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Apple reports second quarter results

May 2, 2024 4:30 PM

Services revenue reaches new all-time record

EPS sets March quarter record

CUPERTINO, Calif.--(BUSINESS WIRE)-- Apple® today announced financial results for its fiscal 2024 second quarter ended March 30, 2024. The Company posted quarterly revenue of $90.8 billion, down 4 percent year over year, and quarterly earnings per diluted share of $1.53.

“Today Apple is reporting revenue of $90.8 billion for the March quarter, including an all-time revenue record in Services,” said Tim Cook, Apple’s CEO. “During the quarter, we were thrilled to launch Apple Vision Pro and to show the world the potential that spatial computing unlocks. We’re also looking forward to an exciting product announcement next week and an incredible Worldwide Developers Conference next month. As always, we are focused on providing the very best products and services for our customers, and doing so while living up to the core values that drive us.”

“Thanks to very high levels of customer satisfaction and loyalty, our active installed base of devices has reached a new all-time high across all products and all geographic segments, and our business performance drove a new EPS record for the March quarter,” said Luca Maestri, Apple’s CFO. “Given our confidence in Apple’s future and the value we see in our stock, our Board has authorized an additional $110 billion for share repurchases. We are also raising our quarterly dividend for the twelfth year in a row.”

Apple’s board of directors has declared a cash dividend of $0.25 per share of the Company’s common stock, an increase of 4 percent. The dividend is payable on May 16, 2024 to shareholders of record as of the close of business on May 13, 2024. The board of directors has also authorized an additional program to repurchase up to $110 billion of the Company’s common stock.

Apple will provide live streaming of its Q2 2024 financial results conference call beginning at 2:00 p.m. PT on May 2, 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 the Company’s plans for return of capital, the payment of its 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 [email protected].

© 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

Six Months Ended

March 30,
2024

April 1,
2023

March 30,
2024

April 1,
2023

Net sales:

Products

$

66,886

$

73,929

$

163,344

$

170,317

Services

23,867

20,907

46,984

41,673

Total net sales (1)

90,753

94,836

210,328

211,990

Cost of sales:

Products

42,424

46,795

100,864

107,560

Services

6,058

6,065

12,338

12,122

Total cost of sales

48,482

52,860

113,202

119,682

Gross margin

42,271

41,976

97,126

92,308

Operating expenses:

Research and development

7,903

7,457

15,599

15,166

Selling, general and administrative

6,468

6,201

13,254

12,808

Total operating expenses

14,371

13,658

28,853

27,974

Operating income

27,900

28,318

68,273

64,334

Other income/(expense), net

158

64

108

(329

)

Income before provision for income taxes

28,058

28,382

68,381

64,005

Provision for income taxes

4,422

4,222

10,829

9,847

Net income

$

23,636

$

24,160

$

57,552

$

54,158

Earnings per share:

Basic

$

1.53

$

1.53

$

3.72

$

3.42

Diluted

$

1.53

$

1.52

$

3.71

$

3.41

Shares used in computing earnings per share:

Basic

15,405,856

15,787,154

15,457,810

15,839,939

Diluted

15,464,709

15,847,050

15,520,675

15,901,384

(1) Net sales by reportable segment:

Americas

$

37,273

$

37,784

$

87,703

$

87,062

Europe

24,123

23,945

54,520

51,626

Greater China

16,372

17,812

37,191

41,717

Japan

6,262

7,176

14,029

13,931

Rest of Asia Pacific

6,723

8,119

16,885

17,654

Total net sales

$

90,753

$

94,836

$

210,328

$

211,990

(1) Net sales by category:

iPhone

$

45,963

$

51,334

$

115,665

$

117,109

Mac

7,451

7,168

15,231

14,903

iPad

5,559

6,670

12,582

16,066

Wearables, Home and Accessories

7,913

8,757

19,866

22,239

Services

23,867

20,907

46,984

41,673

Total net sales

$

90,753

$

94,836

$

210,328

$

211,990

Apple Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

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

March 30,
2024

September 30,
2023

ASSETS:

Current assets:

Cash and cash equivalents

$

32,695

$

29,965

Marketable securities

34,455

31,590

Accounts receivable, net

21,837

29,508

Vendor non-trade receivables

19,313

31,477

Inventories

6,232

6,331

Other current assets

13,884

14,695

Total current assets

128,416

143,566

Non-current assets:

Marketable securities

95,187

100,544

Property, plant and equipment, net

43,546

43,715

Other non-current assets

70,262

64,758

Total non-current assets

208,995

209,017

Total assets

$

337,411

$

352,583

LIABILITIES AND SHAREHOLDERS’ EQUITY:

Current liabilities:

Accounts payable

$

45,753

$

62,611

Other current liabilities

57,298

58,829

Deferred revenue

8,012

8,061

Commercial paper

1,997

5,985

Term debt

10,762

9,822

Total current liabilities

123,822

145,308

Non-current liabilities:

Term debt

91,831

95,281

Other non-current liabilities

47,564

49,848

Total non-current liabilities

139,395

145,129

Total liabilities

263,217

290,437

Commitments and contingencies

Shareholders’ equity:

Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued and outstanding, respectively

78,815

73,812

Retained earnings/(Accumulated deficit)

4,339

(214

)

Accumulated other comprehensive loss

(8,960

)

(11,452

)

Total shareholders’ equity

74,194

62,146

Total liabilities and shareholders’ equity

$

337,411

$

352,583

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)

Six Months Ended

March 30,
2024

April 1,
2023

Cash, cash equivalents and restricted cash, beginning balances

$

30,737

$

24,977

Operating activities:

Net income

57,552

54,158

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

Depreciation and amortization

5,684

5,814

Share-based compensation expense

5,961

5,591

Other

(1,971

)

(1,732

)

Changes in operating assets and liabilities:

Accounts receivable, net

7,727

9,596

Vendor non-trade receivables

12,164

14,785

Inventories

53

(2,548

)

Other current and non-current assets

(4,438

)

(4,092

)

Accounts payable

(16,710

)

(20,764

)

Other current and non-current liabilities

(3,437

)

1,757

Cash generated by operating activities

62,585

62,565

Investing activities:

Purchases of marketable securities

(25,042

)

(11,197

)

Proceeds from maturities of marketable securities

27,462

17,124

Proceeds from sales of marketable securities

4,314

1,897

Payments for acquisition of property, plant and equipment

(4,388

)

(6,703

)

Other

(729

)

(247

)

Cash generated by investing activities

1,617

874

Financing activities:

Payments for taxes related to net share settlement of equity awards

(2,875

)

(2,734

)

Payments for dividends and dividend equivalents

(7,535

)

(7,418

)

Repurchases of common stock

(43,344

)

(39,069

)

Repayments of term debt

(3,150

)

(3,651

)

Repayments of commercial paper, net

(3,982

)

(7,960

)

Other

(132

)

(455

)

Cash used in financing activities

(61,018

)

(61,287

)

Increase in cash, cash equivalents and restricted cash

3,184

2,152

Cash, cash equivalents and restricted cash, ending balances

$

33,921

$

27,129

Supplemental cash flow disclosure:

Cash paid for income taxes, net

$

14,531

$

4,894

Press Contact:

Josh Rosenstock

Apple

[email protected]

(408) 862-1142

Investor Relations Contact:

Suhasini Chandramouli

Apple

[email protected]

(408) 974-3123

Source: Apple Inc.

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