VMware Hits Record $6 Billion in Revenue for 2014
The company also experienced a strong fourth quarter, increasing revenue 16 percent year-over-year.
VMware Inc. passed the $6 billion mark in revenue for the first time in 2014, which represented a 16 percent increase over the previous year.
The company had revenues of $6.04 billion for the year just completed. That figure was bolstered by a strong fourth quarter, in which VMware had revenues of $1.7 billion, according to a press release.
Jonathan Chadwick, chief finance officer and chief operating officer, said in the release, "We are very pleased with our Q4 revenue growth of 16 percent on a constant currency basis and with our 2014 results, which met or exceeded our revenue and operating margin guidance for the quarter and the year."
Revenue from licenses in the fourth quarter was $777 million, a 13 percent increase from the fourth quarter of 2013.
Total net income for 2014 was $886 million, down 13 percent from the previous year. VMware said the decrease reflects its acquisition of AirWatch, which was completed in the first quarter of 2014. VMware paid $1.54 billion for AirWatch.
The Q4 revenues meant that VMware increased revenue by healthy amounts each quarter in 2014:
- First Quarter: $1.36 billion (up 14 percent year-over-year)
- Second Quarter: $1.46 billion (up 17 percent year-over-year)
- Third Quarter: $1.52 billion (up 18 percent year-over-year)
- Fourth Quarter: $1.70 billion (up 16 percent year-over-year)
The press release also included some of the year's high points. Among them are hitting 15,000 customers for AirWatch, its enterprise mobility management platform; acquiring more than 400 customers for NSX, its software-defined networking technology; opening new datacenters in Australia; and adding three new partners to its EVO:RAIL (the company's hyperconverged appliance) lineup, including NetApp, Hewlett-Packard Co. and Hitachi Data Systems.
Keith Ward is the editor in chief of Virtualization & Cloud Review. Follow him on Twitter @VirtReviewKeith.