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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 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 product offerings," explained Zane Rowe, VMware CFO.

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