Arm results exceeded expectations, but earnings guidance disappointed.
The chip-design company has ceased disclosing the quarterly shipment numbers of its chips.
Arm’s shares dropped over 13% in after-hours trading on Wednesday following the chip-architecture firm’s announcement of modest earnings projections for the current quarter and the entire fiscal year.
Shareholders report
Total revenue was a record $939 million, up 39% year-on-year
Royalty revenues were up and amounted to $467 million, this represents a 17% increase.
Licence and other revenue was $472 million, up 72% year-on-year.
Arm’s revenue increased by 39% year-on-year for the quarter ending 30th June 2024, as reported in a shareholder update. The net income reached $223 million, a significant rise from the previous year’s $105 million.
Arm has kept its full year forecast unchanged, projecting revenues between $3.8 billion and $4.1 billion.
For the upcoming fiscal Q2, Arm anticipates revenues ranging from $780 million to $830 million. This projection suggests no mid-range growth, contrasting with some analysts’ expectations of $804.1 million in revenue.
Arm Holdings one day share price mid-day 1st August 2024
