Home ยป First Financial Report Following Initial Public Offering Showcases Revenue Growth of 28% Driven by AI Expansion

First Financial Report Following Initial Public Offering Showcases Revenue Growth of 28% Driven by AI Expansion

Arm has released its Q2 2024 financial results for the period ending in September. This report marks the first time the company has reported earnings since entering the stock market in September. Total revenue increased by 28% compared to the same period last year, reaching $806 million. Arm stated that this is the first time the company has generated revenue exceeding $800 million in a single quarter. However, the company reported a net loss of $100 million according to GAAP accounting, due to special transactions related to employee stock options.

Arm’s revenue structure can be divided into two parts: licensing and other businesses. The licensing business saw a remarkable growth of 106%, amounting to $388 million. This growth is mainly attributed to expanded collaborations in the field of AI. On the other hand, royalty revenue decreased by 5% to $418 million, primarily due to declining revenue from smartphones. However, the cloud and automotive sectors continued to show strong growth.

In the past quarter, Arm delivered 7.1 billion units of devices utilizing its chip architecture, bringing the cumulative total to 272.5 billion units.

TLDR: Arm reported a 28% increase in Q2 2024 revenue, reaching $806 million. Despite the milestone of exceeding $800 million in a single quarter, the company reported a net loss of $100 million due to employee stock option transactions. The licensing business experienced significant growth, while royalty revenue declined. Arm delivered a total of 7.1 billion units of devices in the past quarter.

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