Broadcom Inc. Announces Third Quarter Fiscal Year 2024 Financial Results and Quarterly Dividend
Broadcom Inc. (AVGO) reported strong Q3 FY2024 results, with revenue up 47% year-over-year to $13.072 billion. The company's AI semiconductor solutions and VMware acquisition drove growth. Adjusted EBITDA increased 42% to $8.223 billion, representing 63% of revenue. Free cash flow was $4.791 billion, or 37% of revenue. However, Broadcom reported a GAAP net loss of $1.875 billion due to a one-time tax provision.
For Q4 FY2024, Broadcom projects revenue of approximately $14 billion, a 51% increase from the prior year, with Adjusted EBITDA at 64% of projected revenue. The company expects AI-related revenue to reach $12 billion for FY2024. Broadcom also declared a quarterly dividend of $0.53 per share.
Broadcom Inc. (AVGO) ha riportato risultati solidi per il terzo trimestre dell'anno fiscale 2024, con un aumento del fatturato del 47% rispetto all'anno precedente, raggiungendo 13,072 miliardi di dollari. Le soluzioni di semiconduttori per l'IA dell'azienda e l'acquisizione di VMware hanno guidato la crescita. L'EBITDA rettificato è aumentato del 42%, raggiungendo 8,223 miliardi di dollari, che corrisponde al 63% del fatturato. Il flusso di cassa libero è stato di 4,791 miliardi di dollari, ovvero il 37% del fatturato. Tuttavia, Broadcom ha riportato una perdita netta secondo i principi contabili GAAP di 1,875 miliardi di dollari a causa di una provvista fiscale una tantum.
Per il quarto trimestre dell'anno fiscale 2024, Broadcom prevede un fatturato di circa 14 miliardi di dollari, con un aumento del 51% rispetto all'anno precedente, e un EBITDA rettificato al 64% del fatturato previsto. L'azienda si aspetta che il fatturato legato all'IA raggiunga 12 miliardi di dollari per l'anno fiscale 2024. Broadcom ha inoltre dichiarato un dividendo trimestrale di 0,53 dollari per azione.
Broadcom Inc. (AVGO) reportó resultados sólidos en el tercer trimestre del año fiscal 2024, con ingresos que aumentaron un 47% interanual, alcanzando 13,072 mil millones de dólares. Las soluciones de semiconductores de IA de la compañía y la adquisición de VMware impulsaron el crecimiento. El EBITDA ajustado aumentó un 42% a 8,223 mil millones de dólares, representando el 63% de los ingresos. El flujo de caja libre fue de 4,791 mil millones de dólares, o el 37% de los ingresos. Sin embargo, Broadcom reportó una pérdida neta bajo los principios contables GAAP de 1,875 mil millones de dólares debido a un provisionamiento fiscal único.
Para el cuarto trimestre del año fiscal 2024, Broadcom proyecta ingresos de aproximadamente 14 mil millones de dólares, un aumento del 51% con respecto al año anterior, con un EBITDA ajustado del 64% de los ingresos proyectados. La compañía espera que los ingresos relacionados con IA alcancen 12 mil millones de dólares para el año fiscal 2024. Broadcom también declaró un dividendo trimestral de 0.53 dólares por acción.
Broadcom Inc. (AVGO)는 2024 회계연도 3분기 실적을 발표하며, 매출이 전년 대비 47% 증가하여 130.72억 달러에 달했다고 보고했습니다. 회사의 AI 반도체 솔루션과 VMware 인수로 성장세가 이끌어졌습니다. 조정 EBITDA는 42% 증가하여 82.23억 달러에 이르며 매출의 63%를 차지하고 있습니다. 자유 현금 흐름은 47.91억 달러로, 매출의 37%에 해당합니다. 그러나 Broadcom은 일회성 세금 충당금으로 인해 GAAP 기준 순손실이 18.75억 달러라고 보고했습니다.
2024 회계연도 4분기를 위해 Broadcom은 매출을 약 140억 달러로 예상하며, 이는 지난해 대비 51% 증가한 수치이고, 조정 EBITDA는 예상 매출의 64%에 달할 것으로 보입니다. 회사는 AI 관련 매출이 2024 회계연도에 120억 달러에 이를 것으로 기대하고 있습니다. Broadcom은 또한 주당 0.53달러의 분기 배당금을 발표했습니다.
