Vmware’s Unearned Revenue by Segment (2017-2023)

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

VMware is a software company that provides cloud computing and virtualization software and services. They are mainly engaged in the development and application of virtualization technologies with x-86 server-based computing. The company offers various products that allow organizations to manage IT resources across private clouds and multi-clouds and other multi-device environments. They also provide various services to their customers like modernizing data centers, integrating public clouds, etc. They provide certain storage and availability of products for their applications as well.

Vmware’s Unearned Revenue by Segment

Unearned revenue is the payment received by accompanying service or product that has yet to be transferred. It can be considered a prepayment.

The unearned revenue from license services in the first quarter of 2017 was $415 million and then increased to $455 million in the second quarter. After this, the unearned revenue started declining and dropped to $425 million in the second quarter and then dropped drastically to $136 million in the last quarter. The figure then went down to $111 million in the first quarter of 2018, $115 million in the second quarter, increased to $143 million in the third quarter and $184 million in the fourth quarter of 2018. The unearned revenue then dropped again to $157 million in the first quarter of 2019 and then increased again to $190 million in the second quarter.

The unearned revenue from the professional services segment was at $456 million in the first quarter of 2017. It increased to $478 million in the second quarter, dropped to $468 million in the third quarter, and $435 million in the fourth quarter. The figure dropped to $428 million in the first quarter of 2018 and then started to increase and went up to $450 million in the second quarter, $508 million in the third quarter, and $573 million by the last quarter of 2018. The unearned revenue from this segment continued to grow into 2019 and increased to $575 million in the first quarter, $617 million in the second quarter, $657 million in the third quarter, and $767 million by the end of 2019. The number went up to $802 million in the first quarter of 2020 and is expected to increase to $851 million in the second quarter, $893 million in the third quarter, and over $1 billion by the fourth quarter of 2020.

Unearned revenue from software maintenance services stood at $4.11 billion in the first quarter of 2017. It increased to $4.19 billion in the second quarter, $4.20 billion in the third quarter, and $4.31 billion in the fourth quarter of 2017. The number dropped slightly in the first quarter of 2018 to $4.22 billion, after which it increased again to $4.43 billion in the second quarter, $4.54 billion in the third quarter and $5.08 billion by the last quarter of 2018. The unearned revenue dropped marginally in the first quarter of 2019 to $5.02 billion and then increased to $5.22 billion in the second quarter before dropping again to $5.16 billion in the third quarter and then increasing to $5.74 billion in the last quarter. The upward trend continued into 2020 and the first quarter figure went up to $5.75 billion and is expected to continue increasing to $6.04 billion in the second quarter, $6.11 billion in the third quarter, and $6.70 billion by the end of the year.

Except for the licensing services the unearned revenue from other segments has only been increasing over the years and is expected to continue to do so. Even though unearned revenue is considered a liability it shows the confidence that customers place in the company.

Did you like Vmware’s Unearned Revenue by Segment statistic?

Access more such KPI data points and segment financials on thousands of US stocks, with Business Quant.

You can get started here.