The hottest VMware announced the fourth quarter an

VMware announced its financial reports for the fourth quarter and the whole year of fiscal year 2020

Beijing, China. On February 28, 2020, VMware (nyse: vmw), the world's leading enterprise software innovator, announced its financial reports for the fourth quarter and the whole year of fiscal year 2020

financial report for the fourth quarter

total revenue for the fourth quarter was $3.07 billion, an increase of 11% year-on-year

subscription, SaaS and licensing revenue totaled $1.59 billion, an increase of 14% year-on-year

subscription and SaaS revenue in the fourth quarter was $556million, an increase of 52% year-on-year

GAAP net profit in the fourth quarter was $321 million, with diluted earnings per share of $0.76, compared with GAAP net profit of $496 million in the fourth quarter of fiscal 2019, with diluted earnings per share of $1.17. Non GAAP net profit in the fourth quarter was $868million, with diluted earnings per share of $2.05. Compared with non GAAP net profit of $795million in the fourth quarter of fiscal 2019, diluted net income per share was $1.87, an increase of 9%

GAAP operating income in the fourth quarter was US $250million, a year-on-year decrease of 58%; Non GAAP operating income was $1.05 billion, an increase of 12% year-on-year

in the fourth quarter, the operating cash flow was $1.09 billion and the free cash flow was $1.02 billion

the continuous change of total revenue plus total advance revenue increased by 11% year-on-year

the continuous change of subscription, SaaS and license revenue plus subscription, SaaS and license revenue in advance increased by 17% year-on-year

annual financial report

the total revenue in fiscal year 2020 was $10.81 billion, an increase of 12% year-on-year

subscription, SaaS and licensing revenue in fiscal 2020 was $5.06 billion, an increase of 16% year-on-year

subscription and SaaS revenue in fiscal 2020 was $1.88 billion, a year-on-year increase of 44%

GAAP net profit in fiscal year 2020 was $6.41 billion, with diluted earnings per share of $15.08, compared with GAAP net profit of $1.65 billion in fiscal year 2019, with diluted earnings per share of $3.92. The non GAAP net profit in fy2020 was $2.66 billion, with diluted earnings per share of $6.24. Compared with the non GAAP net profit of $2.52 billion in fy2019, the diluted net income per share was $5.98, an increase of 4% year-on-year

GAAP operating income in fiscal year 2020 was $1.44 billion, a year-on-year decrease of 20%. Non GAAP operating income in fy2020 was $3.26 billion, an increase of 11% year-on-year

in fiscal year 2020, the operating cash flow was $3.87 billion and the free cash flow was $3.59 billion

as of January 31, 2020, the cash was $2.91 billion and the income received in advance was $9.27 billion

pat Gelsinger, CEO of VMware, said: in fiscal year 2020, VMware achieved revenue of more than $10billion for the first time in the company's history, and maintained double-digit revenue growth. Our performance confirms the power of our extensive product portfolio and our strategy of continuously resonating with customers

vmware CFO and CEO 1 Let's have a look. Zane Rowe, vice president, said: we signed an enterprise agreement worth more than $10million in the fourth quarter, setting a new record, in which the value of subscriptions and SaaS products increased significantly, ranking in the top 10. In the fourth quarter, subscription and SaaS revenue increased by 52% year-on-year to $556million, and is expected to continue to maintain strong growth in fiscal 2021

the fourth quarter performance growth rate includes the restatement of previous financial information brought about by the acquisition of pivot, which is regarded as a transaction between the same controlling entity under GAAP. From the fourth quarter of fiscal 2020, VMware will add a new revenue item called subscription and SaaS revenue to its financial statements. Thus, the reported revenue will include the following three parts: licenses, subscriptions, SaaS, and services. Previously, subscription and SaaS revenue was called hybrid cloud subscription and SaaS revenue, which was distributed between license and service revenue. Subscription and SaaS revenue costs have been included in the cost of license revenue and service revenue in the previous period, and are reclassified according to the current statements

in order to help investors understand (1) the impact of the consolidation of pivot and VMware results in the re preparation of financial statements, and (2) the impact of reclassifying revenue from two categories into three categories, VMware has released slides on the official investor relations page to explain in detail the impact of pivot adjustment and income reclassification on VMware's fourth quarter financial results, Help investors compare VMware's performance in this quarter with the fourth quarter guidance previously provided by VMware at the quarterly earnings meeting on November 26, 2019. Previously, because the acquisition has not been completed, pivot, and independent subscription and SaaS revenue were not included. The slide also contains a similar comparison of VMware's full year cash flow in fy2020 with the guidance on November 26, 2019, as well as a table summarizing the key indicator differences of VMware's previously announced seven financial quarters and statements restated since the first quarter of fy2019 and throughout fy2019