Broadcom Inc. (AVGO) a annoncé des résultats solides pour le troisième trimestre de l'exercice 2024, avec un chiffre d'affaires en hausse de 47% par rapport à l'année précédente, atteignant 13,072 milliards de dollars. Les solutions de semi-conducteurs pour l'IA de l'entreprise et l'acquisition de VMware ont soutenu cette croissance. L'EBITDA ajusté a augmenté de 42% pour atteindre 8,223 milliards de dollars, représentant 63% du chiffre d'affaires. Le flux de trésorerie disponible s'est élevé à 4,791 milliards de dollars, soit 37% des revenus. Cependant, Broadcom a enregistré une perte nette de 1,875 milliard de dollars selon les normes GAAP en raison d'une provision fiscale unique.
Pour le quatrième trimestre de l'exercice 2024, Broadcom prévoit un chiffre d'affaires d'environ 14 milliards de dollars, soit une augmentation de 51% par rapport à l'année précédente, avec un EBITDA ajusté à 64% des revenus projetés. L'entreprise s'attend à ce que les revenus liés à l'IA atteignent 12 milliards de dollars pour l'exercice 2024. Broadcom a également déclaré un dividende trimestriel de 0,53 dollar par action.
Broadcom Inc. (AVGO) berichtete über starke Ergebnisse im dritten Quartal des Geschäftsjahres 2024, mit einem Umsatzanstieg von 47% im Jahresvergleich auf 13,072 Milliarden US-Dollar. Die KI-Halbleiterlösungen des Unternehmens und die Übernahme von VMware trugen zum Wachstum bei. Das bereinigte EBITDA stieg um 42% auf 8,223 Milliarden US-Dollar, was 63% des Umsatzes entspricht. Der freie Cashflow betrug 4,791 Milliarden US-Dollar oder 37% des Umsatzes. Broadcom berichtete jedoch über einen GAAP-Nettoverlust von 1,875 Milliarden US-Dollar aufgrund einer einmaligen Steuerbildung.
Für das vierte Quartal des Geschäftsjahres 2024 prognostiziert Broadcom einen Umsatz von etwa 14 Milliarden US-Dollar, was einem Anstieg von 51% gegenüber dem Vorjahr entspricht, mit einem bereinigten EBITDA von 64% des prognostizierten Umsatzes. Das Unternehmen erwartet, dass die KI-bezogenen Einnahmen im Geschäftsjahr 2024 12 Milliarden US-Dollar erreichen werden. Broadcom kündigte außerdem eine vierteljährliche Dividende von 0,53 US-Dollar pro Aktie an.
- Revenue increased 47% year-over-year to $13.072 billion
- Adjusted EBITDA grew 42% to $8.223 billion, representing 63% of revenue
- Free cash flow was $4.791 billion, or 37% of revenue
- Q4 FY2024 revenue guidance of $14 billion, up 51% year-over-year
- AI-related revenue expected to reach $12 billion for FY2024
- VMware integration progressing well, driving adjusted EBITDA margin to 64% of revenue
- GAAP net loss of $1.875 billion due to one-time tax provision of $4.5 billion
- GAAP diluted loss per share of $0.40 for the third quarter
Broadcom's Q3 FY2024 results showcase strong performance, particularly in AI-related segments. Revenue surged
However, a GAAP net loss of
Broadcom's focus on AI is paying off handsomely. The projected
The VMware acquisition is proving strategic, contributing significantly to revenue growth and margin expansion. This move strengthens Broadcom's position in the infrastructure software market, complementing its semiconductor business. The company's ability to maintain a
Broadcom's Q3 results reflect a company capitalizing on major tech trends, particularly AI and cloud infrastructure. The
The company's strong free cash flow generation of
- Revenue of
$13,072 million - GAAP net loss of
$1,875 million $6,120 million - Adjusted EBITDA of
$8,223 million - GAAP diluted loss per share of
$0.40 $1.24 - Cash from operations of
$4,963 million $172 million $4,791 million - Quarterly common stock dividend of
$0.53 - Fourth quarter fiscal year 2024 revenue guidance of approximately
$14.0 billion - Fourth quarter fiscal year 2024 Adjusted EBITDA guidance of approximately 64 percent of projected revenue (2)
"Broadcom's third quarter results reflect continued strength in our AI semiconductor solutions and VMware. We expect revenue from AI to be
"Consolidated revenue grew
(1) GAAP net loss of |
(2) The Company is not readily able to provide a reconciliation of the projected non-GAAP financial information presented to the relevant projected GAAP measure without unreasonable effort. |
Third Quarter Fiscal Year 2024 Financial Highlights
GAAP | Non-GAAP | |||||||||||||||||||
(Dollars in millions, except per share data) | Q3 24 | Q3 23 | Change | Q3 24 | Q3 23 | Change | ||||||||||||||
Net revenue | $ | 13,072 | $ | 8,876 | +47 | % | $ | 13,072 | $ | 8,876 | +47 | % | ||||||||
Net income (loss) | $ | (1,875) | $ | 3,303 | -$ | 5,178 | $ | 6,120 | $ | 4,596 | +$ | 1,524 | ||||||||
Earnings (loss) per common share - diluted | $ | (0.40) | $ | 0.77 | -$ | 1.17 | $ | 1.24 | $ | 1.05 | +$ | 0.19 | ||||||||
(Dollars in millions) | Q3 24 | Q3 23 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flow from operations | $ | 4,963 | $ | 4,719 | +$ | 244 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 8,223 | $ | 5,801 | +$ | 2,422 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Free cash flow | $ | 4,791 | $ | 4,597 | +$ | 194 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenue by segment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Q3 24 | Q3 23 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Semiconductor solutions | $ | 7,274 | 56 | % | $ | 6,941 | 78 | % | +5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Infrastructure software | 5,798 | 44 | 1,935 | 22 | +200 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total net revenue | $ | 13,072 | 100 | % | $ | 8,876 | 100 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Company's cash and cash equivalents at the end of the fiscal quarter were
During the third fiscal quarter, the Company generated
On June 28, 2024, the Company paid a cash dividend on a split adjusted basis of
On July 12, 2024, the Company completed a ten-for-one forward stock split. All share and per-share amounts presented have been retroactively adjusted to reflect the stock split.
