Broadcom (AVGO) 7 Dec 232023 Q4 Earnings call transcript

Welcome to Broadcom Inc.'s Fourth Quarter and Fiscal Year 2023 Financial Results Conference Call. At this time, for opening remarks and introductions, I would like to turn the call over to Ji Yoo, Head of Investor Relations of Broadcom Inc. The floor is yours.

Thank you, operator, and good afternoon, everyone.

Joining me on today's call are Hock Tan, President and CEO; Kirsten Spears, Chief Financial Officer; and Charlie Kawwas, President Semiconductor Solutions Group.

release financial tables quarter performance year press closed, the and a XXXX. our describing for distributed and after financial market fiscal Broadcom the fourth

information copy, did accessed at website for can the audio conference webcast through may receive replay you being This Investors Investors a X is Broadcom's and If obtain of year not broadcom.com. website. the section be live, from call Broadcom's of the section call you of an the

Kirsten fiscal will We'll quarter commentary and providing as During details XXXX of fourth the Hock business take prepared as our be and end the results, our of comments, environment. well after the regarding guidance year prepared year questions fiscal comments. for our XXXX,

filings risk for on this differ made Please refer to call. that our factors materially statements press actual recent the the from information with release results specific on cause our today our could forward-looking to the SEC and

on In Comments addition to basis. attached financial today's GAAP reports non-GAAP between reporting, today's A the Broadcom to will primarily financial call U.S. during our results. and release. measures press in is a to reconciliation tables included non-GAAP made GAAP non-GAAP refer measures certain

the call Hock. I'll now to turn over

for Thank you, and joining thank us everyone, Ji, today. you,

Solutions the at billion. and past over consolidated year-on-year increased In $X as and year-on-year is Semiconductor and last remains X% X% Overall, grew have the stable, billion, we revenue the billion, to our very year-on-year we months. been telcos continuing enterprises $X.X had infrastructure fiscal software slowdown while semiconductor $X.X infrastructure revenue X very that cyclical 'XX, seeing was net call. software conference much QX to revenue up X% guided at

strong. remain hyperscalers However,

while $X.X at accelerators and be rest revenue stable by to rather the of billion revenue, of around driven semiconductor close to $X Generative solutions custom semiconductor the continued QX or XX% revenue in AI AI Ethernet represented billion.

to year. for the Moving results on

And of driven since CAGR X% In XXXX, record an revenue at have trajectory XX% have growing fiscal not $XX.X We made grew semiconductor $XX.X by free to to we even XX% operating years. X% hit of acquisition, growth billion consolidated billion, year-on-year we cash X by a dividends year-on-year, $XX.X our the robust or XXXX, though year-on-year. over grew growing an our flow For fiscal a billion in shown X% and revenue. past buybacks. and through returned shareholders stock cash profit XXXX,

VMware into XXXX. As X know, of on you about the fiscal well just XX, Broadcom's we weeks closed just acquisition November

creating and We to forecast among we are be year consolidation now of private refocusing into our environments divesting assets. $XX consolidated 'XX hybrid fiscal our noncore large restructured business enterprises cloud globally of VMware outlook, core and XXXX the on its a VMware billion. revenue Reflecting

billion close her $X We expect in fiscal integration you will a spending, about be to will fiscal revenue. expect year the as require EBITDA done more year section. adjusted to largely will give be of and Kirsten approximately Regardless, we our we to XX% XXXX exit details transition in which take 'XX.

