Finance

Broadcom Inc. Announces Fourth Quarter and Fiscal Year 2024 Financial Results and Quarterly Dividend

Published

1 month ago

December 12, 2024

Broadcom Inc. Announces Fourth Quarter and Fiscal Year 2024 Financial Results and Quarterly Dividend

PALO ALTO, Calif., Dec. 12, 2024 /PRNewswire/ — Broadcom Inc. (Nasdaq: AVGO), a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, today reported financial results for its fourth quarter and fiscal year ended November 3, 2024, provided guidance for its first quarter of fiscal year 2025 and announced its quarterly dividend.

“Broadcom’s fiscal year 2024 revenue grew 44% year-over-year to a record $51.6 billion, as infrastructure software revenue grew to $21.5 billion, on the successful integration of VMware,” said Hock Tan, President and CEO of Broadcom Inc. “Semiconductor revenue was a record $30.1 billion driven by AI revenue of $12.2 billion. AI revenue which grew 220 percent year-on-year was driven by our leading AI XPUs and Ethernet networking portfolio.”

“In fiscal year 2024 adjusted EBITDA increased 37% year-over-year to a record $31.9 billion, and free cash flow excluding restructuring was strong at $21.9 billion,” said Kirsten Spears, CFO of Broadcom Inc. “Based on increased cash flows in fiscal year 2024, we are increasing our quarterly common stock dividend by 11% to $0.59 per share for fiscal year 2025. The target fiscal year 2025 annual common stock dividend of $2.36 per share is a record, and the fourteenth consecutive increase in annual dividends since we initiated dividends in fiscal 2011.”

The Company’s cash and cash equivalents at the end of the fiscal quarter were $9,348 million, compared to $9,952 million at the end of the prior quarter.

During the fourth fiscal quarter, the Company generated $5,604 million in cash from operations and spent $122 million on capital expenditures. The Company paid $1,204 million of withholding taxes related to net settled equity awards that vested in the quarter (resulting in the elimination of 7.4 million shares).

On September 30, 2024, the Company paid a cash dividend on a split adjusted basis of $0.53 per share, totaling $2,484 million.

The differences between the Company’s GAAP and non-GAAP results are described generally under “Non-GAAP Financial Measures” below and presented in detail in the financial reconciliation tables attached to this release.

Fiscal Year 2024 Financial Highlights

	GAAP						Non-GAAP Advertisement
(Dollars in millions, except per share data)	FY 24		FY 23		Change		FY 24 Advertisement		FY 23		Change
Net revenue	$	51,574 Advertisement	$	35,819	+44	%	$ Advertisement	51,574	$	35,819	+44	% Advertisement
Net income	$	5,895	$	14,082 Advertisement	-$ 8,187		$	23,733	$	18,378 Advertisement	+$ 5,355
Earnings per common share – diluted ^*	$	1.23	$ Advertisement	3.30	-$ 2.07		$	4.87	$ Advertisement	4.22	+$ 0.65

(Dollars in millions)	FY 24		FY 23 Advertisement		Change
Cash flow from operations	$	19,962	$ Advertisement	18,085	+$ 1,877
Adjusted EBITDA	$	31,897 Advertisement	$	23,213	+$ 8,684
Free cash flow	$ Advertisement	19,414	$	17,633	+$ 1,781


Net revenue by segment Advertisement
(Dollars in millions)	FY 24				FY 23				Change
Semiconductor solutions Advertisement	$	30,096	58	%	$ Advertisement	28,182	79	%	+7	% Advertisement
Infrastructure software		21,478	42			7,637	21 Advertisement		+181	%
Total net revenue	$	51,574 Advertisement	100	%	$	35,819	100 Advertisement	%

* On July 12, 2024, the Company completed a ten-for-one forward stock split. All per share amounts presented reflect the stock split.

First Quarter Fiscal Year 2025 Business Outlook

Based on current business trends and conditions, the outlook for the first quarter of fiscal year 2025, ending February 2, 2025, is expected to be as follows:

The guidance provided above is only an estimate of what the Company believes is realizable as of the date of this release. The Company is not readily able to provide a reconciliation of projected Adjusted EBITDA to projected net income without unreasonable effort. Actual results will vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.

Quarterly Dividends

The Company’s Board of Directors has approved a quarterly cash dividend of $0.59 per share. The dividend is payable on December 31, 2024 to stockholders of record at the close of business (5:00 p.m. Eastern Time) on December 23, 2024.

Financial Results Conference Call

Broadcom Inc. will host a conference call to review its financial results for the fourth quarter and fiscal year 2024 and to discuss the business outlook today at 2:00 p.m. Pacific Time.

