$Arm Holdings (ARM.US)$ reported its fourth quarter earnings of $0.36 a share vs. estimates of $0.3 on revenue of $928m vs. $880m estimated. The firm quarter revenue climbed 47% year-over-year, on what it called record royalty revenue, up 37% year-over-year.
License revenue grew to $414 million, up 60% year-over-year, due to multiple high-value license agreements being signed as companies increase investment in Arm-based technology for AI across all end markets.
Still, the firm's guidance for the new fiscal year failed to meet expectations. The firm said it expects full-year revenue between $3.8 billion and $4.1 billion, with a midpoint below estimates that were looking for $3.99 billion.
Arm sees first-quarter revenue in a range of $875 million to $925 million, versus the $857 million estimate, and Adj. EPS between 32c and 36c, versus the 31 cent estimate.
The company sees fiscal year 2025 revenue in a range of $3.8 billion to $4.1 billion, versus the $3.98 billion estimate, and adjusted earnings of between $1.45 and $1.65 per share, versus the $1.54 estimate.