ARM - Earnings call transcript Q1 2025 | Arm Holdings plc American Depositary Shares

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Operator

Good day, and thank you for standing by. Welcome to the Arm First Quarter Fiscal Year 2025 Webcast and Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your first seeker today, Jeff Kvaal, Vice President of Investor Relations. Please go ahead, sir.

Jeff Kvaal

to the conference XX, fiscal welcome first for XXXX. and of quarter year you, our call earnings the Thank ending March

of On Chief Arm's are today Financial Arm Officer Chief the Child, and Rene Officer. Jason call Executive Haas,

will financial the its and other company forecasts, forward-looking During discuss targets regarding information Arm the call, results. and

cause are results actual uncertainties of today, as these represent best our performance materially. and differ statements to risks current actual results and subject results While that many could judgment of future to our

In call, statements, assumes addition with filed performance statement may obligation no speak future any during to registration which risks that any as of Arm only XX-F and important affect they the to highlight update we the SEC results are the our Form date that described on in risk May are forward-looking factors on XXXX. our made. XX,

We their we financial efforts found will shareholder certain of financial financial able non-GAAP letter. of supplemental non-GAAP a that as non-GAAP these financial certain reconcile without during to be directly not or Reconciliation information discussion. discussion projected most in financial measures the refer can as well to measures measures are our comparable to of unreasonable measures GAAP

earnings-related shareholder investors.arm.com. on materials and The letter our other available are website at

with I'll call turn over the to And that, Rene. Rene?

Rene Haas

to Thank you, Jeff, an you give able on pleased afternoon, update most everyone. be and quarter. good to our recent I'm

invest record results, revenue, in to straight everywhere. record of exceeded quarter XX% fourth as guidance. high our of year-on-year, AI for companies up the license revenue, had was year-on-year end We Arm the XX% That continue which

adoption XX% We year-on-year, also up royalty had as the vX strong increases. revenue,

tie and designed Every growth a into drivers all designed software. are world strong mind, remain with being Now these being with requires chip our in our the long-term consistent. today Arm CPU,

quarter. per XX% vX revenue Now has previous driven that's from of XX% up overall, value up royalty more royalty growth, to the significant chip, that revenue now

royalty revenue in smartphone That's our a importantly, single-digit XX% year-on-year. against was More up units. increase

demand for of on to PCs are for general recent Now we of see that seeing efficient also power announcement run in We Arm Graviton very announcements AI platform. cloud, brand-new AI Google's had last Axion PCs, we the Windows performance compute Arm's were the Copilot quarter in is driving excited which processor for the AWS everywhere, AI. announced edge Ethos-UXX Arm the through availability. and for We the

that engagements now our mobile, of we've been One in in been CSS With and launch subsystems. of automotive. compute major have recent active markets the strategies we client, per the significant cloud of has investing CSS laptop,

We for largest all everywhere. are demand the the software is by on And planet. seeing ecosystem driven this technology this

nothing the now in ubiquitous Now platform. developers, over million software, Arm We hardware, our to software will the we've KleidiAI from of XX without course, history. what and software added Arm the processor most libraries, easier developers compute made for benefit largest the make it in has is and that's which have world,

The built will forward. going be is Arm future and bright on very

again, if And going proud. look could have more X to and growth a after we whether forward, a ago consistent be pleased I We were company, I being could year quarters. be company are about not quarters growth to the over Arm extremely a back X of last where public talking

with it that, hand And Jason. I'll over to

Jason Child

our great Licensing rose revenue guided highest XX% 'XX. We our start to midpoint a fiscal range. of above royalty and revenue was million. ever $XXX grew QX Rene. This revenue was XX%. for the year-over-year year-over-year up you, and revenue XX% Thank was year was quarterly

