Company profile

Ticker
VMW
Exchange
Website
CEO
Patrick P. Gelsinger
Employees
Incorporated in
Location
Fiscal year end
SEC CIK
IRS number
943292913

VMW stock data

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FINRA relative short interest over last month (20 trading days) ?

Calendar

6 Dec 19
17 Feb 20
31 Jan 21

News

Company financial data Financial data

Quarter (USD) Nov 19 Aug 19 May 19 Feb 19
Revenue 2.46B 2.44B 2.27B 2.59B
Net income 621M 4.93B 505M 502M
Diluted EPS 1.5 11.83 1.21 1.21
Net profit margin 25.29% 202% 22.29% 19.37%
Operating income 431M 523M 415M 664M
Net change in cash -923M -363M 481M -6.36B
Cash on hand 2.03B 2.95B 3.31B 2.83B
Cost of revenue
Annual (USD) Dec 16 Dec 15 Dec 14
Revenue 7.09B 6.57B 6.04B
Net income 1.22B 997M 886M
Diluted EPS 2.87 2.34 2.04
Net profit margin 17.24% 15.17% 14.68%
Operating income 1.47B 1.2B 1.03B
Net change in cash 297M 422M
Cash on hand 2.79B 2.49B 2.07B
Cost of revenue 894M 832M 725M

Financial data from Vmware earnings reports

62.8% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 535 550 -2.7%
Opened positions 83 72 +15.3%
Closed positions 98 75 +30.7%
Increased positions 187 192 -2.6%
Reduced positions 171 193 -11.4%
13F shares
Current Prev Q Change
Total value 87.91B 92.46B -4.9%
Total shares 68.81M 71.01M -3.1%
Total puts 4.24M 3.36M +26.0%
Total calls 1.64M 1.23M +33.6%
Total put/call ratio 2.6 2.7 -5.7%
Largest owners
Shares Value Change
N Price T Rowe Associates 13.55M $2.03B -14.2%
Vanguard 4.91M $736.97M +2.7%
BLK BlackRock 4.35M $652.52M -2.2%
Renaissance Technologies 3.17M $475.25M -17.7%
Clearbridge Advisors 2.51M $377.11M +9.1%
STT State Street 1.97M $295.47M -1.0%
Investec Asset Management 1.78M $266.87M -0.6%
Capital World Investors 1.77M $265.44M NEW
AMP Ameriprise Financial 1.55M $232.45M -13.2%
BCS Barclays 1.54M $231.19M +47.1%
Largest transactions
Shares Bought/sold Change
N Price T Rowe Associates 13.55M -2.23M -14.2%
Capital World Investors 1.77M +1.77M NEW
Wellington Management 183.56K -1.33M -87.9%
Alliancebernstein 501.05K -870.68K -63.5%
Wellcome Trust 720K +720K NEW
Renaissance Technologies 3.17M -683.22K -17.7%
Swedbank 680.69K +680.69K NEW
First Trust Advisors 1.26M +670.44K +112.9%
MARSHALL WACE ASIA 0 -648.74K EXIT
DB Deutsche Bank 1.08M +636.62K +143.7%

