VMware, Inc. announced financial results for the first quarter of fiscal year 2019:
Revenue for the first quarter was $2.01 billion, an increase of 14% from the first quarter of fiscal 2018.
License revenue for the first quarter was $774 million, an increase of 21% from the first quarter of fiscal 2018.
GAAP net income for the first quarter was $942 million, including a gain of $781 million on Pivotal Software’s IPO, or $2.29 per diluted share, up 288% per diluted share compared to $245 million, or $0.59 per diluted share, for the first quarter of fiscal 2018. Non-GAAP net income for the quarter was $516 million, or $1.26 per diluted share, up 18% per diluted share compared to $440 million, or $1.06 per diluted share, for the first quarter of fiscal 2018.
GAAP operating income for the first quarter was $382 million, an increase of 47% from the first quarter of fiscal 2018. Non-GAAP operating income for the first quarter was $598 million, an increase of 13% from the first quarter of fiscal 2018.
Operating cash flows for the first quarter were $1.10 billion. Free cash flows for the quarter were $1.03 billion.
Total revenue plus sequential change in total unearned revenue grew 17% year-over-year.
License revenue plus sequential change in unearned license revenue grew 21% year-over-year.
“Q1 was a strong start to the year, and we are pleased with our results, which continue to be driven by broad-based strength across our diverse product and services portfolio and in all three geographies,” commented Pat Gelsinger, chief executive officer, VMware. “As we mark our twentieth anniversary, VMware software continues to be at the forefront of innovation, serving as the essential, ubiquitous foundation for the world’s digital infrastructure.”
“Q1 results reflect the success we have with our broad and increasingly integrated product and services portfolio,” said Zane Rowe, executive vice president and chief financial officer, VMware. “The strong start to fiscal 2019 has us well positioned to execute on our strategy.”
Recent Highlights & Strategic Announcements
In early May, VMware outlined its vision for the future of networking, announced the VMware NSX networking and security portfolio and unveiled the Virtual Cloud Network. The Virtual Cloud Network will enable organizations to create a digital business fabric for connecting and securing applications, data and users in a hyper-distributed world. VMware, Inc.
VMware introduced a number of updates to its Workspace ONE platform that make it the first and only intelligence-driven digital workspace to improve user experience and enable predictive security across the perimeter-less environment.
VMware unveiled new releases of VMware vSphere and VMware vSAN—which power the industry’s leading hyper-converged infrastructure (HCI) solutions—to help enterprises securely run their business-critical and modern applications in the data center, at the edge, in the public cloud, or in hybrid cloud environments.
VMware was named #1 in HCI software market share in IDC’s Worldwide Quarterly Converged Systems Tracker.