PALO ALTO, Calif., Dec. 12, 2024 – Broadcom Inc. (Nasdaq: AVGO), a global leader in semiconductor and infrastructure software solutions, closed fiscal year 2024 with record-breaking financial results, marking a transformative year for the company. With its strategic focus on artificial intelligence (AI) and infrastructure software, Broadcom reported substantial growth in revenue, net income, and cash flows, setting the stage for continued momentum in fiscal year 2025.
Impressive Financial Milestones
Broadcom’s fourth-quarter revenue soared to $14.05 billion, reflecting a 51% increase compared to the same period last year. The company posted a GAAP net income of $4.32 billion and a Non-GAAP net income of $6.97 billion. Adjusted EBITDA for the quarter was an impressive $9.09 billion, equating to 65% of revenue, underscoring the company’s robust operational efficiency.
For the full fiscal year, revenue reached a record $51.6 billion, a 44% year-over-year increase. The surge was driven by semiconductor revenue of $30.1 billion and infrastructure software revenue of $21.5 billion, bolstered by the successful integration of VMware.
AI Revenue: A Game-Changer
Artificial intelligence emerged as a critical growth driver, contributing $12.2 billion in revenue for fiscal 2024, a staggering 220% year-over-year increase. The success was attributed to Broadcom’s market-leading AI XPUs and Ethernet networking solutions, which capitalized on the booming demand for generative AI infrastructure.
“AI has fundamentally reshaped our business landscape,” said Hock Tan, President and CEO of Broadcom Inc. “Our semiconductor portfolio is now at the heart of next-generation computing, enabling customers to build powerful and efficient AI systems. The results speak to our ability to innovate and deliver at scale.”
Strong Cash Flow and Dividend Growth
Broadcom generated $5.48 billion in free cash flow during the fourth quarter, accounting for 39% of revenue. For the full fiscal year, free cash flow excluding restructuring reached $21.9 billion, reflecting the company’s disciplined financial management.
In light of its strong financial performance, Broadcom announced an 11% increase in its quarterly common stock dividend to $0.59 per share, effective for fiscal year 2025. This marks the fourteenth consecutive annual dividend increase since 2011. The annualized dividend of $2.36 per share represents a record payout for Broadcom shareholders.
Guidance for Fiscal Year 2025
Looking ahead, Broadcom provided optimistic guidance for the first quarter of fiscal 2025, forecasting revenue of approximately $14.6 billion, a 22% increase year-over-year. The company also projects an adjusted EBITDA margin of 66%, reflecting continued operational strength.
Strategic Integration and Innovation
Broadcom’s successful integration of VMware has fortified its position in the infrastructure software market, with the segment contributing $21.5 billion in fiscal year 2024 revenue. This aligns with the company’s broader strategy of leveraging acquisitions to drive growth and diversification.
“Fiscal year 2024 was a pivotal year for Broadcom,” said Kirsten Spears, CFO of Broadcom Inc. “Our focus on operational excellence and cash flow generation allowed us to deliver exceptional results and return significant value to our shareholders.”
Positioned for Continued Success
Broadcom’s transformative year underscores its ability to innovate and adapt to dynamic market trends. By harnessing the potential of AI, strengthening its software portfolio, and maintaining financial discipline, the company is well-positioned to capitalize on future opportunities.
With record-breaking financial achievements and a solid growth trajectory, Broadcom is poised to remain a dominant player in the technology sector, delivering value to customers, partners, and shareholders alike.
