NASDAQ$MRVL

Marvell Technology Group Ltd · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Marvell's Q2 fiscal year 2024 revenue was above the midpoint of guidance, driven by AI and cloud infrastructure demand.

Marvell Technology reported Q2 fiscal year 2024 financial results with a net revenue of $1.341 billion, which is above the midpoint of the company's guidance. The company's growth is being driven primarily by AI and cloud infrastructure.

  • Q2 net revenue was $1.341 billion, a 12% year-on-year decline.
  • GAAP gross margin was 38.9%, while non-GAAP gross margin was 60.3%.
  • GAAP diluted loss per share was $(0.24), and non-GAAP diluted income per share was $0.33.
  • The company is forecasting sequential revenue growth to accelerate in the third quarter, driven primarily by AI and cloud infrastructure.

Headline financials

Total Revenue

$1.34B

Previous: $1.52B-11.6%
EPS (adj)

$0.33

Previous: $0.57-42.1%
Non-GAAP gross margin

60.3%

Previous: 65.0%-7.2%
GAAP gross margin

38.9%

Previous: 51.8%-24.9%
Capital Expenditures

-$211M

Previous: -$110M-92.6%
Free Cash Flow

-$418M

Previous: -$105M-297.7%
Net Income

-$208M

Previous: $4.3M-4925.6%
Operating Income

-$206M

Previous: $39.1M-626.1%
Gross Profit

$521M

Previous: $786M-33.7%
Cash & Equivalents

$423M

Previous: $617M-31.4%
Total Assets

$21.8B

Previous: $22.2B-1.9%
Stock-Based Comp

$153M

Previous: $145M+5.7%

Revenue & EPS history

Marvell · Revenue · Quarterly

$1.34B

Q2 2024-11.6%vs Q2 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 $1.400 billion +/- 5% for the third quarter of fiscal year 2024. GAAP diluted loss per share is expected to be $(0.07) +/- $0.05, while non-GAAP diluted income per share is expected to be $0.40 +/- $0.05.

Tailwinds

  • Net revenue is expected to be $1.400 billion +/- 5%.
  • GAAP gross margin is expected to be 45.6% - 48.0%.
  • Non-GAAP gross margin is expected to be 60.3% - 61.3%.
  • Basic weighted average shares outstanding are expected to be 863 million.
  • Diluted weighted average shares outstanding are expected to be 869 million.

Headwinds

  • GAAP operating expenses are expected to be $666 million - $671 million.
  • Non-GAAP operating expenses are expected to be $435 million - $440 million.
  • GAAP diluted loss per share is expected to be $(0.07) +/- $0.05 per share.
  • The results are subject to a number of risks and uncertainties.
  • Changes in general macroeconomic conditions may affect the results.

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 2024

Historical avgQ2 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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