Broadcom (AVGO) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 consolidated revenue reached $51.6 billion, up 44% year-over-year, with organic growth (excluding VMware) of over 9%.

• Operating profit (excluding transition costs) grew 42% year-over-year, and $22 billion was returned to shareholders via dividends and buybacks, up 45% year-on-year.

• The acquisition and integration of VMware was a major driver, with VMware revenue on a growth trajectory and operating margin reaching 70% by year-end.

• AI revenue surged 220% to $12.2 billion, representing 41% of Semiconductor revenue.

• Adjusted EBITDA for FY24 was $31.9 billion, up 37% year-over-year, and free cash flow excluding restructuring was $21.9 billion.

Financial highlights

• Q4 consolidated net revenue was $14.1 billion, up 51% year-on-year; organic growth (excluding VMware) was 11%.

• Q4 operating profit was $8.8 billion, up 53% year-on-year.

• Q4 gross margins were 76.9%, up 260 basis points year-on-year.

• Adjusted EBITDA for Q4 was $9.1 billion (65% of revenue); for FY24, adjusted EBITDA was $31.9 billion (62% of revenue).

• Free cash flow in Q4 was $5.5 billion (39% of revenue); for FY24, free cash flow grew 10% to $19.4 billion.

Outlook and guidance

• Q1 FY25 consolidated revenue is guided to $14.6 billion, up 22% year-on-year.

• Q1 Semiconductor revenue expected at $8.1 billion (up 10% year-on-year); Infrastructure Software revenue at $6.5 billion (up 41% year-on-year).

• Q1 adjusted EBITDA expected to be a record 66% of revenue.

• Q1 consolidated gross margins expected to rise 100 basis points sequentially.

• Target FY25 annual dividend is $2.36 per share.