CEO Hock Tan has informed investors that VMware is generating more money than previously estimated, even exceeding maximum expectations.
The CEO spoke about this while presenting Broadcom’s fourth-quarter financial results. Although Tan did not reveal specific VMware revenue figures, he shared statistics that point to strong financial performance. For example, VMware’s expenses have been reduced from an average of $2.4 billion (2.3 billion euros) to $1.2 billion over the past three months.
Tan additionally gave an insight into the growth of subscription sales, specifically related to processor cores. The number of subscriptions sold for these increased to 21 million, up from 19 million in the third quarter. Of the processor cores sold, 17 million will be deployed for VMware Cloud Foundation. Since the acquisition, 4,500 of the 10,000 largest VMware customers have opted for this private cloud suite.
In addition, the Broadcom CEO reported that the annual booking value (ABV), or future subscription revenue, now stands at $2.7 billion – up $200 million from the previous quarter.
Total quarterly revenue for Broadcom’s infrastructure software division is $5.82 billion. This represents a year-over-year growth of 196 percent. This strong increase is because VMware was not yet a full part of Broadcom in last year’s financial quarter.
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