Proactive Investors - Arm Holdings PLC (NASDAQ:ARM), the semiconductor technology company backed by SoftBank, saw its stock drop in extended trading Wednesday following its first quarterly earnings report since going public.
The company posted revenue of $806 million, beating expectations of $744.3 million, and adjusted earnings of $0.36 per share, compared to expectations of $0.26 per share.
The expectations beat was driven by Arm’s licensing business, which doubled year over year to reach revenue of $388 million.
More than 7.1 billion Arm-based chips were shipped during the quarter, the company said, and its technology is being utilized by Google (NASDAQ:GOOGL), Meta and Nvidia, among others, to develop AI chips.
However, Arm issued fourth-quarter EPS guidance of $0.21 to $0.28 per share on revenue of $720 million to $800. That’s slightly short of the Street’s projection of $0.27 per share on revenue between $730 million and $805 million.
As a result, Arm stock fell 8.6% to $49.70 after hours in New York.