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).
Advertisement
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.
Advertisement
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/.
Advertisement
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.
Advertisement
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.
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.
Advertisement
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
Advertisement
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
What U.S. consumers ask of their credit cards has changed. For financially stressed households, it has little to do with rewards.
As more households turn to credit cards to manage liquidity and cover everyday expenses, a new set of practical concerns is driving card behavior: Can the card help avoid a missed payment? Can it make balances easier to track? Can it provide enough visibility into available credit and upcoming obligations to help manage an uncertain month?
Those concerns are beginning to reorder what consumers value most in their credit card relationships.
That evidence is clear in “Winning Top of Wallet: How Credit Card Apps Shape Choice,” a PYMNTS Intelligence and Elan Credit Card report examining how consumers use mobile apps to manage spending, payments and engagement across their credit card portfolios. The report found 30% of consumers primarily use credit cards to build credit or extend purchasing power, while another 22% primarily use cards for cash flow management, together outweighing rewards-based usage.
The divide is more pronounced among financially stressed households. Among consumers living paycheck to paycheck and struggling to pay bills, 40% cited credit dependence as their primary reason for using credit cards. Just 11% pointed to rewards.
Advertisement
For a growing share of consumers, credit cards are functioning less like discretionary spending products and more like liquidity management tools.
Advertisement: Scroll to Continue
What Matters Most
That evolution is also changing which app features matter most.
Among cash flow-focused consumers, 31% said scheduling payments or autopay encouraged them to spend more on a card, while 27% cited alerts and reminders. Credit-motivated consumers showed similarly high engagement with tools tied to available credit visibility and payment timing.
Rewards still influence spending behavior, particularly among financially stable households. Half of consumers who prioritize rewards said tracking or redeeming rewards through a mobile app encouraged them to spend more on the card.
Advertisement
But the report suggests that financial stress changes the hierarchy of engagement. As household budgets tighten, rewards become less central than predictability, visibility and control.
That shift helps explain why mobile apps increasingly influence which cards become top of wallet.
Among credit-dependent consumers, 77% said the quality of a credit card app influences which card they use most often. Credit-dependent consumers also reported the highest app adoption levels, with 77% using their primary card’s app regularly or occasionally.
The competition, in other words, is no longer simply about card acquisition. It is about becoming the card consumers rely on to navigate everyday financial management.
Digital Experience Becomes a Financial Retention Tool
The report also suggests that digital experience increasingly shapes retention risk.
Advertisement
Nearly 1 in 4 cardholders said a poor app or digital experience contributed to reduced card use. Among Gen Z consumers, that figure climbed to 45%.
At the same time, 7 in 10 cardholders said app quality influences which card becomes their primary card, underscoring how mobile interfaces are becoming embedded directly into consumer payment behavior.
For issuers, the implications extend beyond app design.
Consumers living paycheck to paycheck hold nearly as many credit cards as financially stable households, meaning financially stressed consumers are not disengaging from credit entirely. Instead, they are becoming more selective about which cards feel easiest to manage and most useful during periods of financial pressure.
Rewards and promotional offers still matter, particularly among affluent and financially stable consumers. But for a growing segment of households, the most valuable card may be the one that reduces uncertainty around balances, payment timing and available liquidity.
Advertisement
In a crowded multi-card market, financial visibility itself is becoming part of the product.
Budgeting apps promise to make it easier to track spending, manage bills and pay down debt.
Financial experts say the best tool is the one people will use.
“I am really interested in the AI financing and budgeting apps,” said Jerry Xia.
What budgeting apps do
Budgeting apps can track spending, monitor bills, set category limits, and manage subscriptions. Some also help users build savings and reduce debt.
“There are tools out there that you can enter things yourself and it will track right on there,” said Bob Ingram, a certified financial planner with Center for Financial Planning Inc. “There are also tools that we can connect right to our bank accounts, right to credit cards and statements.”
Advertisement
Choosing the right app
A search for budgeting apps turns up dozens of options, including Rocket Money, EveryDollar, Albert and Monarch Money.
“It depends on what you are looking for. Do you need a lot of features? Do you need a lot of control?” Ingram said.
Some apps offer free versions, while premium plans often cost $10 to $20 per month.
“Just like any cost, it becomes part of your budget,” Ingram said.
For some users, the added expense is worth it.
Advertisement
“I just realized through the app, I was spending way too much money,” said Ronan Plunkett. “It makes everything super organized.”
A closer look at spending
After hearing Plunkett’s experience, I tried Rocket Money by linking my bank and credit card accounts. The app quickly highlighted spending patterns across dining out, Amazon purchases and recurring subscriptions. It also showed how quickly small purchases can add up.
“You’ll oftentimes talk to folks who say they’re not big spenders and don’t spend a lot,” Ingram said, noting that many are surprised when they look at their income and overall spending throughout the year.
