Benzinga | Nov 9, 2021 04:40PM EST

Broadcom Sees Co.'s Software Unit Generating ~$5.2B In Annual Recurring Sales

Broadcom Inc. (NASDAQ:AVGO), a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, today held a Broadcom Software Investor Day, providing an in-depth overview of its infrastructure software and security software solutions.

"Broadcom is continuing to build one of the world's leading enterprise software businesses committed to customer success," said Tom Krause, President, Broadcom Software Group. "We continue to invest in our targeted model of partnering with the largest multinational customers to provide a comprehensive portfolio of industry-leading solutions and generate sustainable revenue. With an addressable market today of more than $100 billion, Broadcom Software has significant opportunities to capitalize on a clear customer need for scalability, agility and security to power their most complex hybrid IT environments and accelerate our long-term growth."

At today's event, Broadcom Software highlighted its:

* Business model highly focused on strategic customers leveraging multiple solutions to drive revenue sustainability and growth: Complimentary product portfolio across infrastructure and security software serving 80% of the Fortune 500 and maximizing partnerships with strategic customers, who represent more than 70%1 of annual recurring revenue and approximately 80%2 of whom are licensed to five or more software solutions.

* Strong recurring revenue base: Broadcom Software generates approximately $5.2 billion3 in annual recurring revenue, of which more than half4 is subscription and has increased more than 25% over the last three quarters. To drive improved visibility, Broadcom Software has grown both average deal duration by increasing multiyear bookings as well as the number of deals that represent more than $1 million of annualized booking value5.

* Successful history of integrating acquired companies and businesses with mission-critical products: Broadcom Software has a successful history of integrating acquired companies and businesses with mission-critical products toward Broadcom's goal of building one of the world's leading enterprise software businesses.

Webcast Replay

To access a replay of today's Broadcom Software Investor Day and presentation materials, visit Broadcom's Investor Relations website at https://investors.broadcom.com/ under Events & Presentations.