To Listen via Internet: The conference call can be accessed live online in the Investors section of the Broadcom website at https://investors.broadcom.com/.

Replay: An audio replay of the conference call can be accessed for one year through the Investors section of Broadcom’s website at https://investors.broadcom.com/.

Non-GAAP Financial Measures

The non-GAAP measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A reconciliation between GAAP and non-GAAP financial data is included in the supplemental financial data attached to this press release. Broadcom believes non-GAAP financial information provides additional insight into the Company’s on-going performance. Therefore, Broadcom provides this information to investors for a more consistent basis of comparison and to help them evaluate the results of the Company’s on-going operations and enable more meaningful period to period comparisons.

In addition to GAAP reporting, Broadcom provides investors with net income, operating income, gross margin, operating expenses, cash flow and other data on a non-GAAP basis. This non-GAAP information excludes amortization of acquisition-related intangible assets, stock-based compensation expense, restructuring and other charges, acquisition-related costs, including integration costs, non-GAAP tax reconciling adjustments, and other adjustments. Management does not believe that these items are reflective of the Company’s underlying performance. Internally, these non-GAAP measures are significant measures used by management for purposes of evaluating the core operating performance of the Company, establishing internal budgets, calculating return on investment for development programs and growth initiatives, comparing performance with internal forecasts and targeted business models, strategic planning, evaluating and valuing potential acquisition candidates and how their operations compare to the Company’s operations, and benchmarking performance externally against the Company’s competitors. The exclusion of these and other similar items from Broadcom’s non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent or unusual.

Free cash flow measures have limitations as they omit certain components of the overall cash flow statement and do not represent the residual cash flow available for discretionary expenditures. Investors should not consider presentation of free cash flow measures as implying that stockholders have any right to such cash. Broadcom’s free cash flow may not be calculated in a manner comparable to similarly named measures used by other companies.

About Broadcom

Broadcom Inc. (NASDAQ: AVGO) is a global technology leader that designs, develops, and supplies a broad range of semiconductor, enterprise software and security solutions. Broadcom’s category-leading product portfolio serves critical markets including cloud, data center, networking, broadband, wireless, storage, industrial, and enterprise software. Our solutions include service provider and enterprise networking and storage, mobile device and broadband connectivity, mainframe, cybersecurity, and private and hybrid cloud infrastructure. Broadcom is a Delaware corporation headquartered in Palo Alto, CA. For more information, go to www.broadcom.com.

Cautionary Note Regarding Forward-Looking Statements

This announcement contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concerning Broadcom. These statements include, but are not limited to, statements that address our expected future business and financial performance, and other statements identified by words such as “will,” “expect,” “believe,” “anticipate,” “estimate,” “should,” “intend,” “plan,” “potential,” “predict,” “project,” “aim,” and similar words, phrases or expressions. These forward-looking statements are based on current expectations and beliefs of Broadcom’s management, current information available to Broadcom’s management, and current market trends and market conditions and involve risks and uncertainties that may cause actual results to differ materially from those contained in forward-looking statements. Accordingly, undue reliance should not be placed on such statements.

Particular uncertainties that could materially affect future results include risks associated with: global economic conditions and concerns; government regulations and administrative proceedings, trade restrictions and trade tensions; global political and economic conditions; our acquisition of VMware, Inc., including our ability to realize the expected benefits; any acquisitions or dispositions we may make, such as delays, challenges and expenses associated with receiving governmental and regulatory approvals and satisfying other closing conditions, and with integrating acquired businesses with our existing businesses and our ability to achieve the benefits, growth prospects and synergies expected by such acquisitions; dependence on and risks associated with distributors and resellers of our products; dependence on senior management and our ability to attract and retain qualified personnel; our ability to protect against cyber security threats and a breach of security systems; any loss of our significant customers and fluctuations in the timing and volume of significant customer demand; cyclicality in the semiconductor industry or in our target markets; our dependence on contract manufacturing and outsourced supply chain; our dependency on a limited number of suppliers; prolonged disruptions of our or our contract manufacturers’ manufacturing facilities, warehouses or other significant operations; our ability to accurately estimate customers’ demand and adjust our manufacturing and supply chain accordingly; our ability to continue achieving design wins with our customers, as well as the timing of any design wins; our ability to improve our manufacturing efficiency and quality; involvement in legal proceedings; ability of our software products to manage and secure IT infrastructures and environments; demand for our data center virtualization products and market acceptance of our products and services; compatibility of our software products with operating environments, platforms or third-party products; our ability to enter into satisfactory software license agreements; availability of third-party software used in our products; use of open source software in our products; sales to government customers; our ability to manage products and services lifecycles; quarterly and annual fluctuations in operating results; our competitive performance; our ability to maintain or improve gross margin; our ability to protect our intellectual property and the unpredictability of any associated litigation expenses; any expenses or reputational damage associated with resolving customer product warranty and indemnification claims, or other undetected defects or bugs; our ability to sell to new types of customers and to keep pace with technological advances; our compliance with privacy and data security laws; our provision for income taxes and overall cash tax costs; our ability to maintain tax concessions in certain jurisdictions; potential tax liabilities as a result of acquiring VMware; our significant indebtedness and the need to generate sufficient cash flows to service and repay such debt; and other events and trends on a national, regional, industry-specific and global scale, including those of a political, economic, business, competitive and regulatory nature.

