Arm revenue tops $3 billion for first time

08 May, 2024
Tony Quested
Cambridge chip architect Arm smashed Q4 expectations but caution concerning the full year figures pegged back a share price on NASDAQ that has recently soared.
Photograph courtesy of Arm

Arm CEO Rene Haas repeated his assertion that the company was right at the heart of everything innovative in the future of compute.

He said: “We finished our financial year achieving over $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.

“From cloud to edge, all AI software models, from GPT to Llama, rely and run on the Arm compute platform. As these models become larger and smarter, their requirements for more compute with greater power efficiency can only be realised through Arm.”

Arm posted results for its fiscal fourth quarter and three months ended March 31.

Haas added: “To date Arm’s energy-efficient processor designs and software platforms have enabled advanced computing in more than 280 billion chips and its technologies securely power products from the sensor to the smartphone and the supercomputer.

“Together with 1,000+ technology partners, Arm is enabling artificial intelligence to work everywhere, and in cybersecurity, it is delivering the foundation for trust in the digital world – from chip to cloud.”

The stock fell seven per cent after the quarterly results were posted but the figures remain stellar.

Arm reported Q4 net income of $224 million, or 21 cents a share, whereas the company essentially broke even on the metric a year before, according to US media reports.

Full year revenue rose to $928m from $633m against a consensus of $866m.

The company posted a record for royalty revenue at $514m – up 37 per cent year-on-year before and well above analyst forecasts.

Arm harvested $414m licence revenue which was 60 per cent higher year-on-year.