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Oct 29, 2022

Marvell Q3 2023 Earnings Report

Reported record revenue with growth driven by cloud, 5G, automotive, and enterprise networking.

Key Takeaways

Marvell Technology, Inc. reported financial results for the third quarter of fiscal year 2023. Net revenue was $1.537 billion, a record for the company, representing a 27% year-over-year growth. GAAP net income was $13 million, or $0.02 per diluted share, while non-GAAP net income was $492 million, or $0.57 per diluted share.

Net revenue for Q3 2023 was $1.537 billion, a 27% increase year-over-year.

GAAP gross margin for Q3 was 50.6%, and non-GAAP gross margin was 64.0%.

GAAP diluted income per share for Q3 was $0.02, and non-GAAP diluted income per share was $0.57.

Cash flow from operations for Q3 was $411.0 million.

Total Revenue
$1.54B
Previous year: $1.21B
+26.9%
EPS
$0.57
Previous year: $0.43
+32.6%
GAAP Gross Margin
50.6%
Previous year: 48.5%
+4.3%
Non-GAAP Gross Margin
64%
Previous year: 65.1%
-1.7%
Gross Profit
$777M
Previous year: $588M
+32.2%
Cash and Equivalents
$723M
Previous year: $524M
+38.2%
Free Cash Flow
$368M
Previous year: $188M
+96.0%
Total Assets
$22.5B
Previous year: $22B
+2.3%

Marvell

Marvell

Forward Guidance

For the fourth quarter of fiscal year 2023, Marvell expects net revenue to be $1.400 billion +/- 5% and non-GAAP diluted income per share to be $0.46 +/- $0.05.

Positive Outlook

  • Net revenue is expected to be $1.400 billion +/- 5%.
  • GAAP gross margin is expected to be 49.2% +/- 1%.
  • Non-GAAP gross margin is expected to be approximately 64.0%.
  • Basic weighted average shares outstanding are expected to be 855 million.
  • Diluted weighted average shares outstanding are expected to be 861 million.

Challenges Ahead

  • GAAP operating expenses are expected to be approximately $646 million.
  • Non-GAAP operating expenses are expected to be approximately $430 million.
  • GAAP diluted income per share is expected to be $0.00 +/- $0.05 per share.
  • Non-GAAP diluted income per share is expected to be $0.46 +/- $0.05 per share.
  • Inventory reductions are impacting near-term results and guidance.