The differences between the Company's GAAP and non-GAAP results are described generally under "Non-GAAP Financial Measures" below and presented in detail in the financial reconciliation tables attached to this release.
Fourth Quarter Fiscal Year 2024 Business Outlook
Based on current business trends and conditions, the outlook for the fourth quarter of fiscal year 2024, ending November 3, 2024, is expected to be as follows:
- Fourth quarter revenue guidance of approximately
$14.0 billion - Fourth quarter Adjusted EBITDA guidance of approximately 64 percent of projected revenue.
The guidance provided above is only an estimate of what the Company believes is realizable as of the date of this release. The Company is not readily able to provide a reconciliation of projected Adjusted EBITDA to projected net income without unreasonable effort. Actual results will vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.
Quarterly Dividends
The Company's Board of Directors has approved a quarterly cash dividend of
Financial Results Conference Call
Broadcom Inc. will host a conference call to review its financial results for the third quarter of fiscal year 2024 and to discuss the business outlook today at 2:00 p.m. Pacific Time.
To Listen via Internet: The conference call can be accessed live online in the Investors section of the Broadcom website at https://investors.broadcom.com/.
To Listen via Telephone: Preregistration is required by the conference call operator. Please preregister at https://register.vevent.com/register/BI2e2492b9ea69411db142832ceb22d56e. Upon registering, a link to the dial-in number and unique PIN will be emailed to the registrant.
Replay: An audio replay of the conference call can be accessed for one year through the Investors section of Broadcom's website at https://investors.broadcom.com/.
Non-GAAP Financial Measures
The non-GAAP measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A reconciliation between GAAP and non-GAAP financial data is included in the supplemental financial data attached to this press release. Broadcom believes non-GAAP financial information provides additional insight into the Company's on-going performance. Therefore, Broadcom provides this information to investors for a more consistent basis of comparison and to help them evaluate the results of the Company's on-going operations and enable more meaningful period to period comparisons.
In addition to GAAP reporting, Broadcom provides investors with net income, operating income, gross margin, operating expenses, cash flow and other data on a non-GAAP basis. This non-GAAP information excludes amortization of acquisition-related intangible assets, stock-based compensation expense, restructuring and other charges, acquisition-related costs, including integration costs, non-GAAP tax reconciling adjustments, and other adjustments. Management does not believe that these items are reflective of the Company's underlying performance. Internally, these non-GAAP measures are significant measures used by management for purposes of evaluating the core operating performance of the Company, establishing internal budgets, calculating return on investment for development programs and growth initiatives, comparing performance with internal forecasts and targeted business models, strategic planning, evaluating and valuing potential acquisition candidates and how their operations compare to the Company's operations, and benchmarking performance externally against the Company's competitors. The exclusion of these and other similar items from Broadcom's non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent or unusual.
Free cash flow measures have limitations as they omit certain components of the overall cash flow statement and do not represent the residual cash flow available for discretionary expenditures. Investors should not consider presentation of free cash flow measures as implying that stockholders have any right to such cash. Broadcom's free cash flow may not be calculated in a manner comparable to similarly named measures used by other companies.
