ARM, the Company Behind All Smartphone SoCs of Today, Earns Record-Breaking 2021 Profits

ARM Processors are the foundations for all smartphone chipsets we see today. Whether it be a Qualcomm Snapdragon, MediaTek Dimensity, Silicon or Exynos chipset, chances are that all the aforementioned silicon SoCs (system on a chip) are using ARM’s technology which includes its wildly popular ARM Cortex CPU Cores and ARM Mali GPUs.

ARM’s clients

Today, the ARM Limited tech giant has revealed the company’s earnings and profits for the fiscal year of 2021, and to the company’s investors’ delight, ARM had generated record-breaking yearly sales revenue and profits in the business throughout 2021.

In the media statement, ARM reveals that its 2021 total revenues were up by 35% when compared to 2020, totalling at 2.7 billion USD with strong growth in both royalty and non-royalty revenue streams. And as for profits, the company generated record EBITDA adjusted profits of 1 billion USD, which is up by 68% compared to 68%. Overall, the ARM company’s profit margins after adjustment is a high 37%.

Going into the specifics, ARM’s 2021 licensing (non-royalty) revenues were up 61% to 1.13 billion USD as the brand’s expanded product portfolio and new business models such as ARM Flexible Access gave more customers more reasons and more ways to license ARM technology.

As for royalty revenues, ARM’s 2021 figures were up 20% from 2020 to a record 1.54 billion USD, helped by continuing strong growth of smartphones, more ADAS and IVI chips going into cars, and price increases in 32-bit microcontrollers.

ARM building logo

In his closing remarks, Mr Rene Has, CEO of ARM said: “Our record results demonstrate that the demand for ARM technology and the strength of the ARM ecosystem has never been greater – our compute platform will power the next set of technology revolutions across cloud computing, automotive and autonomous systems, the IoT, the Metaverse and beyond.” 

“As we look ahead to a future built on ARM, our priority is to continue to deliver on our business strategy, enable partners with the solutions they need through further investment in our roadmaps and engineering talent, and together with our ecosystem redefine the future of computing,” Mr Rene added.


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