Monolithic Power Systems, Inc. stock research
FY2023 Q4
Monolithic Power Systems (MPWR) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened slightly from the prior quarter and more notably from the year-ago period.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened slightly from the prior quarter and more notably from the year-ago period.
- The decline in gross margin was driven by a proportionally smaller decrease in cost of revenue relative to the drop in revenue, compared with both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, revenue and gross profit were lower, cost of revenue was lower, and gross margin was slightly lower. Compared to the same quarter last year, revenue was lower, gross profit was lower, cost of revenue was higher, and gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
55.3%
Gross profit
$251.1M
Revenue
$454.0M
Cost of revenue
$202.9M
Quarter-over-quarter change
-0.2 pts
Year-over-year change
-2.9 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% |
| Dec 31, 2023 | $454.0M | $251.1M | $202.9M | 55.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-0.2 pts
Year-over-year change
Dec 31, 2022
-2.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross margin was driven by a proportionally smaller decrease in cost of revenue relative to the drop in revenue, compared with both the prior quarter and the year-ago quarter.
Compared to the prior quarter, revenue and gross profit were lower, cost of revenue was lower, and gross margin was slightly lower. Compared to the same quarter last year, revenue was lower, gross profit was lower, cost of revenue was higher, and gross margin was lower.
Monitor the trajectory of cost of revenue relative to revenue, as its slower decline contributed to margin compression.