Vmware, Inc.

Good day, everyone, and welcome to the VMware second quarter fiscal year 2022 earnings conference call. Today's call is being recorded. At this time, I would like to turn the conference over to Paul Zietz, Vice President of Investor Relations. Please go ahead, sir.

Thank you. Good afternoon, everyone, and welcome to VMware's second quarter fiscal year 2021 earnings conference call. On the call, we have Raghu Raghuram, Chief Executive Officer, and Zane Rowe, Executive Vice President and Chief Financial Officer. Following their prepared remarks, we will take questions. Our press release was issued after close of market and is posted on our website where this call is being simultaneously webcast. Slides which accompany this webcast can be viewed in conjunction with live remarks and downloaded at the conclusion of the webcast from ir.vmware.com. On this call today, we will make forward-looking statements that are subject to risks and uncertainties. Actual results may differ materially as a result of various risk factors described in 10-K's, 10-Q's, and 8-K's VMware files with the SEC. We assume no obligation to and do not currently intend to update any such forward-looking statements. In addition, during today's call, we will discuss certain non-GAAP financial measures. These non-GAAP financial measures, which are used as measures of VMware's performance, should be considered in addition to, not as a substitute for, or in isolation from GAAP measures. Our non-GAAP measures exclude the effect on our GAAP results of stock-based compensation, amortization of acquired intangible assets, employer payroll tax on employee stock transactions, acquisition, disposition, certain litigation matters, and other items, as well as discrete items impacting our GAAP tax rate. You can find additional disclosures regarding these non-GAAP measures, including reconciliations with comparable GAAP measures, in the press release and on our Investor Relations website. The webcast replay of this call will be available for the next 60 days on our company website under the Investor Relations link. Our third quarter, fiscal 22, quiet period, begins at the close of business Thursday, October 14, 2021. With that, I'll turn it over to Raghu.

Thank you, Paul, and thank you to everyone joining us today. I'm pleased with our Q2 fiscal 2022 performance with revenue of $3.1 billion and non-GAAP earnings of $1.75 per share. I'm even more excited and energized today as I approach my 100th day as VMware CEO. I've been spending a lot of concentrated time talking with customers and partners about the opportunities and challenges in the industry today. and how we can help them navigate and innovate for the future. Over the last few years, and especially during the pandemic, enterprises have accelerated their adoption of the cloud. Customers are evolving their strategy from a cloud-first to a cloud-smart philosophy where they are picking the right clouds and cloud services for the right workload, including private cloud and even on the edge. And that means most of our customers are using not just one cloud today, but multiple clouds. Multi-cloud is emerging as the customer's default strategy for these primary reasons. First, they need to deliver the best digital and app experiences by choosing the location of their services based on the technical capabilities and performance. Second, they need to achieve business flexibility, lower costs, and better control and, as a result, avoid being locked into a single cloud. Third, they need sovereignty, which is about the ability to control where their data resides. These customer needs are addressed with our multi-cloud portfolio. Number one is application modernization and cloud management. This is where Tanzu and our cloud management portfolio are critical as customers build, run, and manage cloud-native workloads across public clouds. Number two is cloud-agnostic hybrid infrastructure with VMware Cloud, which provides a comprehensive platform for running enterprise workloads in private clouds and migrating them to any of the major public clouds. Number three are solutions that enable our customers to innovate at the edge and empower a more secure distributed workforce with Workspace ONE. And across all of these multi-cloud services, we have built our software-defined networking and Carbon Black cloud offering, which is a key component to provide zero trust security, flexibility, and agility across all clouds. Customers are using our Tanzu platform to drive a consistent developer and cloud operations experience across all of their clouds, including data centers. As an example, one of the world's largest tire manufacturers adopted the Tanzu portfolio to manage a large container runtime across their data center, Azure cloud, and a number of manufacturing locations at the edge. We are also continuing to see customers who are building their application platform across hybrid clouds adopting our complete stack for their private cloud environment that can extend to public cloud as needed. This full stack provides cost effectiveness and agility to run enterprise applications and build modern applications with our integrated Tanzu portfolio. For example, a Japanese automaker is building a next generation open scalable private cloud platform to modernize their business using VMware Cloud Foundation as their infrastructure stack and Tanzu for modernizing their applications. Customers are also seeing the value of VMware Cloud Universal as it provides them flexibility to move to the cloud at their own pace and gives them freedom to move applications based on business conditions. We continue to see momentum with our cloud partners, providing more choice and flexibility for our customers. In Q2, VMware Cloud on AWS customers continued to expand their usage as we delivered key engineering capabilities and footprint expansion, including a new AWS Milan region. We continued to strengthen our go-to-market relationship with AWS, including the ability to offer additional products, such as vRealize Cloud, via the AWS Resale channel. In April, we unveiled VMware SASE, a cloud-native scalable solution that serves as the one-stop shop for security and network services at the edge. VMware SASE provides customers a unified edge in the cloud service model with a single place to manage business policy, configuration, and monitoring. It is also a key component of the VMware Anywhere Workspace solution, which also includes VMware Workspace ONE and VMware Carbon Black Cloud and is designed to help companies deliver better and more secure experiences to their employees no matter where they are in the world. We continue to work with Zoom video communications during the quarter to drive interoperability between VMware Anywhere Workspace and the Zoom platform, enabling a better and more secure collaboration experience for hybrid work environments. We also added new innovations to VMware Horizon with new capabilities to make it easier for IT to manage deployments wherever they may be, on premises or in the cloud. Over the past few months, VMware garnered recognition from industry-leading analysts. VMware has been recognized as a leader in the August 2021 Gartner Magic Quadrant for unified endpoint management tools for the fourth consecutive year. Additionally, VMware was positioned as a leader in the Forrester Wave Endpoint Security Software as a Service, Q2 2021. And IDC ranked VMware number one in worldwide IT automation and configuration management 2020 market share, as well as ranking VMware number one in software-defined compute for 2020 market share. In Q2, we received recognition in support of our ESG efforts, including ranking in the top 1% in emissions intensity versus industry peers on the ISS climate scorecard for the fiscal year 2020. VMware was also named to the Forbes 2021 list of best employers for women and was recognized as the best place to work for disability inclusion in 2021. As we head into fall, Spring 1 and VMworld are both on the horizon. These events are the epicenter of industry conversations and breakthrough technological innovations. Spring 1 takes place September 1 and 2 and is optimized for developers, DevOps pros, and software leaders looking to build scalable apps and learn more about the Spring framework, Kubernetes, app modernization, and more. which takes place October 4th through 7th, will again be a virtual event where attendees will hear more about our multi-cloud strategy and offerings while also engaging in over 600 educational and technical content sessions while networking and connecting with peers. I look forward to seeing you online at these two events. We remain on track to spin off from Dell in early November of this year. As a standalone company, we will have increased strategic, operational, and financial flexibility to drive VMware's growth strategy while also strengthening our longstanding strategic relationship with Dell, a partnership we expect will continue to benefit our customers and partners as well as both Dell and VMware. I'll now turn it over to Zain for more detail on our business performance.