| I disagree that it's misleading. Or maybe, yes, it's misleading, but in the opposite way you think-- misleading investors that it's an expanding revenue stream. Shift your view further to FY13. If we're making the claim of a "shakedown over [2] decades" we should look at the past decade. I use Q2 '22 specifically because it's a recent quarter that's most likely to reflect the vision of the current CEO. Given that my thesis is "current Qualcomm is different", I think it's apropos to talk about current results. And my yearly sampling is based off of the assumption that the general business cycle is periodic YoY (i.e. Q2 2020 is roughly similar in growth rates to Q2 2019, barring anything massive like a pandemic haha lol haha). Furthermore, I also think it's important to look at breakdowns of % of revenues by division, to see how much a company relies on any specific source. ---- | QTL Rev | QTL EBT | QTL % as non-GAAP Rev FY13 | $7,554 | $6,590 | 69% ------------------------------- FY14 | $7,569 | $6,590 | 65% ------------------------------- FY15 | $7,947 | $6,882 | 74% ------------------------------- FY16 | $7,664 | $6,528 | 80% ------------------------------- FY17 | $6,445 | $5,175 | 69% ------------------------------- FY18 | $5,163 | $3,525 | 64% ------------------------------- FY19 | $4,591 | $2,954 | 58% ------------------------------- FY20 | $5,028 | $3,442 | 50% ------------------------------- FY21 | $6,320 | $4,627 | 34% The pie was rather small back then, and the licensing slice was HUGE. Nowadays, the exact quantity of licensing revenue is actually just reverting to the mean, and the slice is actually decreasing. You can't go by the growth rates you're given there. Links to FY13--FY19 here. BTW you can skip every other year, since FYXX tends to report FY(XX-1) as well. https://investor.qualcomm.com/financial-information/historic... |