Our filings with the SEC, which are available without charge at the SEC’s website at https://www.sec.gov, discuss some of the important risk factors that may affect our business, results of operations and financial condition. Actual results may vary from the estimates provided. We undertake no intent or obligation to publicly update or revise any of the estimates and other forward-looking statements made in this announcement, whether as a result of new information, future events or otherwise, except as required by law.

Contact:
Ji Yoo
Broadcom Inc.
Investor Relations
650-427-6000
investor.relations@broadcom.com

(AVGO-Q)

BROADCOM INC. Advertisement
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS – UNAUDITED
(IN MILLIONS, EXCEPT PER SHARE DATA)



	Fiscal Quarter Ended						Fiscal Year Ended
	November 3, Advertisement		August 4,		October 29,		November 3,		October 29,
	2024 Advertisement		2024		2023		2024		2023

Net revenue Advertisement	$	14,054	$	13,072	$ Advertisement	9,295	$	51,574	$	35,819 Advertisement
Cost of revenue:
Cost of revenue		3,399		3,133		2,449 Advertisement		12,788		9,272
Amortization of acquisition-related intangible assets		1,602		1,525 Advertisement		438		6,023		1,853
Restructuring charges		51 Advertisement		58		1		254		4
Total cost of revenue Advertisement		5,052		4,716		2,888		19,065		11,129 Advertisement
Gross margin		9,002		8,356		6,407		32,509 Advertisement		24,690
Research and development		2,234		2,353		1,388 Advertisement		9,310		5,253
Selling, general and administrative		1,010		1,100 Advertisement		418		4,959		1,592
Amortization of acquisition-related intangible assets		813 Advertisement		812		348		3,244		1,394
Restructuring and other charges Advertisement		318		303		13		1,533		244 Advertisement
Total operating expenses		4,375		4,568		2,167		19,046 Advertisement		8,483
Operating income		4,627		3,788		4,240 Advertisement		13,463		16,207
Interest expense		(916)		(1,064) Advertisement		(405)		(3,953)		(1,622)
Other income, net		52 Advertisement		82		132		406		512
Income from continuing operations before income taxes Advertisement		3,763		2,806		3,967		9,916		15,097 Advertisement
Provision for (benefit from) income taxes		(442)		4,238		443		3,748 Advertisement		1,015
Income (loss) from continuing operations		4,205		(1,432)		3,524 Advertisement		6,168		14,082
Income (loss) from discontinued operations, net of income taxes		119		(443) Advertisement		–		(273)		–
Net income (loss)	$ Advertisement	4,324	$	(1,875)	$	3,524 Advertisement	$	5,895	$	14,082

Basic income (loss) per share⁽¹⁾: Advertisement								…
Income (loss) per share from continuing operations	$	0.89	$ Advertisement	(0.31)	$	0.85	$	1.33 Advertisement	$	3.39
Income (loss) per share from discontinued operations		0.03		(0.09) Advertisement		–		(0.06)		–
Net income (loss) per share	$ Advertisement	0.92	$	(0.40)	$	0.85 Advertisement	$	1.27	$	3.39

Diluted income (loss) per share⁽¹⁾: Advertisement
Income (loss) per share from continuing operations	$	0.87	$	(0.31) Advertisement	$	0.83	$	1.29	$ Advertisement	3.30
Income (loss) per share from discontinued operations		0.03		(0.09)		– Advertisement		(0.06)		–
Net income (loss) per share	$	0.90 Advertisement	$	(0.40)	$	0.83	$ Advertisement	1.23	$	3.30

Weighted-average shares used in per share calculations ⁽¹⁾:
Basic Advertisement		4,679		4,663		4,133		4,624		4,149 Advertisement
Diluted		4,828		4,663		4,268		4,778 Advertisement		4,272

Stock-based compensation expense included in continuing operations:
Cost of revenue	$	159 Advertisement	$	174	$	62	$ Advertisement	664	$	210
Research and development		839 Advertisement		877		448		3,460		1,513
Selling, general and administrative Advertisement		316		330		128		1,546		448 Advertisement
Total stock-based compensation expense	$	1,314	$	1,381 Advertisement	$	638	$	5,670	$ Advertisement	2,171

(1) Reflects a ten-for-one forward stock split on July 12, 2024.