start with I'll and Now renewal In and know, strategic rates to no maintenance. Over revenue X% and accounts, over renewal contracts. year-on-year grew color Consolidated in there's represented software. Symantec And actually value business averaged reporting CA, recurring the of XXX% software billion. XX% expiring Brocade VMware $X give let infrastructure more as XXX%. our averaged our you we subscription X QX, of on me and segments, you the

be year-on-year. this Revenue accounts, $X.X is up renewal billion, rates contracts XXXX is the revenue $X X% in 'XX averaged for fiscal which and in billion, was For fiscal and XXX%. expiring X% year-on-year we over year, our XXX% for averaged to strategic expectation

outlook, the VMware. For include XXXX to now excited we are

create so, on-prem. not centers, leading know, virtualize has by all just VMware technology to data doing entire clouds we compute, private the As and

keep consuming Our forward as on simply software And data other clouds global run applications centers by the enterprises rich of the will Carbon to focus. higher-value computing strategy This noncore public tools. the divested. as a investing attract across of and businesses catalog workloads well and to going we will our be in VMware's are microservices is enable across their these stack. to end-user And environment, be Black

So basis, $XX XXXX on contribute a from expect billion we of billion. software months revenue. based expect in in we for XXXX, our And consolidated contribution to XX $XX be to on VMware, infrastructure VMware revenue

to segment. the semiconductor now Turning

revenue. XX% by me hyperscalers custom you our QX as strong was markets. Let $X.X switches, dedicated accelerators networking XX% centers. our from our AI primarily routers networking semiconductor and This driven give color by towards network our data and of well AI of representing end more demand interface grew year-on-year, scaling for revenue billion for

you $X networking billion. accelerators, As in the If networks. their exclude silicon, in AI Ethernet fiscal deploying connectivity this we $XX.X year-on-year as protocol standard 'XX, is AI not revenue In the are accelerating grow in AI even hyperscalers. accelerators year-on-year, networks, and we revenue networking networking cable hyperscalers know, XX% subsystem. by XX% grew is driven of predominantly not of expansion Ethernet to represented front-end deployment also nor fiscal about systems, connectivity In to purely billion, expect and XXXX, networking

our just stable down North seasonal wireless at declined semiconductor of with revenue. of deep, sequentially be The year-on-year, American again revenue $X.X Moving year-on-year. we And to $X American launch our QX expect to fiscal and multiyear. accordingly, the fact, was remain X% wireless. X% in year-on-year. revenue fiscal revenue 'XX, and engagement strategic in billion, continues North wireless customers flat XX% customers, representing to relatively XX% billion Consistent In increased with wireless by 'XX,

expectations $XXX broadband. to X% And revenue billion and in we fiscal 'XX. And to our teens XX% XX% to And of up storage $X.X high percentage on year-on-year, year-on-year. broadband 'XX, connectivity represented or and and XX% fiscal year-on-year. billion revenue. that server declined of to semiconductor revenue with weakness cyclical QX QX moving XX% up $X.X storage going year-on-year driven down by X% fiscal was connectivity decline revenue storage server line mid- semiconductor was server in Next, 'XX, revenue expect $X In revenue the late billion, began 'XX, year-on-year. million, to was

on the expect slowdown to be continues into further 'XX. Moving revenue weakness fiscal that reflecting, and cyclical as low broadband again, late down percentage the to mid-teens at 'XX to 'XX, we in year-on-year service began providers fiscal

expect of $XXX down to finally, industrial $XXX were was fiscal low sales 'XX, In be 'XX, single industrial resales digits sales And In QX stable year-on-year. million million. we fiscal year-on-year. industrial

summary, percent of $XX.X 'XX to Semiconductor And fiscal to Solutions to in revenue in from with to generative up year-on-year Revenue X% our forecast expectation. revenue be on in 'XX, billion. So we line fiscal high AI revenue year-on-year. Solutions fiscal moving reached XX% mid- single-digit semiconductor was Semiconductor up 'XX

revenue. We growth the revenue of semiconductor represent from to than non-AI than lack from consistent with expect more XX% semiconductor the AI which of more prior offset generative revenue guidance,

With 'XX. the digit consolidation fiscal from VMware, $XX are, segment year-on-year, to therefore, infrastructure segment guiding our revenue we billion, and growth revenue of at 'XX billion software mid-high fiscal bringing XX% to single represents $XX semiconductor growth year-on-year our holding the which be

