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Broadcom 8-K Report, Financial Results (Jun 12, 2024)

Reports
Earnings & Results·Other Events·Exhibits & Filings
Filing Date
Filed June 12, 2024
Period End
June 12, 2024
Security
AVGO
In the record · 2018–202610-K810-Q268-K124

AVGO filed 8 annual reports (10-K), 26 quarterly reports (10-Q) and 124 current reports (8-K) between 2018 and 2026.

  1. Material agreement8-K · May ’19May ’19
  2. Material agreement8-K · Jan ’21Jan ’21
  3. Leadership change8-K · Nov ’22Nov ’22
  4. Leadership change8-K · Apr ’26Apr ’26

01—Abstract

Summary

Summary of the 8-K filed June 12, 2024. Cited figures are marked; the original filing is the authoritative source.

Broadcom's 8-K filed June 12, 2024 furnishes its unaudited Q2 fiscal 2024 results (quarter ended May 5, 2024) and announces three items: a quarterly cash dividend of $5.25a per share, a ten-for-one forward stock split, and raised fiscal 2024 guidance.

Revenue was $12,487 millionb, up 43% year over year, with the increase driven largely by the VMware acquisition. Excluding VMware, revenue grew 12%, per the CFO. GAAP net income was $2,121 million (GAAP diluted EPS $4.42), down from $3,481 million a year earlier, reflecting higher amortization of acquisition-related intangibles, interest expense, and restructuring charges.

Non-GAAP net income was $5,394 millionc (non-GAAP diluted EPS $10.96), up from $4,489 million, and Adjusted EBITDA rose 31% to $7,429 million, or 59% of revenue. Free cash flow was $4,448 million, about 36% of revenue. Management raised fiscal 2024 revenue guidance to approximately $51.0 billion (up 42% year over year, including VMware) and Adjusted EBITDA guidance to about 61% of revenue.

CEO Hock Tan attributed results to record AI product revenue of $3.1 billiond and accelerating infrastructure software revenue from VMware. The balance sheet changed materially after the VMware deal: total assets reached $175.2 billion, long-term debt was about $71.6 billion, and cash fell to $9.8 billion from $14.2 billion at fiscal year-end 2023. Investors should weigh the strong growth and cash generation against the leverage and integration risks.

The stock split is intended to make shares more accessible, and split-adjusted trading begins July 15, 2024. The dividend of $5.25 per share is payable June 28, 2024 to holders of record at the close of business on June 24, 2024. Per the filing, the split works by issuing nine additional shares for each share held after market close on July 12, 2024, for stockholders of record after the close on July 11, 2024.

02—Key points

Key Highlights

  1. Q2 FY2024 revenue of $12.487 billion, up 43% year over year; up 12% excluding VMware, according to the CFO.
  2. GAAP diluted EPS of $4.42 versus $8.15 a year earlier; non-GAAP diluted EPS of $10.96 versus $10.32.
  3. Adjusted EBITDA of $7.429 billion (59% of revenue), up 31% year over year; free cash flow of $4.448 billion (36% of revenue).
  4. Fiscal 2024 guidance raised to approximately $51.0 billion revenue and Adjusted EBITDA of about 61% of revenue.
  5. Ten-for-one forward stock split: holders receive nine additional shares per share held; split-adjusted trading begins July 15, 2024.
  6. Quarterly cash dividend of $5.25 per share, payable June 28, 2024 to holders of record on June 24, 2024.
  7. Total debt is high after the VMware acquisition: long-term debt of $71.6 billion plus a $2.4 billion current portion, with cash of $9.8 billion.

03—Questions

Frequently Asked Questions

  1. What did Broadcom report for the second quarter of fiscal 2024?

    Revenue was $12.487 billion, up 43% year over year. GAAP net income was $2.121 billion ($4.42 diluted EPS), and non-GAAP net income was $5.394 billion ($10.96 diluted EPS). Adjusted EBITDA was $7.429 billion, and free cash flow was $4.448 billion.

  2. How much of the revenue growth came from VMware?

    Most of the 43% growth reflects the VMware acquisition. The CFO said revenue grew 12% year over year excluding VMware, so the organic growth rate is much lower than the headline figure.

  3. What is changing with the guidance and the stock split?

    Fiscal 2024 revenue guidance was raised to about $51.0 billion and Adjusted EBITDA guidance to about 61% of revenue. The ten-for-one split takes effect for holders of record after the close on July 11, 2024, and split-adjusted trading starts July 15, 2024. The split does not change the company's underlying value; it changes the share count and per-share prices.

  4. What dividend was declared, and what are the key dates?

    The Board declared a quarterly cash dividend of $5.25 per share. It is payable June 28, 2024 to stockholders of record at the close of business on June 24, 2024.

  5. What are the main risks for investors from this filing?

    Key risks include leverage after the VMware deal (roughly $74 billion of total debt, with interest expense of $1.05 billion in the quarter), integration of VMware, and rising GAAP costs from acquisition-related amortization and restructuring. The filing also notes semiconductor cyclicality, customer concentration, and dependence on AI demand. Non-GAAP measures exclude these costs, so GAAP results are considerably weaker than the headline non-GAAP EPS.

04—Continue

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