VMware, Inc. (NYSE:VMW) Q3 2020 Earnings Conference Call - Final Transcript

Nov 26, 2019 • 04:30 pm ET


VMware, Inc. (NYSE:VMW) Q3 2020 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to today's VMware Third Quarter Fiscal Year 2020 Earnings Call. As a reminder, today's conference is being recorded. And at this time, I'd like to turn the floor over to Paul Ziots, Vice President of Investor Relations.

Paul Ziots

Thank you. Good afternoon, everyone, and welcome to VMware's third quarter fiscal 2020 earnings conference call. On the call we have Pat Gelsinger, Chief Executive Officer; and Zane Rowe, Executive Vice President and Chief Financial Officer. Following their prepared remarks, we will take questions.

Our press release was issued after close of market and is posted on our website where this call is being simultaneously webcast. Slides which accompany this webcast can be viewed in conjunction with live remarks and downloaded at the conclusion of the webcast from ir.vmware.com. On this call today, we will make forward-looking statements that are subject to risks and uncertainties. These forward-looking statements include statements regarding VMware's proposed acquisition of Pivotal.

Actual results may differ materially as a result of various risk factors, including risks related to our ability to consummate the Pivotal acquisition as planned, as well as additional risks described in the 10-Ks, 10-Qs and 8-Ks VMware files with the SEC. We assume no obligation to and do not currently intend to update any such forward-looking statements.

In addition, during today's call, we will discuss certain non-GAAP financial measures. These non-GAAP financial measures, which are used as measures of VMware's performance, should be considered in addition to, not as a substitute for, or in isolation from GAAP measures. Our non-GAAP measures exclude the effect on our GAAP results of stock-based compensation, amortization of acquired intangible assets, employer payroll tax on employee stock transactions, acquisition, disposition and other items, including the gains or losses on Pivotal Software and discrete items impacting our GAAP tax rate. You can find additional disclosures regarding these non-GAAP measures, including reconciliations with comparable GAAP measures in the press release and on our Investor Relations website.

The webcast replay of this call will be available for the next 60 days on our Company website under the Investor Relations link.

Our fourth quarter fiscal 2020 quiet period begins at the close of business Thursday, January 16, 2020. With that, I'll turn it over to Pat.

Patrick P. Gelsinger

Thank you, Paul. Q3 was another solid quarter for VMware and we're pleased with our results. We continue to see traction and customer momentum in support of VMware's vision to deliver a software architecture that enables any app, on any cloud, delivered to any device. In Q3, total revenue increased 12% year-over-year with a non-GAAP earnings per share of $1.49 per share. We are thrilled to welcome Carbon Black to the VMware family, and we remain on track to close the acquisition of Pivotal by the end of the fiscal year. Customers have resoundingly affirmed that both acquisitions will offer tremendous value as we help them with their digital transformations.

We recently hosted over 65,000 customers, partners and influencers at our VMworld 2019