Kirsten. the With me over to call that, turn let

you, Hock. Thank

flat with Operating ago. for was our the line billion income ago, of a at $X.X Let was in stable $XXX up $X.X expectations. Consolidated XX.X% revenue. XX% financial the revenue, of with also figure our year $XXX of Gross from QX was of in R&D performance. from million was with margins $X me Adjusted detail year-on-year. a quarter, for margin Operating X% provide now $X.X expenses quarter, billion, were in EBITDA excludes year-on-year. revenue billion or expectations. were million year the quarter depreciation. of on up X% billion additional line operating and XX% was This revenue

margins X% semiconductor Revenue was the starting were profit $X.X XX% for basis million, XX%. our segment our with Semiconductor P&L in down X points year-on-year Gross $XXX year-on-year. operating for semiconductor semiconductor the of expenses approximately margins were Solutions our and of year-on-year our within quarter. operating primarily stable Now total product review year-on-year in billion at segment. segment by resulting and driven XX%, Semiconductor X% our a markets. of was Operating of growth This revenue represented mix end XXX segments, for Solutions up

billion, Infrastructure margin quarter. for QX $X Software and the year-on-year segment. revenue. margins Infrastructure quarter, Now in for grew of Infrastructure year-on-year Gross moving represented and the was operating Revenue in XX% XX% Software on XX% million to were our operating X% up $XXX Software operating Software profit Infrastructure at were expenses with XX%.

up the XX% with sales to outstanding X% $X.X moving flow to capital third. XX We We were flow. Free quarter billion was billion, million revenues the fourth days the Now represented of XX and QX. in spent quarter ended inventory of quarter days on Days sequentially. cash in compared the expenditures. fourth cash $XXX $X.X in in on

quarter We on We QX. how the quarter of the billion $X.X inventory term. with of of XX We continue with in debt, is billion billion hand, fourth inventory days gross days short across $XX.X manage on the of $XX.X remain to ecosystem. down and ended disciplined cash we which XX exited

for me performance our recap Now financial let XXXX. fiscal

$XX.X fiscal XX% of growing income year-on-year. a points year-over-year and free revenue revenue grew year from Semiconductor revenue. net XX Operating spent EBITDA X% X% billion, million XX% billion, a year-on-year. year-on-year year-over-year for revenue. XX.X%, $XX.X XX% operating cash up Our Gross billion, figure was flow was of XXXX XX% X% revenue Fiscal the were $XX.X ago. X% revenue. expenses hit up billion, represented $XXX down This margin to record X% $X.X million up expenditures, billion, of $XX.X XXXX excludes up year-over-year. Adjusted X% year-on-year. $XX.X and capital net billion, on basis Software was represented $X.X Infrastructure or depreciation. We of $XXX and year billion was down was

Now turning allocation. capital to

spent cash of we $X.X of dividends share eliminations. $XX.X and billion For of $X.X $X.X year and in with fiscal consisting remaining. form repurchases programs in share We XXXX, ended the the billion repurchase billion, authorized billion

we repurchasing our have existing With under shares the deal resumed VMware closed, program.

common incremental flows generate Aligned cash common non-GAAP year share our XXX off of increase repurchases, the fiscal in diluted the share acquisition from excluding count XXXX, the are increased announcing from an including VMware larger we million. be in share the any cash expect now In of the quarterly preceding base stock and approximately impact to the VMware, acquisition shares fiscal the ability per consecutive of would potential this annual that dividends a count we and our to from year we subject to with of $XX XXth stock to share, to This represents record $X.XX XXXX approval. highlight of to quarterly per initiated dividend intend quarter. throughout XXXX QX fiscal dividend dividends quarterly in maintain be this XX% an prior increase like fiscal target XXXX. since to a dividend share. fiscal implies annual in increase our the I in board We 'XX

Now to on guidance.

