NASDAQ$MRVL

Marvell Technology Group Ltd · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported financial results for the third quarter of fiscal year 2022.

Marvell Technology reported record revenue of $1.211 billion for the fiscal third quarter, representing a 61% year-over-year growth. The company's performance was led by substantial revenue growth across all five end markets, with data center being the largest contributor, accounting for 41% of total revenue.

  • Q3 net revenue was $1.211 billion, a 61% increase year-over-year.
  • GAAP gross margin for Q3 was 48.5%, while non-GAAP gross margin was 65.1%.
  • GAAP diluted loss per share for Q3 was $(0.08), and non-GAAP diluted income per share was $0.43.
  • Data center revenue, the largest contributor, grew 15% sequentially and 109% year-over-year.

Headline financials

Total Revenue

$1.21B

Previous: $750M+61.5%
EPS (adj)

$0.43

Previous: $0.25+72.0%
Non-GAAP gross margin

65.1%

No prior period
GAAP gross margin

48.5%

No prior period
Capital Expenditures

-$130M

Previous: $35.4M-469.0%
Free Cash Flow

-$193M

Previous: $222M-186.9%
Net Income

-$62.5M

Previous: -$22.9M-173.0%
Operating Income

-$33.3M

Previous: -$9.39M-255.1%
Gross Profit

$588M

Previous: $381M+54.3%
Cash & Equivalents

$524M

Previous: $832M-37.1%
Total Assets

$22B

No prior period
Stock-Based Comp

$119M

Previous: $59.8M+99.2%

Revenue & EPS history

Marvell · Revenue · Quarterly

$1.21B

Q3 2022+61.5%vs Q3 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

For the fourth quarter, the company anticipates sequential revenue growth of 9 percent at the midpoint of guidance. 5G revenue is projected to increase by 30 percent sequentially, and data center revenue is forecasted to continue to grow in the double digits on a percentage basis.

Tailwinds

  • Net revenue is expected to be $1.320 billion +/- 3%.
  • Non-GAAP gross margin is expected to be approximately 65%.
  • Basic weighted average shares outstanding are expected to be 844 million.
  • Diluted weighted average shares outstanding are expected to be 861 million.
  • Non-GAAP diluted income per share is expected to be $0.48 +/- $0.03 per share.

Headwinds

  • GAAP gross margin is expected to be 47.9% to 49.8%.
  • GAAP operating expenses are expected to be $630 million to $640 million.
  • Non-GAAP operating expenses are expected to be $390 million to $395 million.
  • GAAP diluted loss per share is expected to be $(0.03) +/- $0.04 per share.
  • Financial outlook includes expected results of Innovium for the full quarter.

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 Q3 2022

Historical avgQ3 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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