VMware on Thursday published its fourth quarter financial results, narrowly beating market expectations and delivering 24% growth in Subscription and SaaS ARR for fiscal year 2022.
The company's non-GAAP net income for the fourth quarter was $855 million, or $2.02 per diluted share. Revenue for the fourth quarter was $3.53 billion, an increase of 7% from the fourth quarter of fiscal 2021.
Revenue for fiscal year 2022 was $12.85 billion, an increase of 9% year-over-year. The combination of subscription and SaaS and license revenue for the year was $6.33 billion, an increase of 13% compared to 2021.
Analysts were expecting earnings of $1.96 per share on revenue of $3.51 billion.
"The growth in customer demand for our multi-cloud solutions was reflected in our Q4 results. We are at an exciting time in our industry, as enterprises large and small transform and modernize to become software-based, digital enterprises," said Raghu Raghuram, CEO of VMware. "We are well-positioned to help our customers build, run and secure their applications in this multi-cloud environment."
The combination of subscription and SaaS and license revenue in Q4 was $1.90 billion, an increase of 11% from the fourth quarter of fiscal 2021.
Subscription and SaaS revenue for the fourth quarter was $868 million, an increase of 23% year-over-year. Subscription and SaaS ARR exiting fiscal year 2022 was $3.58 billion, an increase of 24% year-over-year.
"Q4 was a strong finish to a transformational year in which we became a standalone company and surpassed $12B in revenue," said Zane Rowe, executive vice president and CFO of VMware. "As we look to our next fiscal year, we remain focused on accelerating growth of our Subscription & SaaS portfolio and scaling our multi-cloud platform enabling us to deliver long-term revenue and profit growth."
Operating cash flow for the fourth quarter was $1.14 billion and free cash flow for the fourth quarter was $1.01 billion.