XX%. of delivered a also We margin non-GAAP operating

XX% year-on-year milestones was by our obligations, consistent annualized recognize down market. royalty signed contracts recommend prior sequentially continued ACV in We year-over-year, quarters was underlying Remaining driven with ACV, in the achieving revenue delivery QX up up license QX growth that we revenue As contract from performance the you or at from was lumpy. and in rate. the growth ArmvX XX% key RPO, as look value, smartphone to and or recovery recent always, revenue adoption quarters. is check

revenue more a compared sold. number smartphones the than of increase mid-single-digit Royalty in from year-over-year smartphones increased XX% with

as In inventory in addition, semiconductor providers, peers. an to by automotive and widely correction many the is in and IoT of has we in given continued partially by gain and this reported industrial ongoing equipment continue share broader cloud service offset networking market, our been weakness

fiscal guidance. This end I to March current XXXX. year our touch view reflects Turning briefly XX, will of second the guidance ending and our quarter both on markets.

revenue For which, a million $XXX steady QX, revenue the $XXX between represents year-over-year. and at million expect we midpoint,

QX we point of to of guided, due timing to the from low licensing. the year expect previously As revenue recognition revenue be the

However, we QX one years. of our over expect the bookings also to be highest quarters

are royalty track, on to growth results the operating non-GAAP expect year-over-year our expect around million. in We Investments $XXX range to we revenue and accelerate in to low-XX% be platforms our compute QX.

We $X.XX, expect EPS be non-GAAP between and is prior from unchanged $X.XX forecast. our to which

fiscal are our revenue year reiterating 'XX, Looking out to guidance. we

from and revenue to of originally to the an to our represents be seem issues year-over-year expect year IoT full prior of XX% midpoint in billion, is slightly mid-XX% We revenues persistent includes expectation XX% revenue suggest be industrial range. between growth this in suggested. $X.X $X.X increase. royalty At below guidance, customers our billion networking and which that the inventory This range. the Feedback more low-XX% the our than

ramp and on our of half. and drivers year to the revenue in in the expect this initial We be growth adoption, subsystems the vX second based compute healthy royalty chips with cloud continued gains of our automotive share

year. optimistic we midpoint for anticipate mid-XX% increasingly revenue licensing in low our are guidance, At to of about the We the revenue growth the range.

the for Arm's digits We latest QX largest the the growth outlook which to We our year, of reflects the demand for durable quarters for expect in year. and IP. low be be to reiterate QX ACV smallest double the

licenses. visibility backlog, combination high have the of of new pipeline through We a and renewals

indicator signed is opportunities. X As future leading Licenses in a of a will revenue years' reminder, now royalty generate royalty time. revenues X to licensing

represents billion, XX% to which We approximately expect increase. non-GAAP a operating expenses $X.XX year-over-year be

continue to we We expenses guidance and year. future growth expect to $X.XX our to the non-GAAP R&D support of ramp initiatives, between operating full As EPS $X.XX. in reiterate consistently year we throughout invest

With turn the back that, call I'll to Jeff.

Jeff Kvaal

you, Jason. Thank

We will now Q&A Sharon? of the move program. portion forward with the

Operator

[Operator of Securities. Instructions] And line question of Bank your from the Arya America first comes Vivek from

Vivek Arya

royalties upside you us of Rene, you back tomorrow. a When suggested for could I help was IPO you to the upside see what time? is What in to between royalty at you commensurate royalty help look do right manner? line that. over look today will upside this in licensing, exceeded some the process, that the have But reflected licensing between hoping when we licensing the I of way draw factor during of think far conversion and kind

Rene Haas

Thank question. Yes. for the you

think the which that the pleased growth of kind that time their is in of to these time way business. looking licensing way we is one momentum. customers back some to licensing who Arm. that is of models were to being about about the the need with At goes around We the never your really particularly next-generation are workloads they're continued to conceived, SoCs that investment using some maybe in increase design AI, run. is taxed are chips line these to The an things What in super about are invented growth R&D. to That chips essentially all yet, question. run were AI And think even seeing,

system, I they a that and put that can anywhere From than the IP years-ish. chip, of it from then the industry, is and X a the that we But be data time an probably and/or the chip into smartphone at and and, longer to time around end the the looking customers' other the years customer, when between markets would some license X fastest even and center in ultimately that cases, automotive, a X start into can that. you piece be into hands, like mobile goes at say longer.

