VMware, Inc. (NYSE:VMW) Q2 2021 Earnings Conference Call - Final Transcript

Aug 27, 2020 • 04:30 pm ET

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VMware, Inc. (NYSE:VMW) Q2 2021 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to today's VMware's Q2 FY 2021 Earnings Call.

I would like to hand the conference over to your speaker today Mr. Paul Ziots. Thank you. Please go ahead, sir.

Executive
Paul Ziots

Thank you. Good afternoon, everyone and welcome to VMware's second quarter fiscal year 2021 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. Actual results may differ materially as a result of various risk factors 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, certain litigation matters and other items, as well as 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 our Investor Relations website.

Unless otherwise indicated, all financial metrics provided on this call are for the consolidated VMware entity, including Pivotal. Growth rates compare our Q2 FY '21 results with the recast of prior period financial information to include Pivotal, due to the Pivotal acquisition, which was accounted for as a transaction by entities under common control in accordance with GAAP. The webcast replay of this call will be available for the next 60 days on our company website under the Investor Relations link. Our third quarter fiscal '21 quiet period begins at the close of business, Thursday, October 15, 2020.

With that, I'll turn it over to Pat.

Executive
Patrick Gelsinger

Thank you, Paul, and everyone who has joined our call today. In light of these uncertain times, I am pleased with VMware solid execution and financial performance in Q2, driven by strength in our subscription and SaaS product offerings. We experienced good sales execution in both the Asia Pacific and EMEA regions with some COVID-related challenges in the Americas.

Our any cloud, any application, any device strategy continues to resonate with customers and our five franchise platforms consisting of modern applications, multi-cloud, networking, digital workspace and security help form the digital foundation that addresses customers hardest technology challenges. As organizations everywhere navigate