Broadcom beats Q2 revenue expectations, expects "substantial reset" in wireless

Meanwhile, MongoDB and Domo beat quarterly expectations with sales driven by accelerated digital transformation efforts.

Broadcom on Thursday reported second quarter revenues above market expectations. However, the company anticipates that third quarter gains will be offset by supply chain constraints and a "substantial reset in wireless," according to CEO Hock Tan.

Broadcom's Q2 non-GAAP diluted earnings per share came to $5.14 on revenue of $5.742 billion, an increase of 4 percent. 

Analysts were looking for earnings of $5.14 per share on revenue of $5.69 billion. 

"Second quarter results were in-line with our expectations, and saw limited impact from the effects of COVID-19," Tan said in a statement. "Looking ahead, our third quarter guidance for semiconductors reflects a surge in demand from cloud, telecom and enterprise customers, offset by supply chain constraints and an expected substantial reset in wireless. We remain focused on investing in our diverse set of mission critical semiconductor and software franchises, while carefully managing our expenses in this uncertain environment."

The company also announced that on March 31, it paid cash dividend of $3.25 per share of common stock, totaling $1.306 billion, and a cash dividend of $20 per share of mandatory convertible preferred stock, totaling $75 million.

For the third quarter, Broadcom expects revenue of $5.75 billion, plus or minus $150 million.

Meanwhile, MongoDB published better-than-expected first quarter financial results, driven by the accelerated digital transformation efforts underway due to the COVID-19 crisis. 

The company's non-GAAP net loss was $7.3 million, or 13 cents per share. Total revenue came to $130.3 million, up 46 percent year-over-year.

Analysts were expecting a net loss of 25 cents per share on revenue of $119.62 million.

"MongoDB's strong first quarter performance in the midst of the COVID-19 pandemic demonstrates the value of our modern data platform for the success of our customers," CEO Dev Ittycheria said in a statement. "In particular, the speed and agility of the MongoDB platform enables customers to quickly adapt to changing business conditions."

"While the impact from COVID-19 will be longer than we originally expected at the beginning of this fiscal year, we are seeing clear signs that the current environment is reinforcing the long-term trends towards digital transformation and cloud migration," Ittycheria continued. "MongoDB is a clear beneficiary of these trends and we will continue making investments to fully capitalize on this market opportunity."

The company said it had more than 18,400 customers as of April 30. 

MongoDB's global cloud database, Atlas, brought in revenue of 42 percent of total Q1 revenue, up over 75 percent year-over-year.

Subscription revenue was $124.9 million, an increase of 49 percent year-over-year, and services revenue was $5.5 million, an increase of 1 percent year-over-year.

The company expects second quarter revenue in the range of $125 million to $127 million. Full year fiscal 2021 revenue is expected to be in the range of $520 million to $530 million.  

Domo also beat expectations with its first quarter financial results. The data analytics firm's non-GAAP net loss was $18.4 million, or 65 cents per share. Total revenue was $48.6 million, an increase of 19 percent year-over-year.

Analysts were expecting a net loss of 91 cents per share on revenue of $45.65 million.

"Our company was built to deliver exactly what is needed today — real-time information packaged for easy consumption, for widespread distribution on any device, at massive scale, and available in record time," CEO Josh James said in a statement. "We are pleased we could help the governors of three states have access to the actionable data they need to manage through the current health crisis. We are now applying the same capabilities to the private sector to help them manage their employee base and help them safely get back to work with apps and solutions built on our platform to address this specific opportunity."

Q1 subscription revenue was $42.4 million, an increase of 23 percent year-over-year, representing 87 percent of total revenue. Billings were $46.5 million, an increase of 13 percent year-over-year. 

For Q2, Domo expects revenue in the range of $48.5 million to $49.5 million.