VMware beats Q4 expectations, posts record annual revenue

Revenue in fiscal 2019 was up 14 percent from fiscal 2018, thanks to broad strength across VMware's product portfolio and geographies.

VMware published its fourth quarter financial results on Thursday, beating market expectations and announcing record annual revenue for fiscal 2019.

Non-GAAP net income for the fourth quarter was $823 million, or $1.98 per diluted share, up 23 percent year-over-year. Revenue was $2.59 billion, an increase of 16 percent.

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Analysts were looking for earnings of $1.88 on revenue of $2.5 billion.

VMware, a Dell Technologies portfolio company, brought in Q4 license revenue of $1.23 billion, an increase of 21 percent year-over-year.

Non-GAAP operating income for Q4 was $967 million, an increase of 18 percent from the year prior. Operating cash flow was $1.01 billion, and free cash flow was $946 million.

"Q4 was a terrific ending to a strong fiscal '19 driven by broad-based strength across our diverse product portfolio and in all three geographies," CEO Pat Gelsinger said in a statement. "VMware is providing the essential ubiquitous software foundation for our customers' digital transformations while we also work to drive positive global impact across our people, products and the planet."

For the full fiscal year 2019, non-GAAP net income was $2.62 billion, or $6.33 per diluted share, up 21 percent compared to the year prior. Revenue for fiscal year 2019 was $8.97 billion, an increase of 14 percent from fiscal 2018. License revenue for fiscal year 2019 was $3.79 billion, an increase of 18 percent.