VMware, Inc. (NYSE: VMW) stock fell over 3.1% in the pre-market session on 24th August, 2018 on concerns over billings which reached $2.44B as compared to the consensus estimates of $2.46B.
On the other hand, initially, the positive market response to the strategy and innovation, secondly, strong and consistent go-to-market execution, and lastly, the continuing positive environment for well-positioned enterprise company. The company has posted GAAP net income for the second quarter of $644 million, that includes a gain of $231 million on an investment in Pivotal Software, up 58% per diluted share compared to $406 million, for the second quarter of fiscal 2018. Non-GAAP net income for the second quarter grew 14% to $638 million.
GAAP operating income for the second quarter was $509 million, an increase of 20% from the second quarter of fiscal 2018. Non-GAAP operating income for the second quarter was $735 million, an increase of 9% from the second quarter of fiscal 2018.
Operating cash flows for the second quarter were $787 million. Free cash flows for the second quarter were $726 million.
VMW in the second quarter of FY 19 has reported the adjusted earnings per share of $1.54, while adjusted revenue growth was 13 percent to $2.17 billion in the second quarter of FY 18. License revenue for the second quarter grew 15% to $900 million from the second quarter of fiscal 2018.
Meanwhile, the company has recently announced expansion of the decade-long partnership with NTT for a new enterprise cloud offering consisting of the full VMware SDDC stack. VMware Cloud and AWS are seeing customer traction and momentum across North America and EMEA with affinity among the company’s larger customers. In June, VMware Cloud and AWS received its fourth major update, including bringing the service to Germany. In addition, VMW introduced VMware Cloud on AWS GovCloud, which is a forthcoming hybrid cloud service that will enable United States public sector agencies to deploy and run applications of VMware software on AWS GovCloud. Further, turning to vSAN, the company has experienced a strong quarter and completed one of the largest VxRail deals ever with a major tech forward retailer, and where VMW are implementing a 1,200 retail store server refresh.