation is generally fixed at the time the stock-based instrument is granted and amortized over a period of several years. Although stock-based compensation is an important aspect of the compensation of VMware’s employees and executives, the expense for the fair value of the stock-based instruments VMware utilizes may bear little resemblance to the real value realized upon the vesting or future exercise of the related stock-based awards. Management believes it is useful to exclude stock-based compensation in order to better understand the long-term performance of VMware’s core business.
  • Employer payroll taxes on employee stock transactions. The amount of employer payroll taxes on stock-based compensation is dependent on VMware’s stock price and other factors that are beyond VMware’s control and do not correlate to the operation of the business.
  • Amortization of acquired intangible assets. A portion of the purchase price of VMware’s acquisitions is generally allocated to intangible assets, such as intellectual property, and is subject to amortization. However, VMware does not acquire businesses on a predictable cycle. Additionally, the amount of an acquisition’s purchase price allocated to intangible assets and the term of its related amortization can vary significantly and are unique to each acquisition. Therefore, VMware believes that the presentation of non-GAAP financial measures that adjust for the amortization of intangible assets provides investors and others with a consistent basis for comparison across accounting periods.
  • Realignment charges. Realignment charges include workforce reductions, asset impairments, losses on asset disposals and costs to exit facilities. VMware’s management believes it is useful to exclude these items, when significant, as they are not reflective of VMware’s core business and operating results.
  • Acquisition, disposition and other items. As VMware does not acquire or dispose of businesses on a predictable cycle and the terms of each transaction can vary significantly and are unique to each transaction, VMware believes it is useful to exclude acquisition, disposition and other items when looking for a consistent basis for comparison across accounting periods. These items include:

– Direct costs of acquisitions and dispositions, such as transaction and advisory fees.

– Costs associated with integrating acquired businesses.

– Accruals for the portion of merger consideration payable in installments that may be paid in cash or VMware stock, at the option of VMware.

– Gains or losses on investments in equity securities, whether realized or unrealized.

– Charges recognized for non-recoverable strategic investments or gains recognized on the disposition of strategic investments.

– Gains or losses on sale or disposal of distinct lines of business or product offerings, or transactions with features similar to discontinued operations, including recoveries or charges recognized to adjust the fair value of assets that qualify as “held for sale.”

– Certain costs incurred related to VMware's spin-off from its former parent company, Dell Technologies Inc., completed on November 1, 2021, such as legal and advisory fees.

– Certain costs incurred related to VMware's pending acquisition by Broadcom Inc. ("Broadcom"), such as legal and advisory fees incurred to effect the acquisition and retention compensation incurred to preserve our business organization through the consummation of the merger. The acquisition is expected to occur in Broadcom's fiscal year 2023 and is subject to the receipt of regulatory approvals and other customary closing conditions.

  • Tax adjustment. Non-GAAP financial information for the quarter is adjusted for a tax rate equal to VMware’s annual estimated tax rate on non-GAAP income. This rate is based on VMware’s estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating VMware’s non-GAAP income as well as significant tax adjustments. VMware’s estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that VMware management believes materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses, changes to our corporate structure and other significant events. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to VMware’s estimated annual tax rates as described above, the estimated tax rate on non-GAAP income may differ from the GAAP tax rate and from VMware’s real tax liabilities.

Additionally, VMware’s management believes that the non-GAAP financial measure of free cash flow is meaningful to investors because management reviews cash flow generated from operations after taking into consideration capital expenditures due to the fact that these expenditures are considered to be a necessary component of ongoing operations.

VMware’s management also believes that the non-GAAP income tax provision as adjusted for the impact of Section 174 research and development expense capitalization, which became effective beginning with VMware’s fiscal 2023, is meaningful to investors, given that the U.S. Congress is considering various legislative options that would defer the capitalization requirement to later years, possibly with effect for fiscal 2023.

Further, VMware’s management believes that the non-GAAP revenue as adjusted for the impact of the suspension of our business operations in Russia and foreign currency is meaningful to investors due to the unexpected impacts of Russia’s invasion of Ukraine on VMware’s business operations in the quarter as well as changes in foreign currency exchange rates versus our expectations.

The use of non-GAAP financial measures has certain limitations because they do not reflect all items of income and expense that affect VMware’s operations. Specifically, in the case of stock-based compensation, if VMware did not pay out a portion of its compensation in the form of stock-based compensation and related employer payroll taxes, the cash salary expense included in operating expenses would be higher, which would affect VMware’s cash position. VMware compensates for these limitations by reconciling the non-GAAP financial measures to the most comparable GAAP financial measures. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, measures prepared in accordance with GAAP and should not be considered measures of VMware’s liquidity. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited.

