"Broadcom's third quarter results reflect continued strength in our AI semiconductor solutions and VMware. We expect revenue from AI to be $12 billion for fiscal year 2024 driven by Ethernet networking and custom accelerators for AI data centers," said Hock Tan, President and CEO of Broadcom Inc. "The transformation of VMware continues to progress very well. The integration of VMware is driving adjusted EBITDA margin to 64% of revenue as we exit fiscal year 2024."
"Consolidated revenue grew 47% year-over-year to $13.1 billion, including the contribution from VMware, and was up 4% year-over-year, excluding VMware. Adjusted EBITDA increased 42% year-over-year to $8.2 billion," said Kirsten Spears, CFO of Broadcom Inc. "Free cash flow, excluding restructuring and integration in the quarter, was $5.3 billion, up 14% year-over-year."
(1) GAAP net loss of $1,875 million for the third quarter included a one-time discrete non-cash tax provision of $4.5 billion from the impact of an intra-group transfer of certain IP rights to the United States as a result of supply chain realignment. |
(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
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| GAAP |
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| 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 |
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| $ | 6,120 |
| $ | 4,596 |
| +$ | 1,524 |
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Earnings (loss) per common share - diluted |
| $ | (0.40) |
| $ | 0.77 |
| -$ | 1.17 |
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| $ | 1.24 |
| $ | 1.05 |
| +$ | 0.19 |
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| Q3 23 |
| Change | |||
| Cash flow from operations |
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| $ | 4,963 |
| $ | 4,719 |
| +$ | 244 |
| Adjusted EBITDA |
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| $ | 8,223 |
| $ | 5,801 |
| +$ | 2,422 |
| Free cash flow |
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| $ | 4,791 |
| $ | 4,597 |
| +$ | 194 |
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| Net revenue by segment |
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| Q3 24 |
| Q3 23 |
| Change | |||||||||
| Semiconductor solutions |
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| $ | 7,274 |
| 56 | % | $ | 6,941 |
| 78 | % | +5 | % | ||
| Infrastructure software |
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| 5,798 |
| 44 |
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| 1,935 |
| 22 |
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| +200 | % |
| Total net revenue |
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| $ | 13,072 |
| 100 | % |
| $ | 8,876 |
| 100 | % |
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