I about over growth. are And subsystems Increasingly, royalty rates. vX, and these licensing to over very also further vX way more this compute vX we significantly good the of licensing royalty and both obviously, vX carry So is of increased more and a all higher compute very, predictor think then more activity, but think, more subsystems.

good So future. this for very is all a the projection of

Operator

next Your from question comes the Lee Simpson line Stanley. Morgan from of

Lee Simpson

you've here a had Immortalis of noticeable releases had it's the had that product We've CPU. raft Cortex-XXXX Rene, recently. cores. good We've new

So lot to there's on quite here, going a licensing. lot of be for a activity you

been a quite I CPU think well. you've out as is few there's to that market putting unnoticed extensions somewhat

growth And that do the of how that So CPU drive been these momentum medium about see markets understand, talking would of royalty some really see does Do they out? Which coming just this we to term? in address? more we the I'm extensions? more over you've trying

Rene Haas

way driving couple and line on beats to line, pretty The And CPU center are Thank of with think Yes. is and that and question. in demand a annual you matter, the these growth years, to particular. addition for all for Those smartphone that data t products significant introducing that some like more market, the in for it, technology. of about the PC market, annually Arm cycle goes the of fabric every side. the the that the for we're market similar automotive product and for GPU product

is in advantage center I security. Arm. these we increased the the centers that correctly, the the are of that understand is also version we custom, meaning of areas, that increased of if really data interconnect, lot Arm growth, is the with demand to compute. in which of licensing see activity we're We're features. more across getting And taking which things question its the more a for largely that's these custom the X of There's vX center. require center time, about and the the terms There's when benefits is for terms driving blades, different data fact One that data good way AI your lot version one all data customization, seeing inside racks, to each a of AI confidential around particularly it think building associated in because X with of chips extensions, everything leads an

centers, the also them for to conventional Arm. the data the AI by centers, same good time, At and power unprecedented is data that's required relative

these become And requirements. so around the security data and AI particularly I centers, hard that confidential areas mentioned compute, just

Operator

of Ramsay, line the from Matt comes question TD Cowen. next Your

Matthew Ramsay

no for couple even same don't and Rene, the, maybe Jason, think questions. expediency. of be had there's of some make licenses at I'll strong going continued number part But And upselling broader-based about forecasted, of and We've And business has than the I certain just guys obviously, semiconductor doubt one, a the really know, of process IPO in you your on correction of certainly seen the been has time that. you some licensees the platform certain parts to across the Maybe to in I of licensing recently But markets talked data the in markets. for AI-capable first industry. whatnot a devices whatnot. and in some had stronger center. that Arm ask I

about wonder commentary licensing weakness in parts juxtaposed So some could you semi some the what give if you're in I industry. seeing some just maybe against the of pipeline

the basis, year-over-year part, I royalty out royalties growth and but XX%. guess against of growing pie royalties on on smartphone report XX% to total a the then on And call lines segments based did know or quarterly plan business I them don't second comment in you you guys

you of the could the some sectors So about printed. puts in just takes maybe and that non-smartphone talk the of royalty numbers you other

Rene Haas

the impacted what that might market. we any in in see to future time, investment are be Thank I'll And to second as great past, correction, in question, I you What design in in in the the slowdown part. would by inventory Sure. Jason not the it I'll not sell-through It's the current the case. sometimes a part as relative you end cycles anything first described. the let moment about question licensing investment of you, in observing address then how a your think applies industry of say and is just to of on is R&D. going function Matt. take

they're to that and is to about in that SoC when them, a now to workload required a what's I the run and language to AI things device, do designer what in mind an designing system really think addition you the model is the drive if has an And workloads keep that and these of edge anyway. AI SoC a the small or drives having think is that of all at go