BROADCOM INC.
FINANCIAL RECONCILIATION: GAAP TO NON-GAAP – UNAUDITED Advertisement
(IN MILLIONS)


	Fiscal Quarter Ended						Fiscal Year Ended
	November 3,		August 4, Advertisement		October 29,		November 3,		October 29,
	2024		2024 Advertisement		2023		2024		2023

Gross margin on GAAP basis	$ Advertisement	9,002	$	8,356	$	6,407 Advertisement	$	32,509	$	24,690
Amortization of acquisition-related intangible assets Advertisement		1,602		1,525		438		6,023		1,853 Advertisement
Stock-based compensation expense		159		174		62		664 Advertisement		210
Restructuring charges		51		58		1 Advertisement		254		4
Acquisition-related costs		–		– Advertisement		–		9		–
Gross margin on non-GAAP basis	$ Advertisement	10,814	$	10,113	$	6,908 Advertisement	$	39,459	$	26,757

Research and development on GAAP basis Advertisement	$	2,234	$	2,353	$ Advertisement	1,388	$	9,310	$	5,253 Advertisement
Stock-based compensation expense		839		877		448		3,460 Advertisement		1,513
Acquisition-related costs		–		2		– Advertisement		3		–
Research and development on non-GAAP basis	$	1,395 Advertisement	$	1,474	$	940	$ Advertisement	5,847	$	3,740

Selling, general and administrative expense on GAAP basis	$ Advertisement	1,010	$	1,100	$	418 Advertisement	$	4,959	$	1,592
Stock-based compensation expense Advertisement		316		330		128		1,546		448 Advertisement
Acquisition-related costs		86		79		69		537 Advertisement		252
Selling, general and administrative expense on non-GAAP basis	$	608	$ Advertisement	691	$	221	$	2,876 Advertisement	$	892

Total operating expenses on GAAP basis	$	4,375 Advertisement	$	4,568	$	2,167	$ Advertisement	19,046	$	8,483
Amortization of acquisition-related intangible assets		813 Advertisement		812		348		3,244		1,394
Stock-based compensation expense Advertisement		1,155		1,207		576		5,006		1,961 Advertisement
Restructuring and other charges		318		303		13		1,533 Advertisement		244
Acquisition-related costs		86		81		69 Advertisement		540		252
Total operating expenses on non-GAAP basis	$	2,003 Advertisement	$	2,165	$	1,161	$ Advertisement	8,723	$	4,632

Operating income on GAAP basis	$ Advertisement	4,627	$	3,788	$	4,240 Advertisement	$	13,463	$	16,207
Amortization of acquisition-related intangible assets Advertisement		2,415		2,337		786		9,267		3,247 Advertisement
Stock-based compensation expense		1,314		1,381		638		5,670 Advertisement		2,171
Restructuring and other charges		369		361		14 Advertisement		1,787		248
Acquisition-related costs		86		81 Advertisement		69		549		252
Operating income on non-GAAP basis	$ Advertisement	8,811	$	7,948	$	5,747 Advertisement	$	30,736	$	22,125

Interest expense on GAAP basis Advertisement	$	(916)	$	(1,064)	$ Advertisement	(405)	$	(3,953)	$	(1,622) Advertisement
Loss on debt extinguishment		52		83		–		157 Advertisement		–
Interest expense on non-GAAP basis	$	(864)	$ Advertisement	(981)	$	(405)	$	(3,796) Advertisement	$	(1,622)

Other income, net on GAAP basis	$	52 Advertisement	$	82	$	132	$ Advertisement	406	$	512
(Gains) losses on investments		30 Advertisement		6		24		12		(11)
Other Advertisement		–		–		(1)		–		(1) Advertisement
Other income, net on non-GAAP basis	$	82	$	88 Advertisement	$	155	$	418	$ Advertisement	500

Provision for (benefit from) income taxes on GAAP basis	$	(442)	$ Advertisement	4,238	$	443	$	3,748 Advertisement	$	1,015
Non-GAAP tax reconciling adjustments ⁽¹⁾		1,506		(3,303) Advertisement		244		(123)		1,610
Provision for income taxes on non-GAAP basis	$ Advertisement	1,064	$	935	$	687 Advertisement	$	3,625	$	2,625

