Hock Tan (Broadcom)
With the inclusion of VMware, Broadcom is anticipating it will achieve US$50 billion in consolidated revenue for the fiscal year 2024.
With VMware included in its annual guidance, Broadcom estimated consolidated revenue will rise by 40 per cent in fiscal year 2024.
Broadcom posted revenue of US$9.29 billion for the fourth quarter, up 4 per cent from the prior year period. It also clocked US$105 million on capital expenditures.
For the fiscal year 2023 ending 29 October, the semiconductor and infrastructure specialist posted an eight per cent year-over-year increase in revenue to what it claims is a record US$35.8 billion.
Broadcom CEO and president Hock Tan said its fiscal year 2023 results were driven by investments in accelerators and network connectivity for AI by hyperscalers.
"The acquisition of VMware is transformational,” Tan said. “In fiscal year 2024 we expect semiconductors to sustain its mid to high single digit revenue growth rate, with the contribution of VMware driving consolidated revenue to US$50 billion, and adjusted EBITDA to $30 billion."
Broadcom gained an adjusted EBITDA margin of 65 per cent, generated US$17.6 billion in free cash flow or 49 per cent of revenue, demonstrating its “stable and diversified business model”.
Broadcom officially closed its US$61 billion acquisition of VMware on 22 November, making a mass round of redundancies globally, stripping off VMware signage and splitting the business into four areas including VMware Cloud Foundation; VMware Tanzu; Application Networking (Load Balancing) and Advanced Security; and VMware Software-Defined Edge for telco and enterprise.
During VMware Explore this year, Tan indicated a commitment to “immediately” invest an additional US$2 billion a year to “better unlock customer value” once the proposed VMware acquisition is finalised.