About Broadcom
Broadcom Inc. (NASDAQ: AVGO) is a global technology leader that designs, develops, and supplies a broad range of semiconductor, enterprise software and security solutions. Broadcom's category-leading product portfolio serves critical markets including cloud, data center, networking, broadband, wireless, storage, industrial, and enterprise software. Our solutions include service provider and enterprise networking and storage, mobile device and broadband connectivity, mainframe, cybersecurity, and private and hybrid cloud infrastructure. Broadcom is a
Cautionary Note Regarding Forward-Looking Statements
This announcement contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concerning Broadcom. These statements include, but are not limited to, statements that address our expected future business and financial performance, and other statements identified by words such as "will," "expect," "believe," "anticipate," "estimate," "should," "intend," "plan," "potential," "predict," "project," "aim," and similar words, phrases or expressions. These forward-looking statements are based on current expectations and beliefs of Broadcom's management, current information available to Broadcom's management, and current market trends and market conditions and involve risks and uncertainties that may cause actual results to differ materially from those contained in forward-looking statements. Accordingly, undue reliance should not be placed on such statements.
Particular uncertainties that could materially affect future results include risks associated with: global economic conditions and concerns; government regulations and administrative proceedings, trade restrictions and trade tensions; global political and economic conditions; our acquisition of VMware, Inc., including employee retention, unexpected costs, charges or expenses, and our ability to successfully integrate VMware's business and realize the expected benefits; any acquisitions or dispositions we may make, including our acquisition of VMware, such as delays, challenges and expenses associated with receiving governmental and regulatory approvals and satisfying other closing conditions, and with integrating acquired businesses with our existing businesses and our ability to achieve the benefits, growth prospects and synergies expected by such acquisitions; dependence on and risks associated with distributors and resellers of our products; our significant indebtedness and the need to generate sufficient cash flows to service and repay such debt; dependence on senior management and our ability to attract and retain qualified personnel; our ability to protect against cyber security threats and a breach of security systems; cyclicality in the semiconductor industry or in our target markets; any loss of our significant customers and fluctuations in the timing and volume of significant customer demand; our dependence on contract manufacturing and outsourced supply chain; our dependency on a limited number of suppliers; our ability to accurately estimate customers' demand and adjust our manufacturing and supply chain accordingly; our ability to continue achieving design wins with our customers, as well as the timing of any design wins; prolonged disruptions of our or our contract manufacturers' manufacturing facilities, warehouses or other significant operations; our ability to improve our manufacturing efficiency and quality; involvement in legal proceedings; demand for our data center virtualization products; ability of our software products to manage and secure IT infrastructures and environments; ability to manage customer and market acceptance of our products and services; compatibility of our software products with operating environments, platforms or third-party products; our ability to enter into satisfactory software license agreements; availability of third-party software used in our products; use of open source software in our products; sales to government customers; our ability to manage products and services lifecycles; quarterly and annual fluctuations in operating results; our competitive performance; our ability to maintain or improve gross margin; our ability to protect our intellectual property and the unpredictability of any associated litigation expenses; any expenses or reputational damage associated with resolving customer product warranty and indemnification claims, or other undetected defects or bugs; our ability to sell to new types of customers and to keep pace with technological advances; our compliance with privacy and data security laws; fluctuations in foreign exchange rates; our provision for income taxes and overall cash tax costs, legislation that may impact our overall cash tax costs, our ability to maintain tax concessions in certain jurisdictions and potential tax liabilities as a result of acquiring VMware; and other events and trends on a national, regional, industry-specific and global scale, including those of a political, economic, business, competitive and regulatory nature.
Our filings with the SEC, which are available without charge at the SEC's website at https://www.sec.gov, discuss some of the important risk factors that may affect our business, results of operations and financial condition. Actual results may vary from the estimates provided. We undertake no intent or obligation to publicly update or revise any of the estimates and other forward-looking statements made in this announcement, whether as a result of new information, future events or otherwise, except as required by law.
Contact:
Ji Yoo
Broadcom Inc.
