Monolithic Power Systems, Inc. stock research
FY2023 Q3
Monolithic Power Systems (MPWR) Gross Margin — Quarter Ended Sep 30, 2023
Revenue increased compared to the prior quarter, while gross profit also rose. However, cost of revenue grew, leading to a gross margin that was lower than both the preceding quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue increased compared to the prior quarter, while gross profit also rose. However, cost of revenue grew, leading to a gross margin that was lower than both the preceding quarter and the same quarter last year.
- The gross margin weakened relative to both comparable periods, primarily reflecting cost of revenue that grew at a faster pace than revenue.
- Compared to the prior quarter, revenue and gross profit were higher, but gross margin was slightly lower. Versus the same quarter a year earlier, revenue and gross profit were lower, and gross margin narrowed.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
55.5%
Gross profit
$263.5M
Revenue
$474.9M
Cost of revenue
$211.3M
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-3.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $451.1M | $258.8M | $192.3M | 57.4% |
| Jun 30, 2023 | $441.1M | $247.7M | $193.5M | 56.1% |
| Sep 30, 2023 | $474.9M | $263.5M | $211.3M | 55.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.6 pts
Year-over-year change
Sep 30, 2022
-3.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened relative to both comparable periods, primarily reflecting cost of revenue that grew at a faster pace than revenue.
Compared to the prior quarter, revenue and gross profit were higher, but gross margin was slightly lower. Versus the same quarter a year earlier, revenue and gross profit were lower, and gross margin narrowed.
Monitor the trend in cost of revenue relative to revenue, as its growth continues to pressure gross margin.