Arm reports first post-IPO earnings and the stock is down 7%

Published

2 years ago

November 8, 2023

admin

Arm CEO Rene Haas cheers as Arm holds an initial public offering at the Nasdaq MarketSite in New York on Sept. 14, 2023.

Brendan Mcdermid | Reuters

Semiconductor technology company Arm reported its first post-initial public offering earnings on Wednesday that beat Wall Street expectations for sales and showed that the company’s lucrative licensing business doubled in size over the past year.

Arm shares fell over 7% in extended trading after the company’s revenue guidance was short of expectations.

Here’s how the semiconductor licensing company did versus consensus expectations by LSEG, formerly known as Refinitiv, for Arm’s second fiscal quarter ending Sept. 30:

Earnings per share: 36 cents, adjusted
Revenue: $806 million vs. $744.3 million expected

Arm said it was expecting earnings per share between 21 cents and 28 cents on sales of between $720 million and $800 million in the current quarter. That’s a little lighter than what Wall Street was looking for, which was 27 cents per share on revenue between $730 million and $805 million.

Arm reported a net loss of $110 million, or 11 cents per share. The company said the loss was due to more than $500 million in one-time share-based compensation triggered by the recent IPO, and that share-based compensation would land between $150 million and $250 million in future quarters.

Total revenue was up 28% on an annual basis during the quarter.

Arm’s intellectual property is in nearly every smartphone, many PCs and other miscellaneous chips. Arm says more than 7.1 billion Arm-based chips were shipped during the quarter.

It makes money through royalties, or when chipmakers pay Arm for access to build Arm-compatible chips, typically a small percentage of the final chip price. It also sells licenses to more complete chip designs, saving chipmakers time and effort, which are recorded as licensing revenue.

Arm royalty revenue was $418 million, a 5% decline from the same period last year. But Arm licensing sales were $388 million, up 106% from the same period last year. It’s a sign that Arm may be able to sell increasing amounts of technology to its current customers, which is a key metric watched by analysts.

Arm attributed licensing sales to multiple long-term agreements with technology companies, suggesting the segment’s growth could continue in future quarters, but warned that the broader economy could affect future licensing growth.

Arm went public in an IPO in September. Before that, it was owned by SoftBank, which reached a deal to sell the firm to Nvidia before the transaction was scuttled by regulators in 2022. It was founded in 1990 to develop technology for low-power chips.

Arm said that firms including Google, Meta and Nvidia were developing artificial intelligence-capable chips with its technology.

Don’t miss these stories from CNBC PRO:

Technology

Joby lawsuit accuses air taxi rival Archer of using stolen information to ‘one-up’ deal

Published

2 hours ago

November 20, 2025

admin

Joby lawsuit accuses air taxi rival Archer of using stolen information to 'one-up' deal

An electric air taxi by Joby Aviation flies near the Downtown Manhattan Heliport in Manhattan, New York City, U.S., November 12, 2023.

Roselle Chen | Reuters

Air taxi maker Joby Aviation in a new lawsuit accused competitor Archer Aviation of using stolen information by a former employee to “one-up” a partnership deal with a real estate developer.

“This is corporate espionage, planned and premeditated,” Joby said in the lawsuit filed Wednesday in a California Superior Court in Santa Cruz, where the company is based.

Archer and Joby did not immediately respond to CNBC’s request for comment.

The lawsuit alleges that former U.S. state and local policy lead, George Kivork, downloaded dozens of files and sent some content to his personal email two days before he resigned in July to take a job at Archer, which had recruited him.

By August, Joby said a partner that worked with Kivork said it had been approached by Archer with a “more lucrative deal.” Joby alleges that the eVTOL rival’s understanding of “highly confidential” details helped it leverage negotiations.

Joby also said the developer attempted to terminate the agreement, citing a breach of confidentiality.

Jobs data muddies the picture for a December rate cut, while the Nvidia rally fizzles

Published

3 hours ago

November 20, 2025

admin

Jobs data muddies the picture for a December rate cut, while the Nvidia rally fizzles

Technology

Bitcoin falls to lowest level since April

Published

4 hours ago

November 20, 2025

admin

Bitcoin falls to lowest level since April

Andriy Onufriyenko | Moment | Getty Images

Bitcoin dropped on Thursday to levels not seen in more than six months, as investors appeared to pull back exposure to riskier assets and weighed the prospects of another Federal Reserve rate cut next month.

The flagship digital currency fell to as low as $86,325.81, its lowest level since April 21. It last traded at $86,690.11.

The release of stronger-than-expected U.S. jobs data raised questions about whether the central bank would lower its benchmark overnight rate. The U.S. economy added 119,000 in September, well above the 50,000 economists polled by Dow Jones expected.

That report sent the probability of a December rate cut to around 40%, according to the CME Group’s FedWatch tool.

Bitcoin’s pullback formed part of a broader cryptocurrency market decline. XRP was last down 2.3% on the day, and is below $2.00, while ether shed more than 3% to trade well below $3,000. Dogecoin was unchanged.

The world’s oldest crypto also led stocks lower, even after a blockbuster Nvidia earnings report. Traders who are heavily invested in AI-related stocks tend to also hold bitcoin, linking the two trades.

Bitcoin’s price has largely slid since a rash of cascading liquidations of highly leveraged crypto positions in early October.