Broadcom’s VMware Acquisition: 5 Key Customer And Cost Figures To Know
From what each company spends on sales, marketing and administrative costs to R&D spending, here’s five comparable figures that all channel partners, investors and customers should know as Broadcom seeks to buy VMware for $61 billion.
Revenue Growth: Broadcom 23% Versus VMware’s 3%
VMware typically grows quarterly sales at around 9 percent year over year. For example, for its fiscal year 2022, which ended in January, VMware generated $12.8 billion in revenue, an increase of 9 percent compared to fiscal year 2021.
However, VMware reported sales growth of only 3 percent year over year to $3.09 billion in its most recent first fiscal quarter.
Additionally, due to the pending Broadcom acquisition deal, VMware said it will not be providing financial guidance for its current second quarter and is suspending its financial guidance for the full fiscal year 2023. So there is no insight into how much VMware expects to grow over the next few quarters.
Comparatively, Broadcom increased sales by 23 percent year over year for its most recent second quarter to $8.1 billion.
Broadcom also shared that it expects current third quarter revenue of approximately $8.4 billion, which would represent a 24 percent year over year increase.
Broadcom’s market capitalization currently stands at $229.7 billion. VMware’s market cap is now at $54.5 billion.
Key takeaway: Broadcom is growing sales at a faster rate than VMware as VMware’s growth rate slowed down significantly in its most recent quarter. It is also interesting that VMware will no longer provide financial earnings guidance for the foreseeable future.