VMware Tops Q2 Expectations On Strong Growth In SaaS Revenue

VMware delivered better-than-expected second quarter results as its subscription and software as a service revenue continues to climb. 

The company reported second quarter earnings of $447 million, or 1.06 a share, on revenue of $2.88 billion, up 9% from a year ago. Non-GAAP earnings were $1.81 a share. 

Wall Street was looking for revenue of $2.8 billion with non-GAAP earnings of $1.45 a share for the second quarter.

Meanwhile, VMware said subscription and SaaS revenue for the second quarter jumped 44% from a year ago to $631 million, and represented 22% of total Q2 revenue.

"Our performance in Q2 reflected strength in our subscription and SaaS product offerings, which grew 44% year-over-year," said Zane Rowe, VMware's CFO. "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."

The company didn't issue guidance for the third quarter. Shares of VMware were up just over 1% after hours.