Financial Data and Key Metrics - Q4 revenue increased by 47% YoY to $928 million, with licensing revenue up 60% YoY and royalty revenue up 37% YoY [7][13] - Non-GAAP operating margin for Q4 was 42% [13] - Remaining Performance Obligations (RPO) grew by 45% YoY to nearly $2.5 billion [13] - Full-year revenue for FY2024 exceeded $3 billion, and the company expects to approach $4 billion in FY2025 [12][16] Business Line Data and Key Metrics - Royalty growth was driven by ARMv9 adoption, particularly in smartphones and infrastructure, with a 37% YoY increase [7][8] - Licensing revenue surged 60% YoY, driven by increased R&D investment to capture AI opportunities [7] - Compute Subsystems (CSS) strategy is oversubscribed, with high demand across all end markets [10] - First autonomous solutions based on ARMv9 were introduced, targeting the automotive sector with enhanced features like functional safety [9] Market Data and Key Metrics - ARMv9 adoption is accelerating, with 20% of the base converted within a year, driven by premium smartphones and infrastructure growth [25][26] - Automotive sector is expected to see significant growth with ARMv9 adoption and CSS solutions [9][68] - Hyperscalers like Google, Amazon, and Microsoft are adopting ARM-based designs for data centers, driven by AI workloads and power efficiency [9][21][32] Company Strategy and Industry Competition - ARM's strategy focuses on diversification into multiple markets, including infrastructure, automotive, client PCs, and smartphones [12][79] - The company is leveraging its compute efficiency and AI capabilities to gain market share in data centers, competing with traditional x86 architectures [21][32] - ARM's CSS strategy is gaining traction, with Microsoft's Cobalt chip ramping and oversubscribed demand [10][65] Management Commentary on Operating Environment and Future Outlook - Management is confident in the growth outlook, expecting over 20% revenue growth in FY2025, driven by ARMv9 adoption and AI workloads [12][16] - The company anticipates mid-20% royalty growth in FY2025, supported by ARMv9 adoption and market share gains in cloud and automotive [16][17] - Licensing revenue is expected to be lumpy but strong, with broad-based demand across all end markets, particularly driven by AI [16][37] Other Important Information - ARM's installed base of CPUs is used by over 70% of the world's population, positioning the company as a key player in AI workloads from edge devices to data centers [11] - The company introduced the lowest power transformer for IoT designs, the Ethos-U85, further expanding its IoT portfolio [9] Q&A Session Summary Question: Infrastructure Business and Cloud Market Share [20] - ARM's market share in the data center is expected to grow faster than initially projected, driven by AI investments and power efficiency advantages [21][22] Question: ARMv9 Conversion Rate [25] - ARMv9 adoption is accelerating faster than ARMv8, driven by infrastructure growth and premium smartphone demand, with an expected exit rate of 60-70% in 2-3 years [26][28] Question: ARM's Role in Accelerated Data Centers [31] - ARM's performance-per-dollar metric and flexibility in custom implementations make it well-positioned for growth in accelerated data centers, particularly with AI workloads [32][33] Question: Licensing Revenue Mix in FY2025 [36] - Licensing revenue is expected to be broad-based, with significant contributions from AI-related demand across all end markets [37] Question: Royalty Revenue Growth in China [44] - China's royalty revenue growth was driven by a mix shift in consumer buying patterns and recovery in the handset market, with similar trends expected in Q4 [45][46] Question: Royalty Outlook for Q1 FY2025 [49] - Royalty revenue is expected to decline 7% sequentially due to weakness in IoT and industrial markets, but year-on-year growth remains strong at around 20% [51][52] Question: PC Market Potential [55] - ARM is optimistic about growth in the Windows on ARM segment, expecting significant market share gains over the next 12-36 months as the vendor base diversifies [56][57] Question: Licensing Revenue Growth and ATA Conversion [61] - Licensing revenue growth is expected to remain strong, driven by AI demand, with 80% of customers potentially converting to ATA licenses over time [62][63] Question: Automotive v9 Licensing and CSS [67] - Automotive v9 licensing revenue is delayed and will be recognized upon launch, with multiple customers engaged in CSS solutions for automotive [68][70] Question: Royalty Growth Breakdown [71] - Royalty growth is driven by a mix of volume, price, and ARMv9 adoption, with a 5% quarterly increase in mix contributing to mid-20% growth in FY2025 [72][73] Question: Backlog and Licensing Growth [75] - ARM's backlog is strong, with 80% of the midpoint guidance already in backlog or under contract, providing confidence in continued licensing growth [76][77]