recent important events and strategic releases

vmware completed the acquisition of pivot on December 30, 2019. The combination of pivot's developer centric products with the infrastructure and management tools of VMware's upstream kubernetes operating environment will help VMware provide comprehensive enterprise solutions and significantly improve the efficiency of developers in creating modern applications

at the RSA information security conference, VMware promoted its native security strategy for the global digital foundation and released a new security suite, VMware advanced security for cloud foundation, to help customers replace traditional security solutions and provide unified protection across private and public clouds. Product updates also include enhancements to VMware carbon black cloud and VMware secure state

vmware shows how global communication service providers, including Millicom, SingTel, Telecom Italia (these tubes will be placed on the sea), telia and Tim Brasil, have adopted VMware Telecom cloud platform to accelerate revenue, automate service life cycle and simplify operation management. VMware also announced new features in the telecom and edge cloud portfolio, including innovations in Telecom cloud core, edge, and wireless access (RAN) products

vmware's acquisition of nyansa will help VMware provide end-to-end network visualization, monitoring and repair solutions in VMware SD Wan by velocloud, which can actively predict customer problems, optimize application and network performance, and better ensure the behavior of key IOT devices

in the fourth quarter, VMware was further recognized by industry-leading analysts:

(1) VMware was rated as an industry leader in the report Forrester wave: unified endpoint management in the fourth quarter of 2019. The report evaluated 13 unified endpoint Management (UEM) manufacturers. VMware workspace one, a VMware intelligent driven digital workspace platform, received the highest scores in product planning, implementation, partner ecological inorganic hard insulation product experimental method gb/t5486.1 (5) 486.3 (2) 001, and market performance (such as the number of customers, the number of windows 10 customers, management equipment, and making the passive gear work together to increase revenue). (1)

(2) VMware has won the industry leader position in the latest three IDC marketscape end-user computing reports. (2)

re prepare financial statements and increase subscription and SaaS revenue items

on December 30, 2019, VMware completed the acquisition of pivot. As pivot is the same controlling entity, according to GAAP, if the company needs to make consolidated disclosure for previous years, it needs to restate the financial annual report of previous years. The quarterly results are revalued on the basis of GAAP and non GAAP, and the consolidated income statement and cash flow statement for fy19 and FY20 are included in this income draft. All comparisons between the financial indicators in this draft and those in the previous fiscal years and the fourth quarter of 2020 are comparisons with the corresponding re prepared financial indicators in the previous period

in order to help investors understand the impact of the consolidation of the results of pivot and VMware in the restated financial statements on the previous periods, and compare the results of the current period with the financial results originally reported in the previous periods, VMware attaches relevant materials to show the impact of key adjustments on the previous reports (1) GAAP and non GAAP revenue in the quarters of fiscal 2019 and 2020, fiscal 2019 and fiscal 2018; (2) Financial year 2019 balance sheet; (3) Cash flow and free cash flow from operating activities for each quarter of fiscal 2019 and 2020, fiscal 2019 and fiscal 2018

in addition, from the fourth quarter of fiscal 2020, VMware will add a new revenue item called subscription and SaaS revenue to its financial statements. Therefore, the reported revenue includes the following three parts: licenses, subscriptions and SaaS, and services. Previously, subscription and SaaS revenue was called hybrid cloud subscription and SaaS revenue, which was distributed between license and service revenue. Based on VMware's recent acquisition, management decided to list revenue from subscriptions and SaaS services separately. The new subscription and SaaS revenue line items come from the revenue of customers' consumption through VMware's vcpp cloud service, the revenue of pivot and other subscription based products, and the revenue of SaaS products (such as workspace one and VMware cloud on AWS). Revenues from previous periods have been reclassified to comply with the fourth quarter statement for fiscal year 2020 and are reflected in the revised quarterly financial statements for fiscal years 2019 and 2020

(1) Forrester: Forrester wave: unified endpoint management report for the fourth quarter of 2019

(2) IDC marketscape: global unified endpoint management software 2019 - 2020 manufacturer evaluation (Document No. us, November 2019); IDC marketscape: global enterprise mobile management software 2019 - 2020 vendor evaluation (Document No. us, November 2019); IDC marketscape: 2019-2020 manufacturer evaluation of global enterprise mobile management software for the deployment of rugged and IOT devices (Document No. us, November 2019)