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VMware delivers strong Q2 as SaaS revenue skyrockets

(Image credit: Future / Mike Moore)

Cloud infrastructure firm VMware has published its quarterly earnings reports, with overall revenue exceeding analyst expectations.

According to the report, the company recorded earnings of $447 million for the quarter, equating to earnings of $1.06 per share ($1.81 non-GAAP), while revenue was up nine percent compared to the same period last year, reaching $2.88 billion.

Analysts had anticipated non-GAAP earnings of $1.45 per share and $2.8 billion in revenue.

The success has been attribute to VMware's subscription and SaaS (opens in new tab) solutions, which grew by 44 percent year-on-year. Generating $631 million in revenue, this segment represented almost a quarter (22 percent) of the company's overall revenue for Q2.

"We plan to accelerate certain product initiatives through the remainder of the year, which will further support customers' digital transformations and grow our Subscription and SaaS (opens in new tab)product offerings," explained Zane Rowe, VMware CFO.

The company did not issue any guidance for the third quarter, ZDNet reported (opens in new tab), and VMware shares only rose one percent in after hours trading.

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.