Arm Holdings plc Q4 FYE24 Results Presentation Ian Thornton, Head of Investor Relations investor.relations@arm.com https://investors.arm.com ...

Q4 FY 2024Analyst Estimates for Q4 FY 2024Q4 FY 2023Revenue$928 million$880.90 million$633 millionDiluted Earnings Per Share21 cents14 cents0 centsNet Income$224 million$140.6 million$3 million The company indicated record-high royalty revenue drove its revenue beat, accounting for $514 million of total revenue. Arm highlighted that "chips based on Armv9 technology now contribute around 20% of royalty revenue, up from around 15% last quarter." "From cloud to edge, all AI software models, from GPT to Llama, ...

Arm Holdings plc (ARM) is scheduled to report its fourth-quarter fiscal 2024 results on May 8, after the bell.The Zacks Consensus Estimate for revenues in the to-be-reported quarter is currently pegged at $885 million, suggesting sequential growth of 7.4%. We expect continued strong Royalty and License revenues to have driven the top-line strength in the quarter.ARM has been witnessing strong Royalty revenues due to the resurgence of the smartphone market and increased market share outside mobile, a trend t ...

Investors are always looking for stocks that are poised to beat at earnings season and Arm Holdings plc (ARM) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because ARM Holdings is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good ...

Arm Holdings plc (ARM) will report its fourth-quarter fiscal 2024 results on May 8, after the bell.Strong Growth Across Businesses Expected in Q4ARM shares have gained 48% year to date. The company’s continued robust performance across businesses and encouraging guidance have boosted investors’ confidence in the stock.We expect continued top-line strength in the to-be-reported quarter, driven by both Royalty and License revenues. The Zacks Consensus Estimate for revenues is currently pegged at $885 million, ...

Eventually, reality will catch up with this overhyped tech company.With shares up by a whopping 37% year to date, Arm Holdings (ARM 3.78%) is one of many technology companies that have received significant attention because of their potential in artificial intelligence (AI). But unlike alternatives like Nvidia, the hype surrounding Arm Holdings hasn't materialized into significant business growth. Let's dig deeper into what the next five years could have in store for the company.Why is Arm Holdings so popul ...

Results by one of the standard-bearers for the AI movement set the stage for a broader pullback in the space.There's no denying that recent advances in artificial intelligence (AI) have been a secular tailwind driving the market higher since early 2023. Businesses and investors alike are keen to profit from the potential of these advanced algorithms to unleash a wave of employee productivity. Despite that potential, these changes will occur over years and decades, not weeks and months.With that as a backdro ...

Nvidia bought this stock when it went public last fall.While there haven't been a lot of tech IPOs over the past year, there is one that clearly stands out: Arm Holdings (ARM 4.11%). The company debuted in September, returning to the public markets after going private in 2016. The stock has been strong since its IPO, up over 85% from its IPO price. However, the stock has pulled back recently, creating a more attractive entry point.What makes Arm special?Arm's architecture forms the basis of how central proc ...

These AI-related stocks rebounded on the back of massive AI spending plans from big tech giants.Shares of AI-related stocks Arm Holdings (ARM 3.53%), SoundHound AI (SOUN 4.45%), and Bigbear.ai (BBAI 6.63%) rallied this week, appreciating 15.4%, 21.7%, and 22.8% on the week, respectively, as of 12:13 p.m. ET, Friday, according to data from S&P Global Market .There wasn't much in the way of company-specific news for these three names this week. However, the positive commentary from several Magnificent Seven t ...