Arm Holdings plc

Good day and thank you for standing by. Welcome to the Arm third quarter fiscal 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. 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, Head of Investor Relations. Please go ahead, sir.

Thank you, and welcome to our earnings conference call for the third quarter of fiscal 25, which ended December 31st, 2024. On the call today are Renee Haas, Arms Chief Executive Officer, and Jason Child, Arms 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 about 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. ARM assumes no obligation to update any forward-looking statements. We will refer to non-GAAP financial measures during the discussion, reconciliations 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 and supplemental financial information. can be found in our shareholder letter. The shareholder letter and other earnings related materials are all 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. AI demand continues to drive strong momentum for the Arm ecosystem, which is built on the world's most pervasive compute platform. We're pleased to report record total revenue and an all-time record royalty revenue for the third quarter of fiscal 2025. Total revenue grew 19% year-on-year to an all-time high that exceeded the high end of guidance. Our royalty revenue grew 23% year-on-year to a new record. This was driven by adoption and deployment of V9 and strong demand for ARM CSS. Licensing remains strong as our partners make long-term commitments to more of our advanced technology to take AI everywhere. AI growth requires significantly more compute across all of our end markets, from smartphones with better chat features, to autos with better driving and parking assist, to IoT microprocessors with embedded NPUs. This is driving continued adoption of our V9 and CSS technologies. New flagship smartphones from Oppo and Vivo take advantage of MediaTek's new Dimensity 9400 system on chip. This SOC is based on our CSS for Client, which includes the ARM Cortex X925 CPU and the Immortalis G925 GPU. Increased chip complexity is driving the top hyperscalers to customize silicon on the latest ARMv9 and CSS. We are gaining share in the data center with AWS Graviton, Microsoft COBOL, Google Axion, and NVIDIA's Grace ARM-based chips. AWS recently announced more than 50% of new CPU capacity installed over the past two years was on Graviton. Over 90% of AWS's top 1,000 EC2 customers use Graviton. We have more than 20 million developers, the world's largest developer community, and we continue to increase investment in our ecosystem. NVIDIA also announced Project Digits, which combines the ARM-based Grace CPU and the Blackwell GPU into the new GB10 Super Chip that powers the world's smallest AI supercomputer. The GRACE CPU is based upon ARM CSS for client and includes 20 power-efficient ARM cores, 10 Cortex-X925 and 10 Cortex-A725. With Project Digits, developers, data scientists, and AI researchers will be more easily able to build inference models before deploying them into the cloud. I'd also like to call out two key projects that further cement ARM's position at the very center of the AI ecosystem. Along with SoftBank Group and OpenAI, Stargate for AI infrastructure deployment, and advanced enterprise AI called Crystal Intelligence to develop AI agents for knowledge work. We strongly believe that the advances in AI, both for training and inference, are going to increase the demand for compute in the AI cloud. We expect ARM solutions to address the needs from the cloud to the edge to power growth in the world's most popular compute ecosystem for decades to come. And with that, I will hand it over to Jason.