Mon, Jul. 18, 4:16 PM
Sun, Jul. 17, 5:35 PM
Tue, Apr. 19, 4:30 PM
- VMware (NYSE:VMW) has jumped 4.1% after growing revenue and beating expectations in its Q1 report, along with authorizing at $1.2B buyback.
- License revenues dipped slightly but increased 1% when considered in constant currency.
- Revenue breakout: License, $572M (down 0.7%); Services, $1.02B (up 8.8%).
- "We continue to see momentum across our portfolio of growth products and businesses, including NSX, Virtual SAN and End-User Computing," says CEO Pat Gelsinger.
- Operating cash flows were $720M; free cash flows were $679M. Cash and equivalents were $8.25B, and unearned revenues at $4.98B, as of quarter's end.
- Conference call to come at 5 p.m ET.
- Press Release
- Now read Don't Believe Everything You Read About Cloud Adoption »
Tue, Apr. 19, 4:17 PM
Mon, Apr. 18, 5:35 PM
Wed, Jan. 27, 3:29 PM
- "We have a binding, solid merger in place," said EMC (EMC -1.2%) CEO Joe Tucci on his company's Q4 earnings call, insisting Dell's acquisition of EMC will occur in spite of the decline seen in both EMC shares and the value of EMC's 80% VMware (VMW -9.3%) stake. "We are confident we’ll meet contractual terms. There are significant penalties in place both ways if this doesn’t happen ... The banks have told us they can raise the money."
- With all eyes on the Dell deal, EMC didn't bother providing formal guidance in its Q4 report. The company's core Information Infrastructure unit saw revenue drop 4% Y/Y in Q4 to $5.07B (-1% exc. forex), with Information Storage sales dropping 4% to $4.65B.
- Exec David Goulden: "Customers are buying ‘just enough’ and ‘just in time’ for their traditional environments." Cloud storage adoption and the growth of upstarts such as Nutanix and Pure Storage have been weighing on sales.
- VMware, meanwhile, has been downgraded to neutral ratings by Baird and Summit Research in response to its soft Q1/2016 guidance (was accompanied by a Q4 beat, a job cut announcement, and news of CFO/COO Jonathan Chadwick's departure). Summit's Srini Nandury: "While the billings will likely be better, we do not expect license revenue growth to return to mid-single digits until middle of next year."
- Pac Crest's Rob Owens (Sector Weight rating): "Emerging businesses showed some bright spots, but the core compute business remains a large portion of the revenue mix, which sets up 2016 for declines in growth. Investor concerns also are likely to persist over the Dell acquisition and the issuance of a tracking stock. We wait for signs of stabilization before becoming more constructive on shares.”
- Weak sales for VMware's core vSphere/ESXi server virtualization platform continue weighing: On its earnings call (transcript), VMware stated compute license bookings (server virtualization) fell by a low-double digit % Y/Y in Q4, and forecast declines will continue. Management license bookings, which include cloud management, the NSX SDN/network virtualization platform, and the vSAN storage virtualization platform, rose by a low-teens %.
- End-user computing license bookings (PC virtualization/enterprise mobility) were a strong spot, rising over 20% Y/Y. The NSX annual bookings run-rate is now above $600M (up ~3x from a year ago), and the vSAN run-rate "well over" $100M.
- EMC: Q4 results, earnings release. VMware: Q4 results, earnings release.
Tue, Jan. 26, 5:51 PM
- VMware (NYSE:VMW) has guided on its earnings call for 2016 revenue of $6.8B-$6.9B and EPS of $4.07-$4.16, below a consensus of $7.21B and $4.20. Q1 EPS guidance of $0.83-$0.85 is below a $0.92 consensus.
- Initially up after hours in response to VMware's Q4 beat, shares have now fallen to $46.09, making new 52-week lows in the process. The results/guidance have been accompanied by news CFO/COO Jonathan Chadwick is leaving (he'll be replaced as CFO by EMC CFO Denis Cashman) and that the company is cutting 800 jobs (100 less than previously reported).
- Parent EMC, whose shareholders are due to receive a VMware tracking stock as part of their Dell acquisition payout, is down 1.8% after hours to $23.86 ahead of tomorrow morning's Q4 report.
Tue, Jan. 26, 4:17 PM
- VMware (NYSE:VMW): Q4 EPS of $1.26 beats by $0.01.
- Revenue of $1.87B (+10.0% Y/Y) beats by $20M.
- Shares +3.5%.
Mon, Jan. 25, 5:35 PM
Oct. 20, 2015, 5:44 PM
- In tandem with VMware's (NYSE:VMW) Q3 report, VMware and parent EMC (set to be acquired by Dell) announce they're forming a cloud services JV (each company owns 50%) under the brand of enterprise cloud infrastructure (IaaS) services and software provider Virtustream (recently acquired by EMC for $1.2B).
- In addition to Virtustream's IaaS services, the business will contain VMware's vCloud Air IaaS platform, VCE's Cloud Managed Services business (provides cloud services running on VCE's converged infrastructure systems), and EMC's managed storage services. The new Virtustream promises to ""will integrate these assets to provide customers with a unified infrastructure-as-a-service offering," and to "integrate and extend existing on-premises EMC Federation private cloud deployments into the public cloud."
