ARM Reports Strong End-of-Year Revenue Growth

ARM, a leading semiconductor company, recently announced its financial results for the fourth quarter of fiscal year 24 (4FQ24), ending on March 31. The company reported a net profit of US$224 million on revenues of $928 million. This revenue figure exceeded the top end of the previous guidance and marked a significant 47 percent increase year-on-year.

Looking at the full financial year, ARM achieved a net profit of US$306 million on revenue of US$3,233 million. While the annual revenue showed a healthy growth of 20.7 percent from the previous year, the net profit saw a decrease from US$524 million. Despite this, ARM's CEO, Rene Haas, expressed optimism about the company's performance, stating, "We finished our financial year achieving over US$3 billion in revenue for the first time, and with strong tailwinds heading into FYE25 as AI is driving increased demand for Arm-based technology across all end markets."

In 4FQ24, ARM's royalty revenue experienced a notable 37 percent year-on-year increase, reaching US$514 million. This growth was primarily driven by the higher royalty rate on ARMv9-based chips. Additionally, the licensing revenue for the same period amounted to US$414 million, showing a substantial 60 percent increase year-over-year. This surge in licensing revenue was attributed to the signing of multiple high-value license agreements, reflecting a growing interest in AI applications.

Looking ahead, ARM provided guidance for the first quarter of fiscal year 25 (1QFY25), forecasting revenues to fall between US$875 million and US$925 million. At the mid-point of this range, the revenue would be up by 33.5 percent compared to the same quarter in the previous year. For the entire fiscal year, ARM projected revenue to range between US$3.8 billion and US$4.1 billion. At the mid-point of this projection, the revenue would see a 22.2 percent increase compared to FY24.

With a strong financial performance and positive outlook, ARM continues to be a key player in the semiconductor industry. For more information, visit www.arm.com.