SoC compute to So is new what all demand is for starts. that cores, compute, relative above, CPU more driving a of more the capability, more subsystems, more

as the fact, up. you down. So picked we're see anything And what can we during not about by relative months and talked ago IPO, it's slowing numbers, commentary XX observing your probably in the to

the we're off from are of a a the that seeing standpoint And one Arm-based. reasons demand we is are that of say platforms is number these of development all running one think cycle drives revenue of Arm the I what that benefit And software continuously things largest platforms that of the standpoint are existing from this virtuous about Arm-based.

the Arm, the build run So to Arm to products, into chips more up on are available software them that end that's end more go based. making companies these trying

on which the makes as continue very it is Arm. are on the being a developers to result, easy it the because design. all face hardware use we of quite the develop what So little CPU people the for to up considering to frankly, choose And when competition, additional software hardware just ends availability new to

of in terms end slowdown any in state. not R&D as even market long-winded be that consumption, there this So on investment, might slowdown way observing terms you of though saying cycle, some of

I'll turn it answer over to question. second the of part Jason your to

Jason Child

Matt. Thanks,

we're And we'll annual provide kind mix So what will in That that. be then -- in the shares. sent update, call royalties. update, market as the is to update to But and slides, we're on the when our kind going what on of right an going the the we update ends. of is provide of TAM accompanying out promised, kind of royalties,

update little a some at at level, the headlines. maybe I'll of Just key high of of a kind provide bit

and remarks, strong as see mobile did said, the prepared the XX%, versus growth, unit certainly grow royalty growth. smartphone during we said we revenues or over phone as so first, very, by the So very you

And that the kind full In when for of terms together. we'll color we grow change year, some you again, was last different across of some but pretty saw businesses the the overall, the specifically all that provide there slow. more we year was maybe last clients of PCs this factor the in range XX-ish somewhere Obviously, year expect slowdown, various a to year. sectors was where in slow year, percent

from that this see last compute AWS. growth to of growth now the of we say, cloud north market, ever year. driven with within year-on-year. number Cobalt expect Google, And continue all projects the both that's projects For the some we've by and coming growth Certainly, saw we strongest seen XX% talked strong to online But with Microsoft that Axion accelerate. certainly throughout the we've from at, actually about

in On growth. other little the percent we somewhere side, saw that than auto companies. XX-ish different auto you're around bit year-on-year a the of seeing And again, semiconductor what some that's

most exposure kind and are the market. primarily IVI, stronger the is For which on of part, growth that ADAS really our parts of

seen on industrial, we've then categories. categories, IoT, networking, persistent And in weakness mentioned, as those those

a year, at But with categories. supplement start those So maybe things but we've provide to quarter, were seen negative this up see detail. we'll in growth negative last little to a bit, Expecting pick territory. the again, definitely, sequentially in least they more

be out. you to after questions those that after questions if other certainly answer so details, we'll seeing comes able have And

Operator

comes Mark next line Lipacis Your question of the Evercore. from from

Mark Lipacis

then the these we compares of in CPU that of sense if easy as business the But And about a side could market. if to part compute core two-part question, data it's that part on the because that comment side. drives had is track may. my the could a the the have the along a there's I apply or of where of you is ASP was CPU side understanding say that center, higher more if obvious you the on I lines, business, wondering, for side. CPU for I I us I'm you are how on of easy for it's compute consider penetration parallel not model, side if the that And that accounts you And I us, more think processing accelerator track. to the And more to In there. and side, question would of the deployments give helps. us accelerator maybe the on dynamic wondering same

