VMware, Inc., a leading innovator in enterprise software, today announced financial results for the second quarter of fiscal 2021:

• Revenue for the second quarter was $2.88 billion, an increase of 9% from the second quarter of fiscal 2020.

• The combination of subscription and SaaS and license revenue was $1.35 billion, an increase of 11% from the second quarter of fiscal 2020.

• Subscription and SaaS revenue for the second quarter was $631 million, an increase of 44% year-over-year, representing 22% of total revenue.

• GAAP net income for the second quarter was $447 million, or $1.06 per diluted share, compared to $5.30 billion, or $12.47 per diluted share, for the second quarter of fiscal 2020. Non-GAAP net income for the second quarter was $766 million, or $1.81 per diluted share, up 18% per diluted share compared to $650 million, or $1.53 per diluted share, for the second quarter of fiscal 2020.

• GAAP operating income for the second quarter was $534 million, an increase of 15% from the second quarter of fiscal 2020. Non-GAAP operating income for the second quarter was $950 million, an increase of 20% from the second quarter of fiscal 2020.

• Operating cash flow for the second quarter was $719 million. Free cash flow for the second quarter was $643 million.

• RPO for Q2 totaled $10.3 billion, up 17% year-over-year; total revenue plus sequential change in total unearned revenue grew 2% year-over-year.

• The combination of subscription and SaaS and license revenue plus sequential change in unearned subscription and SaaS and license revenue grew 12% year-over-year.

"In light of these uncertain times, we delivered solid execution and financial performance in Q2 FY21," said Pat Gelsinger, VMware CEO. "With our Any Cloud, Any Application, Any Device strategy, we are helping customers solve their hardest technology challenges and meet and exceed their business objectives."

"Our performance in Q2 reflected strength in our Subscription and SaaS product offerings, which grew 44% year-over-year," said Zane Rowe, executive vice president and CFO, VMware. "We plan to accelerate certain product initiatives through the remainder of the year, which will further support customers' digital transformations and grow our Subscription and SaaS product offerings."

Business Highlights & Strategic Announcements

• VMware continues to further the Company's multi-cloud strategy with advancements across the cloud platform and ecosystem.
  • VMware made available the second generation of VMware Cloud on Dell EMC, a VMware service that delivers simple, more secure and scalable infrastructure as-a-service to customers' on-premises data center and edge locations.
  • Google Cloud announced the general availability of Google Cloud VMware Engine, an integrated first-party offering with end-to-end support to migrate and run the VMware environment in Google Cloud.
  • Microsoft previewed the next generation of Azure VMware Solution, a first-party solution designed, built and supported by Microsoft and endorsed by VMware.
  • VMware announced new capabilities designed to further improve the economic value of VMware Cloud on AWS while meeting an evolving set of requirements for application modernization, business continuity and resiliency, and cloud migration.
  • Oracle unveiled worldwide availability of Oracle Cloud VMware Solution, a dedicated, cloud-native VMware-based environment that enables enterprises to easily move their production VMware workloads to Oracle Cloud Infrastructure.
• DISH has chosen VMware Telco Cloud to help deploy the world's first 5G, cloud-native Open Radio Access Network. The platform will help bring to life the first network in the U.S. to combine the efficiency of the distributed telco cloud, public cloud and private cloud environments while delivering consistent, low-latency edge computing.
• Intel and VMware announced they are collaborating on an integrated software platform for virtualized Radio Access Networks to accelerate the rollout of both existing LTE and future 5G networks.
• VMware announced a series of technology acquisitions including:
  • Lastline, a pioneer in anti-malware research and Artificial Intelligence-powered network detection and response that is being integrated into NSX to provide a complete, internal firewall capability, opening new opportunities for NSX and dramatically accelerating the customer journey towards Intrinsic Security.
  • The True Visibility Suite team and products from Blue Medora enabling VMware vRealize Operations to provide visibility and insight into customers' broad data center and hybrid cloud environments.
  • Datrium, which expands VMware Cloud on AWS' Site Recovery offering with Datrium's world-class cost-optimized disaster recovery as a solution.
• VMware introduced VMware vSphere BitFusion, a new integrated feature in VMware vSphere 7 that will enable enterprises to deliver elastic infrastructure on-demand for artificial intelligence (AI) and machine learning (ML) applications.
• In the second quarter, VMware received further recognition from leading industry analysts:
  • IDC has ranked VMware No. 1 in worldwide cloud system and service management software based on IDC calculations for calendar year 2019.
  • IDC ranked VMware No. 1 in worldwide IT automation and configuration management (ITACM) based on IDC calculations for calendar year 2019.
  • VMware has been recognized as a Leader in the 2020 Gartner Magic Quadrant for Unified Endpoint Management, for the third consecutive year. The report recognized VMware as a leader for overall completeness of vision and ability to execute, positioned furthest for completeness of vision.
  • VMware was positioned as a Leader in "The Forrester Wave: Infrastructure Automation Platforms, Q3 2020." According to Forrester's report, VMware achieved the highest possible score in 22 criteria.