Financial report summary

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Risks
  • Our success depends increasingly on customer acceptance of our newer products and services.
  • A significant decrease in demand for our server virtualization products would adversely affect our operating results.
  • We face intense competition that could adversely affect our operating results.
  • Competition for our target employees is intense and costly, and we may not be able to attract and retain highly skilled employees.
  • Adverse economic conditions may harm our business.
  • The loss of key management personnel could harm our business.
  • We may not be able to respond to rapid technological changes with new solutions and services offerings.
  • Breaches of our cybersecurity systems or the systems of our vendors, partners and suppliers could seriously harm our business.
  • Our operating results may fluctuate significantly.
  • Acquisitions and divestitures could harm our business and operating results.
  • We are exposed to foreign exchange risks.
  • Our $11.0 billion special dividend that we distributed in fiscal 2019 could limit our ability to fund significant future stock repurchases and strategic investments.
  • We operate a global business that exposes us to additional risks.
  • We have outstanding indebtedness in the form of unsecured notes and may incur other debt in the future, which may adversely affect our financial condition and future financial results.
  • Our current research and development efforts may not produce significant revenue for several years, if at all.
  • We are involved in litigation, investigations and regulatory inquiries and proceedings that could negatively affect us.
  • We may not be able to adequately protect our intellectual property rights.
  • Our use of “open source” software in our products could negatively affect our ability to sell our products and subject us to litigation.
  • The evolution of our business requires more complex go-to-market strategies, which involve significant risk.
  • Our success depends upon our ability to develop appropriate business and pricing models.
  • Our products and services are highly technical and may contain or be subject to other suppliers’ errors, defects or security vulnerabilities.
  • Failure to effectively manage our product and service lifecycles could harm our business.
  • Our success depends on the interoperability of our products and services with those of other companies.
  • Disruptions to our distribution channels could harm our business.
  • Our SaaS offerings, which constitute a growing portion of our business, and our initiatives to extend our data center virtualization and container platforms into the public cloud, involve various risks, including, among others, reliance on third-party providers for data center space and colocation services and on public cloud providers to prevent service disruptions.
  • Joint ventures may not yield expected benefits and outcomes.
  • Non-compliance or perceived non-compliance with existing and evolving international and domestic privacy and data protection laws, regulations and standards could result in liability and adversely impact our business.
  • If we fail to comply with our customer contracts or government contracting regulations, our business could be adversely affected.
  • If our goodwill or amortizable intangible assets become impaired, we may be required to record a significant charge to earnings.
  • Problems with our information systems could interfere with our business and could adversely impact our operations.
  • We may have exposure to additional tax liabilities, and our operating results may be adversely impacted by higher than expected tax rates.
  • Catastrophic events or geo-political conditions could disrupt our business.
  • Changes in accounting principles and guidance could result in unfavorable accounting charges or effects.
  • Our relationship with Dell may adversely impact our business and stock price.
  • Dell has the ability to prevent us from taking actions that might be in our best interest.
  • Dell has the ability to prevent a change-in-control transaction and may sell control of VMware without benefiting other stockholders.
  • We engage in related persons transactions with Dell that may divert our resources, create opportunity costs and prove to be unsuccessful.
  • Our business and Dell’s businesses overlap, and Dell may compete with us, which could reduce our market share.
  • Dell’s competition in certain markets may affect our ability to build and maintain partnerships.
  • We could be held liable for the tax liabilities of other members of Dell’s consolidated tax group, and compared to our historical results as a member of the EMC consolidated tax group, our tax liabilities may increase, fluctuate more widely and be less predictable.
  • We have limited ability to resolve favorably any disputes that arise between us and Dell.
  • Some of our directors have potential conflicts of interest with Dell.
  • We are a “controlled company” within the meaning of the New York Stock Exchange rules and, as a result, are relying on exemptions from certain corporate governance requirements that provide protection to stockholders of companies that are not “controlled companies.”
  • Dell’s ability to control our board of directors may make it difficult for us to recruit independent directors.
  • Our historical financial information as a majority-owned subsidiary may not be representative of the results of a completely independent public company.
  • If securities or industry analysts change their recommendations regarding our stock adversely, our stock price and trading volume could decline.
  • Anti-takeover provisions in Delaware law and our charter documents could discourage takeover attempts.
Management Discussion
  • Approximately 70% of our sales are denominated in the United States (“U.S.”) dollar, however, in certain countries we also invoice and collect in the following currencies: euro; British pound; Japanese yen; Australian dollar; and Chinese renminbi. In addition, we incur and pay operating expenses in currencies other than the U.S. dollar. As a result, our financial statements, including our revenue, operating expenses, unearned revenue and the resulting cash flows derived from the U.S. dollar equivalent of foreign currency transactions, are affected by foreign exchange fluctuations.
  • Revenue from our hybrid cloud subscription offerings consisted primarily of VCPP, and revenue from our SaaS offerings consisted primarily of our Unified Endpoint Management mobile solution within Workspace ONE and newer SaaS offerings, such as CloudHealth by VMware, VMware SD-WAN by VeloCloud and VMware Cloud on AWS. VCPP revenue is included in license revenue and SaaS revenue is included in both license and services revenue. Hybrid cloud subscription offerings, together with our SaaS offerings, increased to greater than 12% of our total revenue during the three and nine months ended November 1, 2019 from greater than 10% of our total revenue during the three and nine months ended November 2, 2018.
  • License revenue relating to the sale of perpetual licenses that are part of a multi-year contract is generally recognized upon delivery of the underlying license, whereas revenue derived from our hybrid cloud subscription and SaaS offerings is recognized on a consumption basis or over a period of time.
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