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4 numbers that stood out in VMware’s earnings

4 numbers that stood out in VMware’s earnings

VMware this week updated investors on the progress of emerging technologies playing an increasingly significant role in the company’s earnings.

VMware this week updated investors on the progress of emerging technologies playing an increasingly significant role in the company’s earnings.

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VMware’s product mix includes not just compute virtualization, but network virtualization, cloud management and end user computing. Below are four numbers that provide a snapshot of VMware’s earnings and a preview of future offerings.

$1.69 billion

VMware’s revenue in the second quarter, which is up 11% from the same quarter in 2015. VMware also turned a profit of $265 million, up from $172 million in the second quarter last year. Both of those figures beat analysts estimates, which provided a 5% boost in VMware’s stock price after the earnings were announced.

Less than 50%

In the second quarter VMware said that compute licenses made up less than half of the company’s overall bookings. Emerging products like cloud management, NSX, vSAN and end-user computing made up the majority of bookings for the company in Q2.

This represents a massive and very long transition away from compute virtualization software making up the majority of its sales to having a variety of other products chip in more and more revenue each quarter.

Despite the emergence of new technology offerings, VMware said its hybrid cloud management tools, its vCloud Air Network (which are third party cloud providers who offer VMware products as a service) and AirWatch revenue combined to be about 8% of revenue, meaning that the company is still relying on its existing technology to drive a significant portion of its revenues.

100%

That’s the year-over-year growth rate for NSX, the company’s network virtualization platform. VMware did not break out revenue figures for NSX, but it said NSX now has 1,700 customers.

“We are seeing broad adoption across all customer segments for NSX capabilities, including micro segmentation, IT automation, and application continuity,” said CEO Pat Gelsinger in an earnings call announcing the results.

The company also said that its VxRail hyperconverged software deployments were up 200% and that there’s been “strong interest” (although no specific figures) in the company’s container products including the Photon operating system and VMware Integrated Containers management tools.

23,000

That’s the number of attendees the company expects at its annual VMWorld conference, set to kick off in late August in Las Vegas. Gelsinger gave a preview of what to expect at the conference: “We are providing customers with powerful capabilities to extend their private cloud workloads into the public cloud and to help them run, manage, secure and connect all their applications across all clouds and all devices,” he said in prepared remarks on the earnings call.

“We are looking forward to unveiling many of these new capabilities at VMworld, which kicks off at the end of August.

"These new services will provide customers with unparalleled connectivity, security, and visibility across multi-cloud IT resources, regardless of whether the underlying infrastructure is VMware based.”


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