Net income (loss) on GAAP basis Advertisement	$	4,324	$	(1,875)	$ Advertisement	3,524	$	5,895	$	14,082 Advertisement
Amortization of acquisition-related intangible assets		2,415		2,337		786		9,267 Advertisement		3,247
Stock-based compensation expense		1,314		1,381		638 Advertisement		5,670		2,171
Restructuring and other charges		369		361 Advertisement		14		1,787		248
Acquisition-related costs		86 Advertisement		81		69		549		252
Loss on debt extinguishment Advertisement		52		83		–		157		– Advertisement
(Gains) losses on investments		30		6		24		12 Advertisement		(11)
Other		–		–		(1) Advertisement		–		(1)
Non-GAAP tax reconciling adjustments ⁽¹⁾		(1,506)		3,303 Advertisement		(244)		123		(1,610)
(Income) loss from discontinued operations, net of income taxes		(119) Advertisement		443		–		273		–
Net income on non-GAAP basis Advertisement	$	6,965	$	6,120	$ Advertisement	4,810	$	23,733	$	18,378 Advertisement

Net income (loss) on GAAP basis	$	4,324	$	(1,875) Advertisement	$	3,524	$	5,895	$ Advertisement	14,082
Non-GAAP Adjustments:
Amortization of acquisition-related intangible assets		2,415		2,337 Advertisement		786		9,267		3,247
Stock-based compensation expense		1,314 Advertisement		1,381		638		5,670		2,171
Restructuring and other charges Advertisement		369		361		14		1,787		248 Advertisement
Acquisition-related costs		86		81		69		549 Advertisement		252
Loss on debt extinguishment		52		83		– Advertisement		157		–
(Gains) losses on investments		30		6 Advertisement		24		12		(11)
Other		– Advertisement		–		(1)		–		(1)
Non-GAAP tax reconciling adjustments ⁽¹⁾ Advertisement		(1,506)		3,303		(244)		123		(1,610) Advertisement
(Income) loss from discontinued operations, net of income taxes		(119)		443		–		273 Advertisement		–
Other Adjustments:
Interest expense		864		981 Advertisement		405		3,796		1,622
Provision for income taxes on non-GAAP basis		1,064 Advertisement		935		687		3,625		2,625
Depreciation Advertisement		156		149		124		593		502 Advertisement
Amortization of purchased intangibles and right-of-use assets		40		38		22		150 Advertisement		86
Adjusted EBITDA	$	9,089	$ Advertisement	8,223	$	6,048	$	31,897 Advertisement	$	23,213

Weighted-average shares used in per share calculations – diluted on GAAP basis ⁽²⁾		4,828		4,663 Advertisement		4,268		4,778		4,272
Non-GAAP adjustment ⁽³⁾		77 Advertisement		254		82		99		81
Weighted-average shares used in per share calculations – diluted on non-GAAP basis Advertisement		4,905		4,917		4,350		4,877		4,353 Advertisement

Net cash provided by operating activities	$	5,604	$	4,963 Advertisement	$	4,828	$	19,962	$ Advertisement	18,085
Purchases of property, plant and equipment		(122)		(172)		(105) Advertisement		(548)		(452)
Free cash flow	$	5,482 Advertisement	$	4,791	$	4,723	$ Advertisement	19,414	$	17,633


	Fiscal Quarter Ending
	February 2, Advertisement
Expected average diluted share count:	2025

Weighted-average shares used in per share calculation – diluted on GAAP basis ⁽²⁾	4,828
Non-GAAP adjustment ⁽³⁾ Advertisement	68
Weighted-average shares used in per share calculation – diluted on non-GAAP basis	4,896


(1) Non-GAAP tax reconciling adjustments included a one-time discrete non-cash tax provision of $4.5 billion from the impact of an intra-group transfer of certain IP rights to the United States as a result of supply chain realignment for the fiscal quarter ended August 4, 2024 and the fiscal year ended November 3, 2024.
(2) Reflects a ten-for-one forward stock split on July 12, 2024. Advertisement
(3) Non-GAAP adjustment for the number of shares used in the diluted per share calculations excludes the impact of stock-based compensation expense expected to be incurred in future periods and not yet recognized in the financial statements, which would otherwise be assumed to be used to repurchase shares under the GAAP treasury stock method. For the fiscal quarter ended August 4, 2024, non-GAAP adjustment included the dilutive effect of the equity awards that were antidilutive on a GAAP basis.

