NASDAQ$MRVL

Marvell Technology Group Ltd · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported record revenue with growth driven by cloud, 5G, automotive, and enterprise networking.

Marvell Technology, Inc. reported financial results for the third quarter of fiscal year 2023. Net revenue was $1.537 billion, a record for the company, representing a 27% year-over-year growth. GAAP net income was $13 million, or $0.02 per diluted share, while non-GAAP net income was $492 million, or $0.57 per diluted share.

  • Net revenue for Q3 2023 was $1.537 billion, a 27% increase year-over-year.
  • GAAP gross margin for Q3 was 50.6%, and non-GAAP gross margin was 64.0%.
  • GAAP diluted income per share for Q3 was $0.02, and non-GAAP diluted income per share was $0.57.
  • Cash flow from operations for Q3 was $411.0 million.

Headline financials

Total Revenue

$1.54B

Previous: $1.21B+26.9%
EPS (adj)

$0.57

Previous: $0.43+32.6%
Non-GAAP gross margin

64.0%

Previous: 65.1%-1.7%
GAAP gross margin

50.6%

Previous: 48.5%+4.3%
Capital Expenditures

-$152M

Previous: -$130M-16.6%
Free Cash Flow

-$139M

Previous: -$193M+28.0%
Net Income

$13.3M

Previous: -$62.5M+121.3%
Operating Income

$106M

Previous: -$33.3M+417.3%
Gross Profit

$777M

Previous: $588M+32.2%
Cash & Equivalents

$723M

Previous: $524M+38.2%
Total Assets

$22.5B

Previous: $22B+2.3%
Stock-Based Comp

$146M

Previous: $119M+22.7%

Revenue & EPS history

Marvell · Revenue · Quarterly

$1.54B

Q3 2023+26.9%vs Q3 2022
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

For the fourth quarter of fiscal year 2023, Marvell expects net revenue to be $1.400 billion +/- 5% and non-GAAP diluted income per share to be $0.46 +/- $0.05.

Tailwinds

  • Net revenue is expected to be $1.400 billion +/- 5%.
  • GAAP gross margin is expected to be 49.2% +/- 1%.
  • Non-GAAP gross margin is expected to be approximately 64.0%.
  • Basic weighted average shares outstanding are expected to be 855 million.
  • Diluted weighted average shares outstanding are expected to be 861 million.

Headwinds

  • GAAP operating expenses are expected to be approximately $646 million.
  • Non-GAAP operating expenses are expected to be approximately $430 million.
  • GAAP diluted income per share is expected to be $0.00 +/- $0.05 per share.
  • Non-GAAP diluted income per share is expected to be $0.46 +/- $0.05 per share.
  • Inventory reductions are impacting near-term results and guidance.

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 2023

Historical avgQ3 2023

+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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