- Virtustream CEO Rodney Rogers will run the business, which is expected to produce "hundreds of millions of dollars" in 2016 revenue, and will face stiff competition from the likes of Amazon, Microsoft, and IBM. Meanwhile, VMware will create a cloud software unit servicing vCloud Air and other service providers, and which will contain both existing VMware tools and Virtustream's software.
- The new Virtustream is separate from EMC and VMware's Pivotal JV (created in 2012, IPO plans still on hold), which provides cloud app platform (PaaS) software/services, software development tools, and analytics hardware/software.
- VMware has dropped after hours in spite of posting a Q3 beat. Guidance is the apparent trigger. VMware guided on its earnings call for high-single to low-double digit 2016 revenue growth (consensus is at 10.9%). Q4 EPS guidance is healthy: $1.23-$1.27 vs. a $1.23 consensus.
- VMware's Q3 results, earnings release
- Update (6:31PM ET): VMware's earnings slides (.pdf) are up. In addition to providing 2016 revenue guidance, the company forecasts op. margin will drop to ~28% in 2016 from 2015's 31.8%. Shares are now down 5.8%.
- Update 2: Also of note: Q4 revenue guidance of $1.825B-$1.875B is slightly below a $1.88B consensus. License revenue is expected to rise 3%-7% Y/Y in Q4, after growing 7% in Q3 to $681M.
- Update 3: VMware closed after hours trading down 3.4%.
Oct. 20, 2015, 4:07 PM
- VMware (NYSE:VMW): Q3 EPS of $1.02 beats by $0.02.
- Revenue of $1.67B (+9.9% Y/Y) beats by $10M.
Oct. 19, 2015, 5:35 PM
Oct. 12, 2015, 9:18 AM
- VMware (NYSE:VMW) has fallen to $73.20 premarket after EMC and Dell confirmed the latter is buying the former for $67B - the deal value is now a bit lower thanks to VMware's selloff - with part of the consideration consisting of a VMware tracking stock that stands to significantly increase the company's publicly-traded share count.
- Also: In tandem with the deal, VMware has pre-announced it expects Q3 revenue of $1.672B (+10% Y/Y, +14% exc. forex) and EPS of $1.02, slightly above a consensus of $1.66B and $0.99. License revenue is expected to be at $681M (+7% Y/Y), in-line with guidance for 6%-7% growth. Total revenue + sequential change in unearned revenue is only expected to be up 3% Y/Y. Full Q3 results are due on Oct. 20.
- Though overshadowed by the Dell deal, EMC has also pre-announced: It expects Q3 revenue of $6.05B-$6.08B and EPS of $0.43, below a consensus of $6.25B and $0.45. The company partly blames "a higher than expected build in unshipped storage product orders of approximately $100 million due to the timing of bookings." Smaller peer Quantum recently reported something similar.
Jul. 21, 2015, 9:35 PM
- After posting a Q2 beat, VMware (NYSE:VMW) guided on its CC for Q3 revenue of $1.645B-$1.665B (+9%-10% Y/Y) and EPS of $0.98-$1.00, in-line with a consensus of $1.66B and $1.00. Likewise, full-year guidance is for revenue of $6.575B-$6.685B (+9%-11% Y/Y) and EPS of $3.97-$4.03 vs. a consensus of $6.65B and $3.99.
- License revenue (drives future services revenue) rose 4% Y/Y in Q2 to $638M, at the high end of a 3%-4% guidance range. VMware forecasts 6%-7% Q3 license growth, and 5%-7% full-year growth (prior guidance was 4%-7%). Services revenue (fueled by past deals) rose 14% in Q2 to $959M.
- Notably, VMware's costly enterprise license agreements (ELAs) made up 39% of bookings, up from Q1's 30% and matching seasonally strong Q4's 39%. Seven $10M+ deals helped out.
- The NSX networking virtualization/SDN platform now has 700+ paid customers, up from 400+ at the beginning of the year. VSAN storage virtualization customers have doubled over the same time to 2K+.
- End-user computing (EUC) license bookings rose over 30% Y/Y; desktop and AirWatch (enterprise mobility) license bookings respectively rose over 15% and 60% Y/Y in constant currency. When contrasted with VMware's total license growth, the EUC, NSX, and VSAN numbers suggest traditional vSphere server virtualization license sales remain under pressure.
- The unearned revenue balance rose 10% Y/Y to $4.8B. $412M was spent on buybacks; VMware expects to buy back $1.25B in 2015. Forex had a 4% impact on revenue growth.
- VMW +0.7% AH to $83.75. Parent EMC reports Wednesday morning.
- Q2 results, PR, earnings slides (.pdf)
Jul. 21, 2015, 4:03 PM
- VMware (NYSE:VMW): Q2 EPS of $0.93 beats by $0.02.
- Revenue of $1.6B (+9.6% Y/Y) beats by $10M.
VMware, Inc. provides virtualization infrastructure solutions utilized by organizations to help transform the way they build, deliver and consume information technology resources. Its virtualization infrastructure solutions, which include a suite of products designed to deliver a... More
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