Arm posts record revenues and profits in FY21
Defiant bosses at Cambridge superchip architect Arm have delivered a timely boost to parent company SoftBank’s ambitions for a $60 billion Wall Street IPO.
Despite being forced into wholesale staff cuts in the UK after a $40bn takeover bid by NVIDIA was withdrawn, Arm has delivered record revenues and profits for FY21.
2021 total revenues were up 35 per cent to $2.7 billion with strong growth in both royalty and non-royalty revenue.
Licensing (non-royalty) revenues were ahead 61 per cent to $1.13bn as Arm’s expanded product portfolio and new business models – such as Arm Flexible Access – gave more customers more reasons and more ways to license Arm technology.
Royalty revenues increased 20 per cent to a record $1.54bn, helped by continuing strong growth of 5G smartphones, more ADAS and IVI chips going into cars, and price increases in 32-bit microcontrollers.
Adjusted EBITDA rose 68 per cent year-on-year to $1bn, giving an Adjusted EBITDA margin of 37 per cent.
A new high of 29.2 billion chips were shipped in FY21, including nearly eight billion in a stonking Q4.
With more than 225 billion Arm-based chips now shipped by its partners, Arm boasts the world’s largest computing footprint and a unique understanding of the complete compute spectrum.
New CEO Rene Haas said: “Our record results demonstrate that the demand for Arm technology and the strength of the Arm ecosystem have never been greater.
“Our compute platform will power the next set of technology revolutions across cloud computing, automotive and autonomous systems, the IoT, the Metaverse and beyond.
“As we look ahead to a future built on Arm our priority is to continue to deliver on our business strategy, enable partners with the solutions they need through further investment in our roadmaps and engineering talent, and together with our ecosystem redefine the future of computing.”
Business Weekly understands that an attempt by the UK, led by PM Boris Johnson, to lure Arm into a UK IPO in addition to its proposed NASDAQ float early next year is doomed to failure.
Japanese parent group SoftBank has to raise big money and says only US investors would have the appetite and deep pockets to back such a massive IPO objective.