VMware Reports Record Fourth Quarter and Full Year 2013 Results
-Annual Revenue Growth of 13% to a record $5.21 Billion; Fourth Quarter Year-over-Year Growth
of 15% to a record $1.48 Billion
- Annual Revenue growth of 17% and Fourth Quarter Year-over-Year Growth of 20%, excluding
Pivotal and divestitures in 20131
-Annual Operating Cash Flow increase of 34%; Fourth Quarter Year-over-Year Operating Cash
Flow increase of 40%
Thailand, Bangkok 25 February 2014 — VMware, Inc. (NYSE: VMW), the global leader in
virtualization and cloud infrastructure, today announced financial results for the fourth quarter and
full year of 2013:
Quarterly Review
• Revenues for the fourth quarter were $1.48 billion, an increase of 15% from the fourthquarter of 2012. Excluding revenues attributable to Pivotal and all divestitures that occurred in 2013, revenues for the fourth quarter increased 20% from the fourth quarter of 2012
Operating income for the fourth quarter was $374 million, an increase of 48% from the fourth quarter of 2012. Non-GAAP operating income for the fourth quarter was $528million, an increase of 25% from the fourth quarter of 2012.
Net income for the fourth quarter was $335 million, or $0.77 per diluted share, an increase of 62% per diluted share compared to $206 million, or $0.47 per diluted share,for the fourth quarter of 2012. Non-GAAP net income for the quarter was $436 million, or $1.01 per diluted share, an increase of 25% per diluted share compared to $349 million, or $0.81 per diluted share, for the fourth quarter of 2012.
Operating cash flows for the fourth quarter were $688 million, an increase of 40% from the fourth quarter of 2012. Free cash flows for the quarter were $590 million, an increase of 44% from the fourth quarter of 2012.
Annual Review
Revenues for 2013 were $5.21 billion, an increase of 13% from 2012 or an increase of 17% excluding revenues attributable to Pivotal and all divestitures that occurred in 2013.1
Operating income for 2013 was $1.09 billion, an increase of 25% from 2012. Non-GAAP operating income for 2013 was $1.77 billion, an increase of 19% from 2012.
Net income for 2013 was $1.01 billion, or $2.34 per diluted share, an increase of 36%compared to $746 million, or $1.72 per diluted share, for 2012. Non-GAAP net income for 2013 was $1.46 billion, or $3.37 per diluted share, an increase of 18% per diluted share compared to $1.24 billion, or $2.85 per diluted share, for 2012.
Operating cash flows for 2013 were $2.54 billion, an increase of 34% from 2012, and free cash flows for the year were $2.19 billion, an increase of 32% from 2012.
Cash, cash equivalents and short-term investments were $6.18 billion and unearned revenues were $4.09 billion as of December 31, 2013.
"Our strong performance throughout 2013 is evidence that our customers are embracing our vision and realizing value from our solutions," said Pat Gelsinger, chief executive officer, VMware. "In every region of the world, customers are making a long-term bet on VMware to help them transform their businesses for the mobile-cloud world."
“We delivered record 2013 results as customer demand across all our business offerings continues to thrive,” said Jonathan Chadwick, chief financial officer, VMware. “We have increased our guidance for 2014 and are confident about our opportunities for long-term growth as we help our customers innovate for the future.”
Recent Highlights & Strategic Announcements
Following VMworld® 2013 and VMworld 2013 Europe, where VMware hosted acombined total of over 31,000 registered attendees, VMware took VMworld on the road to the Asia Pacific Region and held VMware vForum customer and partner user conferences in six countries hosting 27,000 attendees.
• Last week VMware announced its intent to acquire AirWatch, the leader in Enterprise Mobile Management and Security. This acquisition will provide customers the most complete end-user computing solution to manage users, devices and applications across desktops and mobile environments. VMware also recently acquired Desktone, Inc., which pioneered Desktop as a Service® (DaaS) to deliver Windows desktops and applications as a cloud service to any user, anywhere, on any device.
• VMware announced general availability of new and updated Management solutionspurpose-built for the cloud, including VMware vCloud® Automation Center™ 6.0, VMware vCenter™ Operations Management Suite™ 5.8 and VMware IT BusinessManagement Suite™. These solutions simplify and automate how IT is managed, helping customers on their journey to deliver IT as a Service.
• VMware vCloud Hybrid Service™ continues to see good customer traction and momentum having launched its U.K private beta service in December and opened another new data center in the U.S. VMware also recently announced HIPAA compliance providing healthcare customers the agility and flexibility of vCloud Hybrid Service and the ability to collaborate, share, store and centralize Protected Healthcare Information to operate more efficiently while protecting patient privacy.
VMware announced general availability of VMware NSX™, the network virtualizationplatform, which VMware expects to do for networking what server virtualization did for compute. In addition, VMware announced a partnership with security leader Palo Alto Networks to co-develop a solution that will enable customers to use the VMware NSX platform to automate provisioning and distribution of Palo Alto Networks technologies in their software-defined data centers.
VMware plans to host a conference call to review its fourth quarter and full year 2013 results and to discuss its financial outlook. The call is scheduled to begin at 2:00 p.m. PT/ 5:00 p.m. ET and can be accessed via the Web at http://ir.vmware.com. The webcast will be available live, and a replay will be available following completion of the live broadcast for approximately 60 days.
1Comparative growth percentages exclude revenues in each period attributable to the products
and services contributed to Pivotal Software, Inc. and all divestitures consummated by VMware in 2013.
About VMware
VMware is the leader in virtualization and cloud infrastructure solutions that enable businesses to
thrive in the Cloud Era. Customers rely on VMware to help them transform the way they build,
deliver and consume Information Technology resources in a manner that is evolutionary and
based on their specific needs. With 2013 revenues of $5.21 billion, VMware has more than
500,000 customers and 75,000 partners. The company is headquartered in Silicon Valley with
offices throughout the world and can be found online at www.vmware.com.
