Broadcom: Fiscal 1Q22 Financial Results

Broadcom Inc. reported financial results for 1FQ22 ended January 30, 2022, provided guidance for 2FQ22 and announced its quarterly dividends.

“Broadcom’s record first quarter results were driven by strong enterprise demand, and continued investments in next generation technology by hyperscale and service providers,” said Hock Tan, president and CEO. “Our second quarter outlook projects Y/Y growth to accelerate.”

“Consolidated revenue grew 16% Y/Y to a record $7.7 billion and operating profit increased 23%,” said Kirsten Spears, CFO. “We generated $3.4 billion in free cash flow and are expecting free cash flow to remain strong in the second quarter. Consistent with our commitment to return excess cash to shareholders, we returned $4.5 billion to shareholders in the quarter including $1.8 billion of cash dividends and $2.7 billion of share repurchases.“

The cash and cash equivalents at the end of 1FQ22 were $10,219 million, compared to $12,163 million at the end of 4FQ21.

During 1FQ22, the company generated $3,486 million in cash from operations and spent $101 million on capital expenditures. It spent $3,099 million on share repurchases and eliminations, consisting of $2,724 million in repurchases of 4.4 million shares and $375 million of withholding tax payments related to net settled equity awards that vested in the quarter (representing approximately 0.6 million shares withheld).

On December 31, 2021, it paid a cash dividend of $4.10 per share of common stock, totaling $1,689 million and a cash dividend of $20.00 per share of mandatory convertible preferred stock, totaling $75 million.

2FQ22 Outlook

• Revenue of approximately $7.9 billion
• Adjusted EBITDA guidance of approximately 62.5% of projected revenue

Quarterly Dividends
The board approved a quarterly cash dividend on its common stock of $4.10 per share. The common stock dividend is payable on March 31, 2022 to common stockholders of record at the close of business on March 22, 2022.

It also approved a quarterly cash dividend on its 8.00% Mandatory Convertible Preferred Stock, Series A, of $20.00 per share. This dividend is payable on March 31, 2022 to preferred stockholders of record at the close of business on March 15, 2022.