Vmware, Inc. (VMW) 10K Annual Reports & 10Q SEC Filings

— VMware, Inc. (NYSE: VMW), a leading innovator in enterprise software, today announced financial results for the fourth quarter and full fiscal year 2023. The company’s fourth quarter of fiscal year 2023 was a 14-week fiscal quarter, while the fourth quarter of fiscal year 2022 was a 13-week fiscal quarter.1

Quarterly Review

•Revenue for the fourth quarter was $3.71 billion, an increase of 5% from the fourth quarter of fiscal 2022.

•The combination of subscription and SaaS and license revenue was $2.03 billion, an increase of 7% from the fourth quarter of fiscal 2022.

•Subscription and SaaS revenue constituted 32% of our total revenue for the quarter.

•Subscription and SaaS revenue for the fourth quarter was $1.18 billion, an increase of 36% year-over-year. Approximately 10 percentage points of this year-over-year growth was associated with the extra week in the fourth quarter of fiscal year 2023.

•GAAP net income for the fourth quarter was $494 million, or $1.15 per diluted share, down 17% per diluted share compared to $586 million, or $1.39 per diluted share, for the fourth quarter of fiscal 2022. Non-GAAP net income for the fourth quarter was $915 million, or $2.13 per diluted share, up 5% per diluted share compared to $855 million, or $2.02 per diluted share, for the fourth quarter of fiscal 2022.2

•GAAP operating income for the fourth quarter was $658 million, a decrease of 16% from the fourth quarter of fiscal 2022. Non-GAAP operating income for the fourth quarter was $1.14 billion, flat as compared to the fourth quarter of fiscal 2022.

•Operating cash flow for the fourth quarter was $1.63 billion. Free cash flow for the fourth quarter was $1.51 billion.

•RPO for the fourth quarter totaled $13.56 billion, up 13% year-over-year.

Annual Review

•Revenue for fiscal year 2023 was $13.35 billion, an increase of 4% from fiscal year 2022.

•The combination of subscription and SaaS and license revenue was $6.85 billion, an increase of 8% from fiscal year 2022.

•Subscription and SaaS revenue represented 30% of our total revenue for the fiscal year.

•Subscription and SaaS revenue for fiscal year 2023 was $4.01 billion, an increase of 25% from fiscal year 2022. Approximately 2 percentage points of this year-over-year growth was associated with the extra week in fiscal year 2023.

•Subscription and SaaS ARR exiting fiscal year 2023 was $4.66 billion, an increase of 30% from fiscal year 2022.

•GAAP net income for fiscal year 2023 was $1.31 billion, or $3.09 per diluted share, down 28% per diluted share compared to $1.82 billion, or $4.31 per diluted share, for fiscal year 2022. Non-GAAP net income for fiscal year 2023 was $2.78 billion, or $6.53 per diluted share, down 10% per diluted share compared to $3.06 billion, or $7.25 per diluted share, for fiscal year 2022.2

•GAAP operating income for fiscal year 2023 was $2.02 billion, a decrease of 15% from fiscal year 2022. Non-GAAP operating income for fiscal year 2023 was $3.74 billion, a decrease of 5% from fiscal year 2022.

•Operating cash flow for fiscal year 2023 was $4.30 billion. Free cash flow for fiscal year 2023 was $3.85 billion.

“We are very pleased with our fiscal year 2023 performance. These results reflect consistent customer appetite for our multi-cloud offerings and our ability to help companies with a cloud smart approach,” commented Raghu Raghuram, CEO, VMware. “We look forward to the merger with Broadcom, expected to close in Broadcom’s current fiscal year, as our combined solutions will enable customers greater choice and flexibility to build, run, manage, connect and protect their applications at scale.”

“We delivered strong performance to close out our fiscal year 2023, achieving over $13 billion in total revenue and $4 billion in subscription and SaaS revenue for the year,” said Zane Rowe, executive vice president and CFO, VMware. “We grew subscription and SaaS ARR 30% year-over-year, totaling $4.66 billion, an increase of over $1 billion in ARR for fiscal 2023, reflecting the strength of our subscription and SaaS portfolio and progress on our business model transition.”

The following information was filed by Vmware, Inc. (VMW) on Thursday, March 2, 2023 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

Please wait while we load the requested 10-K report or click the link below:

https://last10k.com/sec-filings/report/1124610/000112461023000015/vmw-20230203.htm

View differences made from one year to another to evaluate Vmware, Inc.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ) — *Sample 10-K Year-over-Year (YoY) Comparison*

Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were ~~removed~~ , added and changed by Vmware, Inc..

Continue

Assess how Vmware, Inc.'s management team is paid from their Annual Proxy

Vmware, Inc.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2023 10-K Annual Report includes:

Voting Procedures
Board Members
Executive Team
Salaries, Bonuses, Perks
Peers / Competitors

Continue

Rating
Learn More

Filter Sentiment:

All

Positive

Negative

Filter Category:

All

Financial

Revenue

Legal

M & A

Other

Filter Subcategory:

All

Income

Expense

Product

Earnings

Dividend

Geography

Other

Inside Vmware, Inc.'s 10-K Annual Report:

Financial - Income Highlight
Investment Income Investment income during the periods presented was as follows (dollars in millions): Investment income increased in fiscal 2023 compared to fiscal 2022, primarily driven by increased interest income earned on our cash equivalents resulting from higher yields.

