In This Article:
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Revenue: $11.96 billion, a 34% increase from the prior year period.
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Free Cash Flow: $4.69 billion, representing 39% of revenue.
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GAAP Net Income: $1.33 billion, with a GAAP diluted EPS of $2.84.
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Non-GAAP Net Income: $5.25 billion, with a Non-GAAP diluted EPS of $10.99.
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Adjusted EBITDA: $7.16 billion, or 60% of revenue.
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Quarterly Dividend: $5.25 per share.
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Share Repurchases: 7.7 million shares eliminated for $8.29 billion.
Broadcom Inc (NASDAQ:AVGO) released its 8-K filing on March 7, 2024, announcing its financial results for the first quarter of fiscal year 2024, which ended on February 4, 2024. The company, a global technology leader in semiconductor and infrastructure software solutions, has reported a significant increase in revenue and free cash flow, largely attributed to its recent acquisition of VMware and strong demand for its networking products.
Broadcom is the sixth-largest semiconductor company globally, with a diverse portfolio that spans across wireless, networking, broadband, storage, and industrial markets. It is also a major player in the software industry, providing solutions in virtualization, infrastructure, and security to large enterprises, financial institutions, and governments. The company's growth strategy has been marked by consolidation, with key acquisitions such as legacy Broadcom, Avago Technologies, Brocade, CA Technologies, and Symantec.
Financial Performance and Challenges
Broadcom Inc (NASDAQ:AVGO) has experienced a robust increase in revenue, up 34% from the previous year, reaching $11.96 billion. This growth is particularly significant as it includes contributions from VMware, which has accelerated revenue in the infrastructure software segment. The semiconductor solutions segment also saw a 4% increase, demonstrating strong demand for Broadcom's networking products and custom AI accelerators.
Despite the positive revenue growth, the company's GAAP net income saw a decrease to $1.33 billion from $3.77 billion in the prior year period. This decline is primarily due to higher operating expenses, including costs associated with the VMware acquisition. However, the non-GAAP net income, which adjusts for these acquisition-related costs and other non-recurring items, increased by $771 million to $5.25 billion.
Free cash flow was another highlight, with the company generating $4.69 billion, up from $3.93 billion in the prior year period. This represents a substantial 39% of revenue, underscoring Broadcom's ability to convert earnings into cash effectively. The company also demonstrated its commitment to returning value to shareholders by repurchasing $8.29 billion worth of shares and declaring a quarterly dividend of $5.25 per share.