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Records tumble for Arm’s incredible Q1 revenues

Arm has posted record Q1 total revenue of $719million, up six per cent year-over-year.

Rene Haas, CEO of Arm. Picture: Arm
Rene Haas, CEO of Arm. Picture: Arm

Quarterly royalty revenue for the Cambridge chip design company rose for the three months to $453m, up 22 per cent year-over-year – the first time quarterly royalty revenue has been higher than $400m.

Arm partners also shipped 7.4 billion Arm-based chips, up 7 per cent year-over-year – also a Q1 record.

Arm has now achieved four quarters of more than 7 billion Arm-based chips shipped. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) was $414 m, up 31 per cent year-over-year and 58 per cent margin.

The Cambridge chip design company has now recorded four quarters with more than seven billion Arm-based chips shipped.

An Arm statement said: “Arm’s strategy of diversifying into markets beyond mobile, such as automotive and infrastructure, is paying off with strong growth in all new target markets.”

An Arm spokesperson added: “Infrastructure, including the server market, is a key growth area for Arm. When we talk infrastructure at Arm it broadly covers 5G network infrastructure, cloud computing and HPC (high performance computing). Recent examples of significant milestones there include Google Cloud and Microsoft adopting Neoverse.”

Arm computer chips are found in over half the world’s mobile devices. Picture: Matej Moderc
Arm computer chips are found in over half the world’s mobile devices. Picture: Matej Moderc

As autonomous systems move towards more software-defined functionality, Arm is working to accelerate the development of software that will fully realise the benefits of these new technologies through initiatives such as Project Cassini, aimed at laying the foundation for the adoption of cloud native software paradigms across the entirety of edge computing. Arm is also working with multiple open source communities and specialist software vendors to widely enable the autonomous software ecosystem, adopting innovations from the established cloud native ecosystem, and collaboratively driving new development to support the features required for autonomous workloads.

The spokesperson said of Arm’s automotive focus: “Arm, in partnership with leaders across the automotive supply chain, is accelerating the software-defined future by bringing the cloud native paradigm to the automotive sector, including autonomous, with a technology framework, reference implementation and development platforms.

“Arm’s primary focus is providing the foundation for safety, without which the digital transformation of mobility will not be possible. Arm Safety Ready and AE (automotive enhanced) technologies give our partners a more robust, efficient and faster path to delivering functional safety. Recent automotive announcements include a partnership with Cruise.”

Arm chips are used in autonomous vehicle design
Arm chips are used in autonomous vehicle design

Dipti Vachani, SVP and GM, Automotive and IoT Line of Business, Arm, noting that Arm has been working with Cruise, said last month: “Autonomous technology, including of course driverless cars, is a topic that never fails to enthuse and engage, and so you can imagine my excitement at being able to ride in a Cruise AV, the first all-electric, driverless service to welcome public riders in a major US city.

“The ride really brought home to me that the future of autonomous cars is much closer than we think... one of the most exciting parts of our job is getting to work with partners like Cruise on these opportunities and challenges. The next generation of autonomous vehicles will run on Arm, so watch this space!

Rene Haas, CEO, said of the results: “Arm continues to enable our ecosystem with compute performance and efficiency leadership through a transformed strategy.

“Together, we are meeting the insatiable demand for compute and defining the future of computing that will power the next great technology revolutions on Arm.”

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