Rene Haas

Yes. Thank for question. the you

going announced about they had is the Blackwell, which and AI they belongs in Hopper of clearly, initial the themselves. announced, platform But Grace volumes GPU. an NVIDIA. for around to to And today shipping the that. to center, data now share next the a which the center that speak to into be NVIDIA, years their started numbers X.X advanced penetration integrates lion's when and accelerator the was market particularly of think ago, CPU design, accelerators that soon, which the it, of Grace they've just So Arm-based Arm-based relative CPU Hopper about the ties data The you with Arm

that be than We have partnering Grace to Hopper. it was will that center, with the the and just higher very performance design, for We power, data be in good NVIDIA. the very, with given Grace a ship think expect, volumes Blackwell, on us AI

other that done system most that, custom accelerators an it's in that When very custom we days Grace example a system. Blackwell also But custom unique to into and my is design a think in would kind of back I comment is a and to terms a chip of It think Arm savings. right power into that CPU, a to are rack, volume. Blackwell the centers, complexity into of and is data blade, that being AI those custom in-house, about custom of good connect goes with very its earlier are of a Grace incredible full terms still early accelerators relative now,

of customization, the i.e., accelerators something see use with because of center AI that's same network ultimate at of time, CPU the for there. build out Arm the most benefit trend other to custom interconnect, custom being similar memory, We power-efficient using the a terms will custom and, in Arm is of very expect the terms be the in terms to data in very, that an architecture overall able

answer able terms but rapidly, the being be of growing that to going to most count in what is Blackwell. the and it's AI and CPU Grace are still early expect, indicator So terms days center, of data we the in short of is units obvious

Operator

question Your Susquehanna the International next Group. of Hosseini line Medhi from comes from

Mehdi Hosseini

then commentary go forward? is licensing, what baking conference the To are on to earnings in inventory correction as were you to the the a then royalty? back smartphone. in last want in fiscal year your significant extent And this and the you to smartphone in I the QX Any still you kind pickup of back expecting highlighting are looking call?

Jason Child

This is those Jason. I'll questions. take

the units on this think last side, smartphone by grew year-on-year basically I as while only the royalties mid-single about quarter, So the grew in highlighted, Rene digits. we XX%

to Our expectations did unit going year QX this we expect be the to for growth, vX transition. in for you're rest like are because the year to pretty vX similar outpacing just of we see but that the of

a In in vX fact, about smartphones, now vX dollars royalty dollars. from XX% are of perspective,

to So mobile. ahead transition actually, vX we're on our vX in

subsystems Now you'll I mobile, but to become, more we've say, at online the year, come QX. material. pretty small, year will will also of starting be previously second in specifically see in that half it this start but next compute said will It would

to of next even and see unit probably time royalty we mature, for which years, be we vX I to ramp ramp, significantly that around expect especially for the vX therefore, full our to the adoption the year, and incremental would somewhere is frame. growth the So provide next few tailwinds to to X-year a unlike it's this overall, period during growth CSS not say kind growth outpace year, mobile for because

licensing the expected On the from perspective QX. revenue still in we a yes, to do be have total licensing side, strongest growth

range, mostly We we deals. because have of pipeline large a wide have a fairly

the a actually bit little is bit royalty was ahead said, on stronger As been XX which softness, now days with leaning ago, strong. has pipeline Incrementally, we're even why slightly it license. even than it's Rene a of actually little

have some are and deals. typically Those a new cycle. license to typically, incremental Now X- there are renewals there kind new in with those deals, of X-month deals, large particular, deals,

we sense range the still And to range while sizing, applicable. license have get us in on so large on that better really shape particular, the it and And a which is relatively for most will a is take side it's why a where guidance.

based confidence the we've the high had. the and pipeline So discussions on that and visibility

as a be We get will you insight we update quarters the refined. can little more and throughout more

Operator

comes from the Rakesh [Operator Instructions] line And your from Vijay Mizuho. of next question

Vijay Rakesh

on you a question the seeing I know that vX. quick side. mentioned a CSS ramp on Just you're with handset handset

the China to As of start I handset seeing Because the you start ecosystem, ASP license handset explore. cores? sort for core think you seeing to look you're the or at are OEMs AI Apple the you

the So so, seeing if own just wondering start royalties licensing when And those? if on you handset OEM their see you're to to try build do cores.