BROADCOM INC.
CONDENSED CONSOLIDATED BALANCE SHEETS – UNAUDITED
(IN MILLIONS) Advertisement



	November 3,		October 29,
	2024		2023

ASSETS Advertisement

Current assets:
Cash and cash equivalents	$	9,348	$ Advertisement	14,189
Trade accounts receivable, net		4,416		3,154
Inventory Advertisement		1,760		1,898
Other current assets		4,071		1,606 Advertisement
Total current assets		19,595		20,847

Long-term assets:
Property, plant and equipment, net Advertisement		2,521		2,154
Goodwill		97,873		43,653 Advertisement
Intangible assets, net		40,583		3,867
Other long-term assets		5,073 Advertisement		2,340
Total assets	$	165,645	$ Advertisement	72,861


LIABILITIES AND EQUITY

Current liabilities:
Accounts payable	$ Advertisement	1,662	$	1,210
Employee compensation and benefits		1,971 Advertisement		935
Current portion of long-term debt		1,271		1,608
Other current liabilities Advertisement		11,793		3,652
Total current liabilities		16,697		7,405 Advertisement

Long-term liabilities:
Long-term debt		66,295		37,621
Other long-term liabilities Advertisement		14,975		3,847
Total liabilities		97,967		48,873 Advertisement

Stockholders’ equity:
Preferred stock		–		–
Common stock Advertisement		5		4
Additional paid-in capital		67,466		21,095 Advertisement
Retained earnings		–		2,682
Accumulated other comprehensive income		207 Advertisement		207
Total stockholders’ equity		67,678		23,988
Total liabilities and equity Advertisement	$	165,645	$	72,861

BROADCOM INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS – UNAUDITED
(IN MILLIONS)



	Fiscal Quarter Ended						Fiscal Year Ended Advertisement
	November 3,		August 4,		October 29,		November 3,		October 29, Advertisement
	2024		2024		2023		2024		2023 Advertisement
Cash flows from operating activities:
Net income (loss)	$	4,324	$ Advertisement	(1,875)	$	3,524	$	5,895 Advertisement	$	14,082
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization of intangible and right-of-use assets		2,455 Advertisement		2,375		808		9,417		3,333
Depreciation Advertisement		156		149		124		593		502 Advertisement
Stock-based compensation		1,314		1,388		638		5,741 Advertisement		2,171
Deferred taxes and other non-cash taxes		(868)		3,638		639 Advertisement		1,965		(501)
Loss on debt extinguishment		52		83 Advertisement		–		157		–
Non-cash interest expense		91 Advertisement		115		34		427		132
Other Advertisement		138		158		27		404		9 Advertisement
Changes in assets and liabilities, net of acquisitions and disposals:
Trade accounts receivable, net		249		835		(231) Advertisement		2,327		(187)
Inventory		134		(52) Advertisement		(56)		150		27
Accounts payable		(85) Advertisement		373		215		121		209
Employee compensation and benefits Advertisement		196		291		103		78		(279) Advertisement
Other current assets and current liabilities		(1,410)		(1,345)		(694)		(5,323) Advertisement		(628)
Other long-term assets and long-term liabilities		(1,142)		(1,170)		(303) Advertisement		(1,990)		(785)
Net cash provided by operating activities		5,604		4,963 Advertisement		4,828		19,962		18,085

Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired Advertisement		–		(2)		(36)		(25,978)		(53) Advertisement
Proceeds from sale of business		–		3,485		–		3,485 Advertisement		–
Purchases of property, plant and equipment		(122)		(172)		(105) Advertisement		(548)		(452)
Purchases of investments		(30)		(73) Advertisement		(58)		(175)		(346)
Sales of investments		20 Advertisement		5		154		156		228
Other Advertisement		–		2		(79)		(10)		(66) Advertisement
Net cash provided by (used in) investing activities		(132)		3,245		(124)		(23,070) Advertisement		(689)

Cash flows from financing activities:
Proceeds from long-term borrowings		4,969		4,975 Advertisement		–		39,954		–
Payments on debt obligations		(7,472) Advertisement		(9,202)		(143)		(19,608)		(403)
Payments of dividends Advertisement		(2,484)		(2,452)		(1,904)		(9,814)		(7,645) Advertisement
Repurchases of common stock – repurchase program		–		–		(123)		(7,176) Advertisement		(5,824)
Shares repurchased for tax withholdings on vesting of equity awards		(1,204)		(1,350)		(454) Advertisement		(5,216)		(1,861)
Issuance of common stock		126		– Advertisement		59		190		122
Other		(11) Advertisement		(36)		(5)		(63)		(12)
Net cash used in financing activities Advertisement		(6,076)		(8,065)		(2,570)		(1,733)		(15,623) Advertisement

