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Jul 29, 2023

Marvell Q2 2024 Earnings Report

Marvell's Q2 fiscal year 2024 revenue was above the midpoint of guidance, driven by AI and cloud infrastructure demand.

Key Takeaways

Marvell Technology reported Q2 fiscal year 2024 financial results with a net revenue of $1.341 billion, which is above the midpoint of the company's guidance. The company's growth is being driven primarily by AI and cloud infrastructure.

Q2 net revenue was $1.341 billion, a 12% year-on-year decline.

GAAP gross margin was 38.9%, while non-GAAP gross margin was 60.3%.

GAAP diluted loss per share was $(0.24), and non-GAAP diluted income per share was $0.33.

The company is forecasting sequential revenue growth to accelerate in the third quarter, driven primarily by AI and cloud infrastructure.

Total Revenue
$1.34B
Previous year: $1.52B
-11.6%
EPS
$0.33
Previous year: $0.57
-42.1%
GAAP Gross Margin
38.9%
Previous year: 51.8%
-24.9%
Non-GAAP Gross Margin
60.3%
Previous year: 65%
-7.2%
Gross Profit
$521M
Previous year: $786M
-33.7%
Cash and Equivalents
$423M
Previous year: $617M
-31.4%
Free Cash Flow
$113M
Previous year: $259M
-56.5%
Total Assets
$21.8B
Previous year: $22.2B
-1.9%

Marvell

Marvell

Forward Guidance

Marvell expects net revenue of $1.400 billion +/- 5% for the third quarter of fiscal year 2024. GAAP diluted loss per share is expected to be $(0.07) +/- $0.05, while non-GAAP diluted income per share is expected to be $0.40 +/- $0.05.

Positive Outlook

  • Net revenue is expected to be $1.400 billion +/- 5%.
  • GAAP gross margin is expected to be 45.6% - 48.0%.
  • Non-GAAP gross margin is expected to be 60.3% - 61.3%.
  • Basic weighted average shares outstanding are expected to be 863 million.
  • Diluted weighted average shares outstanding are expected to be 869 million.

Challenges Ahead

  • GAAP operating expenses are expected to be $666 million - $671 million.
  • Non-GAAP operating expenses are expected to be $435 million - $440 million.
  • GAAP diluted loss per share is expected to be $(0.07) +/- $0.05 per share.
  • The results are subject to a number of risks and uncertainties.
  • Changes in general macroeconomic conditions may affect the results.