VMware, Inc. (NYSE:VMW) reported downbeat earnings for its fourth quarter, while sales exceeded views
The company, based in Palo Alto, Calif., reported fourth-quarter revenue of $3.07 billion, an increase of 11% from the fourth quarter of fiscal 2019.
The combination of subscription and SaaS and license revenue was $1.59 billion, an increase of 14% from the fourth quarter of fiscal 2019. Subscription and SaaS revenue for the fourth quarter was $556 million, an increase of 52% year-over-year.
GAAP net income for the fourth quarter was $321 million, or $0.76 per diluted share, compared to $496 million, or $1.17 per diluted share, for the fourth quarter of fiscal 2019. Non-GAAP net income for the fourth quarter was $868 million, or $2.05 per diluted share, up 9% per diluted share compared to $795 million, or $1.87 per diluted share, for the fourth quarter of fiscal 2019.
Revenue for fiscal year 2020 was $10.81 billion, an increase of 12% from fiscal 2019. GAAP net income was $6.41 billion, or $15.08 per diluted share, compared to $1.65 billion, or $3.92 per diluted share, for fiscal 2019. Non-GAAP net income was $2.66 billion, or $6.24 per diluted share, up 4% per diluted share compared to $2.52 billion, or $5.98 per diluted share, for fiscal 2019.
CEO Pat Gelsinger said, “VMware delivered over $10 billion in revenue for the first time in company history in fiscal 2020, along with continued double-digit topline growth. Our results demonstrate the power of our broad-based portfolio and a strategy that continues to resonate with our customers.”
Shares dropped $10.00, or 7.4%, to $125.99