MP

Monolithic Power Systems, Inc. stock research

Mar 31, 2023

FY2022 Q1

Monolithic Power Systems (MPWR) Gross Margin — Quarter Ended Mar 31, 2023

Revenue and gross profit decreased slightly from the prior quarter, resulting in a marginally lower gross margin. Compared to a year earlier, revenue grew strongly, outpacing cost increases, and the gross margin improved.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2022 Q1

Revenue and gross profit decreased slightly from the prior quarter, resulting in a marginally lower gross margin. Compared to a year earlier, revenue grew strongly, outpacing cost increases, and the gross margin improved.

  • The near-unchanged cost of revenue from the prior quarter made the sequential gross margin decline more sensitive to the slight revenue drop. Year over year, the significant revenue growth was the primary factor in the margin expansion.
  • Gross margin weakened slightly compared to the immediately preceding quarter but improved compared to the same quarter one year ago.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

57.4%

Gross profit

$258.8M

Revenue

$451.1M

Cost of revenue

$192.3M

Quarter-over-quarter change

n/a

Year-over-year change

+1.9 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$451.1M$258.8M$192.3M57.4%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Mar 31, 2021

+1.9 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The near-unchanged cost of revenue from the prior quarter made the sequential gross margin decline more sensitive to the slight revenue drop. Year over year, the significant revenue growth was the primary factor in the margin expansion.

Gross margin weakened slightly compared to the immediately preceding quarter but improved compared to the same quarter one year ago.

Monitor whether cost of revenue remains stable as revenue fluctuates, as it directly influences gross margin.