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

Reports
Earnings & Results·Other Events·Exhibits & Filings
Filing Date
Filed December 12, 2024
Period End
December 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 December 12, 2024. Cited figures are marked; the original filing is the authoritative source.

Broadcom reported unaudited fourth-quarter and fiscal 2024 results (quarter ended November 3, 2024).

Q4 revenue rose 51% year-over-year to $14,054 milliona, driven by a 196% jump in infrastructure software revenue to $5,824 million (largely from the VMware acquisition) and 12% growth in semiconductor solutions to $8,230 million. GAAP diluted EPS was $0.90 versus non-GAAP diluted EPS of $1.42. Adjusted EBITDA reached $9,089 million (65% of revenue), and free cash flow was $5,482 million (39% of revenue).

For the full year, revenue grew 44% to a record $51.6 billionb, with AI revenue of $12.2 billion (up 220%). GAAP results are heavily distorted by acquisition accounting. Amortization of acquisition-related intangibles totaled $9.3 billion for the year, and fiscal 2024 GAAP net income fell to $5.9 billion from $14.1 billion, partly due to a one-time, non-cash discrete tax provision of $4.5 billion tied to an intra-group IP transfer to the United States.

Balance sheet leverage increased sharply: goodwill rose to $97.9 billion, intangibles to $40.6 billionc, and long-term debt to $66.3 billion, while cash fell to $9.3 billion from $14.2 billion. Investors should weigh the strong cash generation against the elevated debt load and the large non-cash charges embedded in GAAP figures.

Management guided first-quarter fiscal 2025 revenue to approximately $14.6 billiond (up 22% year-over-year) with Adjusted EBITDA near 66% of revenue. The Board declared a quarterly dividend of $0.59 per share, an 11% increase, payable December 31, 2024 to holders of record on December 23, 2024, which management said sets a record fiscal 2025 annual target of $2.36 per share.

02—Key points

Key Highlights

  1. Q4 FY24 revenue of $14,054M, up 51% YoY; infrastructure software up 196% to $5,824M on the VMware integration
  2. Full-year FY24 revenue of $51.6B (up 44%), with AI revenue of $12.2B (up 220%) and semiconductor revenue of a record $30.1B
  3. Q4 Adjusted EBITDA of $9,089M (65% of revenue) and free cash flow of $5,482M (39% of revenue)
  4. GAAP diluted EPS of $0.90 vs. non-GAAP diluted EPS of $1.42 in Q4; FY24 GAAP EPS of $1.23 vs. non-GAAP $4.87, reflecting heavy amortization and a $4.5B one-time non-cash tax charge
  5. Q1 FY25 revenue guidance of approximately $14.6B (up 22% YoY) and Adjusted EBITDA of about 66% of revenue
  6. Quarterly dividend raised 11% to $0.59 per share, payable December 31, 2024; management targets a record $2.36 annual dividend for FY25
  7. Balance sheet leverage increased: long-term debt of $66.3B and goodwill of $97.9B, with cash declining to $9.3B

03—Questions

Frequently Asked Questions

  1. Why is GAAP net income so much lower than non-GAAP net income?

    The gap comes mainly from non-cash acquisition accounting. Amortization of acquisition-related intangible assets was $2.4 billion in Q4 and $9.3 billion for FY24, following the VMware acquisition. Stock-based compensation, restructuring, and acquisition costs add further adjustments. In FY24, a one-time $4.5 billion non-cash tax provision from an intra-group IP transfer also depressed GAAP results.

  2. Is the dividend increase sustainable given the debt load?

    Management attributes the increase to higher cash flows, with FY24 free cash flow of $19.4 billion (or $21.9 billion excluding restructuring, per management). Dividend payments were $9.8 billion in FY24, so the payout is covered by free cash flow, but the company also carries $67.6 billion of long-term and current debt. Investors should monitor debt service, since interest expense reached $4.0 billion in FY24.

  3. How much of the growth came from the VMware acquisition versus organic demand?

    Infrastructure software revenue grew 196% in Q4 and 181% for the year, largely reflecting the consolidation of VMware. Semiconductor revenue grew only 12% in Q4 and 7% for the year, so the filing suggests much of the headline growth is acquisition-driven. Organic comparisons are not separately quantified in this release.

  4. What does the Q1 FY25 guidance imply for investors?

    Management guided revenue to approximately $14.6 billion, up 22% year-over-year and roughly flat with Q4 FY24's $14.05 billion on a sequential basis. Adjusted EBITDA is expected at about 66% of revenue, consistent with Q4's margin. The guidance is a point estimate that management states may vary materially from actual results.

04—Continue

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