Vmware’s Gross Profit by Segment (2017-2022)

This statistic highlights Vmware’s Gross Profit by Segment, reported on a quarterly basis from Q1 2017 onwards.

Vmware Inc. is an information technology (IT) company. They provide virtualization solutions from the desktop to data centres. The company offers products that address a wide range of IT problems like cost and operational inefficiencies, software lifecycle management, business continuity and desktop management. They offer products in three categories: Software-Defined Data Centre (SDDC), Hybrid Cloud Computing and End-User Computing (EUC). They offer various maintenance and installation services to their customers as well. The company operates in two segments – licencing and services.

The company’s revenue for 2019 was almost $9.14 billion and their gross profit was around $7.5 billion amounting to a gross profit margin of about 82%. The segment wise gross profit margin was 94% for the licencing segment and 79% for the services segment.

The gross profit of the licencing segment in the first quarter of 2017 was $532 million and then increased to $604 million in the second quarter, $651 million in the third quarter and $849 million in the last quarter of 2017. The gross profit for the first quarter of 2018 was $571 million which then increased to $693 million in the second quarter, $720 million in the third quarter and crossed the $1 billion mark in the fourth quarter of 2018. In 2019 the first-quarter gross profit was $729 million and then increased to $855 million in the second quarter, dropped to $835 million in the third quarter and went up to $975 million in the fourth quarter of 2019. The gross profit in the first quarter of 2020 was $819 million and is expected to rise to $961 million in the second quarter,$915 million in the third quarter and $984 million in the fourth quarter of 2020. The gross profit has increased greatly when compared to the same quarter in the previous year on almost all occasions.

The gross profit for the services segment was at $806 million in the first quarter of 2017. The gross profit increased to $828 million in the second quarter,$861 million in the third quarter and $908 million in the fourth quarter of 2017. In 2018 the gross profit in the first quarter was $876 million and then went up to $937 million in the second quarter,$940 million in the third quarter and $978 million in the fourth quarter.

In 2019 the first quarter revenue went up to $983 million and continued to rise to $1.01 billion in the second quarter,$1.05 billion in the third quarter and $1.07 billion in the fourth quarter of 2019. The first quarter of 2020 saw the gross profit go up to $1.11 billion and is expected to continue this growth to $1.11 billion in the second quarter,$1.16 billion in the third quarter and $1.17 billion by the end of the year.

Just like the licencing segment, the gross profit in the services segment has increased greatly every quarter when compared to the same quarter in the previous year.

The gross profit of VMware has been increasing year over year and quarter over the quarter across all its segments and is expected to continue this growth into the near future.

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