VMware results for Q4 2014 and full year

On January 27, VMware released the financial results for the third quarter and full year 2014.

The revenues for the fourth quarter were $1.70 billion for an increase of 15% compared to Q4 2013. Licenses revenues were $777 million, with an increase of 13% from same quarter in 2013.

Operating income was $344 million and non-GAAP operating income was $567 million, respectively a decrease of 8% and an increase of 7%.

VMware annual revenues were $6.04 billion, an increase of 16% from 2013

Total operating income for 2014 was $1.03 billion, with a decrease of 6% from 2013. Non-GAAP operating income for 2014 was $1.88 billion, an increase of 6% from 2013.

Full year 2014 operating cash flows were $2.18 billion, a decrease of 14% from 2013.

VMware 2014 highlights:

  • AirWatch by VMware recently hit a landmark 15,000 customers globally.
  • VMware NSX, the network virtualization and security platform for the software-defined data center, now has more than 400 customers.
  • VMware announced three additional qualified EVO:RAIL partners, NetApp, HP and Hitachi Data Systems, bringing the total EVO:RAIL partners to nine.
  • VMware announced general availability of new vRealize Cloud Management solutions, including update to VMware vRealize Suite 6, a cloud management platform built for the hybrid cloud.
  • Following VMworld 2014 and VMworld 2014 Europe, where VMware hosted a combined total of over 32,000 registered attendees, VMware hosted VMware vForum customer and partner conferences in six countries across the Asia-Pacific Region hosting 31,500 attendees.

CFO Jonathan Chadwick, commented the results:

We are very pleased with our Q4 revenue growth of 16% on a constant currency basis and with our 2014 results, which met or exceeded our revenue and operating margin guidance for the quarter and the year, our portfolio of new disruptive products and services is experiencing significant customer momentum and driving strong growth into 2015. We are pleased to announce an additional $1 billion stock buyback, which reflects the opportunity we see ahead for VMware.