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Jul 31, 2021

Marvell Q2 2022 Earnings Report

Reported record revenue and year-over-year growth driven by the data center market.

Key Takeaways

Marvell Technology reported record revenue of $1.076 billion for Q2 2022, exceeding guidance and growing 48% year-over-year. The data center market was the primary growth driver, representing 40% of total revenue.

Net revenue for Q2 2022 was $1.076 billion, a 48% increase year-over-year.

GAAP net loss for Q2 2022 was $(276) million, or $(0.34) per diluted share.

Non-GAAP net income for Q2 2022 was $284 million, or $0.34 per diluted share.

The company is changing its reporting to present revenue from five end markets: data center, carrier infrastructure, enterprise networking, consumer, and automotive/industrial.

Total Revenue
$1.08B
Previous year: $727M
+47.9%
EPS
$0.34
Previous year: $0.21
+61.9%
GAAP Gross Margin
34.6%
Non-GAAP Gross Margin
64.8%
Gross Profit
$372M
Previous year: $359M
+3.5%
Cash and Equivalents
$560M
Previous year: $832M
-32.7%
Free Cash Flow
$222M
Previous year: $208M
+6.6%
Total Assets
$20.8B

Marvell

Marvell

Forward Guidance

Marvell expects revenue of $1.145 billion +/- 3% for the third quarter of fiscal 2022. GAAP gross margin is expected to be 46.3% to 48.3%, and non-GAAP gross margin is expected to be 64% to 65%.

Positive Outlook

  • Net revenue is expected to be $1.145 billion +/- 3%.
  • GAAP gross margin is expected to be 46.3% to 48.3%.
  • Non-GAAP gross margin is expected to be 64% to 65%.
  • Non-GAAP operating expenses are expected to be $365 million to $370 million.
  • Non-GAAP diluted income per share is expected to be $0.38 +/- $0.03 per share.

Challenges Ahead

  • GAAP operating expenses are expected to be $584 million to $594 million.
  • Basic weighted average shares outstanding are expected to be 824 million.
  • Diluted weighted average shares outstanding are expected to be 841 million.
  • GAAP diluted loss per share is expected to be $(0.10) +/- $0.04 per share.
  • The transaction to acquire Innovium, Inc. is expected to close by the end of calendar 2021, subject to customary closing conditions.