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May 04, 2024

Marvell Q1 2025 Earnings Report

Reported first quarter of fiscal year 2025 financial results, with revenue above guidance midpoint driven by AI demand and data center growth.

Key Takeaways

Marvell's Q1 2025 revenue was $1.161 billion, exceeding the midpoint of guidance, driven by strong AI demand. Data center revenue increased by 87% year-over-year. The company guides for an 8% sequential revenue increase for Q2 2025, fueled by custom AI silicon.

Q1 net revenue was $1.161 billion, a 12% year-over-year decline.

GAAP gross margin was 45.5%, while non-GAAP gross margin was 62.4%.

GAAP diluted loss per share was $(0.25), and non-GAAP diluted income per share was $0.24.

Data center revenue grew 87% year-over-year.

Total Revenue
$1.16B
Previous year: $1.32B
-12.2%
EPS
$0.24
Previous year: $0.31
-22.6%
GAAP Gross Margin
45.5%
Previous year: 42.2%
+7.8%
Non-GAAP Gross Margin
62.4%
Previous year: 60%
+4.0%
Gross Profit
$528M
Previous year: $557M
-5.3%
Cash and Equivalents
$848M
Previous year: $1.03B
-17.6%
Free Cash Flow
$325M
Previous year: $208M
+55.7%
Total Assets
$20.5B
Previous year: $22.3B
-8.0%

Marvell

Marvell

Forward Guidance

For the second quarter of fiscal 2025, net revenue is expected to be $1.250 billion +/- 5%. GAAP gross margin is expected to be approximately 46.2%. Non-GAAP gross margin is expected to be approximately 62.0%. GAAP diluted loss per share is expected to be $(0.20) +/- $0.05 per share. Non-GAAP diluted income per share is expected to be $0.29 +/- $0.05 per share.

Positive Outlook

  • Net revenue is expected to be $1.250 billion +/- 5%.
  • GAAP gross margin is expected to be approximately 46.2%.
  • Non-GAAP gross margin is expected to be approximately 62.0%.
  • Non-GAAP operating expenses are expected to be approximately $455 million.
  • Non-GAAP diluted income per share is expected to be $0.29 +/- $0.05 per share.

Challenges Ahead

  • GAAP operating expenses are expected to be approximately $688 million.
  • Basic weighted-average shares outstanding are expected to be 867 million.
  • Diluted weighted-average shares outstanding are expected to be 877 million.
  • GAAP diluted loss per share is expected to be $(0.20) +/- $0.05 per share.