VMWare Inc.’s revenue and earnings exceeded analysts’ estimates of healthy revenue growth of 11% in the third quarter as the company’s message to help customers migrate to multi-cloud environments appeared to have been received.

“It is clear that Multicloud will be the model for digital business for the next 20 years,” said Chief Executive Raghu Raghuram (pictured), who took over the management of the company just over six months ago.

Revenue rose to $ 3.19 billion from $ 2.86 billion a year ago, better than the average analyst estimate of $ 3.12 billion. Net income increased 3% year over year to $ 725 million, or $ 1.72 per diluted share.

Annual recurring revenue from subscriptions and software-as-a-service, a key indicator of VMware’s transition from product to service provider, rose 25% to $ 3.31 billion. That’s better than the 23% growth the company reported in the previous quarter, a surprising slowdown that set the stock back 6% in one day. However,…

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