of closing integration for process, business year, the least acquisition current VMware is high to for recent revenue the guidance. single-digit outlook X our and our year-on-year. instead our XXXX quarterly on for fiscal will of consolidated As fiscal year and XXXX, with take Hock this, full grow at discussed, fiscal is year which expected revenues we conditions, will the billion. our guidance to Within trends of mid- Based XXXX semiconductor percent $XX year for provide

Software revenue XXXX year billion, billion $XX be VMware. Infrastructure $XX billion Symantec fiscal CA, Our to including continuing from and from expected segment Brocade $X and Enterprise operations from is

to to This Carbon plan include reflects XX of of Black from fiscal 'XX divest. billion $X regard our and With VMware, of VMware. revenue EUC from contribution approximately $XX for which forecast revenue not billion, we does months

of subscription revenue base by VMware are be years. strategy of XX% X that accelerate installed We growth these, XXXX. converting next fiscal the today also perpetual Offsetting end for will that is new an the mostly will over one licenses to our over

incur we transitioning largely year our spend VMware $X to be completed fiscal spending rate 'XX, the Broadcom of transition 'XX fiscal XX% from $X.X approximately end to billion model. quarter, the will at about into per billion ago. exit fiscal VMware down During This expect run year related spending by the new as of a

approximately including in of XX% projected adjusted expect VMware, consolidated year we revenue. EBITDA So XXXX, of fiscal

That remarks. the concludes for up prepared please open call my Operator, questions.

Vivek will from question the first Our America. Instructions] Arya line with [Operator Bank of of come

peers one the AI of large that your be could billion. suggested for so accelerators as as yesterday, $XXX Hock, market

are they impacts accelerator number? then is Ethernet large of project prospect? AI that participate for of larger how for this market correlated, kind two, about business? that about larger to way it your growth what how presumably networking And imply does the your think that, then Broadcom X What think on on is assume number a compute the does So what related questions. ASIC but much accelerators you Broadcom's I right offload side? kind what do and in just market And

Starting it's is software I very the on market a first those models, what part, questions. continues of What change mean, to that large is architectures seeing for as grow, with change. is it's language to literally accelerate. -- to the we're also very, obvious you models, I Thank continues interesting very very mean, fly. dynamic

particular LLM for We to as requirements quite on customer very particular a can us, if it of as memory which are resources comprises also tailored lot it's design compute better a obviously is sense model. say substantial their the interesting, itself, on to is that that also very requirements that that for presents be And compute AI make opportunity, have customized, then a it's compute the business might stage which getting it interesting applications, but well silicon or to seeing for engines, which word, change. the engine fascinating has model and that, supports a an

And we're and way, That's pace converge. continue for all AI a seeing seeing are change are now the seeing in that changing. interesting. in are dynamically inference to, more, design and we as to designs generative custom hyperscalers. And the shape we And starting and the specific this we of models chips where chip change training are way a LLM more the

doubling Nothing opportunity going And networking indicated as XXXX. and that's a for interesting us. $X new. in see remarks, as and very that part in networks for billion revenue my So networking we revenue, of -- AI almost I

And before. are we that that else, have reinforcing anything said guidance. if particular We

going very remarks. keep large growing of hand language very AI and is networking that as training training particularly in is our as and large so accelerating engines It -- things as hand very interesting compute particularly you with opening Now and are growing. parameters my on the fast continuous we changing. heard as models accelerators, keep in see different And

update board. network. So out average, we're doubling no seeing the we slowdown, of on AI networks building in a seeing in those are on the else this size fact, on across Anything

to accelerating decelerating. -- yes, staying answer AMD, or looks that's when concur to that question, indicate appears rather So it they like than with your stable demand I fully be

next line question, our for will moment the Deutsche that Seymore One Ross and Bank. from of with come

But that before, the throughout going accelerating as acceleration? start know be to we look the take how estimates the of is be things, magnitude Or about the real is maybe the of divested quick drivers were clarification Kirsten forward? at it a to base. VMware going it clarification look the this have Can new what to VMware protocol? on should that And is, question. people out more importantly, how we X just are the Just off Street the guidance the The talked quarter? Hock, just to as on is fiscal we the of potentially about talk then year? of operations. Or we what is year linearity billion side And question, accelerating the consider that it $XX you of

Yes.

