(Bloomberg) -- Arm Ltd., the chip design firm owned by SoftBank Group Corp., reported a 28% increase in revenue for the latest quarter as it prepares for a highly anticipated initial public offering this year.
Revenue rose to $746 million from $581 million a year earlier, driven by an increase in internet-of-things gadget adoption and highly royalty rates in smartphones.
SoftBank founder Masayoshi Son has pinned high hopes on the prospects for Arm, saying at one point that he expects the firm to pull off the biggest IPO for a chipmaker ever. Markets have moved against him however, with technology valuations sliding and the chip industry running into soft demand in key product segments.
On Tuesday, Chief Financial Officer Yoshimitsu Goto reiterated the company was targeting an IPO for the British firm sometime in 2023, without elaborating.
Arm’s technology and designs are already pervasive throughout the electronics industry, dominating segments like mobile phones, and its customers include the likes of Apple Inc. Arm Chief Executive Officer Rene Haas has been tasked with expanding into additional realms, such as computers, data centers and automotive applications.
It’s a challenging balance, however. Much of Arm’s success was built on neutrality that allowed it to work with competitors across industries and geographies. As Son tries to demonstrate Arm’s financial potential ahead of an IPO, that may strain its position in the industry.