back to article Arm flexes financial muscles post-IPO, but shares get a reality check

Arm has shown better than expected revenue in its first earnings report since the company's public offering, but its shares fell on a weaker outlook for the quarter ahead. The Brit chip designer said that revenue for the second quarter of its fiscal 2024, ended September 30, hit $806 million, up 28 percent on the $630 million …

  1. martinusher Silver badge

    What drove revenue growth?

    As a public company ARM is now going to focus primarily on the numbers, its what public companies do. Saying that there was "100% revenue growth" doesn't mean a whole lot, though, unless you not only break that growth down (increased sales or increased licensing costs?) and have an appropriate baseline to compare it to.

    Because as we all know, we can't keep increasing sales quarter on quarter with mature companies because you hit market saturation. This is the trap that smaller companies fall into -- its really easy to double sales when they're only $100K or a couple of million per year. Once you hit $100 million or more then growth may well slow. What that means on the ground is that maintaining RoI based on projections (since the nature of an IPO is that it "pays yourself forward") so you quickly end up looking for economies or acquisitions to maintain growth profitability.

    (Been there.....done that.......)

    1. Yet Another Anonymous coward Silver badge

      Re: What drove revenue growth?

      Even worse, ARM isn't really public - SoftBank only floated 10% of the company

      So ARM's shareprice is now the only public information to value the whole of softbank, who just happened to lose umpty-bazilion-squillion $ when WeWork tanked. That's why ARM was priced low, to give a good news "ARM shares up a gazillion %" at the IPO.

      So expect a lot of pressure on ARM to keep the price rising to keep SoftBank's image afloat

  2. pimppetgaeghsr

    Historically isn't this always the best quarter for ARM given the smartphone releases? I can't read too much into that net loss for the quarter until you see the full fiscal year 6 more months from now. They've already done the cliche 20% layoff in 2022 that all companies are now following (SiFive, imgtec, qualcomm, AMD etc.). So who knows if they will have to gut more fat in 2024, there is certainly plenty of it given the amount of middle-managers they have and so few products.

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