ARM rakes in revenues in strong end to financial year

Business news | May 9, 2024

By Peter Clarke

Processor IP licensor Arm Holdings plc (Cambridge, England) posted strong financial results for its fourth financial quarter driven by adoption of cores based on the ARMv9 instruction set architecture and AI optimism.

For the 4FQ24 ended March 31, ARM made a net profit of US$224 million on revenues of $928 million. The revenue exceeded to the top end of the previous guidance and was up 47 percent year-on-year.

For the full financial year ARM made a net profit of US$306 million on revenue of US$3,233 million. The annual revenue was up 20.7 percent from US$2,679 million in FY23 although the net profit reduced from US$524 million.

“We finished our financial year achieving over US$3 billion in revenue for the first time, and with strong tailwinds heading into FYE25 as AI is driving increased demand for Arm-based technology across all end markets,” said Rene Haas, CEO of Arm, in a letter sent to shareholders.

In 4FQ24 ARM’s royalty revenue was up 37 percent year-on-year to US$514 million, driven by the higher royalty rate on ARMv9-based chips.

The licensing revenue was US$414 million, up 60 percent year-over-year as a result of multiple high-value license agreements being signed reflecting interest in AI applications.

The company’s guidance for 1QFY25 was for revenues of between US$875 million and US$925 million. At the mid-point this would be up 33.5 percent of the same quarter a year before. For the full financial year ARM forecasted revenue of between US$3.8 billion and US$4.1 billion. At the mid-point this would be an increase of 22.2 percent compared with FY24.