VMWare 3Q Revenue Edges Above Estimates, Profit Dwindles

By Denny Jacob

VMWare Inc. on Tuesday logged higher revenue but dwindling profit in the latest quarter.

The software maker posted net income of $231 million, or 54 cents a share, for the third quarter ended Oct. 28, compared to $398 million, or 94 cents a share, a year earlier. Adjusted earnings were $1.47 a share, below analysts' estimates of $1.59.

Revenue rose to $3.21 billion from $3.29 billion. Analysts polled by FactSet had expected $3.19 billion.

Subscription and software-as-a-service revenue, a key industry metric, increased 20% over the last year to $988 million in the quarter.

The company's subscription and software-as-a-service annualized annual recurring revenue growth reflects increased adoption of its multi-cloud product portfolio and recently introduced customer programs, said Chief Financial Officer Zane Rowe.

Write to Denny Jacob at [e-mail]

(END) Dow Jones Newswires

11-22-22 1651ET