Separated from Dell since 1er last November, VMware closed a good fourth quarter at the end of January and more generally a good fiscal year 2021-2022. During the last three months of its fiscal year, the publisher generated $3.5 billion in sales, or 7.2% more than the same period a year earlier. All marketing methods combined, its sales of applications increased by 10.6% to $1.9 billion. Those from SaaS and subscription modes increased by 23% to €868 million. For their part, services (software maintenance) provided the publisher with $1.62 billion in revenue (+3.49%). Despite rising quarterly business, VMware posted a sharp decline in earnings. Operating profit plunged 22.2% to $783m, and net profit 26% to $586m.
-11% profit over one year
Over the year as a whole, the publisher’s profitability held up better without, however, proving satisfactory. Operating income this time remained stable at $2.3 billion, while net profit fell by 11% to $1.82 billion. All of this was achieved on the basis of annual revenue of $12.8 billion, up 9% compared to the 2020-2021 financial year. Over 12 months, sales of applications reached $6.3 billion (+12.7%) including $3.2 billion (+23.8%) for those made in SaaS and subscription. For their part, revenues from services reached $6.5 billion (+6%).
$4 billion in revenue for SaaS and subscription this year
VMware’s subscription and SaaS portfolio consists of three pillars: Tanzu and cloud management, cloud infrastructure (VCPP, VMware Cloud on AWS and other carriers’ platforms), and end user and secure edge (Workspace ONE , Horizon, Carbon Black and SASE offers). This year, it is expected to generate more than $4 billion in revenue out of the $13.7 billion in revenue that VMware expects to make. ” HASIn fiscal year 2022-2023, we plan to make all of our core products available as subscription or SaaS offerings. Specifically, all of our software-defined data center offerings will be available as cloud-delivered software. […] and help further accelerate the transformation of our business model,” concludes Raghu Raghuram, CEO of VMware.