VMware posts $3.2 bn in revenue in Q3 amid acquisition by Broadcom

Enterprise Cloud services provider VMware, in the process of being acquired by chipmaker Broadcom in a $61.2 billion deal, has posted $3.21 billion in revenue for the third quarter — an increase of 1 per cent from the third quarter of fiscal 2022.VMware’s shares fell slightly in after-hours trading after it reported lower-than-expected earnings and revenue.The virtualisation software giant reported a net profit of $231 million, way down from $398 million in profit it posted in the same period last year.”Q3 results met our expectations. This past quarter we demonstrated that our innovation engine is flourishing, as we unveiled many new offerings across our portfolio, including VMware vSphere 8, VMware vSAN 8 and VMware Aria,” said Raghu Raghuram, CEO, VMware.”We remain committed to and engaged in helping customers transform their businesses and unlock the full potential of multi-cloud,” Raghuram said in a statement.Broadcom in May this year announced to acquire VMware in a cash-and-stock deal valued at $61.2 billion. In addition, Broadcom will assume $8 billion of VMware’s net debt.In November 2021, Dell Technologies completed the planned spin-off of VMware via tax-free distribution of shares to Dell investors.VMware, a leading provider of multi-cloud services for all apps, pioneered virtualization technology, an innovation that positively transformed x86 server-based computing.”Our Q3 subscription and SaaS ARR growth of 24 per cent reflects increased adoption of our multi-cloud product portfolio and recently introduced customer programs,” said Zane Rowe, executive vice president and CFO, VMware.”By continuing to meet the evolving needs of our customers, we increased our mix of subscription and SaaS revenue to 31 per cent of our total revenue this quarter,” Rowe added.