Arm reported revenues of $824 million for its fiscal third quarter and three months ended December 31, 2023, up 14% year-over-year, with record royalty revenue and strong growth in licensing revenue. Non-GAAP operating profit increased 17% year-over-year to $338 million resulting in a 41.0% non-GAAP operating margin.
"Arm delivered another quarter of record revenues driven by continued adoption of the world’s most pervasive compute platform," said Rene Haas, CEO. “More customers moving to higher-value Armv9 technology combined with market share gains in cloud server and automotive resulted in strong royalty growth. The AI wave drove licensing growth as these new devices require Arm’s performant and power-efficient compute platform."
Some highlights
- Royalty revenue of $470 million, up 11% year-over-year was driven by the semiconductor industry recovery and the rapidly increasing penetration of Armv9-based chips, which typically command a higher royalty rate.
- Better than expected license revenue of $354 million, up 18% year-over-year, and strong bookings were due to strong demand for more advanced Arm CPUs as companies increase investment in AI across all end markets.
- During the current quarter, Arm’s customers reported that they had shipped 7.7 billion Arm-based chips for the September quarter shipping period. This takes the cumulative number of Arm-based chips reported as shipped to 280.3 billion.
https://investors.arm.com/financials/quarterly-annual-results
