Qualcomm financials
The company's fiscal year ends at the end of September.
2023
A 19% drop in annual revenue to $35.82 billion due to a collapse in demand for smartphones; 44% drop in profit to $7.23 billion
In fiscal 2023, which ended on September 24, 2023, Qualcomm raised $35.82 billion, which is 19% less than a year ago, equal to $44.2 billion. The net profit of the American microprocessor developer decreased even more - by 44%, to $7.23 billion. Such figures are given in the statements that the company published on September 1, 2023.
Qualcomm's revenue collapse was largely due to lower demand for smartphones. Sales of the corresponding chips from the company in fiscal 2023 decreased by 22% on an annualized basis and amounted to $22.57 billion. In addition, revenues from the supply of chips for the Internet of things fell by 19% - to $5.94 billion. Qualcomm noted that by the beginning of November 2023, the first signs of a recovery in demand were observed in the smartphone market, so the financial situation of the chipmaker should improve in the future.
Qualcomm's automotive electronics business showed growing sales: the specialized division for the 12-month period, closed at the end of September 2023, recorded revenue of $1.87 billion, which is 24% more than a year earlier.
It also follows from the company's reporting that the division, which develops all types of chips, registered a 19 percent decline in revenue on an annualized basis in 2023, to $30.38 billion. The licensing business brought the company $5.31 billion, which is 17% less than in fiscal 2022. Qualcomm charges licensing fees to smartphone makers for using its patents.
Due to the fact that the company's revenues and forecast exceeded Wall Street's expectations, the microprocessor manufacturer's quotes rose 4% on the day of the financial statements (November 1, 2023). At the same time, since the beginning of 2023, the share price has slightly changed, Bloomberg notes.
Qualcomm Announces Fourth Quarter and Fiscal 2023 Results
In the list of companies with the largest R&D costs
For Amazon shows the costs of technology and content (not R&D).
ByteDance statistics date back to 2021 (according to the Wall Street Journal)
2022: Share of business revenue in China - 64%
2021: Revenue growth of 43%, to $33.57 billion, profit - $9.04 billion
Qualcomm ended fiscal 2021 with revenue of $33.57 billion, up 43% from a year earlier. The improvement in the company's financial performance is due to the growing demand for mobile processors amid the recovery in the global smartphone market after the impact of the COVID-19 coronavirus.
Sales of chips for mobile phones for the year reached about $16.83 billion, which is 61% more than in the 2020 reporting year. For the 12-month period closed at the end of September 2021 calendar year, Qualcomm earned $975 million on the supply of automotive chips, which is 51% higher than a year ago. In the segment of solutions for the Internet of Things, turnover grew even more - by 67%, to $5.06 billion. It also reported a 76 percent rise in revenues from shipments of chips for radio communications (up to $4.16 billion).
For 2021, the largest division of Qualcomm - CDMA Technologies (engaged in chip development) - recorded a 64 percent increase in revenue on an annualized basis, to $27 billion. The licensing business brought the company $6.32 billion in revenue, up 26% from a year earlier. Qualcomm charges licensing fees to smartphone makers for using its patents, so increasing sales of devices in kind often leads to higher revenue and profit for the company.
Qualcomm said that the shortage of components is felt in all segments, but the situation is developing in accordance with the company's forecasts. Efforts are underway to reduce Qualcomm's revenue dependence on the smartphone market.
Qualcomm's net profit in fiscal 2021 was $9.04 billion, an increase of 74% compared to a year ago.
On the day of the publication of the financial statements for 2021, Qualcomm shares rose by more than 12%. That was because the company's earnings exceeded Wall Street analysts' expectations.[1]
2020:3% drop in revenue to $22.53 billion
Qualcomm finished fiscal 2020 with revenue of $22.53 billion, down 3% from a year earlier. This includes $1.81 billion received by the American chipmaker from the settlement of patent proceedings with Huawei, as well as the conclusion of an agreement on the transfer of royalties by the Chinese company for the period March-June 2020.
In Qualcomm's CDMA Technologies processor division, annual revenue reached $16.49 billion, 13% higher than a year ago. The licensing business (directed by Qualcomm Technologies) brought the company $5.03 billion in revenue, which is 10% more than in the 2019 reporting year.
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In 2020, Qualcomm delivered 575 million chips to the fiscal year against 650 million a year ago. Thus, shipments of microcircuits from the company sank by 12%. The company intends to no longer disclose information on chip sales, changing the structure of financial statements. At the same time, the company decided to indicate sales of solutions for mobile phones, cars and the Internet of things - in 2020 they amounted to $10.46 billion, $644 million and $3.03 billion, respectively. The implementation of solutions for 4G- and 5G communications for the year turned out to be $2.36 billion.
The semiconductor manufacturer ended fiscal 2020 with a net profit of $5.2 billion. This is 19% more compared to the previous year.
One of the main drivers of Qualcomm's revenue boost has been orders for chips used to connect mobile devices to 5G networks. Such customers include Apple, which previously returned to working with Qualcomm after several years of hiatus caused by a patent litigation between the companies.
On the day of the publication of the financial results for 2020, Qualcomm shares rose in price by 15%.[2]
2019: Revenue of $24.27 billion; net income $4.39 billion
In fiscal 2019, Qualcomm raised $24.27 billion, up 7% from a year earlier. The reporting 12-month period was closed on September 29, 2019 calendar.
During this period of time, the company earned $14.61 billion on the sale of processors and services, which is less than a year ago at $17.4 billion.
