Early Access

10-QPeriod: Q2 FY2023

Broadcom Inc. Quarterly Report for Q2 Ended Apr 30, 2023

Filed June 7, 2023For Securities:AVGO

Summary

Broadcom Inc. reported solid financial results for the fiscal quarter ended April 30, 2023, with total net revenue of $8.73 billion, an increase of 8% year-over-year. This growth was primarily driven by the Semiconductor Solutions segment, which saw a 9% increase in revenue, benefiting from strong demand in networking, server storage, and broadband products. The Infrastructure Software segment also contributed with a 3% revenue increase. Operating income demonstrated robust growth, increasing by 18% to $4.01 billion, reflecting improved operational efficiencies and higher revenue. The company generated significant operating cash flow of $8.54 billion for the first two fiscal quarters of 2023, underscoring its strong cash-generating capabilities. Broadcom continued its commitment to returning capital to shareholders through substantial dividend payments of $3.84 billion and share repurchases totaling $3.99 billion in the same period. The acquisition of VMware remains a key strategic initiative, with expected completion in fiscal year 2023, subject to regulatory approvals. Despite ongoing macroeconomic uncertainties, Broadcom's performance highlights its resilience and strategic positioning in key technology markets.

Financial Statements
Beta
Revenue$8.73B
Cost of Revenue$2.62B
Gross Profit$6.12B
R&D Expenses$1.31B
SG&A Expenses$438.00M
Operating Expenses$2.11B
Operating Income$4.01B
Interest Expense$405.00M
Net Income$3.48B
EPS (Basic)$0.84
EPS (Diluted)$0.81
Shares Outstanding (Basic)4.15B
Shares Outstanding (Diluted)4.27B

Key Highlights

  • 1Total net revenue for the fiscal quarter ended April 30, 2023, was $8.73 billion, an increase of 8% year-over-year, driven by strong performance in the Semiconductor Solutions segment.
  • 2Operating income for the quarter increased by 18% to $4.01 billion, indicating improved profitability and operational leverage.
  • 3The Semiconductor Solutions segment revenue grew by 9% year-over-year, fueled by demand for networking, server storage, and broadband products.
  • 4Infrastructure Software segment revenue saw a modest increase of 3% year-over-year.
  • 5Broadcom generated $8.54 billion in cash from operating activities for the first two fiscal quarters of 2023, demonstrating strong cash flow generation.
  • 6The company returned $3.84 billion to shareholders through dividends and repurchased $3.99 billion of its common stock during the first two fiscal quarters.
  • 7The pending acquisition of VMware is progressing, with the company expecting its completion in fiscal year 2023, subject to regulatory approvals.

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