iPhone drives record September quarter revenue
Services revenue reaches new all-time high
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.
© 2024 Apple Inc. All rights reserved. Apple and the Apple logo
are trademarks of Apple. Other company and product names may be
trademarks of their respective owners.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241031454158/en/
Press Contact: Josh Rosenstock Apple
jrosenstock@apple.com (408) 862-1142
Investor Relations Contact: Suhasini Chandramouli Apple
suhasini@apple.com (408) 974-3123
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