Technology can’t change behavior
Financial planners say budgeting apps provide useful data, but they cannot change spending habits.
“Money behaviors are still money behaviors. And regardless of whether we can track something or not on a budget, we’re still going to have spending decisions driven by emotions and thoughts. And that’s probably not going to change,” Ingram said.
Advertisement
Read the privacy policy
Experts say privacy should be considered before linking financial accounts to budgeting apps.
Before connecting accounts, users should review terms to understand how data is collected, shared, and used.
If the language is difficult, AI tools may help summarize and explain it.
More information on the pros and cons of using finance apps can be found here.
Copyright 2026 by WDIV ClickOnDetroit – All rights reserved.
Enjoy complimentary access to top ideas and insights — selected by our editors. Want unlimited access to top ideas and insights? Subscribe Now
Banking has entered a new phase of transformation that has the potential to remake large swaths of the industry. For much of the past decade, innovation was often framed around modernization efforts such as upgrading legacy systems, improving digital channels, or experimenting with emerging technologies through pilots and limited deployments. Now, the institutions pulling ahead competitively are distinguished by their willingness to explore innovation early and their ability to operationalize it at scale and translate it into measurable business outcomes.
Across the industry, innovation is beginning to reshape the economics and competitive structure of financial services in more tangible ways. Revenue models are evolving. Operational costs are being reconfigured through the strategic integration of artificial intelligence, cloud computing and blockchain. That, in turn, is fundamentally changing how capital is allocated. Risk management is becoming more data driven, predictive and automated. Customer expectations around speed, personalization and accessibility continue to rise as the instant-everything culture takes hold.
What makes the current cycle particularly significant is that several major technology shifts are unfolding simultaneously and beginning to intersect. AI, real-time payments, digital assets, tokenization, cloud-native infrastructure, embedded finance, and programmable financial systems are increasingly reinforcing one another and revamping how financial institutions operate, deliver services and compete.
These factors compelled American Banker to launch The Most Innovative People in Finance, a new annual ranking that recognizes the top 50 individuals who are driving these massive waves of digital transformation—producing measurable results, shoring up their competitive positions, opening new markets, and, in some cases, redefining the industry.
Leading this year’s list is #1-ranked Vantage Bank CEO Jeff Sinnott for the launch of the U.S.’s first bank-issued stablecoin; followed in the top five spots by Custodia Bank CEO Caitlin Long (#2) for the debut of a tokenized deposit network for community banks; Goldman Sachs CIO Marco Argenti (#3) for developing and deploying the firm’s widespread internal use cases for agentic AI; TD Bank SVP and Chief AI Scientist Maksims Volkovs (#4) for the development of its predictive foundation AI model; and Anchorage Digital CEO Nathan McCauley (#5) for becoming the issuer of Tether’s U.S.-regulated stablecoin USA₮.
Advertisement
The methodology used to select the 50 individuals is based on quantitative and qualitative factors encompassing leadership, investment in technology innovation, and number, size and impact of digital transformation initiatives over a single year (2025) and three-year time horizon, including internal cost efficiency gains and/or new revenue generation, and, where applicable, impact on the industry. American Banker also considered the role that the individual played in driving digital transformation initiatives in 2025, percentage of technology budget allocated to new innovation projects, products and initiatives, specific funding amount allocated to digital transformation initiatives annually, acquisitions and partnerships initiated to advance the bank’s innovation, impact on creating an internal culture of innovation, and number of patents held in their name.
Why does recognition of outstanding leadership in innovation matter now more than ever?
Consider that AI sits at the center of much of the transformative change—with advanced forms of AI increasingly coordinating workflows, monitoring transactions in real time, supporting liquidity management, identifying anomalous behavior, and assisting with operational decision-making across multiple functions simultaneously.
At the same time, the movement and representation of value itself is changing, with stablecoins, tokenized deposits, blockchain-based settlement systems, and digital-asset infrastructure evolving from experimentation into broader commercial use cases.
As such, real-time payment networks, richer transaction data standards, embedded financial services, and intelligent payment routing are transforming payments into a central layer of customer engagement and commercial activity.
Advertisement
Underpinning many of these developments is a broader modernization of banking infrastructure. Cloud-native architecture, API-driven platforms, and modular technology environments are driving adaptability, data accessibility, ecosystem connectivity, and the ability to integrate intelligence directly into operational workflows.
This period of structural change is altering the competitive dynamics of the industry, requiring leadership that understands when to invest, where to modernize, which risks are worth taking and how to aggressively reposition their institutions for the future.
Nevada3 minutes ago
New Hampshire10 minutes ago
New Jersey13 minutes ago
New Mexico18 minutes ago
North Carolina25 minutes ago
Ohio33 minutes ago
Oklahoma40 minutes ago
