Dec 31, 2023

Monolithic Power Q4 2023 Earnings Report

Announced results for the fourth quarter and year ended December 31, 2023 and an increase in quarterly cash dividend.

Key Takeaways

Monolithic Power Systems reported Q4 2023 revenue of $454.0 million, a 1.3% decrease year-over-year. GAAP net income was $96.9 million, or $1.98 per diluted share, while non-GAAP net income was $140.9 million, or $2.88 per diluted share. The company's Board of Directors approved an increase in the quarterly cash dividend from $1.00 per share to $1.25 per share.

Revenue was $454.0 million for the quarter ended December 31, 2023, a 1.3% decrease from the quarter ended December 31, 2022.

GAAP gross margin was 55.3% for the quarter ended December 31, 2023, compared with 58.2% for the quarter ended December 31, 2022.

GAAP operating income was $109.6 million for the quarter ended December 31, 2023, compared with $136.9 million for the quarter ended December 31, 2022.

GAAP net income was $96.9 million and $1.98 per diluted share for the quarter ended December 31, 2023, compared to $119.1 million and $2.45 per diluted share for the quarter ended December 31, 2022.

Total Revenue
$454M
Previous year: $460M
-1.3%
EPS
$2.88
Previous year: $3.17
-9.1%
Gross Margin
55.3%
Previous year: 58.2%
-5.0%
Gross Profit
$251M
Previous year: $268M
-6.2%
Cash and Equivalents
$1.11B
Previous year: $682M
+62.6%
Free Cash Flow
$140M
Previous year: $39.4M
+254.4%
Total Assets
$2.43B
Previous year: $2.06B
+18.2%

Monolithic Power

Monolithic Power

Forward Guidance

For the first quarter ending March 31, 2024, MPS expects revenue in the range of $437.0 million to $457.0 million and GAAP gross margin between 55.1% and 55.7%.

Positive Outlook

  • Revenue in the range of $437.0 million to $457.0 million.
  • GAAP gross margin between 55.1% and 55.7%.
  • Non-GAAP gross margin between 55.4% and 56.0%, which excludes an estimated 0.3% impact from stock-based compensation and related expenses.
  • Other income of $5.3 million to $5.7 million before foreign exchange gains or losses.
  • Fully diluted shares outstanding between 48.8 million and 49.2 million.

Challenges Ahead

  • GAAP operating expenses between $147.2 million and $151.2 million.
  • Non-GAAP operating expenses between $101.8 million and $103.8 million, which excludes estimated stock-based compensation and related expenses, and amortization of recently purchased intangible assets.
  • Total stock-based compensation and related expenses of $46.2 million to $48.2 million.
  • Cautious about near-term business conditions.
  • Continued downturn in the global economy, including due to the Russia-Ukraine and Middle East conflicts, inflation, consumer sentiment and other factors.