uploads/2018/05/Geography-revenue-1.png

VMware’s International Business Growth Remains Strong

By

Updated

International market performance

VMware’s (VMW) International business, which contributes nearly 50.0% of the company’s overall revenues, has witnessed strong revenue growth in the last five quarters. This growth was driven by significant new deals in the EMEA (Europe, Middle East, and Africa) region. The company maintained double-digit growth in revenues during this period.

From the graph above, we can see the revenue comparison of VMware’s domestic and international geographic regions in the last five quarters. During this period, the revenues from VMW’s International business grew at a CAGR (compound annual growth rate) of 3.8%. The revenues from the company’s US operation increased at a CAGR of 2.6%.

In fiscal Q4 2018, VMW’s revenues from its International region came in at ~$1.2 billion, up 16.3% YoY (year-over-year). At the end of fiscal 2018, these revenues stood at $4.0 billion against $3.6 billion in the same period last year.

Contribution from the US market

VMware’s US market has reported strong growth in revenues in the last five quarters, triggered by strong pipelines and growing cloud demand. The company’s partnership with Amazon (AMZN) and IBM (IBM) may further drive its business going forward.

In Q4 2018, the company’s revenues from the US region climbed 10.9% YoY to $1.1 billion. VMware exited fiscal 2018 with revenues of ~$4.0 billion against $3.5 billion in the same period last year.

More From Market Realist