Apple reports fourth quarter results

31 Oct 2024, 20:30 · BusinessWire

iPhone drives record September quarter revenue

Services revenue reaches new all-time high

CUPERTINO, Calif.--(BUSINESS WIRE)--Apple® today announced financial results for its fiscal 2024 fourth quarter ended September 28, 2024. The Company posted quarterly revenue of $94.9 billion, up 6 percent year over year, and quarterly diluted earnings per share of $0.97. Diluted earnings per share was $1.64,¹ up 12 percent year over year when excluding the one-time charge recognized during the fourth quarter of 2024 related to the impact of the reversal of the European General Court’s State Aid decision.

“Today Apple is reporting a new September quarter revenue record of $94.9 billion, up 6 percent from a year ago,” said Tim Cook, Apple’s CEO. “During the quarter, we were excited to announce our best products yet, with the all-new iPhone 16 lineup, Apple Watch Series 10, AirPods 4, and remarkable features for hearing health and sleep apnea detection. And this week, we released our first set of features for Apple Intelligence, which sets a new standard for privacy in AI and supercharges our lineup heading into the holiday season.”

“Our record business performance during the September quarter drove nearly $27 billion in operating cash flow, allowing us to return over $29 billion to our shareholders,” said Luca Maestri, Apple’s CFO. “We are very pleased that our active installed base of devices reached a new all-time high across all products and all geographic segments, thanks to our high levels of customer satisfaction and loyalty.”

Apple’s board of directors has declared a cash dividend of $0.25 per share of the Company’s common stock. The dividend is payable on November 14, 2024 to shareholders of record as of the close of business on November 11, 2024.

Apple will provide live streaming of its Q4 2024 financial results conference call beginning at 2:00 p.m. PT on October 31, 2024 at apple.com/investor/earnings-call. The webcast will be available for replay for approximately two weeks thereafter.

1. Non-GAAP measure. See the section titled “Reconciliation of Non-GAAP to GAAP Results of Operations” at the end of the accompanying financial statements.

Apple periodically provides information for investors on its corporate website, apple.com, and its investor relations website, investor.apple.com. This includes press releases and other information about financial performance, reports filed or furnished with the SEC, information on corporate governance, and details related to its annual meeting of shareholders.

This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include without limitation those about payment of the Company’s quarterly dividend and future business plans. These statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements. Risks and uncertainties include without limitation: effects of global and regional economic conditions, including as a result of government policies, geopolitical tensions, conflict, terrorism, natural disasters, and public health issues; risks relating to the design, manufacture, introduction, and transition of products and services in highly competitive and rapidly changing markets, including from reliance on third parties for components, technology, manufacturing, applications, support, and content; risks relating to information technology system failures, network disruptions, and failure to protect, loss of, or unauthorized access to, or release of, data; and effects of unfavorable legal proceedings, government investigations, and complex and changing laws and regulations. More information on these risks and other potential factors that could affect the Company’s business, reputation, results of operations, financial condition, and stock price is included in the Company’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements, which speak only as of the date they are made.

Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, AirPods, Apple Watch, and Apple Vision Pro. Apple’s six software platforms — iOS, iPadOS, macOS, watchOS, visionOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, iCloud, and Apple TV+. Apple’s more than 150,000 employees are dedicated to making the best products on earth and to leaving the world better than we found it.

NOTE TO EDITORS: For additional information visit Apple Newsroom (www.apple.com/newsroom), or email Apple’s Media Helpline at media.help@apple.com.

Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares, which are reflected in thousands, and per-share amounts)

	Three Months Ended				Twelve Months Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Net sales:
Products		69,958		67,184		294,866		298,085
Services		24,972		22,314		96,169		85,200
Total net sales ⁽¹⁾		94,930		89,498		391,035		383,285
Cost of sales:
Products		44,566		42,586		185,233		189,282
Services		6,485		6,485		25,119		24,855
Total cost of sales		51,051		49,071		210,352		214,137
Gross margin		43,879		40,427		180,683		169,148

Operating expenses:
Research and development		7,765		7,307		31,370		29,915
Selling, general and administrative		6,523		6,151		26,097		24,932
Total operating expenses		14,288		13,458		57,467		54,847

Operating income		29,591		26,969		123,216		114,301
Other income/(expense), net		19		29		269		(565
Income before provision for income taxes		29,610		26,998		123,485		113,736
Provision for income taxes		14,874		4,042		29,749		16,741
Net income		14,736		22,956		93,736		96,995

Earnings per share:
Basic		0.97		1.47		6.11		6.16
Diluted		0.97		1.46		6.08		6.13
Shares used in computing earnings per share:
Basic		15,171,990		15,599,434		15,343,783		15,744,231
Diluted		15,242,853		15,672,400		15,408,095		15,812,547

⁽¹⁾ Net sales by reportable segment:
Americas		41,664		40,115		167,045		162,560
Europe		24,924		22,463		101,328		94,294
Greater China		15,033		15,084		66,952		72,559
Japan		5,926		5,505		25,052		24,257
Rest of Asia Pacific		7,383		6,331		30,658		29,615
Total net sales		94,930		89,498		391,035		383,285

⁽¹⁾ Net sales by category:
iPhone		46,222		43,805		201,183		200,583
Mac		7,744		7,614		29,984		29,357
iPad		6,950		6,443		26,694		28,300
Wearables, Home and Accessories		9,042		9,322		37,005		39,845
Services		24,972		22,314		96,169		85,200
Total net sales		94,930		89,498		391,035		383,285

Apple Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except number of shares, which are reflected in thousands, and par value)

