Total Revenue (USD, millions)

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Research and Development (R&D) (USD, millions)

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Earnings Per Share (EPS) - Diluted (USD)

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8ed818793d8fd0f9a2da795492d3d860cbd7fe8abca21f694d3bf0f72c974c1e

Wired Infrastructure

Wireless Communications

Enterprise Storage

Industrial & Other

Semiconductor Solutions

Infrastructure Software

IP Licensing

Products

Subscriptions and Services

Total Revenue

1482bb5bdf8d6b5013df55778c509f3830649af4122d6708c162d70fda7e1d82

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Share Repurchases (USD, M)

Dividend Payments (USD, M)

Net Change in Cash (USD, M)

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Americas

Asia Pacific

Europe, Middle East, Africa

- United States

- China (including Hong Kong)

- Singapore

- Other Foreign Countries

Other

715948c86597e18842bc29c276cbae8e6acd6b2f91d5adb3d355ea68a204ad0f

Net Revenue - Products (USD, millions)

Net Revenue - Subscriptions and Services (USD, millions)

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Selling, General and Administrative (USD, millions)

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Operating Expenses - Restructuring and Other Charges (USD, millions)

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Other Income (Expense), Net (USD, millions)

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Income from Continuing Operations (USD, millions)

Loss from Discontinued Operations, Net of Income Taxes (USD, millions)

Dividends on Preferred Stock (USD, millions)

Net Income Attributable to Common Stock (USD, millions)

ec51bf4e08c7274d954272eba11bcec7cb6a46868bfd5feab0b8eba7c6d66778

Amortization of Intangible and Right-of-Use Assets (USD, millions)

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87f6e88aa4b89c2520f09d5b555b3daf981033371656570f813baab3154ceb72

Broadcom Inc.'s **operating income** was significantly lower in Q1 2024 due to a combination of factors. **Operating expenses** increased substantially—from **$1,901 million** in Q1 2023 to **$5,292 million** in Q1 2024—driven by higher stock-based compensation, acquisition-related costs, and an expanded headcount following the VMware merger. Additionally, there was a **$444 million** increase in the amortization of acquisition-related intangible assets and **$620 million** in restructuring and other charges, largely tied to employee termination costs from the merger. These factors collectively resulted in the marked decrease in operating income for Q1 2024.  **[0001730168-24-000023_avgo-20240204.htm:2]** **[0001730168-24-000012_avgo-02042024x8kxex99.htm:5]** **[0001730168-24-000023_avgo-20240204.htm:28]** 

Why was Operating Income so low in Q1 2024?

The **tax spike in Q3 2024** was driven by the impact of an **intra-group transfer of certain IP rights to the United States** as part of a supply chain realignment. This transfer resulted in a shift in the jurisdictional mix of income and the establishment of a **deferred tax liability** due to book and tax basis differences on the transferred IP rights. Additionally, a **discrete tax provision of $4,522 million** was recognized during the quarter, which was partially offset by excess tax benefits from stock-based awards.  **[0001730168-24-000099_avgo-20240804.htm:23]** **[0001730168-24-000099_avgo-20240804.htm:35]** **[20240905NY98548:0]** 

What drove the tax spike in Q3 2024?

The **net loss in Q3 2024** was primarily caused by a **one-time discrete non-cash tax provision of $4.5 billion** that resulted from an intra-group transfer of certain intellectual property rights to the United States as part of a supply chain realignment. This one-time tax adjustment significantly impacted the GAAP net income for the quarter, turning what was previously a profitable period into a net loss.  **[20240905NY98548:1]** **[0001730168-24-000095_avgo-08042024x8kxex99.htm:1]** **[0001730168-24-000095_avgo-08042024x8kxex99.htm:0]** **[20240905NY98548:0]** 

What caused the net loss in Q3 2024?

The **significant jump** in subscription revenue in **Q1 2024** was primarily driven by the **VMware acquisition**, which boosted the **Infrastructure Software segment** through products like VMware Cloud Foundation, a notable contributor to subscriptions and services revenue.  **[0001730168-24-000023_avgo-20240204.htm:6]** **[0001730168-24-000023_avgo-20240204.htm:28]**  Additionally, there was a **shift in the revenue mix**; the Infrastructure Software segment's contribution to total revenue increased from **20% in Q1 2023** to **38% in Q1 2024**.  **[0001730168-24-000012_avgo-02042024x8kxex99.htm:1]** **[0001730168-24-000023_avgo-20240204.htm:28]**  Finally, **increased customer demand for cloud and AI solutions**, particularly for networking products in AI data centers and custom AI accelerators bundled with software solutions, also played a significant role.  **[0001730168-24-000012_avgo-02042024x8kxex99.htm:0]** 

What drove the significant jump in subscription revenue in Q1 2024?

