Broadcom Inc. Announces First Quarter Fiscal Year 2024 Financial Results and Quarterly Dividend
PR Newswire
PALO ALTO, Calif., March 7, 2024
-- Revenue of $11,961 million for the first quarter, up 34 percent from the
prior year period
-- Cash from operations of $4,815 million for the first quarter, less
capital expenditures of $122 million, resulted in $4,693 million of free
cash flow, or 39 percent of revenue
-- GAAP net income of $1,325 million for the first quarter; Non-GAAP net
income of $5,254 million for the first quarter
-- Adjusted EBITDA of $7,156 million for the first quarter, or 60 percent of
revenue
-- GAAP diluted EPS of $2.84 for the first quarter; Non-GAAP diluted EPS of
$10.99 for the first quarter
-- Quarterly common stock dividend of $5.25 per share
-- Repurchased and eliminated 7.7 million shares for $8,290 million
-- Fiscal 2024 annual revenue guidance of approximately $50.0 billion
including contribution from VMware, an increase of 40 percent from the
prior year period
-- Fiscal 2024 annual Adjusted EBITDA guidance of approximately 60 percent
of projected revenue (1)
PALO ALTO, Calif., March 7, 2024 /PRNewswire/ — Broadcom Inc. (Nasdaq: AVGO), a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, today reported financial results for its first quarter of fiscal year 2024, ended February 4, 2024, provided guidance for its fiscal year 2024 and announced its quarterly dividend.
“We are pleased to have two strong drivers of revenue growth for Broadcom in the first quarter and fiscal year 2024. First, our acquisition of VMware is accelerating revenue growth in our infrastructure software segment, as customers deploy VMware Cloud Foundation. Second, strong demand for our networking products in AI data centers, as well as custom AI accelerators from hyperscalers, are driving growth in our semiconductor segment,” said Hock Tan, President and CEO of Broadcom Inc. “We reiterate our fiscal year 2024 guidance for consolidated revenue of $50 billion and adjusted EBITDA of $30 billion.”
“Consolidated revenue grew 34% year-over-year to $12.0 billion, including the contribution from VMware, and was up 11% year-over-year, excluding VMware. Adjusted EBITDA increased 26% year-over-year to $7.2 billion,” said Kirsten Spears, CFO of Broadcom Inc. “Free cash flow, excluding restructuring in the quarter, continued to be strong at $5.4 billion. We have started to pay down debt, beginning with $3 billion to date in 2024, and expect to continue to pay down debt in fiscal year 2024.”
First Quarter Fiscal Year 2024 Financial Highlights
GAAP Non-GAAP
-------------------------- -----------------------------
(Dollars in millions,
except per share
data) Q1 24 Q1 23 Change Q1 24 Q1 23 Change
---------------------- ------- ------ --------- ------- ------ ------------
Net revenue $11,961 $8,915 +34 % $11,961 $8,915 +34%
Net income $ 1,325 $3,774 -$ 2,449 $ 5,254 $4,483 +$ 771
Earnings per common
share - diluted $ 2.84 $ 8.80 -$ 5.96 $ 10.99 $10.33 +$ 0.66
(Dollars in millions) Q1 24 Q1 23 Change
---------------------- ------ ------ ---------
Cash flow from operations $4,815 $4,036 +$ 779
Adjusted EBITDA $7,156 $5,678 +$ 1,478
Free cash flow $4,693 $3,933 +$ 760
Net revenue by segment
----------------------
(Dollars in millions) Q1 24 Q1 23 Change
---------------------- ---------------- --------------- --------
Semiconductor solutions $ 7,390 62 % $7,107 80 % +4%
Infrastructure software 4,571 38 1,808 20 +153%
Total net revenue $11,961 100% $8,915 100%
====== === ===== ===
The Company’s cash and cash equivalents at the end of the fiscal quarter were $11,864 million, compared to $14,189 million at the end of the prior quarter.
During the first fiscal quarter, the Company generated $4,815 million in cash from operations and spent $122 million on capital expenditures. The Company spent $8,290 million on share repurchases and eliminations, consisting of $7,176 million in repurchases of 6.7 million shares and $1,114 million of withholding tax payments related to net settled equity awards that vested in the quarter (representing approximately 1.0 million shares withheld).
On December 29, 2023, the Company paid a cash dividend of $5.25 per share, totaling $2,435 million.
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.
Fiscal Year 2024 Business Outlook
Based on current business trends and conditions, the outlook for continuing operations for fiscal year 2024, ending November 3, 2024, including the contribution from VMware, is expected to be as follows:
-- Fiscal year 2024 revenue guidance of approximately $50.0 billion; and
-- Fiscal year 2024 Adjusted EBITDA guidance of approximately 60 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 $5.25 per share. The dividend is payable on March 29, 2024 to stockholders of record at the close of business (5:00 p.m. Eastern Time) on March 21, 2024.