AVGO Q4 2024 Earnings

Call Details

• Call Title: Broadcom Q4 2024 Earnings Call
• Date: December 12, 2024 at 10:00 PM UTC
• Management Team:
  • G.U. (Head of Investor Relations)
  • Hock Tan (Chief Executive Officer)
  • Kirsten Spears (Chief Financial Officer)
  • Charlie Coas (President, Semiconductor Solutions Group)

Call Summary

Financial Performance

• Consolidated revenue for fiscal 2024 grew 44% year over year to a record $51.6B.
• Excluding VMware, fiscal 2024 organic revenue grew over 9% year over year.
• Q4 consolidated revenue was $14.1B, up 51% year-on-year, and excluding VMware grew 11% year-on-year.
• Q4 semiconductor revenue was $8.2B, representing 59% of total revenue and up 12% year-on-year.
• Q4 infrastructure software revenue was $5.8B, representing 41% of revenue and up 196% year-on-year.
• Q4 adjusted EBITDA was $9.1B or 65% of revenue, and consolidated operating income was $8.8B with operating margin at 63% of revenue.
• Gross margins were 76.9% in Q4, up 260 basis points versus the year-ago quarter.

Guidance

• Q1 fiscal 2025 consolidated revenue is guided to approximately $14.6B, up 22% year-on-year.
• Q1 semiconductor revenue is guided to $8.1B, up approximately 10% year-on-year.
• Q1 infrastructure software revenue is guided to $6.5B, up 41% year-on-year and up 11% sequentially.
• Q1 adjusted EBITDA is expected to be approximately 66% of revenue.
• Q1 AI revenue is expected to be $3.8B, up 65% year-on-year, while non-AI semiconductor revenue is expected to be down about mid-teens percent year-on-year.
• Starting Q1 fiscal 2025, VMware will no longer be broken out as a standalone item and will be included in infrastructure software segment reporting.