VMware Posts Mixed Q2 Earnings, On Track To Close Broadcom Deal Next Month

VMware Inc VMW reported a Q2 FY24 revenue increase of 2% Y/Y to $3.41 billion, missing the consensus of $3.46 billion.

Subscription and SaaS revenue increased 34% Y/Y to $1.26 billion. Subscription and SaaS ARR were up 36% Y/Y to $5.31 billion.

Non-GAAP operating income rose 1% Y/Y to $977 million.

Non-GAAP EPS of $1.83 beat the consensus of $1.71.

Also Read: Broadcom Stock Drops On Q3 Earnings: The Details

Operating cash flow stood at $444 million, while free cash flow was $350 million.

As of August 4, 2023, cash and cash equivalents stood at $6.80 billion. 

"Our customers continue to invest in our Multi-Cloud offerings as they modernize their infrastructure to run enterprise, cloud-native, and new AI workloads. At the recent VMware Explore Las Vegas, we unveiled new offerings including the next evolution of VMware Cloud, NSX+, vSAN Max, and an enhanced Tanzu Application Platform, all designed to help customers innovate faster and reduce total cost of ownership," said Raghu Raghuram, CEO.

"We also introduced VMware Private AI Foundation with NVIDIA to accelerate AI-enabled applications in the enterprise."

VMW expects its transaction with Broadcom Inc. AVGO to be completed on October 30, 2023.

Price Action: VMW shares closed higher by 1.25% at $168.78 on Thursday.