BROADCOM 2024 Q2
Earnings Overview & AI Insights

Earnings Performance

Hock Tan: In fiscal Q3 2024, consolidated netrevenue of $13.1 billion was up 47% year on year. Infrastructure software segment revenue of $5.8 billion was up 200% year on year, driven by the contribution from VMware. The success of the strategy last week was reflected in our performance in Q3. In networking, Q3 revenue of $4.2 billion grew 43% year on year, representing 55% of semiconductor revenue. In Q3, non-AI networking revenue was up 17% sequentially even as it was down 41% in Q3. We expect total networking revenue to grow over 40% year on year in Q4. In aggregate, we have reached bottom in our non-AI semiconductors markets, and we're expecting a recovery in Q4. We expect Q4 consolidated adjusted EBITDA to be approximately $14 billion, which is up 51% year on year. Q4 revenue was $13.1 billion, up 47% from a year ago, and Q3 revenue increased 4% in total. Revenue for our semiconductor solutions segment was $7.3 billion, up 5% year on year. Operating expenses increased $881 million on increased R&D, resulting in 56% operating margins. Free cash flow in the third quarter was $4.8 billion and represented 37% of revenues. Average coupon rate and years to maturity of our $53.7 billion in fixed-rate debt is 3.6% and 7.7 years, respectively. In Q3, we paid stockholders $2.5 billion of cashipientdividends of $0.525 per share. We expect to repay approximately $1.9 billion of fixed rate seniorheticalnotes due in Q4.