Investor Relations
650-427-6000
investor.relations@broadcom.com
(AVGO-Q)
BROADCOM INC. | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED | |||||||||||||||
(IN MILLIONS, EXCEPT PER SHARE DATA) | |||||||||||||||
Fiscal Quarter Ended | Three Fiscal Quarters Ended | ||||||||||||||
August 4, | May 5, | July 30, | August 4, | July 30, | |||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||
Net revenue | $ | 13,072 | $ | 12,487 | $ | 8,876 | $ | 37,520 | $ | 26,524 | |||||
Cost of revenue: | |||||||||||||||
Cost of revenue | 3,133 | 3,142 | 2,272 | 9,389 | 6,823 | ||||||||||
Amortization of acquisition-related intangible assets | 1,525 | 1,516 | 439 | 4,421 | 1,415 | ||||||||||
Restructuring charges | 58 | 53 | 1 | 203 | 3 | ||||||||||
Total cost of revenue | 4,716 | 4,711 | 2,712 | 14,013 | 8,241 | ||||||||||
Gross margin | 8,356 | 7,776 | 6,164 | 23,507 | 18,283 | ||||||||||
Research and development | 2,353 | 2,415 | 1,358 | 7,076 | 3,865 | ||||||||||
Selling, general and administrative | 1,100 | 1,277 | 388 | 3,949 | 1,174 | ||||||||||
Amortization of acquisition-related intangible assets | 812 | 827 | 350 | 2,431 | 1,046 | ||||||||||
Restructuring and other charges | 303 | 292 | 212 | 1,215 | 231 | ||||||||||
Total operating expenses | 4,568 | 4,811 | 2,308 | 14,671 | 6,316 | ||||||||||
Operating income | 3,788 | 2,965 | 3,856 | 8,836 | 11,967 | ||||||||||
Interest expense | (1,064) | (1,047) | (406) | (3,037) | (1,217) | ||||||||||
Other income, net | 82 | 87 | 124 | 354 | 380 | ||||||||||
Income from continuing operations before income taxes | 2,806 | 2,005 | 3,574 | 6,153 | 11,130 | ||||||||||
Provision for (benefit from) income taxes | 4,238 | (116) | 271 | 4,190 | 572 | ||||||||||
Income (loss) from continuing operations | (1,432) | 2,121 | 3,303 | 1,963 | 10,558 | ||||||||||
Loss from discontinued operations, net of income taxes | (443) | - | - | (392) | - | ||||||||||
Net income (loss) | $ | (1,875) | $ | 2,121 | $ | 3,303 | $ | 1,571 | $ | 10,558 | |||||
Basic income (loss) per share: | |||||||||||||||
Income (loss) per share from continuing operations | $ | (0.31) | $ | 0.46 | $ | 0.80 | $ | 0.43 | $ | 2.54 | |||||
Loss per share from discontinued operations | (0.09) | - | - | (0.09) | - | ||||||||||
Net income (loss) per share | $ | (0.40) | $ | 0.46 | $ | 0.80 | $ | 0.34 | $ | 2.54 | |||||
Diluted income (loss) per share: | |||||||||||||||
Income (loss) per share from continuing operations | $ | (0.31) | $ | 0.44 | $ | 0.77 | $ | 0.41 | $ | 2.47 | |||||
Loss per share from discontinued operations | (0.09) | - | - | (0.08) | - | ||||||||||
Net income (loss) per share | $ | (0.40) | $ | 0.44 | $ | 0.77 | $ | 0.33 | $ | 2.47 | |||||
Weighted-average shares used in per share calculations: | |||||||||||||||
Basic | 4,663 | 4,645 | 4,130 | 4,606 | 4,154 | ||||||||||
Diluted | 4,663 | 4,799 | 4,269 | 4,762 | 4,274 | ||||||||||
Stock-based compensation expense included in continuing operations: | |||||||||||||||
Cost of revenue | $ | 174 | $ | 170 | $ | 61 | $ | 505 | $ | 148 | |||||
Research and development | 877 | 881 | 444 | 2,621 | 1,065 | ||||||||||
Selling, general and administrative | 330 | 352 | 124 | 1,230 | 320 | ||||||||||
Total stock-based compensation expense | $ | 1,381 | $ | 1,403 | $ | 629 | $ | 4,356 | $ | 1,533 | |||||
BROADCOM INC. | |||||||||||||||
FINANCIAL RECONCILIATION: GAAP TO NON-GAAP - UNAUDITED | |||||||||||||||
(IN MILLIONS) | |||||||||||||||
Fiscal Quarter Ended | Three Fiscal Quarters Ended | ||||||||||||||
August 4, | May 5, | July 30, | August 4, | July 30, | |||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||
Gross margin on GAAP basis | $ | 8,356 | $ | 7,776 | $ | 6,164 | $ | 23,507 | $ | 18,283 | |||||
Amortization of acquisition-related intangible assets | 1,525 | 1,516 | 439 | 4,421 | 1,415 | ||||||||||
