VMware has announced financial results for the third quarter of fiscal 2021, reporting revenue for the third quarter of $2.86 billion, an increase of eight percent from the third quarter of fiscal 2020. The combination of subscription and SaaS and license revenue was $1.32 billion, an increase of ten percent from the third quarter of fiscal 2020.
“Q3 was another good quarter for VMware, and we’re pleased with our results,” commented Pat Gelsinger, CEO, VMware. “As customers navigate through these unprecedented times, our focus remains on delivering the digital foundation for an unpredictable world. We continue to shape the future in areas that are top priority for every business–from app development to multi-cloud to security and digital workspaces.”
VMware’s subscription and SaaS revenue for the third quarter was $676 million, an increase of 44 percent year-over-year, representing 24 percent of total revenue. GAAP net income for the third quarter was $434 million, compared to $407 million for the third quarter of fiscal 2020.
Non-GAAP net income for the third quarter was $704 million, or $1.66 per diluted share, up 17 percent per diluted share compared to $602 million, or $1.42 per diluted share, for the third quarter of fiscal 2020.
GAAP operating income for the third quarter was $428 million, an increase of 15 percent from the third quarter of fiscal 2020. Non-GAAP operating income for the third quarter was $888 million, an increase of 17 percent from the third quarter of fiscal 2020. Operating cash flow for the third quarter was $992 million. Free cash flow for the third quarter was $908 million.
RPO for Q3 totaled $10.2 billion, up 10 percent year-over-year. Excluding the impact in the third quarter of fiscal year 2020 of unearned revenue assumed in the acquisition of Carbon Black, which negatively impacted the year-over-year growth rate by 5 percentage points, total revenue plus sequential change in total unearned revenue decreased 4 percent year-over-year.
Excluding the impact in the third quarter of fiscal year 2020 of unearned revenue assumed in the acquisition of Carbon Black, which negatively impacted the year-over-year growth rate by 10 percentage points, subscription and SaaS and license revenue plus sequential change in unearned subscription and SaaS and license revenue grew one percent year-over-year.
“Subscription and SaaS revenue increased 44 percent year-over-year in Q3 and surpassed license revenue for the first time,” said Zane Rowe, executive vice president and CFO, VMware. “VMware will continue to invest in and focus on further expanding our Subscription and SaaS portfolio, which we believe will drive company growth, customer satisfaction and shareholder value.”
VMware is raising full-year fiscal 2021 total revenue guidance to $11.7 billion and increasing GAAP net income per diluted share to between $4.17 and $4.27 with non-GAAP net income per diluted share of $7.03.
