VMware Reports $2.2B Q3 Revenue, up 14% YoY

PALO ALTO, Calif. -- VMware today announced financial results for the third quarter of fiscal year 2019:

• Revenue for the third quarter was $2.20 billion, an increase of 14% from the third quarter of fiscal 2018.
• License revenue for the third quarter was $884 million, an increase of 17% from the third quarter of fiscal 2018.
• GAAP net income for the third quarter was $334 million, including a loss of $161 million on an investment in Pivotal Software, or $0.81 per diluted share, down 16% per diluted share compared to $395 million, or $0.96 per diluted share, for the third quarter of fiscal 2018. Non-GAAP net income for the third quarter was $645 million, or $1.56 per diluted share, up 26% per diluted share compared to $509 million, or $1.23 per diluted share, for the third quarter of fiscal 2018.
• GAAP operating income for the third quarter was $495 million, an increase of 21% from the third quarter of fiscal 2018. Non-GAAP operating income for the third quarter was $741 million, an increase of 17% from the third quarter of fiscal 2018.
• Operating cash flows for the third quarter were $769 million. Free cash flows for the third quarter were $712 million.
• Total revenue plus sequential change in total unearned revenue grew 11% year-over-year.
• License revenue plus sequential change in unearned license revenue grew 15% year-over-year.

“Q3 was another strong quarter, and we’re pleased with our results, which continue to be driven by broad-based strength across our diverse product portfolio and in all three geographies,” commented Pat Gelsinger, chief executive officer, VMware. “

VMware is raising full-year fiscal 2019 total revenue guidance to $8.882 billion (up from prior guidance of $8.820 billion), updating GAAP net income per diluted share to between $5.95 and $6.07, and updating non-GAAP net income per diluted share to $6.22 (up from prior guidance of $6.14 per diluted share).

VMware Inc. (NYSE: VMW)

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