- VMware's (VMW) Q3 license revenue (drives future services revenue) rose 15% Y/Y to $564M. That's well above Q2's 2.6% growth, and also guidance for 9%-13% growth. Services revenue +13% to $725M.
- Total revenue growth was 14%, or 19% if excluding assets that were either sold or are part of the Pivotal spinoff. VMware's unearned revenue balance rose 21% Y/Y to $3.64B. That's one reason free cash flow rose 50% Y/Y to $543M, easily surpassing net income of $261M.
- R&D spend only rose 2% Y/Y to $266M, thanks to restructuring moves. Sales/marketing +9% to $449M.
- Guidance will be provided on the CC (starts at 5PM ET).
- VMW +4% AH. EMC also +4%. EMC reports tomorrow morning.
- Q3 results, PR
VMware's Q3 license growth beats expectations; unearned revenue jumps
Oct 21 2013, 16:21 ET