NASDAQ$MRVL

Marvell Technology Group Ltd · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported first quarter fiscal year 2024 financial results, with revenue above the midpoint of guidance and forecasting sequential revenue growth in the second quarter.

Marvell Technology reported Q1 fiscal year 2024 revenue of $1.322 billion, exceeding the midpoint of guidance. The company anticipates revenue growth to accelerate in the second half of the fiscal year, along with gross and operating margin expansion. AI is highlighted as a key growth driver, with AI revenue expected to at least double in fiscal 2024.

  • Q1 net revenue was $1.322 billion, a 9% year-over-year decline.
  • GAAP gross margin was 42.2%, and non-GAAP gross margin was 60.0%.
  • GAAP diluted loss per share was $(0.20), while non-GAAP diluted income per share was $0.31.
  • The company is forecasting sequential revenue growth in the second quarter and expects revenue growth to accelerate in the second half of the fiscal year.

Headline financials

Total Revenue

$1.32B

Previous: $1.45B-8.7%
EPS (adj)

$0.31

Previous: $0.52-40.4%
Non-GAAP gross margin

60.0%

Previous: 65.5%-8.4%
GAAP gross margin

42.2%

Previous: 51.9%-18.7%
Capital Expenditures

-$99.8M

Previous: -$36.9M-170.5%
Free Cash Flow

-$269M

Previous: -$203M-32.6%
Net Income

-$169M

Previous: -$166M-1.9%
Operating Income

-$182M

Previous: $69.8M-361.3%
Gross Profit

$557M

Previous: $751M-25.8%
Cash & Equivalents

$1.03B

Previous: $465M+121.1%
Total Assets

$22.3B

Previous: $22B+1.1%
Stock-Based Comp

$143M

Previous: $131M+9.2%

Revenue & EPS history

Marvell · Revenue · Quarterly

$1.32B

Q1 2024-8.7%vs Q1 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Marvell · $2.22B total across 2 segments · Q4 2026

  • Data center
    $1.65B
  • Communications and other
    $567M

Forward guidance

Marvell expects net revenue of $1.33 billion +/- 5% for the second quarter of fiscal year 2024. GAAP diluted loss per share is expected to be $(0.16) +/- $0.05, while non-GAAP diluted income per share is expected to be $0.32 +/- $0.05.

Tailwinds

  • Net revenue is expected to be $1.330 billion +/- 5%.
  • Non-GAAP gross margin is expected to be approximately 60.0% - 61.0%.
  • Basic weighted average shares outstanding are expected to be 861 million.
  • Diluted weighted average shares outstanding are expected to be 865 million.
  • Non-GAAP diluted income per share is expected to be $0.32 +/- $0.05 per share.

Headwinds

  • GAAP gross margin is expected to be 44.3% - 46.8%.
  • GAAP operating expenses are expected to be approximately $694 million.
  • Non-GAAP operating expenses are expected to be approximately $455 million.
  • GAAP diluted loss per share is expected to be $(0.16) +/- $0.05 per share.
  • Stock-based compensation and Amortization of acquired intangible assets impact on GAAP diluted net loss per share.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.5%

Avg return

Earnings day

-0.0%

Avg return

5 days after

+1.9%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+42.5%

Q1 2024

Best reaction

-19.8%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027
Q4 2026+0.0%-2.1%+22.3%
Q3 2026+2.6%-1.0%-3.8%
Q2 2026-18.7%-19.3%+7.7%
Q1 2026-5.6%+4.0%+21.1%
Q4 2025-19.8%-25.5%-45.2%
Q3 2025+22.0%+17.2%+17.2%
Q2 2025+11.4%+2.3%+3.7%
Q1 2025-9.2%-12.4%-7.8%
Q4 2024-7.3%-11.8%-10.7%
Q3 2024-5.9%-9.6%+7.5%
Q2 2024-13.0%-8.7%-15.0%
Q1 2024+42.5%+37.9%+25.8%
Q4 2023-2.9%-9.4%-4.5%
Q3 2023-3.9%-11.7%-20.4%
Q2 2023-4.0%-8.1%-17.1%
Q1 2023+12.7%+9.6%-10.6%
Q4 2022-6.3%-4.7%+5.0%
Q3 2022+17.8%+29.0%+23.3%
Q2 2022-2.9%-3.2%+0.6%
Q1 2022+4.2%+7.0%+16.4%
Q4 2021-16.2%-16.2%+3.8%
Q3 2021-4.9%-4.3%+4.2%
Q2 2021+7.4%+10.1%+6.9%
Q1 2021+6.3%+12.7%+8.2%
Q4 2020+17.0%+4.3%+5.3%
Q3 2020-7.3%-6.4%+6.1%
Q2 2020+1.7%-1.2%+5.0%
Q1 2020+1.3%+6.4%+8.4%
Q4 2019-4.7%+1.0%+8.7%
Q3 2019-1.8%-5.7%-3.7%
Q2 2019-5.0%-8.2%-9.2%
Q1 2019+0.8%+0.2%-2.5%
Q4 2018+2.7%-3.2%-13.4%
Q3 2018-5.0%-5.1%-6.4%
Q2 2018+7.3%+8.6%+12.5%
Q1 2018+5.3%+3.5%+5.3%
Q4 2017+1.0%+0.1%-4.2%
Q3 2017+10.2%+10.3%+6.6%
Q2 2017-2.9%-5.4%+1.3%
Q1 2017+2.1%+1.8%+5.4%
Q4 2016+11.5%+16.2%+15.6%
Q3 2016-8.9%
Q2 2016-18.3%
Q1 2016-7.1%
Q4 2015+0.4%
Q3 2015+4.6%
Q2 2015+2.4%
Q1 2015+2.9%
Q4 2014-1.1%
Q3 2014+9.6%
Q2 2014-6.6%
Q1 2014-0.2%
Q4 2013+7.0%
Q3 2013+4.3%
Q2 2013-1.7%
Q1 2013+0.7%
Q4 2012+1.3%
Q3 2012-4.0%
Q2 2012+0.3%
Q1 2012-0.9%
Q4 2011+2.1%
Q3 2010+1.2%
Q2 2010+2.4%
Q1 2010-4.7%
Q4 2009+6.4%

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