Rene Haas

It's Yes, can the smartphone, all iOS, China software i.e., this well. demand for what to Arm because market specific who does. for China growth can't that to China, We Mac CSS deals runs that else all is I growth the of And our because, the that But what the in Arm. automotive, see enough, to demand off in design don't call CSS macro world, applies CSS, I through and is There's the that on do same do licensing and rest that all partner. ecosystem trends out Android across center, windows, as we China either world. running China really wants say everyone overemphasize automotive, the OS, unique in that's runs global we demand for the relative nothing to data that stock in

So quote in Arm through the we is China China. how revenue

call we a same. out behaviors macro don't but level, from So partners are the specifically,

Operator

of Your the & Shi Company. comes from Needham line from Charles next question

Yu Shi

in of XX% years. Computex market ask your Rene, X you PC share made opportunity terms the Jason, in just about to use want this to comments you at

one; question. have a understanding, The of why still you Arm-based is context already My I already, we provide this PCs to ask of bit little MAC to Just want another. Chromebook, right?

here? share or have AI disagree basically you Some more not, And can why with different, share can is response And XX% your of dependent. XX% time. really you short market on argue wondering ISA good your what's to in market whether the time a you in a peers, provide they seems a about period take is PC I little to peers what not thoughts that years. xXX this mean, X really And up bit said why of the Arm

Rene Haas

you Yes, the be worried XX% question. X if a agreed to my little years. take we're for I thank No, would they comment with in that sure. Yes, going

the base question the So this of is different. why is time

think, yourself systems to first commented I off, Arm-based the other operating now solutions. relative having you

One of them, Apple's of the pretty indication operating system significant And proposition moved they that and over their value has XXX%. that environment obviously a is get.

changed the in things what's ecosystem, number think Windows I a time this changed. have there's that of

Arm First planet. on today the are the products are with the most Microsoft technology. battery using They that advanced life the is for out most effective optimized are that

they're look Arm-based the see If an XPS in competition. product excess from of you line life example, what hours at, touting over of battery for example, solution you Dell's XX as for the well

using earlier these were was well not to b, a, for as the X updated upgraded. or all have technology AIPC That's PCs Windows was and of that for compliant. some phones; and or changed Arm-based designed old been be X products Additionally, years

a And kind market of of broadening to share lastly, you that to base. supplier what the get need ultimately, are

to end. years. You filled be hearing the to from the SKUs to all number the to all in be going confident, of the top we're need from the out everything also bottom ecosystem top next that, that over very way the entry is We're addressed

incredible combine I life a Mac see compromise really multiple also that base happen don't ecosystem. in So in can't vendors, why battery and has Windows then performance, ecosystem the happened reason the any supply what you when no

virtually So is XXX%. ecosystem the Mac

X seem of lofty years. that we And for too so XX%, when me doesn't in think

Operator

of the from O'Connor The Paribas. BNP David from next question comes line

David O'Connor

one seasonality. Just royalty Jason on the side, on maybe for my

get mobile Just with looking the there and the Jason, big at you you're QX royalties kind to the particularly kind of adoption vX coming CSS of client kicking terms half Can to consider a fiscal customer and us of in in way correct? second kind that half, QX. in there, of when second help then out of model the you things kind in, fiscal how

Jason Child

Yes.

So lastly, a going in there's a things kind vX industry. what then are but there's CSS, comping adoption, to recovery there's on. we ago There's had since seasonality. then the two year from But of a we vX also

And so quarter, and was starting we're bottom certainly, periods. the and year now to stronger a stronger last ago comp

year, QX. that expect as previously year-on-year, expecting we're XX% QX be, that then growth it From XX% then kind XX-ish had and from the to year-on-year a to down I'd QX, roughly to QX growth range low of per quarter expected. a royalty get percent QX quarterly basis, the look full QX again from on you for we kind When growth, I XX% of said, say, low we in this to And roughly to of that will rate. you kind at

Operator

Your next question comes from the line of Andrew Gardiner from Citi.

