Wednesday, January 27, 2016

VMWare Reports Q4 Revenue of $1.87 Billion, 800 Job Cuts

VMware reported Q4 revenue of $1.87 billion, an increase of 10% from the fourth quarter of 2014, or up 12% year-over-year on a constant currency basis. GAAP net income for the fourth quarter was $373 million, or $0.88 per diluted share, up 17% per diluted share compared to $326 million, or $0.75 per diluted share, for the fourth quarter of 2014.

VMware also announced a restructuring and realignment of approximately 800 roles and plans to take a GAAP charge estimated to be between $55 million and $65 million related to this action over the course of the first half of 2016.

In addition, the company announced the appointment of Zane Rowe as its new chief financial officer and executive vice president, replacing Jonathan Chadwick, who stepped down.

“VMware’s Q4 2015 was a solid finish to 2015," said Pat Gelsinger, chief executive officer, VMware. “We were especially pleased with the growth across our portfolio of emerging products and businesses, including NSX, EndUser
Computing and Virtual SAN. All of these businesses demonstrated strong growth in both Q4 and for the full year, underscoring the momentum we expect to continue into 2016.”

Some highlights from the quarterly report:

  • License revenues for the fourth quarter were $825 million, an increase of 6% from the fourth quarter of 2014, or up 11% year-over-year on a constant currency basis. 
  • EMEA performed best, followed by the Americas & Asia Pacific
  • Continued weakness in China, Russia and Brazil
  • Enterprise Agreements (EAs) approximately 42% of total Q4 bookings
  • AirWatch grew Q4 license and subscription bookings nearly 50% YoY
  • Cloud management penetration over 17% of installed base
  • NSX total bookings more than doubled 2H-15 versus 1H-15
  • Over 1,200 NSX paying customers; 9 of top 10 EAs included NSX