Proactive Investors - Broadcom (NASDAQ:AVGO) Inc (NASDAQ:AVGO, ETR:1YD) announced impressive Q2 FY24 earnings, driven by strong performance in its AI products and the integration of VMWare, acquired in November 2023.
The company reported a 43% year-over-year revenue increase, reaching $12.49 billion, surpassing estimates by $480 million.
Non-GAAP EPS was $10.96, beating expectations by $0.12.
Shares of Broadcom jumped over 13% in afterhours trading Wednesday.
The semiconductor solutions segment generated $7.2 billion in revenue, a 6% year-over-year increase, while infrastructure software revenue soared by 175% to $5.29 billion, significantly impacted by the VMWare acquisition.
AI products reached a record $3.1 billion in revenue.
For FY24, Broadcom raised its revenue guidance to approximately $51 billion, exceeding the expected $50.3 billion, with an adjusted EBITDA margin of about 61%, up by 1 percentage point.
In a significant move, Broadcom announced a ten-for-one stock split, effective July 15, 2024, aimed at making the company's shares more accessible to investors and employees.
CEO Hock Tan attributed the strong performance to AI demand and the successful integration of VMWare, while CFO Kirsten Spears highlighted the substantial revenue growth and increased free cash flow, excluding restructuring and integration costs.