VMware Inc

VMware continued to witness a high-single digit revenue growth in the last quarter of 2021 whereas its total revenue for fiscal 2022 was $12.85 billion, up 9% from 2021. The general availability of the VMware Tanzu application platform was a major accomplishment by the management. Its customers are embracing the new offering and a good example of this would be a next-generation leading healthcare solutions company collaborating with VMware to build a consumer-centric technology foundation. The management is looking to transform their developer experience and accelerate the development and delivery of differentiated consumer experiences by leveraging the VMware Tanzu application platform. Given VMware’s mission-critical portfolio and deep customer relationships, their recent financial performance demonstrated continued progress toward VMware’s strategy of becoming a multi-cloud subscription and SaaS company. We are neutral in our views regarding VMware’s performance and maintain a ‘Hold’ rating with a revised target price.