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Aug 04, 2024

Broadcom Q3 2024 Earnings Report

Broadcom's Q3 2024 financial results were announced, revealing a significant revenue increase driven by AI semiconductor solutions and VMware.

Key Takeaways

Broadcom's Q3 2024 results showed strong revenue growth, up 47% year-over-year to $13.1 billion, driven by AI semiconductor solutions and the inclusion of VMware. The company reported a GAAP net loss of $1.875 billion, but a non-GAAP net income of $6.120 billion. Looking forward, Broadcom anticipates continued growth, projecting approximately $14.0 billion in revenue for Q4 2024.

Revenue reached $13,072 million, a 47% increase compared to the prior year.

GAAP net loss was $1,875 million, while non-GAAP net income amounted to $6,120 million.

Adjusted EBITDA was $8,223 million, representing 63% of revenue.

Q4 2024 revenue is projected to be approximately $14.0 billion, including VMware's contribution.

Total Revenue
$13.1B
Previous year: $8.88B
+47.3%
EPS
$1.24
Previous year: $1.05
+18.1%
Adjusted EBITDA
$8.22B
Previous year: $5.8B
+41.8%
Gross Profit
$7.6B
Previous year: $6.16B
+23.3%
Cash and Equivalents
$9.95B
Previous year: $12.1B
-17.4%
Free Cash Flow
$4.79B
Previous year: $4.6B
+4.2%
Total Assets
$168B
Previous year: $71.6B
+134.6%

Broadcom

Broadcom

Broadcom Revenue by Segment

Forward Guidance

Broadcom anticipates approximately $14.0 billion in revenue for Q4 2024, including VMware, which represents a 51% increase from the prior year. Adjusted EBITDA is projected to be approximately 64% of the projected revenue.

Positive Outlook

  • Fourth quarter revenue guidance of approximately $14.0 billion.
  • Includes contribution from VMware.
  • Represents an increase of 51% from the prior year period.
  • Fourth quarter Adjusted EBITDA guidance of approximately 64% of projected revenue.
  • Integration of VMware is driving adjusted EBITDA margin to 64% of revenue as we exit fiscal year 2024.

Challenges Ahead

  • Actual results will vary from the guidance and the variations may be material.
  • Global economic conditions and concerns
  • Government regulations and administrative proceedings, trade restrictions and trade tensions
  • Global political and economic conditions
  • Dependence on and risks associated with distributors and resellers of our products

Revenue & Expenses

Visualization of income flow from segment revenue to net income