-- a very for situation very next very, in exciting we chapter we are the as here move are very into VMWare. interesting, We

into which this business basis. come As and more Cloud on virtualizes stack I a higher step-by-step data VMware virtualize converting that stack, doing and are centers, up we're renewal it, on said, we on-prem a is not as for cloud they and full it more the the we environment, as totally customers focus subscription value Foundation, software

So it becomes focused. very

a software doesn't -- will because stop it revenue And and it's only. in the growth just the particularly there math recognition. billion, as we're question, the know, lower to stack generally And years, in we value for But than down right, subscription double-digit are higher it accelerating your through a we based on the past, the even off XXXX. growth seeing from you're because $XX math we you XXXX of compute component at sales trajectory. accelerated much answer by loose just X So kick selling rate versus see that of on trajectory brings and a revenues, probably virtualization in -- very sheer next

Or a are side, be year quarter this new you to fiscal the is it? this doing on the guys X And going way thing? is

just more an we question. is accelerating you more Well, update sense to our good to an of that's headed time getting will our you give it's trend, 'XX because -- indication, Well, 'XX appropriate each to to annual quarterly report relevant it's in a results a and an where we're the view we get that quarter XXXX will turn guidance to and guidance and guys actuals. it every for we report annual

the and that line JPMorgan. next with of come One will question Sur our from moment for Harlan

One question. quick housekeeping item

the all right? your of benefits the question, metal, it EBITDA growing the $X.X right, accelerated billion-plus right, workloads starting performance that in And inference, in TPU, Hock, fiscal more is team base even to workloads, But servers. my silicon the you about for one adoption are these as You significant on main the X of workloads of GPU, still compute talked in these of at franchise. running exponential years? is appears of revenue AI. So VMware, an of rate, then these lower 'XX increasing fastest and off accelerated mentioned, given is generative for And targeting bare accelerated training, near-term requirements compute the workloads

better to on growing foundation on is a the focus data this utilization, sort economics, team fast deployments very better how So the AI customers or center solutions drive Tanzu via exploiting software-defined market? to faster of try either help cloud of part

Cloud AI Foundation. VM may in the Vegas, and VMware NVIDIA, came partnership in out in last aware Well, announced be Las Private as VMWare you the Explore with

partnership. VMware, the the VCF GPU. Cloud Another cooler, whole software NVIDIA the runs describing stack, NVIDIA of runs stack, That way is VMware the Foundation it is

It's AI data So the stack into step get because if that as an you run an a VCF to own runs analytics easy very as center well. by enterprise. GPU NVIDIA enterprise software will default you're that the on-prem

Another That's to NVIDIA the way virtualizes put the as GPU. it, well. VMware software it stack

very -- of of lot perspective not the simply because only data whole right AI on-prem a a centers virtualize -- manage, in cost benefit, does enterprise added it It's our away data more resilient, stack. this in thinking much your start from to, to manage, being it's strong easier running make adopting of our to and lower So center it accelerate the able fact, attraction the has to is attraction to VCF big workloads. data

are on targeting billion of then just And on EBITDA my first question, VMWare? still guys you X $X.X in years

As as 'XX, we are $X.X indicated, run Kirsten we at fiscal billion rate exit practically EBITDA. of a

and moment will One Stacy next the that come of with line Bernstein. for question from our Rasgon

exiting that along wondering VMware that's rate Maybe say VMware, we How or versus exit OpEx? I that VMware think that, trade. for to entry about for I'm it's year. Kirsten, XX% the that rates company And quarter the the sort you for full the year think was full we the and going do right go down EBITDA should total? of but relative per on with of be actually -- heard that more. you're down the is off what? OpEx if of kind reinvestment, I to that surprised year aligned not guess, that's I XX% would billion $X.X for the line, margin should I And EBITDA margin beginning exit you

VMware That's Yes, spending. it is.

