Apple reports third quarter results

Apple reports third quarter results

June quarter records for Revenue and EPS

Services revenue reaches new all-time high

Apple® today announced financial results for its fiscal 2024 third quarter ended June 29, 2024. The Company posted quarterly revenue of $85.8 billion, up 5 percent year over year, and quarterly earnings per diluted share of $1.40, up 11 percent year over year.

"Today Apple is reporting a new June quarter revenue record of $85.8 billion, up 5 percent from a year ago," said Tim Cook, Apple's CEO. "During the quarter, we were excited to announce incredible updates to our software platforms at our Worldwide Developers Conference, including Apple Intelligence, a breakthrough personal intelligence system that puts powerful, private generative AI models at the core of iPhone, iPad, and Mac. We very much look forward to sharing these tools with our users, and we continue to invest significantly in the innovations that will enrich our customers' lives, while leading with the values that drive our work."

"During the quarter, our record business performance generated EPS growth of 11 percent and nearly $29 billion in operating cash flow, allowing us to return over $32 billion to shareholders," said Luca Maestri, Apple's CFO. "We are also very pleased that our installed base of active devices reached a new all-time high in all geographic segments, thanks to very 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 August 15, 2024 to shareholders of record as of the close of business on August 12, 2024.

Apple will provide live streaming of its Q3 2024 financial results conference call beginning at 2:00 p.m. PT on August 1, 2024 at apple.com/investor/earnings-call . The webcast will be available for replay for approximately two weeks thereafter.

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, war, 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, 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

Nine Months Ended

June 29,  
2024

July 1,  
2023

June 29,  
2024

July 1,  
2023

Net sales:

Products

$

61,564

$

60,584

$

224,908

$

230,901

Services

24,213

21,213

71,197

62,886

Total net sales (1)

85,777

81,797

296,105

293,787

Cost of sales:

Products

39,803

39,136

140,667

146,696

Services

6,296

6,248

18,634

18,370

Total cost of sales

46,099

45,384

159,301

165,066

Gross margin

39,678

36,413

136,804

128,721

Operating expenses:

Research and development

8,006

7,442

23,605

22,608

Selling, general and administrative

6,320

5,973

19,574

18,781

Total operating expenses

14,326

13,415

43,179

41,389

Operating income

25,352

22,998

93,625

87,332

Other income/(expense), net

142

(265

)

250

(594

)

Income before provision for income taxes

25,494

22,733

93,875

86,738

Provision for income taxes

4,046

2,852

14,875

12,699

Net income

$

21,448

$

19,881

$

79,000

$

74,039

Earnings per share:

Basic

$

1.40

$

1.27

$

5.13

$

4.69

Diluted

$

1.40

$

1.26

$

5.11

$

4.67

Shares used in computing earnings per share:

Basic

15,287,521

15,697,614

15,401,047

15,792,497

Diluted

15,348,175

15,775,021

15,463,175

15,859,263

(1) Net sales by reportable segment:

Americas

$

37,678

$

35,383

$

125,381

$

122,445

Europe

21,884

20,205

76,404

71,831

Greater China

14,728

15,758

51,919

57,475

Japan

5,097

4,821

19,126

18,752

Rest of Asia Pacific

6,390

5,630

23,275

23,284

Total net sales

$

85,777

$

81,797

$

296,105

$

293,787

(1) Net sales by category:

iPhone

$

39,296

$

39,669

$

154,961

$

156,778

Mac

7,009

6,840

22,240

21,743

iPad

7,162

5,791

19,744

21,857

Wearables, Home and Accessories

8,097

8,284

27,963

30,523

Services

24,213

21,213

71,197

62,886

Total net sales

$

85,777

$

81,797

$

296,105

$

293,787

Apple Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In millions, except number of shares, which are reflected in thousands, and par value)

June 29,  
2024

September 30,  
2023

ASSETS:

Current assets:

Cash and cash equivalents

$

25,565

$

29,965

Marketable securities

36,236

31,590

Accounts receivable, net

22,795

29,508

Vendor non-trade receivables

20,377

31,477

Inventories

6,165

6,331

Other current assets

14,297

14,695

Total current assets

125,435

143,566

Non-current assets:

Marketable securities

91,240

100,544

Property, plant and equipment, net

44,502

43,715

Other non-current assets

70,435

64,758

Total non-current assets

206,177

209,017

Total assets

$

331,612

$

352,583

LIABILITIES AND SHAREHOLDERS' EQUITY:

Current liabilities:

Accounts payable

$

47,574

$

62,611

Other current liabilities

60,889

58,829

Deferred revenue

8,053

8,061

Commercial paper

2,994

5,985

Term debt

12,114

9,822

Total current liabilities

131,624

145,308

Non-current liabilities:

Term debt

86,196

95,281

Other non-current liabilities

47,084

49,848

Total non-current liabilities

133,280

145,129

Total liabilities

264,904

290,437

Commitments and contingencies

Shareholders' equity:

Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,222,259 and 15,550,061 shares issued and outstanding, respectively

79,850

73,812

Accumulated deficit

(4,726

)

(214

)

Accumulated other comprehensive loss

(8,416

)

(11,452

)

Total shareholders' equity

66,708

62,146

Total liabilities and shareholders' equity

$

331,612

$

352,583

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)

Nine Months Ended

June 29,  
2024

July 1,  
2023

Cash, cash equivalents and restricted cash, beginning balances

$

30,737

$

24,977

Operating activities:

Net income

79,000

74,039

Adjustments to reconcile net income to cash generated by operating activities:

Depreciation and amortization

8,534

8,866

Share-based compensation expense

8,830

8,208

Other

(1,964

)

(1,651

)

Changes in operating assets and liabilities:

Accounts receivable, net

6,697

7,609

Vendor non-trade receivables

11,100

13,111

Inventories

41

(2,570

)

Other current and non-current assets

(5,626

)

(4,863

)

Accounts payable

(15,171

)

(16,790

)

Other current and non-current liabilities

2

2,986

Cash generated by operating activities

91,443

88,945

Investing activities:

Purchases of marketable securities

(38,074

)

(20,956

)

Proceeds from maturities of marketable securities

39,838

27,857

Proceeds from sales of marketable securities

7,382

3,959

Payments for acquisition of property, plant and equipment

(6,539

)

(8,796

)

Other

(1,117

)

(753

)

Cash generated by investing activities

1,490

1,311

Financing activities:

Payments for taxes related to net share settlement of equity awards

(5,163

)

(5,119

)

Payments for dividends and dividend equivalents

(11,430

)

(11,267

)

Repurchases of common stock

(69,866

)

(56,547

)

Proceeds from issuance of term debt, net

5,228

Repayments of term debt

(7,400

)

(11,151

)

Repayments of commercial paper, net

(2,985

)

(5,971

)

Other

(191

)

(508

)

Cash used in financing activities

(97,035

)

(85,335

)

Increase/(Decrease) in cash, cash equivalents and restricted cash

(4,102

)

4,921

Cash, cash equivalents and restricted cash, ending balances

$

26,635

$

29,898

Supplemental cash flow disclosure:

Cash paid for income taxes, net

$

19,230

$

7,020

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

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

News Provided by Business Wire via QuoteMedia

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