Management encourages investors and others to review VMware’s financial information in its entirety and not rely on a single financial measure.

Julie Gonzalez
VMware Investor Relations
ir@vmware.com

Doreen Ruyak
VMware Global PR
druyak@vmware.com
202-744-9767

View source version on businesswire.com: https://www.businesswire.com/news/home/20221122005539/en/

Tue, 22 Nov 2022 07:18:00 -0600 en text/html https://www.morningstar.com/news/business-wire/20221122005539/vmware-reports-fiscal-year-2023-third-quarter-results
Killexams : VMware Fusion 13 Now Available With Native Support for Apple Silicon Macs

VMware today announced the launch of Fusion 13, the latest major update to the Fusion virtualization software. For those unfamiliar with Fusion, it is designed to allow Mac users to operate virtual machines to run non-macOS operating systems like Windows 11.

fusion 13
Fusion 13 Pro and Fusion 13 Player are compatible with both Intel Macs and Apple silicon Macs equipped with M-series chips, offering native support. VMware has been testing Apple silicon support for several months now ahead of the launch of the latest version of Fusion.

With Fusion 13, Intel and Apple silicon Mac users can access Windows 11 virtual machines. Intel Macs offer full support for Windows 11, while on Apple silicon, VMware says there is a first round of features for Windows 11 on Arm.

VMware Tools provides virtual graphics and networking, and more is still to come. With certified and signed drivers Windows 11 looks fantastic, and adjust the resolution to 4K and beyond! Note that Fusion on Apple Silicon must run the Arm variant of Windows 11, and it does not support the x86/Intel version of Windows.

Users who need to run traditional win32 and x64 apps can do so through built-in emulation.

Fusion 13 also includes a TPM 2.0 virtual device that can be added to any VM, storing contents in an encrypted section of the virtual machine files and offering hardware-tpm functionality parity. To support this feature, Fusion 13 uses a fast encryption type that encrypts only the parts of the VM necessary to support the TPM device for performance and security.

The software supports OpenGL 4.3 in Windows and Linux VMs on Intel and in Linux VMs on Apple silicon.

Fusion 13 Player is free for personal use, and commercial licenses for both versions are available at a 30 percent discount to celebrate the launch. VMware Fusion 13 Player is priced at $104.30, and VMware Fusion Pro is priced at $139.30. Upgrades from prior versions are also available at a lower cost.

Thu, 17 Nov 2022 21:49:00 -0600 en text/html https://www.macrumors.com/2022/11/18/vmware-fusion-13-apple-silicon-macs/
Killexams : VMware has 'challenging quarter,' but all eyes on Broadcom buyout: analyst
The VMware campus in Silicon Valley

Sundry Photography

VMware's (NYSE:VMW) reported third-quarter results on Tuesday that were seen by many on Wall Street as "lackluster," but investment firm Monness, Crespi, Hardt said all eyes are on the next chapter in the company's history as it awaits approval of its acquisition by Broadcom (NASDAQ:AVGO).

Analyst Brian White, who has a buy rating on VMware (VMW), called the results "challenging," especially considering the second-quarter results were seen as so strong.

"We believe the company’s [third-quarter] performance highlights the headwinds swirling around in the current environment and follows a strong [second-quarter]," White wrote in a note to clients.

White added that the $61B deal to acquire VMware (VMW) by Broadcom (AVGO) should close in the company's fiscal 2023 year, as VMware shareholders recently voted to approve the deal.

VMware (VMW) generated $3.211B in revenue and $1.47 per share in earnings, well below the $3.347B and $1.58 that Wall Street was expecting, as revenue growth slowed down to just 1% year-over-year, down from 6% growth in the prior quarter.

White added that the $621M in revenue generated from licenses was well below the firm's estimates of $756.2M, while subscription and software-as-a-service revenue of $988M rose 20% year-over-year, but were also below the firm's estimates of $994.9M.

Services revenue clocked in at $1.602B, while deferred revenue was $11.217B and billings were up 4% to $3.197B.

Given that the company is still dealing with its pending Broadcom (AVGO) buyout, it did not provide any guidance.

Earlier this week, England's Competition and Markets Authority said it was looking into Broadcom's (AVGO) $61B pact to acquire VMWare (VMW) to see if it could result in a "substantial lessening of competition."

Tue, 22 Nov 2022 22:39:00 -0600 en text/html https://seekingalpha.com/news/3911102-vmware-has-challenging-quarter-but-all-eyes-on-broadcom-buyout-analyst
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