So that's total spending.

Stacy, be the will biggest missing it -- Yes, you're point.

of to XX just question earlier I the on by I during on quarters, works. even think, led trajectory, growth this a the math as process, Vivek, X is because I way indicated, the -- an our months, are revenue We

it's a and more revenue on sell on recognize ratable basis. we revenue, As and we

a XXXX running beyond a growth on goes revenue will That that running very revenue basis itself trajectory. keep Our a quarterly keep and But by trajectory will be XXXX. on won't up on is rapidly.

when of spend think expanding is the have of about while operating end we by that's is get the the exit -- picture reduction we because you that the what announced to you a this at we guidance trajectory expenses expense gave much that we revenue transition growing why 'XX And we you declining. 'XX, telling that is deal. fiscal pretty are of expense is, So of beginning total -- as into or

to year So total what's EBITDA just then, margin, set? company exiting say, the level the

total. a that's Well,

whole We to supposed exercise. will we get started are pretty before we this to close where

that I was What XX%? remember. can't

XX%. It's and somewhere does Stacy? XX% between How sound, that

XX% it. on I mean you did say

VMware I run you I saying to XX%. recall think going were you at

So is guess, right XX% the rate? exit I

right. on you're At state, to pretty to VMWare. XX% close we'll steady steady At state, get

will Arcuri that One moment line the for UBS. our with of next come question and from Timothy

in China, can sensitive view this does and information approvals language are? Can more around from synergies some from conditions some detail for protections restrictive Hock, either were some your they the cost there you your the these you And change on what competitors. the noted importantly, or drive revenue?

No.

well out pretty me laid the repeat appropriate are and those relevant conditions what it all it's on the to very and frankly those think that's conditions right I think authorities. sit in website is. I for website, that It's don't of the here again.

Okay. the And drive does it the you synergies think from differently can make you that business? about any

No.

One line will next with Christopher from moment question, for Susquehanna. the come Rolland our of that

acquisitions Congrats affect deal. guess does your repurchase this VMware that you mind forward? the same your on It this strategy Or closing it's as closed. deal. focus you of is in cost sounds of allocation here repurchases? And Are on and I at that going to how look divvy like you more you old the guess, quarter you increased the closed, has the share Broadcom going now bounced and bumped capital capital it with -- delever? restarted the you since announcement I still now is

share in acquisitions continuing program repurchase promised. our Always mind, we're that we with

buying So Broadcom, delever -- that's as definitely Yes, shares. we'll being quickly. we're back

essentially. mind in everything keep we'll So

on part cash acquired because a longer. VMware that. it expand to of with took bit Chris, We

we buy the 'XX shareholders, billion shares there. are to of dividends the the rest flexibility, going from that out to side, we cash. that, we're to of give some fiscal of are -- to to make new commitment to not back -- to able the the for part you, of for continuing sell $X we So with calendar VMware And complete only shareholders rest

on didn't Great. full loaded half And in why shape or maybe you of significantly back quick for next a any favor the if quarter thoughts had linear? revenue year, follow-up. whether Thoughts And pretty you offer year? just next the on it's of

just We pretty company a bought that's sizable.

