VMware, Inc. (NYSE: VMW) stock fell over 1.4% on May 28th, 2021 pre-market session (Source: Google finance) after the company posted lower than expected results for the first quarter of FY 22.
The combination of subscription and SaaS and license revenue was $1.39 billion, which represents an increase of 12% from the first quarter of fiscal 2021. Subscription and SaaS revenue for the first quarter was $741 million, which represents an increase of 29% year-over-year. RPO for the first quarter were of total $11 billion, up 9% year-over-year. The company has generated Operating cash flow for the first quarter of $1.27 billion and free cash flow for the first quarter of $1.20 billion.
Meanwhile, the company has unveiled expanded cloud workload protection capabilities to deliver better security for containers and Kubernetes. The new solution will help increase visibility, enable compliance and enhance security for containerized applications from build to production in public cloud and on-premises environments. Further, the company announced portfolio updates to help customers modernize their applications and infrastructure. The new releases of vSphere 7 and vSAN 7 will help IT teams support new and existing applications with infrastructure that is developer and AI-ready; scales without compromise; boosts infrastructure and data security; and simplifies operations. This includes the next step in our collaboration with NVIDIA to deliver an AI-Ready Enterprise platform that combines the industry-leading compute virtualization software of VMware vSphere and the innovation of NVIDIA AI Enterprise suite.
VMW in the first quarter of FY 22 has reported the adjusted earnings per share of $1.76, while reported the adjusted revenue growth of 9 percent to $2.99 billion in the first quarter of FY 22. The company has delivered Non-GAAP operating income for the first quarter of $923 million, which represents an increase of 13% from the first quarter of fiscal 2021.
VMware Inc. has raised financial projections for the year 2022, now expects revenue to be in the range of $12.8 billion and adjusted profit to be of $6.88 per share, up from earlier projections of $12.7 billion in revenue and $6.68 per share. For the second quarter, it’s projecting $3.1 billion in revenue and $1.62 per share in adjusted profit.