The surge in **restructuring and other charges** for Q1 2024 was caused by restructuring activities related to the VMware merger. The charges were incurred as Broadcom worked to integrate the acquired business, align its workforce, and improve operational efficiencies, with **$712 million** recognized primarily for employee termination costs.  **[0001730168-24-000023_avgo-20240204.htm:23]** 

What caused the surge in restructuring and other charges in Q1 2024?

bfa93bdacb8e4cdda948306c57e557f15cc94c3d490a3654bf2e802ec9573b08

The **Operating Cash Flow** jumped in Q1 2024 due to a combination of factors. **Contributions from VMware** significantly bolstered cash provided by operations.  **[0001730168-24-000023_avgo-20240204.htm:34]** **[0001730168-24-000080_avgo-20240505.htm:39]**  Additionally, there were **higher non-cash adjustments**—notably, **amortization of intangible assets increased** from **$905 million** to **$2,206 million** and **stock-based compensation surged** from **$391 million** to **$1,582 million**.  **[0001730168-24-000023_avgo-20240204.htm:3]** **[0001730168-24-000012_avgo-02042024x8kxex99.htm:1]**  Finally, changes in working capital, with an improvement in **trade accounts receivable** (a positive shift of **$2,032 million**) despite partially offsetting negatives from other current assets and liabilities, also played a role.  **[0001730168-24-000023_avgo-20240204.htm:3]** **[0001730168-24-000023_avgo-20240204.htm:33]** 

Why did Operating Cash Flow jump in Q1 2024?

The documents indicate that **capital expenditures in Q3 2024** increased significantly, with **Purchases of Property, Plant and Equipment** reaching **$172 million** compared to **$122 million** in Q3 2023. However, the documents do not provide specific reasons or analysis for this spike in capital expenditures in Q3 2024.  **[20240905NY98548:9]** 

What drove the spike in capital expenditures in Q3 2024?

During Q1 2024, the dramatic surge in business acquisitions was driven primarily by Broadcom's acquisition of **VMware, Inc.** The transaction involved a significant cash component of approximately **$30.8 billion** along with an equity component of **54.4 million shares** of Broadcom common stock valued at **$53.4 billion**. The large cash outlay was the main factor behind the substantial increase in acquisitions during the quarter.  **[0001730168-24-000012_avgo-02042024x8kxex99.htm:10]** **[0001730168-24-000023_avgo-20240204.htm:25]** 

What led to the dramatic surge in business acquisitions in Q1 2024?

The sharp increase in long-term borrowing proceeds in Q1 2024 was primarily due to financing activities related to the **VMware acquisition**. **Broadcom secured 2023 Term Loans with floating interest rates to fund the acquisition, which contributed to the large inflow of cash from long-term borrowings during the quarter**.  **[0001730168-24-000023_avgo-20240204.htm:3]** **[0001730168-24-000023_avgo-20240204.htm:34]** **[0001730168-24-000023_avgo-20240204.htm:15]** 

What caused the sharp increase in long-term borrowing proceeds in Q1 2024?

f14669e506239e47f166dbafbf06bc32ae033c044e421309586196e06bc93bac

Broadcom’s cash and cash equivalents dropped significantly in Q1 2024 because the company made several large cash outlays during the quarter. **Key factors** include the **VMware merger**, which cost **$32,058 million** (offset partly by **$29,076 million** in net proceeds from borrowings), **stock repurchases** costing **$7,176 million**, **dividend payments** of **$2,435 million**, and **employee withholding taxes** of **$1,114 million**. Although the company generated **$4,815 million** from operating activities, these major cash outflows collectively resulted in a net decrease in cash reserves from **$14,189 million** to **$11,864 million**.  **[0001730168-24-000023_avgo-20240204.htm:33]** **[0001730168-24-000012_avgo-02042024x8kxex99.htm:10]** 

Why did cash and cash equivalents drop so much in Q1 2024?

The sharp surge in total assets in Q1 2024 was primarily driven by **Broadcom’s acquisition of VMware**. This acquisition led to a significant increase in key asset categories, including **goodwill** (rising from **$43,653 million to $97,586 million**), **intangible assets, net** (rising from **$3,867 million to $47,185 million**), and **other current assets** (increasing from **$1,606 million to $8,439 million**), which collectively contributed to the marked rise in total assets.  **[0001730168-24-000012_avgo-02042024x8kxex99.htm:9]** **[0001730168-24-000023_avgo-20240204.htm:1]** 

What caused the sharp surge in Total assets in Q1 2024?

The significant increase in **long-term debt** in Q1 2024 was primarily due to financing the **VMware merger**. Broadcom borrowed **$30,390 million** in 2023 Term Loans and assumed **$8,250 million** from VMware's outstanding senior unsecured notes as part of the acquisition, with a slight offset from **$934 million** in debt repayments during the quarter.  **[0001730168-24-000023_avgo-20240204.htm:69]** **[0001730168-24-000023_avgo-20240204.htm:33]** 

What drove the significant increase in Long-term debt in Q1 2024?

9e8d554563768b39c8ddbfb0820f62ffc55ce3dab8e3aeeb42be486f8c768233

Broadcom Inc (AVGO)

Financials