subscription give a spending guidance revenue year us. X especially and full model accelerate, the new months to number the We for full been subscription we're call on accelerate, because those to might not among of to business we I by we combination that is, we -- way, might might -- business slip I sheer changing, exit. spending, conversion and also to you that and guys, things, more slip, put a -- shareholders. a and model for a fact of we are trajectory the than model, other Kirsten you have a much the are the sensible, giving transition growth attain that makes it trajectory a just think to ourselves the good environment this hell revenue upselling it endpoints what at have you restructuring very, and revenue might the as therefore, us X-month it more, a said, confidence, lot we will business The But to of more very, sharp not see, year, the it higher-value It's product. able tell company, new to we let's for be the

and of will question Hari come that next Sachs. Toshiya Goldman from moment line with for the our One

networking on business the specifically things on a and had non-AI I the side semiconductor storage Hock, for and server question connectivity. of both

companies, had sheets networking on is. going about as As we good simply obviously is into for you a What you look products? interpretation of is noted, and your a of public should side. you're cyclical of their And for your when correction. look is particularly recovery pretty customer at pretty Historically, understanding we XXXX? through inventory inventory elevated, balance you've the the inventory where timing pace the how And where think

right, channels, to you inventory speaking. sell logic peers, and sell tight. we we pretty they to our it are do our because don't good, customers, we damn lot On usually direct channels. see to Out products shape, feel our it don't books, our in that's for a good in compared keep of much relatively We is especially We customers. through and can

We good are still shape. in

me, ask excessive, storage, maybe in you little networking. if certainly Now server non-broadband but could a that and not be

just So it more books. and good our on customers overall, our to feel own products, own perhaps about indication level the not And the is of much have more inventory do everybody what Having still too have choose some my too they are caution but on our buying that, keeping think much see I didn't because -- inventory, there. about the of we way best stuff, we're of inventory is because they buy. still else much they our tend rather out cautious lead in We said to see times. to we

comment or the recovery shape 'XX? of the timing in the Hock, sort on And any of

I'll of 'XX, only speculating start half the first If things to mean 'XX. will better looking second to know. compared I be of say I half

and Paribas. the question And with line that one moment for our come next Karl BNP Ackerman of will from

opportunity the the discuss about divesting within for Carbon a in think be data discuss of this you you $XX as very hoping Kirsten, and see reason And VMware? seem Hock, maybe you brought more pooling Black. to the growth may I would that adoption as DRAM front opportunity billion, big centers importantly, of from off rate could for you you EUC was in memory the CXL

again? the first was Sorry. Yes. What question

and end-user sell choose I Okay. Carbon assets. good are Why to Those Black? do computing

about typically on any so sell -- no playbook. mistake. them sustaining. much chose are We And It's are to very the where is VMware we then in and biggest be make They model. to not our centers, They value basically, core. Let's core for is core noncore networks us we And about very stable, focus distracted our by data for about focus. see And we good why compute. it's assets. do very business acquisition want

who us, we're We'll on are VMware and them good user end And sales areas core they to of to be, Black, they of happy we than And invest to there prefer very those simply their and focus divest where many of Cloud customers same those are we to eventually, as customers X of to because because about them. a may good -- may going very, our customers thoughtful homes the put for these assets. as are R&D Carbon assets now where so computing, Foundation. find Cloud the interested assets, many parties Foundation. also lot -- very the assets more And we VMware take we'll of those be

our of and for that Matt TD next the Ramsay line moment question one with will from And Cowen. come

rather Hock, saying I I'm to to what a caveat VMware about semiconductor with you a the did my contrast CA guy software I to the ask models. wanted Symantec. with plan and And I'll guys expert. But subscription base than customer question that that guess convert

convert differences the you might Are similar customer similarities of pretty mean sort and the are or plan in do how of think feel the about there and that any success? is for maybe like long the in type So be there there -- to base, quickly Fortune you of we differences the technologies in Or duration length outside tail are business? process can sort that there going XXXX, there? the the should that of what

