What led to VMware, Inc. (NYSE: VMW) stock uptrend

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VMware, Inc. (NYSE: VMW) stock surged over 7.4% in the pre-market session of May 29th, 2020 (as of  9:07 am GMT-4; Source: Google finance) after the company posted better than expected results for the first quarter of FY 21. The company has reported the Non-GAAP net income for the first quarter of $640 million, up 21% per diluted share compared to $535 million, for the first quarter of fiscal 2020. The company has generated operating cash flow for the first quarter of $1.37 billion. The company has generated the free cash flow for the first quarter of $1.29 billion. RPO for Q1 were of total $10.1 billion, which is an increase of 19% year-over-year; total revenue plus sequential change in total unearned revenue grew 6% year-over-year. The combination of subscription and SaaS and license revenue plus sequential change in unearned subscription and SaaS and license revenue rose 16% year-over-year. The combination of subscription and SaaS and license revenue rose 17% to $1.23 billion from the first quarter of fiscal 2020.

VMW in the first quarter of FY 21 has reported the adjusted earnings per share of $1.52, beating the analysts’ estimates for the adjusted earnings per share by 34 cents. The company had reported the adjusted revenue growth of 12 percent to $2.73 billion in the first quarter of FY 21, beating the analysts’ estimates for revenue of $2.62 billion. The company posted the Non-GAAP operating income for the first quarter was $818 million, which is an increase of 25% from the first quarter of fiscal 2020.

VMware expects the total second-quarter revenues to be of $2.8 billion, up from last year’s $2.17 billion, and earnings per share to be of $1.44.

Meanwhile, the company during the first quarter, launched VMware Tanzu, which is a portfolio of products and services that enable enterprises to deliver better software faster. Customers can use the VMware Tanzu suite to automate the modern app lifecycle, run Kubernetes across clouds, and unify and optimize multi-cloud operations. VMware also launched VMware Partner Connect, the new, simplified and flexible program that empowers partners with flexibility to meet customers’ needs, making VMware technologies and services opportunities more accessible. The company in the quarter had acquired Octarine, which is expected to bring intrinsic security to containerized applications running in Kubernetes and build security capabilities into the fabric of the existing IT and DevOps ecosystems.

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