Arm Holdings plc reported a 14% increase in total revenue to $824 million for Q3 2023 compared to $724 million in Q3 2022. The nine-month period ending December 31, 2023, saw a 13% rise in total revenue to $2,305 million from $2,046 million in the same period of 2022. The growth was attributed to new licensing agreements, renewals, and higher chip shipments with improved product mix. Cost of sales rose by 24% and 43% for the three and nine-month periods, respectively, due to share-based compensation costs and professional service fees. R&D expenses saw a significant increase due to incremental share-based compensation costs related to the IPO and hiring for development efforts. Selling, general and administrative expenses also increased, driven by IPO-related share-based compensation costs, hiring, and public company...Show More

Arm Holdings plc reported a 14% increase in total revenue to $824 million for Q3 2023 compared to $724 million in Q3 2022. The nine-month period ending December 31, 2023, saw a 13% rise in total revenue to $2,305 million from $2,046 million in the same period of 2022. The growth was attributed to new licensing agreements, renewals, and higher chip shipments with improved product mix. Cost of sales rose by 24% and 43% for the three and nine-month periods, respectively, due to share-based compensation costs and professional service fees. R&D expenses saw a significant increase due to incremental share-based compensation costs related to the IPO and hiring for development efforts. Selling, general and administrative expenses also increased, driven by IPO-related share-based compensation costs, hiring, and public company readiness costs. The company experienced a net income of $87 million in Q3 2023, down from $182 million in Q3 2022, and $82 million for the nine months of 2023, a decrease from $521 million in the same period of 2022. Income tax expense as a percentage of income before taxes was higher in 2023 due to share-based compensation costs. Arm Holdings' liquidity remains strong with $1,551 million in cash and cash equivalents and $850 million in short-term investments as of December 31, 2023.