categories

HOT TOPICS

NEWSLETTER

If you are considering becoming a 1M/1M premium member and would like to join our mailing list to receive ongoing information, please sign up here.

Subscribe to our Feed

Cloud Stocks: VMware Builds Up With Acquisitions

Posted on Monday, Dec 2nd 2019

Virtualization giant VMware (NYSE: VMW) recently announced a strong third quarter that beat estimates. Over the past few years, VMware has made several acquisitions that have now been integrated into its portfolio.

VMware’s Financials

VMware’s third quarter revenues grew 12% over the year to $2.46 billion versus the Street estimate of $2.41 billion. Non-GAAP EPS was $1.49, ahead of the Street’s forecast of $1.41. Net income was $621 million or $1.5 per share compared with $334 million or $0.81 per share a year ago.

By segment, license revenues grew 10% over the year to $974 million and services segment grew 12.6% to $1.48 billion for the quarter. NSX license bookings were up 50%, vSAN license bookings are up over 35% and EUC license bookings once again increased over 20%. Hybrid Cloud and SaaS recurring revenue grew 40% over the year and accounted for over 13% of total revenues.

VMware reported a strong quarter across its product and solutions portfolio with six of its top 10 customers purchasing the VMware Cloud Foundation solution stack. This platform solution consists of the full software-defined data center (SDDC) stack and is offered on private clouds, public clouds as well as partner managed clouds.

For the fourth quarter, the company expects license revenue to grow 13% to $1.39 billion and total revenue to grow 13.8% to $2.95 billion, beating analyst estimate of $2.92 billion. It expects non-GAAP EPS of $2.16, missing the analyst forecast of $2.19 per share.

During the quarter, VMware completed its $2.1 billion acquisition of Carbon Black, a leader in cloud-native endpoint protection. Carbon Black will form the nucleus of VMware’s security offerings, focusing on helping VMware customers with advanced cyber security protection and in-depth behavioral insights to help stop sophisticated attacks and accelerate response. VMware’s Carbon Black Cloud, along with Dell Trusted Devices and Secureworks, is now the preferred endpoint security solution for Dell commercial customers.

For the full year, VMware expects total revenue to grow 12.5% to $10.1 billion including the addition of Carbon Black’s financials. It expects license revenue to grow 12% to $4.245 billion. Non-GAAP EPS is expected to be $6.58.

VMware’s New Offerings 

During the quarter, VMware launched VMware Tanzu, a new Kubernetes portfolio of products and services focused on Kubernetes. VMware Tanzu Mission Control is a single point of control from which customers will manage all their Kubernetes clusters regardless of where they run. It also includes Project Pacific, which is a technology preview focused on transforming VMware vSphere into a Kubernetes-native platform in a future release. Tanzu is built with Kubernetes technologies from its recent acquisition of Pivotal for $2.7 billion and Heptio for $550 million.

VMware continued to execute against its multi-cloud strategy as it expanded its cloud partnerships. VMware Cloud on AWS is now available in the AWS EU (Stockholm) region, bringing the total number of available global regions in Europe to five, and globally to 17 in just over two years.

VMware announced the continuation of its partnership with Microsoft with many new technology initiatives. This includes introduction of VMware Workspace ONE for Microsoft Endpoint Manager to enable modern management for Windows 10 and Azure VMware Solutions, the addition of new cloud migration capabilities with VMware HCX and the ability to extend Azure to the branch and edge with VMware SD-WAN by VeloCloud. VeloCloud was acquired in December 2017 for $449 million.

VMware’s Carbon Black Cloud, along with Dell Trusted Devices and Secureworks, is now the preferred endpoint security solution for Dell commercial customers.

With the help of the recent acquisitions, VMware is building up its cloud, containers, and security portfolio to sustain its double digit growth. Its stock is trading at $155.62 with a market capitalization of $63.6 billion. It touched a 52-week high of $206.80 in May this year and a 52-week low of $128.69 in August this year.

Photo Credit: sporst/Flickr.com.