Stock-based compensation expense | 174 | 170 | 61 | 505 | 148 | ||||||||||
Restructuring charges | 58 | 53 | 1 | 203 | 3 | ||||||||||
Acquisition-related costs | - | 3 | - | 9 | - | ||||||||||
Gross margin on non-GAAP basis | $ | 10,113 | $ | 9,518 | $ | 6,665 | $ | 28,645 | $ | 19,849 | |||||
Research and development on GAAP basis | $ | 2,353 | $ | 2,415 | $ | 1,358 | $ | 7,076 | $ | 3,865 | |||||
Stock-based compensation expense | 877 | 881 | 444 | 2,621 | 1,065 | ||||||||||
Acquisition-related costs | 2 | - | 1 | 3 | - | ||||||||||
Research and development on non-GAAP basis | $ | 1,474 | $ | 1,534 | $ | 913 | $ | 4,452 | $ | 2,800 | |||||
Selling, general and administrative expense on GAAP basis | $ | 1,100 | $ | 1,277 | $ | 388 | $ | 3,949 | $ | 1,174 | |||||
Stock-based compensation expense | 330 | 352 | 124 | 1,230 | 320 | ||||||||||
Acquisition-related costs | 79 | 87 | 48 | 451 | 183 | ||||||||||
Selling, general and administrative expense on non-GAAP basis | $ | 691 | $ | 838 | $ | 216 | $ | 2,268 | $ | 671 | |||||
Total operating expenses on GAAP basis | $ | 4,568 | $ | 4,811 | $ | 2,308 | $ | 14,671 | $ | 6,316 | |||||
Amortization of acquisition-related intangible assets | 812 | 827 | 350 | 2,431 | 1,046 | ||||||||||
Stock-based compensation expense | 1,207 | 1,233 | 568 | 3,851 | 1,385 | ||||||||||
Restructuring and other charges | 303 | 292 | 212 | 1,215 | 231 | ||||||||||
Acquisition-related costs | 81 | 87 | 49 | 454 | 183 | ||||||||||
Total operating expenses on non-GAAP basis | $ | 2,165 | $ | 2,372 | $ | 1,129 | $ | 6,720 | $ | 3,471 | |||||
Operating income on GAAP basis | $ | 3,788 | $ | 2,965 | $ | 3,856 | $ | 8,836 | $ | 11,967 | |||||
Amortization of acquisition-related intangible assets | 2,337 | 2,343 | 789 | 6,852 | 2,461 | ||||||||||
Stock-based compensation expense | 1,381 | 1,403 | 629 | 4,356 | 1,533 | ||||||||||
Restructuring and other charges | 361 | 345 | 213 | 1,418 | 234 | ||||||||||
Acquisition-related costs | 81 | 90 | 49 | 463 | 183 | ||||||||||
Operating income on non-GAAP basis | $ | 7,948 | $ | 7,146 | $ | 5,536 | $ | 21,925 | $ | 16,378 | |||||
Interest expense on GAAP basis | $ | (1,064) | $ | (1,047) | $ | (406) | $ | (3,037) | $ | (1,217) | |||||
Loss on debt extinguishment | 83 | 22 | - | 105 | - | ||||||||||
Interest expense on non-GAAP basis | $ | (981) | $ | (1,025) | $ | (406) | $ | (2,932) | $ | (1,217) | |||||
Other income, net on GAAP basis | $ | 82 | $ | 87 | $ | 124 | $ | 354 | $ | 380 | |||||
(Gains) losses on investments | 6 | 9 | (2) | (18) | (35) | ||||||||||
Other income, net on non-GAAP basis | $ | 88 | $ | 96 | $ | 122 | $ | 336 | $ | 345 | |||||
Provision for (benefit from) income taxes on GAAP basis | $ | 4,238 | $ | (116) | $ | 271 | $ | 4,190 | $ | 572 | |||||
Non-GAAP tax reconciling adjustments (1) | (3,303) | 939 | 385 | (1,629) | 1,366 | ||||||||||
Provision for income taxes on non-GAAP basis | $ | 935 | $ | 823 | $ | 656 | $ | 2,561 | $ | 1,938 | |||||
Net income (loss) on GAAP basis | $ | (1,875) | $ | 2,121 | $ | 3,303 | $ | 1,571 | $ | 10,558 | |||||
Amortization of acquisition-related intangible assets | 2,337 | 2,343 | 789 | 6,852 | 2,461 | ||||||||||
Stock-based compensation expense | 1,381 | 1,403 | 629 | 4,356 | 1,533 | ||||||||||
Restructuring and other charges | 361 | 345 | 213 | 1,418 | 234 | ||||||||||
Acquisition-related costs | 81 | 90 | 49 | 463 | 183 | ||||||||||
Loss on debt extinguishment | 83 | 22 | - | 105 | - | ||||||||||
(Gains) losses on investments | 6 | 9 | (2) | (18) | (35) | ||||||||||
Non-GAAP tax reconciling adjustments (1) | 3,303 | (939) | (385) | 1,629 | (1,366) | ||||||||||
Loss from discontinued operations, net of income taxes | 443 | - | - | 392 | - | ||||||||||
Net income on non-GAAP basis | $ | 6,120 | $ | 5,394 | $ | 4,596 | $ | 16,768 | $ | 13,568 | |||||
Net income (loss) on GAAP basis | $ | (1,875) | $ | 2,121 | $ | 3,303 | $ | 1,571 | $ | 10,558 | |||||
