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Apr 30, 2022

Marvell Q1 2023 Earnings Report

Reported first quarter of fiscal year 2023 financial results, with revenue exceeding guidance due to strong datacenter performance.

Key Takeaways

Marvell Technology reported a strong start to fiscal year 2023, achieving record first-quarter revenue of $1.447 billion, a 74% year-over-year increase. The company's revenue exceeded the midpoint of its guidance, driven by higher-than-forecasted results from the datacenter end market. Marvell is guiding for continued growth in the second quarter.

Q1 net revenue was $1.447 billion, a 74% increase year-over-year.

GAAP gross margin was 51.9%, and non-GAAP gross margin was 65.5%.

GAAP diluted loss per share was $(0.20), while non-GAAP diluted income per share was $0.52.

Revenue exceeded the midpoint of guidance, driven by higher-than-forecasted results from the datacenter end market.

Total Revenue
$1.45B
Previous year: $832M
+73.9%
EPS
$0.52
Previous year: $0.29
+79.3%
GAAP Gross Margin
51.9%
Previous year: 50.2%
+3.4%
Non-GAAP Gross Margin
65.5%
Previous year: 64.3%
+1.9%
Gross Profit
$751M
Previous year: $418M
+79.6%
Cash and Equivalents
$465M
Previous year: $523M
-11.0%
Free Cash Flow
$195M
Previous year: -$35.1M
-655.0%
Total Assets
$22B
Previous year: $21.2B
+3.8%

Marvell

Marvell

Forward Guidance

Marvell expects net revenue of $1.515 billion +/- 3%, GAAP gross margin between 49.6% and 51.9%, and non-GAAP gross margin between 65.0% and 65.5% for the second quarter of fiscal year 2023.

Positive Outlook

  • Net revenue is expected to be $1.515 billion +/- 3%.
  • GAAP gross margin is expected to be 49.6% to 51.9%.
  • Non-GAAP gross margin is expected to be 65.0% to 65.5%.
  • GAAP diluted income per share is expected to be $0.06 +/- $0.04 per share.
  • Non-GAAP diluted income per share is expected to be $0.56 +/- $0.03 per share.

Challenges Ahead

  • GAAP operating expenses are expected to be approximately $669 million.
  • Non-GAAP operating expenses are expected to be approximately $435 million.
  • Basic weighted average shares outstanding are expected to be 853 million.
  • Diluted weighted average shares outstanding are expected to be 862 million.
  • Unspecified risks and uncertainties could impact actual results.