VMware's revenue drops by $600 million, Broadcom reassures investors growth plan remains on track

VMware's revenue dropped by $600 million in its first full quarter under Broadcom, with quarterly revenue at $2.7 billion compared to $3.28 billion pre-acquisition. Despite this, Broadcom CEO Hock Tan highlighted growth in forward bookings and significant cost reductions, with quarterly costs falling from $2.3 billion to $1.6 billion and targeting $1.2 billion. Tan emphasized progress in transitioning VMware products to subscription licensing, with 3,000 major customers signing multi-year deals. Broadcom's overall revenue rose to $12.5 billion, driven by strong AI-related product demand and networking revenue. Broadcom forecasts FY 2024 revenue of $51 billion and announced a ten-for-one stock split.