Arm Holdings plc

year 2025 webcast and conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you will need to press star one and one on your telephone. You will then hear an automated message advising your hand is raised. Please limit yourself to one question only and rejoin the queue for any follow-up questions. To withdraw your question, please press star one and one again Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Jeff Cavale, Vice President of Investor Relations. Please go ahead, sir.

Thank you, and welcome to our earnings conference call for the first quarter of the fiscal year ending March 31st, 2025. On the call today are Rene Haas, Chief Executive Officer of Arm, and Jason Child, Arm's Chief Financial Officer. During the call, Arm will discuss forecasts, targets, and other forward-looking information regarding the company and its financial results. While these statements represent our best current judgment of future results and performance as of today, our actual results are subject to many risks and uncertainties that could cause actual results to differ materially. In addition to any risks that we highlight during the call, important risk factors that may affect our future results and performance are described in our registration statement on Form 20F, filed with the SEC on May 29th, 2024. ARM assumes no obligation to update any forward-looking statements which speak only as of the date they are made. We will refer to non-GAAP financial measures during the discussion. Reconciliation of certain of these non-GAAP financial measures to their most directly comparable GAAP financial measures, as well as a discussion of certain projected non-GAAP financial measures that we are not able to reconcile without unreasonable efforts or supplemental financial information can be found in our shareholder letter. The shareholder letter and other earnings-related materials are available on our website at investors.arm.com. And with that, I'll turn the call over to Rene.

Rene. Thank you, Jeff, and good afternoon, everyone. I'm pleased to be able to give you an update on our most recent quarter. We had our fourth straight quarter of record results, 39% year-on-year revenue, which exceeded the high end of the guidance. That was record license revenue, up 72% year-on-year, as companies continue to invest in ARM for AI everywhere. We also had strong royalty revenue, up 17% year-on-year, as the V9 adoption increases. Now, our long-term growth drivers remain consistent. Every chip being designed today requires a CPU, and these are being designed with ARM in mind, with our strong tie into all the world's software. Now, that has driven significant royalty revenue growth. More value per chip, V9 up to 25% now royalty revenue overall. That's up 20% from the previous quarter. More importantly, our smartphone royalty revenue is up 50% year-on-year. That's against a single-digit increase in units. Now, we are seeing AI everywhere, which is driving demand for ARM's performant and power-efficient compute platform. We had recent announcements in the last quarter of Google's Axion processor for the cloud, AWS Graviton for general availability, We were very excited to see the announcement of the brand new Windows on ARM PCs that run Copilot, true AI PCs. And we also announced the ARM Ethos U85 for Edge AI. One of the significant strategies that we've been investing in has been compute subsystems. With our recent launch of CSS for Client, we now have active CSS engagements in the major markets of mobile, laptop, cloud, and automotive. We are seeing demand for this technology everywhere. And this is all driven by the largest software ecosystem on the planet. Now, hardware, of course, is nothing without the software, and that's what has made Arm the most ubiquitous processor in history. We now have over 20 million software developers, the largest in the world, and we've added Kaleidi AI software libraries, which will make it easier for developers to benefit from Arm compute platform. The future is very bright, and it'll be built on Arm going forward. We are extremely pleased over the last four quarters. And again, if I look back to where we were a year ago and talking about whether Arm could be a growth company going forward, to have four quarters of consistent growth after being a public company, I could not be more proud. And with that, I'll hand it over to Jason.