Q3 2024 Broadcom Inc Earnings Call Transcript
Key Points
- Broadcom Inc (AVGO) reported consolidated net revenue of $13.1 billion for Q3 2024, up 47% year on year.
- AI revenue continues to grow strongly, contributing significantly to the overall revenue.
- VMware bookings accelerated, with more than 15 million CPU cores of VMware Cloud Foundation booked in Q3.
- Non-AI semiconductor revenue has stabilized, indicating a potential recovery in the sector.
- Q4 guidance projects consolidated revenue of approximately $14 billion, up 51% year on year.
- Broadband revenue declined 49% year on year to $557 million, with expectations of continued decline in Q4.
- Industrial resales declined 31% year on year, with Q4 resales expected to be down approximately 20% year on year.
- Non-AI networking revenue was down 41% year on year, despite a sequential increase.
- Free cash flow as a percentage of revenue declined due to higher cash interest expense from debt related to the VMware acquisition and higher cash taxes.
- Gross margins for the semiconductor solutions segment were down 270 basis points year on year, driven primarily by a higher mix of custom AI accelerators.
Welcome to Broadcom Inc., third-quarter fiscal year 2024 financial results conference call. At this time, for opening remarks and introductions, I would like to turn the call over to Ji Yoo, Head of Investor Relations of Broadcom Inc.
Thank you, operator, and good afternoon, everyone. Joining me on today's call are Hock Tan, President and CEO; Kirsten Spears, Chief Financial Officer; and Charlie Kawwas, President Semiconductor Solutions Group. Broadcom distributed a press release and financial tables after the market closed describing our financial performance for the third quarter of fiscal year 2024. If you did not receive a copy, you may obtain the information from the Investors section of Broadcom's website at broadcom.com.
This conference call is being webcast live. An audio replay of the call can be accessed for one year through the Investors section of Broadcom's website.
During the prepared comments, Hock and Kirsten will be providing details of our third-quarter fiscal year 2024
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