Qualcomm Q3 2024 $QCOM (+0.17%)

Financial performance:

• Revenue: Total revenue for fiscal 2024 was $38.962 million, an increase from $35.820 million in 2023.
• Earnings Before Tax (EBT): EBT increased to $10.336 million in FY2024 compared to $7.443 million in 2023, indicating strong operating performance.

Balance sheet overview:

• Assets: Cash, marketable securities and cash equivalents totaled $14.634 million as of September 29, 2024.
• Liabilities: Total liabilities amounted to $15.0 billion.

Income statement:

• QCT segment (chip production): Segment EBT increased to $9.527 million in 2024 from $7.924 million in 2023.
• License revenue QTL: License revenue in QTL increased to $5.572 million in 2024 from $5.306 million in the prior year.

Cash flow overview:

• Operating activities: Net cash provided by operating activities amounted to $12.202 million in 2024.
• Investing activities: Net cash outflow amounted to $(3.623) million.
• Financing activities: Net cash outflow amounted to $(4,385) million.

Key figures and profitability metrics:

• EBT margin: QCT segment EBT margin increased from 26% in 2023 to 29% in 2024, indicating higher efficiency.
• QTL EBT margin: The EBT margin of the QTL segment increased from 68% to 72%.

Segment information:

• QCT segment: Revenue increased to $33.196 million in 2024, an increase from $30.382 million in 2023.
• QTL segment: Revenue increased to $5.572 million in 2024 compared to $5.306 million in the prior year.

Competitive Position:

• The company faces strong competition in the semiconductor and licensing sectors and is focused on expanding into the automotive and IoT sectors.

Forecasts and management commentary:

• Management expects continued growth in the Automotive and IoT segments, supported by new vehicle launches and increasing demand for consumer products.

Risks and opportunities:

• Risks: Risks include currency fluctuations, regulatory changes and a high dependency on a few major customers.
• Opportunities: Expansion into the automotive and IoT markets and utilization of Snapdragon platforms.

Summary of results:

Positives:

• Revenue and EBT growth.
• Strong sales increases in the QCT segment.
• Improved EBT margins in QCT and QTL.
• High cash flow from operating activities.
• Strategic focus on automotive and IoT markets.

Negative aspects:

• Decline in IoT sales due to unfavorable product mix.
• High concentration of revenue on a small number of customers.
• Exposure to currency and interest rate risks.
• Potential regulatory and geopolitical risks.
• Significant debt burden of $15.0 billion.