This segment is a part in the series : Cloud Stocks


. Smartsheet Acquiring Bootstrapped Startups to Drive Growth
. Bootstrapped Unicorn Atlassian is Acquiring Capital Efficient Startups
. Netflix Price Hike Ruffles Competition
. How Will Carbon Black Differentiate?
. ServiceNow Grows Through Addition of Capital-Efficient Startups
. Zendesk and Freshworks Follow Different Acquisition Strategies
. Tableau Grows Through Small Acquisitions
. Open Platform Strategy Stands Intuit in Good Stead
. SaaS Companies NEED PaaS Strategy
. Will GoDaddy Follow the PaaS Route?
. Calling ALL PaaS Leaders
. Adobe Delivers Via PaaS
. A Look at Oracle’s 2018 M&A Activity
. What Apps Will Drive More Traction for Cloudera?
. Slack's App Focus Will Be Key to Post-IPO Success
. IBM Counts on its Cloud and Platform for the Turnaround
. Atlassian Acquires From its PaaS Marketplace
. What Should SAP Acquire to Triple its Value by 2023?
. Expect ServiceNow to Acquire From App Marketplace
. Should Alarm.com Follow a PaaS Strategy?
. Six Cloud Stock Picks Based on PaaS Prospects
. How Upwork Can Leverage the Virtual Company Trend
. Qualys Scouting For Acquisitions
. Should SAP Acquire Zendesk or Freshworks?
. HubSpot Counts on its API Strategy
. SurveyMonkey Eyes Acquisitions for Growth
. Workday Wants to Disrupt Cloud Computing Using Machine Learning
. Einstein and Open-Source Platform Lead the Charge for Salesforce
. DocuSign Prepares to Beat Rival Adobe
. Veeva Soars, But Dassault Acquires Medidata for $5.8 Billion
. Tableau Acquisition Signals Massive Analytics Push for Salesforce
. Oracle Joins Hands with Microsoft to Take on Amazon
. GoDaddy is Making Strategic Acquisitions for the Next Level of Growth
. Alteryx Sees Strong Momentum
. Adobe Leveraging Magento and Marketo to Deliver Blockbuster Performance
. Is Slack Overvalued?
. How Will Cloudera Address the Competition?
. Zoom is Not Bothered by Cisco or Microsoft
. Domo Counts on Enterprise Revenue for Growth
. Netflix Plays with Pricing and Games to Attract Subscribers
. CrowdStrike Has a Successful IPO
. Atlassian Crosses the Billion Dollar Revenue Milestone
. ServiceNow Believes Strength Lies in Tie-ups
. Partnerships are the Mantra for BlackLine
. SurveyMonkey Counts on Enterprise Segment for Growth
. HubSpot Soars to a New High
. Intuit Pushes AI to Simplify Tax Filing
. Splunk Sees Strong Cloud Momentum
. Forescout Partners with Big Names
. Smartsheet Tapping into the Government Sector
. Salesforce Continues its Shopping Spree
. Palo Alto Networks Targets the IoT Security Market
. DocuSign Focuses on the Mortgage Sector
. Oracle Brags About Autonomous Database
. Blackbaud Acquires YourCause to Grow Addressable Market
. The Market Expects a Lot More from Adobe
. Anaplan Makes its First Acquisition Post IPO
. Activist Investor Drives Market Interest in Box
. MongoDB's Formula for Success
. Coupa Aims for $1B Revenue
. Dropbox on a Rocky Road
. Medallia Banks on Acquisitions
. IBM Banks on AI
. Time For Skepticism with Netflix
. SAP Riding High on the Cloud
. Amazon's Faster Shipping Hurting its Earnings
. ServiceNow CEO Change Signals Focus on Acquisitions
. Will Google Acquire Fitbit?
. HubSpot Focuses on Its Platform
. BlackLine Partners with Google Cloud
. Rapid7’s Focus on Cloud SIEM Pays Off
. Splunk Bets Big on Data Streaming
. Intuit's QBO Scores Big
. VMware Builds Up With Acquisitions
. Palo Alto Targets $5B Revenue by 2022
. Workday Targeting Procure-to-Pay Cycle
. Will Salesforce Acquire DocuSign?

Hacker News
() Comments

Featured Videos