Financial - Expense Highlight
Cost of License Revenue, Cost of Subscription and SaaS Revenue, Cost of Services Revenue and Operating Expenses Collectively, our cost of revenues and operating expenses primarily reflected increasing cash-based employee-related expenses, driven by an increase in headcount and salaries and the extra week in fiscal 2023.
Revenue - Product Highlight
Services we provide through our consultants and technical account managers, and our continued focus on solution deployments, including our networking, security, cloud management and anywhere workspace offerings, contributed to the increase in professional services revenue.
Financial - Income Highlight
Income Tax Provision The following table summarizes our income tax provision during the periods presented (dollars in millions): The change in our effective income tax rate for fiscal 2023 compared to fiscal 2022 was primarily driven by a higher effective income tax rate for fiscal 2023 due to the increase in global intangible low-taxed income ("GILTI") from the impacts of Internal Revenue Code Section 174 research and development expense capitalization ("Section 174"), which was part of the U.S. Tax Cuts and Jobs Act enacted on December 22, 2017 (the "2017 Tax Act") and became effective beginning in fiscal 2023.
Revenue - Product Highlight
License revenue relating to the sale of on-premises licenses that are part of a multi-year contract is generally recognized upon delivery of the underlying license, whereas revenue derived from our subscription and SaaS offerings is generally recognized over time as customers consume the services or ratably over the term of the subscription, commencing upon provisioning of the service.
Financial - Income
We establish reserves for income...Read more
Revenue - Product
Deferred Commissions Sales commissions, including...Read more
Other - Other
Due To/From Related Parties Amounts...Read more
Financial - Expense
The costs incurred by Dell...Read more
Financial - Income
The key tax provisions of...Read more
Revenue - Product
Any concentration of such sales...Read more
Financial - Earnings
In addition, our operating margin...Read more
Revenue - Product
Revenue is recognized upon reporting...Read more
Other - Other
These increases were offset in...Read more
Revenue - Product
VCPP partners also purchase hosted...Read more
Legal - Other
We believe such estimates to...Read more
Other - Other
Notes Payable to Dell During...Read more
Revenue - Product
Revenue is recognized upon transfer...Read more
Other - Other
These activities were offset in...Read more
Financial - Expense
Cost of Services Revenue Cost...Read more
Other - Other
Performance obligations that are both...Read more
Revenue - Product
Professional services revenue increased during...Read more
Revenue - Product
As this trend continues, the...Read more
Financial - Expense
Cost of license revenue during...Read more
Financial - Dividend
Financing Activities Cash used in...Read more
Financial - Expense
General and administrative expenses during...Read more
Revenue - Product
The impact of these events...Read more
Other - Other
Our portfolio supports and addresses...Read more
Revenue - Product
We expect this trend to...Read more
Legal - Other
Additionally, given the unpredictable nature...Read more
Revenue - Product
Annual recurring revenue ("ARR") represents...Read more
Financial - Expense
The increase was also driven...Read more
Other - Other
These activities were offset in...Read more
Other - Other
As of February 3, 2023,...Read more
M & A - Other
Broadcom Merger Agreement On May...Read more
Revenue - Product
Determining whether our licenses, subscriptions...Read more
Revenue - Product
Subscription and SaaS Revenue Subscription...Read more
Revenue - Product
Revenue Recognition We derive revenue...Read more
Other - Other
We account for a contract...Read more
Revenue - Geography
Business Operations in Russia In...Read more
Financial - Expense
The increase was primarily due...Read more
Revenue - Product
Unearned Revenue Unearned revenue as...Read more
Revenue - Product
During the years ended February...Read more
Revenue - Product
The accuracy of these reserves...Read more
Revenue - Geography
Pursuant to a tax matters...Read more
Revenue - Product
Revenue from professional services engagements...Read more
Revenue - Product
We enter into revenue contracts...Read more
Revenue - Product
Rebates earned based upon partner...Read more
Revenue - Product
Revenue from such term-based license...Read more
Financial - Expense
Research and development expenses during...Read more
Revenue - Geography
Our assumptions, estimates and judgments...Read more
Financial - Expense
General and Administrative Expenses General...Read more
Revenue - Product
Unearned software maintenance revenue is...Read more
Other - Other
As of February 3, 2023,...Read more
Financial - Expense
As we record impacts of...Read more
Revenue - Product
A significant portion of our...Read more
Financial - Expense
These increases were partially offset...Read more
Revenue - Product
During fiscal 2023, we continued...Read more
Revenue - Product
Certain contracts include third-party offerings...Read more
Revenue - Product
Services Revenue Software maintenance revenue...Read more
Other - Other
To manage our credit risk,...Read more
Other - Other
These services are not highly...Read more
Revenue - Product
As customers adopt our subscription...Read more
Financial - Income
While the adjustments recognized were...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Material Contracts, Statements, Certifications & more

Vmware, Inc. provided additional information to their SEC Filing as exhibits

Exhibit 21: List Of Subsidiaries

Exhibit 23: Consent Of Pricewaterhousecoopers Llp

Exhibit 31.1: Certification Of Principal Executive Officer

Exhibit 31.2: Certification Of Principal Financial Officer

Exhibit 32.1: Certification Of Chief Executive Officer

Exhibit 32.2: Certification Of Chief Financial Officer

Ticker: VMW
CIK: 1124610
Form Type: 10-K Annual Report
Accession Number: 0001124610-23-000015
Submitted to the SEC: Tue Mar 28 2023 4:01:28 PM EST
Accepted by the SEC: Tue Mar 28 2023
Period: Friday, February 3, 2023
Industry: Prepackaged Software