ARM delivers strong financial results as other tech giants falter

ARM sees a major uptick in licensing revenue as Softbank continues to lose billions

Q3 2022 was a strong quarter for ARM, who has seen their total revenue jump 28% to $766 million, with ARM seeing strong revenue growth in all target markets. While ARM’s owner, Softbank, continues to make quarterly losses, ARM continues to deliver growth, even as other tech giants falter. 

In Q3, ARM’s licensing revenue grew to $300 million, up 65% from the same time last year. This growth is attributed to “new strategic long-term agreements” with four unnamed partners, which include an automotive OEM, a cloud service provider, a microcontroller manufacturer, and a electronics semiconductor vendor.

ARM’s royally revenues have also seen a significant increase, growing 12% year over year to $446 million, thanks to strong demand for ARM based products and growing demand for ARM based server technologies and ARM-based automotive chips. ARM’s Armv9 processors have also seen strong adoption from smartphone makers and cloud providers.

Q3 2022 has been a good time for ARM, but their owners Softbank have had a challenging quarter. Softbank has reported a $5.9 billion loss for Q3 FY2022, with its vision fund investment vehicles being responsible for the majority of those losses. These losses are why Softbank are reportedly considering an ARM IPO, which will allow for investment into ARM and give Softbank access to much needed capital. Previously, Softbank had attempted to sell ARM to Nvidia for $40 billion, but regulators would not allow the sale. 

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