Net change in cash and cash equivalents		(604)		143		2,134		(4,841) Advertisement		1,773
Cash and cash equivalents at beginning of period		9,952		9,809		12,055 Advertisement		14,189		12,416
Cash and cash equivalents at end of period	$	9,348 Advertisement	$	9,952	$	14,189	$ Advertisement	9,348	$	14,189

Supplemental disclosure of cash flow information:
Cash paid for interest Advertisement	$	738	$	816	$ Advertisement	397	$	3,250	$	1,503 Advertisement
Cash paid for income taxes	$	832	$	585 Advertisement	$	191	$	3,155	$ Advertisement	1,782

Cision

View original content:https://www.prnewswire.com/news-releases/broadcom-inc-announces-fourth-quarter-and-fiscal-year-2024-financial-results-and-quarterly-dividend-302330736.html

SOURCE Broadcom Inc.

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Finance

US consumer finance watchdog fines payments firm Block over Cash App operations

Published

8 hours ago

January 17, 2025

Press Room

US consumer finance watchdog fines payments firm Block over Cash App operations

Block said the issues raised by the regulator were “historical” and did not “reflect the Cash App experience today” [File]
| Photo Credit: REUTERS

The Consumer Financial Protection Bureau (CFPB) on Thursday ordered payments firm Block to pay a penalty citing fraud and weak security protocols on its mobile payment service Cash App.

The regulator said Block, which is led by tech entrepreneur Jack Dorsey, directed Cash App users who experienced fraud-related losses to contact their banks for transaction reversals.

However, when the banks approached Block regarding these claims, Block denied that any fraud had occurred.

Cash App is one of the largest peer-to-peer payment platforms in the U.S. and allows consumers to send and receive electronic money transfers, accept direct deposits and use a prepaid card to make purchases.

“When things went wrong, Cash App flouted its responsibilities and even burdened local banks with problems that the company caused,” said CFPB Director Rohit Chopra.

In response, Block said the issues raised by the regulator were “historical” and did not “reflect the Cash App experience today.”

“While we strongly disagree with the CFPB’s mischaracterizations, we made the decision to settle this matter in the interest of putting it behind us and focusing on what’s best for our customers and our business,” the company said.

The move is one of the final regulatory actions under the Biden administration as Washington awaits the inauguration of President-elect Donald Trump. Billionaire Elon Musk, who is slated to co-head a new government agency to slash government spending, has called for the elimination of the CFPB.

The CFPB’s order includes up to $120 million in redress to consumers and a $55 million penalty to be paid into the CFPB’s victim relief fund.

The regulator also alleged that Block deployed a range of tactics to suppress Cash App users from seeking help in order to reduce its own costs.

Block’s gross profit rose 19% to $2.25 billion in the third quarter ended Sept 30, with Cash App accounting for $1.31 billion of the total income.

On Wednesday, the company also agreed to pay $80 million to a group of 48 state financial regulators after the agencies determined the company had insufficient policies for policing Cash App.

Published – January 17, 2025 09:14 am IST

Finance

Logan Ridge Finance Corporation Schedules Fourth Quarter and Full Year 2024 Earnings Release and Conference Call

Published

15 hours ago

January 16, 2025

Press Room

Logan Ridge Finance Corporation

Call Scheduled for 11:30 am ET on Friday, March 14, 2025

NEW YORK, Jan. 16, 2025 (GLOBE NEWSWIRE) — Logan Ridge Finance Corporation (Nasdaq: LRFC) (“LRFC,” “Logan Ridge” or the “Company”) to release its financial results for the fourth quarter and full year ended December 31, 2024, on Thursday, March 13, 2025, after market close. The Company will host a conference call on Friday, March 14, 2025, at 11:30 a.m. ET to discuss these results.

By Phone: To access the call, please dial (646) 968-2525 approximately 10 minutes prior to the start of the conference call and use the conference ID 1779602.

A replay of this conference call will be available shortly after the live call through March 21, 2025.

By Webcast: A live audio webcast of the conference call can be accessed via the Internet, on a listen-only basis at https://edge.media-server.com/mmc/p/h9fj5e3y. The online archive of the webcast will be available on the Company’s website shortly after the call at www.loganridgefinance.com in the Investor Resources section under Events and Presentations.

About Logan Ridge Finance Corporation

Logan Ridge Finance Corporation (Nasdaq: LRFC) is a publicly traded, externally managed investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. Logan Ridge invests primarily in first lien loans and, to a lesser extent, second lien loans and equity securities issued by lower middle market companies. Logan Ridge Finance Corporation is externally managed by Mount Logan Management, LLC, a wholly owned subsidiary of Mount Logan Capital Inc. Both Mount Logan Management, LLC and Mount Logan Capital Inc. are affiliates of BC Partners Advisors L.P.