Non-GAAP Adjustments: | |||||||||||||||
Amortization of acquisition-related intangible assets | 2,337 | 2,343 | 789 | 6,852 | 2,461 | ||||||||||
Stock-based compensation expense | 1,381 | 1,403 | 629 | 4,356 | 1,533 | ||||||||||
Restructuring and other charges | 361 | 345 | 213 | 1,418 | 234 | ||||||||||
Acquisition-related costs | 81 | 90 | 49 | 463 | 183 | ||||||||||
Loss on debt extinguishment | 83 | 22 | - | 105 | - | ||||||||||
(Gains) losses on investments | 6 | 9 | (2) | (18) | (35) | ||||||||||
Non-GAAP tax reconciling adjustments (1) | 3,303 | (939) | (385) | 1,629 | (1,366) | ||||||||||
Loss from discontinued operations, net of income taxes | 443 | - | - | 392 | - | ||||||||||
Other Adjustments: | |||||||||||||||
Interest expense | 981 | 1,025 | 406 | 2,932 | 1,217 | ||||||||||
Provision for income taxes on non-GAAP basis | 935 | 823 | 656 | 2,561 | 1,938 | ||||||||||
Depreciation | 149 | 149 | 122 | 437 | 378 | ||||||||||
Amortization of purchased intangibles and right-of-use assets | 38 | 38 | 21 | 110 | 64 | ||||||||||
Adjusted EBITDA | $ | 8,223 | $ | 7,429 | $ | 5,801 | $ | 22,808 | $ | 17,165 | |||||
Weighted-average shares used in per share calculations - diluted on GAAP basis | 4,663 | 4,799 | 4,269 | 4,762 | 4,274 | ||||||||||
Non-GAAP adjustment (2) | 254 | 117 | 94 | 106 | 80 | ||||||||||
Weighted-average shares used in per share calculations - diluted on non-GAAP basis | 4,917 | 4,916 | 4,363 | 4,868 | 4,354 | ||||||||||
Net cash provided by operating activities | $ | 4,963 | $ | 4,580 | $ | 4,719 | $ | 14,358 | $ | 13,257 | |||||
Purchases of property, plant and equipment | (172) | (132) | (122) | (426) | (347) | ||||||||||
Free cash flow | $ | 4,791 | $ | 4,448 | $ | 4,597 | $ | 13,932 | $ | 12,910 | |||||
Fiscal Quarter | |||||||||||||||
November 3, | |||||||||||||||
Expected average diluted share count: | 2024 | ||||||||||||||
Weighted-average shares used in per share calculation - diluted on GAAP basis | 4,824 | ||||||||||||||
Non-GAAP adjustment (2) | 88 | ||||||||||||||
Weighted-average shares used in per share calculation - diluted on non-GAAP basis | 4,912 | ||||||||||||||
(1) Non-GAAP tax reconciling adjustments included a one-time discrete non-cash tax provision of | |||||||||||||||
(2) Non-GAAP adjustment for the number of shares used in the diluted per share calculations excludes the impact of stock-based | |||||||||||||||
BROADCOM INC. | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED | |||||||
(IN MILLIONS) | |||||||
August 4, | October 29, | ||||||
2024 | 2023 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 9,952 | $ | 14,189 | |||
Trade accounts receivable, net | 4,665 | 3,154 | |||||
Inventory | 1,894 | 1,898 | |||||
Other current assets | 3,436 | 1,606 | |||||
Total current assets | 19,947 | 20,847 | |||||
Long-term assets: | |||||||
Property, plant and equipment, net | 2,602 | 2,154 | |||||
Goodwill | 97,873 | 43,653 | |||||
Intangible assets, net | 43,034 | 3,867 | |||||
Other long-term assets | 4,510 | 2,340 | |||||
Total assets | $ | 167,966 | $ | 72,861 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,757 | $ | 1,210 | |||
Employee compensation and benefits | 1,725 | 935 | |||||
Current portion of long-term debt | 3,161 | 1,608 | |||||
Other current liabilities | 12,578 | 3,652 | |||||
Total current liabilities | 19,221 | 7,405 | |||||
Long-term liabilities: | |||||||
Long-term debt | 66,798 | 37,621 | |||||
Other long-term liabilities | 16,296 | 3,847 | |||||
Total liabilities | 102,315 | 48,873 | |||||
Stockholders' equity: | |||||||
Preferred stock | - | - | |||||
Common stock | 5 | 4 | |||||
Additional paid-in capital | 67,313 | 21,095 | |||||
Retained earnings (accumulated deficit) | (1,875) | 2,682 | |||||
Accumulated other comprehensive income | 208 | 207 | |||||
