Arm's revenue and profit both hit new highs in fiscal 2021

Thanks to the strong performance of royalty and non-royalty revenue, overall revenue in fiscal 2021 increased 35% year-on-year to US$2.7 billion.

Licensing (non-royalty) revenue grew 61% to $1.13 billion in fiscal 2021, driven by the expansion of the Arm product portfolio and the promotion of new business models including Arm Flexible Access, which gave more customers more motivation and ways to license Arm technology.

Royalty revenue increased 20% to $1.54 billion in fiscal 2021, a record high, mainly driven by continued strong growth in 5G smartphones, more advanced driver assistance systems (ADAS) and in-vehicle infotainment (IVI) chips being adopted in automobiles, and rising prices for 32-bit microcontrollers.

Adjusted EBITDA increased 68% year-over-year to $1.0 billion, with an adjusted EBITDA margin of 37%.

In fiscal year 2021, shipments of Arm-based chips hit a new high of 29.2 billion, of which nearly 8 billion (7.8 billion) were shipped in the fourth quarter of the fiscal year.

With partners shipping more than 225 billion Arm-based chips, Arm has the world's largest computing coverage and unique insights into the full range of computing.

Rene Haas, CEO of Arm, said: "Our business performance has hit a record high, which demonstrates that the market is more demanding than ever for Arm technology, and the Arm ecosystem is stronger than ever. Our computing platform will drive the next wave of technological innovations in cloud computing, automotive and autonomous systems, the Internet of Things, the Metaverse, etc. Looking forward to the future built by Arm technology, the top priority is to continue to implement our business strategy, provide ecosystem partners with the solutions they need through increased investment in product roadmaps and engineering talent, and work with them to redefine the future of computing."