Broadcom Inc. Q3 FY2024 Earnings Call

· Earnings call transcript and AI-powered summary

Headline Results

  • Q3 consolidated revenue: $13.1B, up 47% year-over-year.
  • Q3 operating profit: $7.9B, up 44% year-over-year.
  • Adjusted EBITDA: $8.2B (63% of revenue).
  • AI revenue continues to be a major driver, along with accelerating VMware bookings and stabilization in non-AI semiconductor markets.
  • Broadcom raised its full-year FY24 revenue outlook to $51.5B and adjusted EBITDA margin to 61.5%.

Q4 FY2024 Guidance

  • Q4 consolidated revenue: ~$14B (up 51% year-over-year).
  • Q4 semiconductor revenue: ~$8B (up 9% year-over-year).
  • Q4 infrastructure software revenue: ~$6B.
  • Q4 adjusted EBITDA: ~64% of revenue.

Infrastructure Software (VMware + Broadcom Software)

  • Q3 infrastructure software revenue: $5.8B, up 200% year-over-year, driven by VMware's $3.8B contribution.
  • VMware Bookings:
    • 15M+ CPU cores of VCF booked in Q3.
    • VCF represented 80%+ of VMware product bookings.
    • Annualized booking value: $2.5B, up 32% sequentially from Q2.
  • VMware cost reductions:
    • Operating expenses reduced to $1.3B in Q3, down from $1.6B in Q2.
    • On track to reach or exceed targeted $8.5B EBITDA in FY25 (originally a 3‑year goal).

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Operator: Welcome to Broadcom Inc.'s Third Quarter Fiscal Year 2024 Financial Results Conference Call. At this time, for opening remarks and introductions, I would like to turn the call over to Ji Yoo, Head of Investor Relations of Broadcom Inc. Ji Yoo: Thank you, operator, and good afternoon, everyone. Joining me on today's call are Hock Tan, President and CEO; Kirsten Spears, Chief Financial Officer; and Charlie Kawwas, President, Semiconductor Solutions Group. Broadcom distributed a press release and financial tables after the market closed describing our financial performance for the third quarter of fiscal year 2024. If you did not receive a copy, you may obtain the information from the Investors section of Broadcom's website at broadcom.com. This conference call is being webcast live and an audio replay of the call can be accessed for one year through the Investors section of Broadcom's website. During the prepared comments, Hock and Kirsten will be providing details of our third quarter fiscal year 2024 results, guidance for our fourth quarter fiscal year 2024, as well as commentary regarding the business environment. We'll take questions after the end of our prepared comments. Please refer to our press release today and our recent filings with the SEC for information on the specific risk factors that could cause our actual results to differ materially from the forward-looking statements made on this call. In addition to U.S. GAAP reporting, Broadcom reports certain fi

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