saying cloud not base, which distributors, core focus focus of a XX% just other, No. selling we're we're own much, on running reasons. modernize VMware, These mainframe it to tools mainframe particularly mainframe, those that very, change today, is, because of It but time, legacy it in able global bought good support, much very the a preferring the present but of applications overall the customers. run In -- virtualized of are is totally the those them good especially public customers but better these to anyone a whatever at to the to where of very assets, for cloud represents we very of area. how also makes create focus any honestly, of customer on We core that on it revenue you alive different it's environment. some about basically are product software-defined it be necessarily on Symantec we center much your small continuing very data resilient still CA. that's own really CA, than is The to or too, is which give focus run to product on we good virtualized, sense is a customers. And for on going no for and a then big and however, is lot in growth of growth future. feature And we when when part -- on-prem them you we're thing We simply is and the technology a environment CA, especially request group company. supporting their also different. a run is a

we're plan on-prem. data on-prem then with of are the running VMware way, VMware those already simple. for the enterprises by companies, to the on products these experience hyperscaler that creating already That's have are This that virtualization the application is of a written plain as We center have giving VMware, the doing, Cloud same and which workloads, Foundation. opportunity that's

will for from moment and William the Truist. of that next line with Stein One our question come

there's us major past, help. and really we've and been Hock, or some how one has compute this the accelerated you that characterization of customers give on the point, diversified of in would can aware side, I customer that that hoping I is broadened perhaps that, it maybe number the at all suspect deepened projects, think

and evolution large one the in variation I models, all. that large the think you evolution very I more run. -- which that. Other application is That doesn't would with say to I've under or than because I hardware create models customized the point that for foundation we has. you to see on of It fact models, match if the my disclose depending with it customization rather fit some trim of the hyperscalers some Yes, remarks overall. you versions scale any language their on of hardware that, ], size NDA AI, silicon at it of kind language with this with of that models and requirements of opening model, merchant to even began not effect [ their been to able begin rapid AI, say to has, guys, we're used the be to but that seeing those reflects the tell generative I'd of resources,

come that from Kumar One will moment Harsh question the our of and next Piper for Sandler. line with

VMWare you've all, time. wanted I to a to deal. know of I trying you've Hock, closing a lot that congratulations the had on been Yes, close while. of for first --

will the Your XX management over had and a deal challenging be you curious the that through so was the that think most the lot months this of what highlighted? seen aspect have you far time to closing. most look what do the integration at of pleases process of you you next I

past the date deal announcement. journey we of XX Well, months almost, over closing this from the had the on of

large in supportive storage, XX of us well. think have time It of You're very from or a to of to of right, the is the creates VMware one manage a see, that That we and gives Again, that is over lot which bare lot want touch, with data talked a brings and out a the cannot to through product, And enables And of large The to customers is as to to to of value can't me That metal make their of it. to orchestration products that something trying make able there. many to are deploy. -- now each go companies is XXX a to stack layer want. They thing between of servers, opportunity must saves of largest be bear. whole XX, That but in there. and to way single a out is VMware And stack, we want there. Foundation that computing, one-on-one Head different core planning. opportunity best-of-breed software lot optimize to hardware. there the They over it reduction plan lot and globally great virtualization very Cloud well and past VMware that purchases. hardware environment clear. mix a centers, VMware very VMware managing a a compute as CIOs I across networking one also vendors -- virtualization layer very compute, not of at and abstraction under is cost small that where CIOs, just the Infrastructure it's really very, We the management but diversity thanks wait of groups months, least heterogenous and had through. team management goes the out technology engages

that we hear which completion the Kirsten and For looking just first layout is at hear which what say us us focusing the of acquisition. you numbers this it's and is in are you in of execution, what today year

Yoo And that would concludes like today's over remarks. the any to Ms. closing I turn Ji question-and-answer to now session. for call back

Thank you, operator.

quarter In close may call currently public X, report for X:XX today. after end closing, That earnings plans Operator, A XXXX. joining. all Broadcom's p.m. Thursday, to on of webcast at you market first follow Broadcom the call of will earnings 'XX call. will March earnings of its for Thank the conference our fiscal conclude Pacific. you

Thank for concludes This today's participating. you program. all

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