At the same time, the technology licensing business showed an increase from $5.21 billion to $9.66 billion. The company charges licensing fees to manufacturers smartphones and other devices for the use of its patents, so increasing sales of devices in physical terms often leads to an increase in the company's revenue and profit. In 2019, this chipmaker's business grew due to the conclusion Apple of a patent agreement, under which the manufacturer iPhone iPad paid $4.7 billion and agreed to regularly deduct royalties for the use of Qualcomm technologies.
The agreement with Apple is the main driver of Qualcomm's revenue growth against the background of a number of negative factors, including tax expenses in connection with the deregistration of a number of deferred tax assets ($2.5 billion), a fine following antimonopoly proceedings in Europe ($275 million), restructuring costs ($213 million).
At the same time, Qualcomm pointed to a number of one-time revenues received in 2019. Firstly, this is $450 million in revenue from Huawei under the second interim agreement and $570 million as a tax subsidy.
Qualcomm ended fiscal 2019 with a 19 percent reduction in net income, which amounted to $4.39 billion against net losses of $4.96 billion a year earlier.
For the reporting year, Qualcomm supplied a total of 650 million chips, which is 24% higher than a year ago.
After the publication of financial results on November 7, 2019, Qualcomm shares rose by 6%.[3]
2018: Revenue of $22.7 billion; losses of $4.9 billion
In fiscal 2018, Qualcomm's revenue amounted to $22.7 billion against $22.3 billion a year earlier. The reporting 12-month period ended on September 30, 2018 calendar.
The annual revenue of Qualcomm CDA Technologies, which develops and sells chips, reached $17.3 billion, which is 5% more than a year ago. The company delivered 855 million chips, up 6% from fiscal 2017.
In Qualcomm Technology Licensing (QTL), which uses Qualcomm's extensive patent portfolio to license technology to other companies, revenue decreased 20% to $5.2 billion.
The 2018 fiscal year turned out to be deeply unprofitable for Qualcomm: net losses amounted to $4.9 billion, while a year earlier there was a profit of $2.5 billion. Cash losses are mainly due to one-time expenses of $6 billion in connection with the update of US tax legislation.
In addition, Qualcomm paid $2 billion in compensation for disrupting the deal to buy the semiconductor company NXP Semiconductors and a $1.2 billion fine by decision of the European Commission. Another $687 million was spent on restructuring, including staff reductions, and the American chipmaker paid $676 million in favor of the Taiwanese antimonopoly regulator, which found Qualcomm guilty of abusing its dominant market positions.
On the day the financial statements were published, Qualcomm quotes fell 3.4%. The weak sales forecast for the final calendar quarter of 2018 and the termination of the contract with Apple affected. Qualcomm hopes to offset the loss of orders by increasing chip sales to Chinese smartphone makers. Qualcomm Chief Financial Officer George Davis told Reuters that brands from the Middle Kingdom are producing more and more expensive devices using Qualcomm Snapdragon 700 and 800 series chips.[4]
2017:5% revenue cut to $22.3 billion
The vendor's revenue in fiscal 2017, which ended in September, amounted to $22.3 billion, which is 5% less than in 2016. Net profit amounted to $2.5 billion, showing an annual decline of 57%.
2015: Reduced revenue to $25.3 billion and profit
At the end of fiscal 2015, Qualcomm's revenue decreased by 5% from $26.5 billion to $25.3 billion, which is much worse than forecasts. According to the forecast for fiscal year 2015, revenue should have ranged from $26.8 billion to $28.8 billion. Growth was expected from 1% to 9% year-on-year.
Non-GAAP operating income of approximately $9.2 billion to $10.0 billion, an increase of 3% to 12% yoy. In fact, this figure was at the level of 8.6 billion (-4% year-on-year).
Total device sales were expected at approximately $240.0 billion to $270.0 billion, from -1% to + 11% year-on-year. The final result is $250.9 billion (+ 3%).
Qualcomm remains the market leader in smartphone processors. In 2015, Qualcomm retained its leadership in the smartphone processor market with a share of about 42% in 2015, Business Korea reported.
In second place is Apple (21%), whose proprietary "systems on a chip" of the A family are used only in its own devices. The third line of the rating is occupied by Taiwanese MediaTek (19%): its solutions are used mainly in products of second-tier manufacturers.
Fourth place goes to Samsung. In 2015, the integrated processors of the Exynos family were used in about 15% of Samsung smartphones. In total, the company produced about 50 million processors of this series. They have found application not only in Samsung devices, but also, for example, in a number of Meizu models.
Spreadtrum ranks fifth in the ranking of the largest manufacturers.
2014: Revenue growth of 7% to record $26.49 billion
Record FY2014 results:
- Record revenue: $26.49 billion, growth of 7% year-on-year, in accordance with the goals set.
- Record MSM processor shipments: 861 million units, up 20% yoy.
- Record total sales of devices: $243.6 billion, growth of 5% year-on-year.
- Record figures for the amount received by shareholders: $7.13 billion, including $4.55 billion through the buyback of 60.3 million ordinary shares and $2.59 billion, or $1.54 per share in the form of dividends.
2011: Turnover growth of 36% due to smartphone boom
The revenue of the American supplier of ARM chips for smartphones Qualcomm the fiscal year 2010-2011, which ended September 25, 2011, amounted to $14.96 billion, which is 36% higher year-on-year. Net profit rose 31% to $4.26 billion.
In the fourth quarter of the fiscal year ended 2011, Qualcomm's revenue grew by 39% to $4.12 billion, Non-GAAP profit reached 80 cents per share. Both were above forecasts from analysts polled by FactSet. The latter expected to see revenue at $3.99 billion and Non-GAAP earnings per share at 78 cents.
The company's record performance is driven by strong demand for iPhones and Android smartphones that use Qualcomm chips. The company is optimistic about the future, anticipating a more active transition to LTE technology next year.
Notes
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