	September 28, 2024		September 30, 2023
ASSETS:
Current assets:
Cash and cash equivalents		29,943		29,965
Marketable securities		35,228		31,590
Accounts receivable, net		33,410		29,508
Vendor non-trade receivables		32,833		31,477
Inventories		7,286		6,331
Other current assets		14,287		14,695
Total current assets		152,987		143,566

Non-current assets:
Marketable securities		91,479		100,544
Property, plant and equipment, net		45,680		43,715
Other non-current assets		74,834		64,758
Total non-current assets		211,993		209,017
Total assets		364,980		352,583

LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable		68,960		62,611
Other current liabilities		78,304		58,829
Deferred revenue		8,249		8,061
Commercial paper		9,967		5,985
Term debt		10,912		9,822
Total current liabilities		176,392		145,308

Non-current liabilities:
Term debt		85,750		95,281
Other non-current liabilities		45,888		49,848
Total non-current liabilities		131,638		145,129
Total liabilities		308,030		290,437

Commitments and contingencies

Shareholders’ equity:
Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,116,786 and 15,550,061 shares issued and outstanding, respectively		83,276		73,812
Accumulated deficit		(19,154		(214
Accumulated other comprehensive loss		(7,172		(11,452
Total shareholders’ equity		56,950		62,146
Total liabilities and shareholders’ equity		364,980		352,583

Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions)

	Twelve Months Ended
	September 28, 2024		September 30, 2023
Cash, cash equivalents, and restricted cash and cash equivalents, beginning balances		30,737		24,977

Operating activities:
Net income		93,736		96,995
Adjustments to reconcile net income to cash generated by operating activities:
Depreciation and amortization		11,445		11,519
Share-based compensation expense		11,688		10,833
Other		(2,266		(2,227
Changes in operating assets and liabilities:
Accounts receivable, net		(3,788		(1,688
Vendor non-trade receivables		(1,356		1,271
Inventories		(1,046		(1,618
Other current and non-current assets		(11,731		(5,684
Accounts payable		6,020		(1,889
Other current and non-current liabilities		15,552		3,031
Cash generated by operating activities		118,254		110,543

Investing activities:
Purchases of marketable securities		(48,656		(29,513
Proceeds from maturities of marketable securities		51,211		39,686
Proceeds from sales of marketable securities		11,135		5,828
Payments for acquisition of property, plant and equipment		(9,447		(10,959
Other		(1,308		(1,337
Cash generated by investing activities		2,935		3,705

Financing activities:
Payments for taxes related to net share settlement of equity awards		(5,441		(5,431
Payments for dividends and dividend equivalents		(15,234		(15,025
Repurchases of common stock		(94,949		(77,550
Proceeds from issuance of term debt, net				5,228
Repayments of term debt		(9,958		(11,151
Proceeds from/(Repayments of) commercial paper, net		3,960		(3,978
Other		(361		(581
Cash used in financing activities		(121,983		(108,488

Increase/(Decrease) in cash, cash equivalents, and restricted cash and cash equivalents		(794		5,760
Cash, cash equivalents, and restricted cash and cash equivalents, ending balances		29,943		30,737

Supplemental cash flow disclosure:
Cash paid for income taxes, net		26,102		18,679

Apple Inc. RECONCILIATION OF NON-GAAP TO GAAP RESULTS OF OPERATIONS (Unaudited) (In millions, except number of shares, which are reflected in thousands, and per-share amounts)

	Three Months Ended							Twelve Months Ended
	September 28, 2024							September 28, 2024
	As Reported (GAAP)		Non-GAAP Adjustments		(a)	As Adjusted (Non-GAAP)		As Reported (GAAP)		Non-GAAP Adjustments		(a)	As Adjusted (Non-GAAP)
Income before provision for income taxes		29,610					29,610		123,485					123,485
Provision for income taxes		14,874		(10,246	(b)		4,628		29,749		(10,246	(b)		19,503
Net income		14,736		10,246	(b)		24,982		93,736		10,246	(b)		103,982

Diluted earnings per share		0.97		0.67	(c)		1.64		6.08		0.67	(c)		6.75
Shares used in computing diluted earnings per share		15,242,853					15,242,853		15,408,095					15,408,095

(a)		These adjustments reconcile certain of the Company’s GAAP results of operations to its non-GAAP results of operations. The Company believes that the presentation of results excluding the impact of the reversal of the European General Court’s State Aid decision provides meaningful supplemental information to both management and investors that is indicative of the Company’s core operating results and facilitates comparison of operating results across reporting periods. The Company uses these non-GAAP measures when evaluating its financial results as well as for internal planning and forecasting purposes. These non-GAAP measures should not be viewed as a substitute for the Company’s GAAP results.

(b)		Non-GAAP adjustments to provision for income taxes and net income to reflect the impact of the reversal of the European General Court’s State Aid decision recognized during the fourth quarter of 2024. On September 10, 2024, the European Court of Justice announced that it had set aside the 2020 judgment of the European General Court and confirmed the European Commission’s 2016 State Aid decision. As a result, during the fourth quarter of 2024 the Company recorded a one-time income tax charge of $10.2 billion, net, which represents $15.8 billion payable to Ireland via release of restricted funds held in escrow, partially offset by a U.S. foreign tax credit of $4.8 billion and a decrease in unrecognized tax benefits of $823 million. For additional information, refer to Note 7, “Income Taxes” of the Notes to Consolidated Financial Statements that will be included in Part II, Item 8 of the Company's fiscal 2024 Annual Report on Form 10-K.

(c)		Represents the per-share impact of the non-GAAP adjustments to net income.

Contacts

Press Contact:
Josh Rosenstock
Apple
jrosenstock@apple.com
(408) 862-1142

Investor Relations Contact:
Suhasini Chandramouli
Apple
suhasini@apple.com
(408) 974-3123