Logan Ridge’s filings with the Securities and Exchange Commission (the “SEC”), earnings releases, press releases and other financial, operational and governance information are available on the Company’s website at loganridgefinance.com.

Contacts:
Logan Ridge Finance Corporation
650 Madison Avenue, 3rd floor
New York, NY 10022

Brandon Satoren
Chief Financial Officer
Brandon.Satoren@bcpartners.com
(212) 891-2880

The Equity Group Inc.
Lena Cati
lcati@equityny.com
(212) 836-9611

The Equity Group Inc.
Val Ferraro
vferraro@equityny.com
(212) 836-9633

Finance

The brave new world of Open Finance

Published

23 hours ago

January 16, 2025

Press Room

Don Cardinal of Financial Data Exchange (FDX) explores how Open Finance extends beyond Open Banking, revolutionising financial data sharing.

Much ink has been spilt on the topic of Open Banking, but I wanted to take a step today into a larger world of Open Finance. Whereas Open Banking is most commonly associated with current accounts (checking, savings, credit cards), Open Finance is concerned with the totality of your financial world.

While current accounts are important in the personal financial management use case, when you look at more sophisticated needs, liability accounts like auto loans, home loans, and student loans are required to help give context to a personal balance sheet. Finally, the addition of investment and retirement accounts gives the wealth management user a full 360-degree view of the consumer’s financial health.

Additional use cases – such as account and balance verification, bill payment, and payroll needs like verification of income/employment and pay stub retrieval – along with the ability to retrieve tax forms like W2, 1098, 1099, and capital gain statements for tax preparation, round out the most common consumer demands for linking accounts.

These are all important use cases for consumers and small businesses, but it is also important to address why data providers like banks, brokers, and others would benefit from data sharing.

We know that one in three digitally-enabled consumers has shared access to their financial data in the last year and similar polls of financial institutions tell us that at least one-third (if not more) of their online banking traffic was credential-based access (screen scraping) to power these use cases.

Imagine if a data provider could reduce one-third of its entire load on its online infrastructure in favour of a portal 100 times more efficient than screen scraping. The introduction of secure APIs does just that. Lowering costs of hardware overall.

One of the other uses by data providers is data-in, to pre-fill new account applications as well as provide strong signals for Know Your Customer (KYC), including account tenure at a predecessor institution. Better data means faster, more accurate decisions leading to fewer abandons or declines, meaning more revenue for the institution.

As a banker for a number of years, one of the biggest questions we had was ‘What was our share of a given customer’s wallet?’ We often had to try to infer based on monies in and out, but with Open Finance, you can link to other institutions and know in real time what your share of wallet is. This allows you to be almost surgical in your marketing and product offering.

All this is made possible by secure, permissioned data sharing via a common API standard.

Looking forward

Avoid FUD (fear, uncertainty, and doubt). Many jurisdictions have implemented Open Banking (the UK, EU, Australia, Brazil, among others) and there has yet to be a mass exodus of consumers in any of these nations. Why? If you are confident in your product, your pricing, and your service, making data available via an API does nothing to incent consumers to leave, rather the opposite. The largest credit union in Brazil said at the FDX Spring 2024 Summit that they saw a net increase in digital engagement and accounts per customer after Open Banking was introduced.

A last bit of advice: APIs are a net new channel and will be the third leg in the digital stool. Online, Mobile, and API will be the troika. APIs are much more efficient and can deliver data that cannot be displayed visually. As you make your plans for 2025 and 2026 for your digital roadmap, you would be remiss in not including Open Finance APIs in your product mix. Your competitors are.

This editorial piece was first published in The Paypers’ Open Finance Report 2024, the latest comprehensive market overview and analysis focusing on the key players and products within the Open Banking and Open Finance ecosystem. Download the full report to discover more insightful content.

About Don Cardinal

Don Cardinal is Managing Director of Financial Data Exchange (FDX) and has led it since its inception. Previously, he spent over 20 years with Bank of America, serving as head of digital for its Military Bank, VP of Digital Banking & Senior VP of Information Security. Don holds 18 US patents and CPA, CISA, CISM certificates.

About FDX

The Financial Data Exchange (FDX) is dedicated to unifying the financial industry around a common, interoperable, royalty-free standard for the secure and convenient access of permissioned consumer and business financial data: the FDX Application Programming Interface (FDX API). FDX is a global 501(c)(6) nonprofit organisation with no commercial interests operating in the US and Canada.