Andrew Gardiner

lumpy able about coming the was Or since bookings have from to expected pull also, trying CSS? fortunately, from. And have there the is in is on might that forward your deals in the upside the of licensing Was of turn year, business, every upside bookings to visibility? the just you relative last us quickly, mentioned But last expected 'XX. been to level that such the that had fiscal taking a call, What strong the that Jason, you outlook periods? understand upside. is. in current certainly future quarter quarter to we're side. XX% sort you've revenue of been lumpy the that has a just in content? it's you where that IPO sort it in I'm you recognize driven it for more year saying another year, given on that on company Did to direction more has your mean one had I I one practically it

first I think strong you What's the missed I for prepared after I on your it. it comments, but expectation quarter. a apologize touched that in

Jason Child

for the Thanks question.

we So royalties a see really reduction reduction royalties. million is $XX-ish last for year. overall, in about little do in for bit to licensing quarter, account from the That slight stronger expecting from we're that that

same the then expect that So licensing that would is amount. to we increase on see

not we last a So quarter. difference significant had what from

we have drivers and for are we So the our of strong of bookings quarter some part, renewals, most biggest in what last license the terms quarter, this visibility still which ATAs, into revenue. versus saw specifically

We some fall deals which into. ones have on why, final the like, what forecast, a of Those shape size that's figure help do depending I that range some and harder would the are will the say, technologies. us guidance and look on will those out newer are of to part little deals newer

aspects. terms year, in the And we'll continues so as stronger throughout side, Arm than strong, XX from Rene demand even durable said, time as it just as of on stay progresses we'll ago. the clarity days the was fundamentals, But and get for maybe designs those partner as to get the more

key all are pieces. those drivers and So the

The the one said the would about to comment I positive upside. you thing about say

right, see in we this now are to comp you're had some go we quarters negative. over-performance that next of You're except it last starting going quarter, those to to strong year. Because

going you're what because ago. comping So a to we're year-on-year XX-ish see year negative of percent

of to QX, You'll again and get then QX. in you'll see positive, slightly more in see flattish growth back kind strong it

what a why ACV ratable. average, very, what growth that's going everything of it's through of that's will rec in kind very that each why looks somewhere range. ACV cutting rate of roughly because rev I all not going the better and the different. like. the is quarter on growth fact it it's that from to like Now of to be growth of XX% It's longer-term shake of kind But the looks be mid-XX% and far And indicator look out to year-on-year treating like, kind the

how I think that's so And it. about

Operator

comes Caso question from And your Chris from Wolfe Research. final

Christopher Caso

of the just ramp a obviously, is handsets. of into the on about of question slope the ArmvX expect How royalties the lot within vX be you vX, think time? I handsets. outside penetration total And part XX% higher was business, help the those of should talked to non-handset over The business layering we higher some that

Jason Child

be to that, Yes. royalty would XXX trajectory. expect X you're or Well, It's in expect, roughly basis continued the points vX. you've business, I seen quarters the now row forecasting a X as I what, mix been, moving that we've total that overall of would seen to

that a it you move that. Our when we'll should bit That's little forecast It be works show might around it does, know. close it how and let pretty to overall.

variety by mobile well certainly, a of ahead of terms reasons. is for category, In

typically, adopters were of Rene There time vX. out the license, on tape is faster. to early frame As said, some the to

So of they ahead be others. will

should auto be expect and most, them category next behind this lastly, the probably the would then probably them, You Behind along. infrastructure I guess, IoT. as probably for really

basis which in doesn't also But find total worked, that using they isn't overall, you work how we will category, forward. roughly a forecasted XXX we I an because closest better it have to much to that's and models going of do, give that our answer points than continue by think really

Operator

I This call remarks. to Haas hand will question-and-answer the today. now for concludes back session the closing for Rene

Rene Haas

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Operator

concludes participating. This Thank you. conference call. today's you for Thank

disconnect. please may now standby. You Speakers,

Arm Holdings plc American Depositary Shares (ARM) 31 Jul 242025 Q1 Earnings call transcript