Total stockholders' equity | 65,651 | 23,988 | |||||
Total liabilities and equity | $ | 167,966 | $ | 72,861 | |||
BROADCOM INC. | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED | |||||||||||||||
(IN MILLIONS) | |||||||||||||||
Fiscal Quarter Ended | Three Fiscal Quarters Ended | ||||||||||||||
August 4, | May 5, | July 30, | August 4, | July 30, | |||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income (loss) | $ | (1,875) | $ | 2,121 | $ | 3,303 | $ | 1,571 | $ | 10,558 | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||
Amortization of intangible and right-of-use assets | 2,375 | 2,381 | 810 | 6,962 | 2,525 | ||||||||||
Depreciation | 149 | 149 | 122 | 437 | 378 | ||||||||||
Stock-based compensation | 1,388 | 1,457 | 629 | 4,427 | 1,533 | ||||||||||
Deferred taxes and other non-cash taxes | 3,638 | (511) | (251) | 2,833 | (1,140) | ||||||||||
Loss on debt extinguishment | 83 | 22 | - | 105 | - | ||||||||||
Non-cash interest expense | 115 | 119 | 33 | 336 | 98 | ||||||||||
Other | 158 | 70 | - | 266 | (18) | ||||||||||
Changes in assets and liabilities, net of acquisitions and disposals: | |||||||||||||||
Trade accounts receivable, net | 835 | (513) | 135 | 2,078 | 44 | ||||||||||
Inventory | (52) | 82 | 44 | 16 | 83 | ||||||||||
Accounts payable | 373 | (93) | 188 | 206 | (6) | ||||||||||
Employee compensation and benefits | 291 | 251 | 184 | (118) | (382) | ||||||||||
Other current assets and current liabilities | (1,345) | (386) | (339) | (3,913) | 66 | ||||||||||
Other long-term assets and long-term liabilities | (1,170) | (569) | (139) | (848) | (482) | ||||||||||
Net cash provided by operating activities | 4,963 | 4,580 | 4,719 | 14,358 | 13,257 | ||||||||||
Cash flows from investing activities: | |||||||||||||||
Acquisitions of businesses, net of cash acquired | (2) | (560) | (17) | (25,978) | (17) | ||||||||||
Proceeds from sale of business | 3,485 | - | - | 3,485 | - | ||||||||||
Purchases of property, plant and equipment | (172) | (132) | (122) | (426) | (347) | ||||||||||
Purchases of investments | (73) | (59) | (91) | (145) | (288) | ||||||||||
Sales of investments | 5 | 42 | 74 | 136 | 74 | ||||||||||
Other | 2 | 3 | 12 | (10) | 13 | ||||||||||
Net cash provided by (used in) investing activities | 3,245 | (706) | (144) | (22,938) | (565) | ||||||||||
Cash flows from financing activities: | |||||||||||||||
Proceeds from long-term borrowings | 4,975 | - | - | 34,985 | - | ||||||||||
Payments on debt obligations | (9,202) | (2,000) | - | (12,136) | (260) | ||||||||||
Payments of dividends | (2,452) | (2,443) | (1,901) | (7,330) | (5,741) | ||||||||||
Repurchases of common stock - repurchase program | - | - | (1,707) | (7,176) | (5,701) | ||||||||||
Shares repurchased for tax withholdings on vesting of equity awards | (1,350) | (1,548) | (460) | (4,012) | (1,407) | ||||||||||
Issuance of common stock | - | 64 | - | 64 | 63 | ||||||||||
Other | (36) | (2) | (5) | (52) | (7) | ||||||||||
Net cash provided by (used in) financing activities | (8,065) | (5,929) | (4,073) | 4,343 | (13,053) | ||||||||||
Net change in cash and cash equivalents | 143 | (2,055) | 502 | (4,237) | (361) | ||||||||||
Cash and cash equivalents at beginning of period | 9,809 | 11,864 | 11,553 | 14,189 | 12,416 | ||||||||||
Cash and cash equivalents at end of period | $ | 9,952 | $ | 9,809 | $ | 12,055 | $ | 9,952 | $ | 12,055 | |||||
Supplemental disclosure of cash flow information: | |||||||||||||||
Cash paid for interest | $ | 816 | $ | 946 | $ | 348 | $ | 2,512 | $ | 1,106 | |||||
Cash paid for income taxes | $ | 585 | $ | 834 | $ | 427 | $ | 2,323 | $ | 1,591 | |||||
View original content:https://www.prnewswire.com/news-releases/broadcom-inc-announces-third-quarter-fiscal-year-2024-financial-results-and-quarterly-dividend-302239930.html
SOURCE Broadcom Inc.
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