VMware crossed a new revenue threshold in fiscal year 2020, exceeding $10 billion in sales for the first time. In spite of its strong sales figures, the company missed earnings expectations in Q4, and shares fell in after-hours trading.
Fourth quarter non-GAAP net income was $868 million, or $2.05 per diluted share. Revenue was $3.07 billion, an increase of 11 percent from the fourth quarter of fiscal 2019.
Analysts were looking for earnings of $2.17 on revenue of $2.95 billion.
For the full fiscal year, non-GAAP net income was $2.66 billion, or $6.24 per diluted share. Revenue came to $10.81 billion, an increase of 12 percent from fiscal 2019.
"Our results demonstrate the power of our broad-based portfolio and a strategy that continues to resonate with our customers," CEO Pat Gelsinger said in a statement.
Breaking down the Q4 results, service revenue came to $1.483 billion, while license revenue was $1.034 billion.
Subscription and SaaS revenue came to $556 million, an increase of 52 percent. Subscription and SaaS accounted for 18 percent of total revenue. The category includes the VMware Cloud Provider Program, VMware Cloud on AWS, Pivotal, the portion of EUC/Workspace One revenue recognized as SaaS, Carbon Black, CloudHealth Technologies, VeloCloud, Horizon Cloud, Wavefront, AppDefense and other "as a service" offerings.
VMware signed 31 enterprise agreements above $10 million in Q4 -- a record number. The company also saw a significant increase in the value of subscription and SaaS offerings in the top 10 agreements.