NASDAQ$MRVL

Marvell Technology Group Ltd · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported record revenue and year-over-year growth driven by the data center market.

Marvell Technology reported record revenue of $1.076 billion for Q2 2022, exceeding guidance and growing 48% year-over-year. The data center market was the primary growth driver, representing 40% of total revenue.

  • Net revenue for Q2 2022 was $1.076 billion, a 48% increase year-over-year.
  • GAAP net loss for Q2 2022 was $(276) million, or $(0.34) per diluted share.
  • Non-GAAP net income for Q2 2022 was $284 million, or $0.34 per diluted share.
  • The company is changing its reporting to present revenue from five end markets: data center, carrier infrastructure, enterprise networking, consumer, and automotive/industrial.

Headline financials

Total Revenue

$1.08B

Previous: $727M+47.9%
EPS (adj)

$0.34

Previous: $0.21+61.9%
Non-GAAP gross margin

64.8%

No prior period
GAAP gross margin

34.6%

No prior period
Capital Expenditures

-$53.7M

Previous: $17.5M-406.0%
Free Cash Flow

-$330M

Previous: $208M-258.5%
Net Income

-$276M

Previous: -$158M-75.1%
Operating Income

-$267M

Previous: -$151M-76.3%
Gross Profit

$372M

Previous: $359M+3.5%
Cash & Equivalents

$560M

Previous: $832M-32.7%
Total Assets

$20.8B

No prior period
Stock-Based Comp

$114M

Previous: $62.6M+82.4%

Revenue & EPS history

Marvell · Revenue · Quarterly

$1.08B

Q2 2022+47.9%vs Q2 2021
Beat estimate in 13 of 16 quarters(81%)
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 revenue of $1.145 billion +/- 3% for the third quarter of fiscal 2022. GAAP gross margin is expected to be 46.3% to 48.3%, and non-GAAP gross margin is expected to be 64% to 65%.

Tailwinds

  • Net revenue is expected to be $1.145 billion +/- 3%.
  • GAAP gross margin is expected to be 46.3% to 48.3%.
  • Non-GAAP gross margin is expected to be 64% to 65%.
  • Non-GAAP operating expenses are expected to be $365 million to $370 million.
  • Non-GAAP diluted income per share is expected to be $0.38 +/- $0.03 per share.

Headwinds

  • GAAP operating expenses are expected to be $584 million to $594 million.
  • Basic weighted average shares outstanding are expected to be 824 million.
  • Diluted weighted average shares outstanding are expected to be 841 million.
  • GAAP diluted loss per share is expected to be $(0.10) +/- $0.04 per share.
  • The transaction to acquire Innovium, Inc. is expected to close by the end of calendar 2021, subject to customary closing conditions.

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 Q2 2022

Historical avgQ2 2022

+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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