MP

Monolithic Power Systems, Inc. stock research

Mar 31, 2024

FY2024 Q1

Monolithic Power Systems (MPWR) Gross Margin — Quarter Ended Mar 31, 2024

Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter and more notably from the same quarter one year earlier.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q1

Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter and more notably from the same quarter one year earlier.

  • Gross margin declined relative to both the prior quarter and the year-ago quarter, driven by cost of revenue growing faster than revenue.
  • Compared to the prior quarter, revenue and gross profit were slightly higher, but gross margin was lower. Compared to the same quarter one year earlier, revenue was higher, gross profit was lower, and gross margin was lower.

Gross margin snapshot

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

Gross margin

55.1%

Gross profit

$252.4M

Revenue

$457.9M

Cost of revenue

$205.4M

Quarter-over-quarter change

-0.2 pts

Year-over-year change

-2.2 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2023$441.1M$247.7M$193.5M56.1%
Sep 30, 2023$474.9M$263.5M$211.3M55.5%
Dec 31, 2023$454.0M$251.1M$202.9M55.3%
Mar 31, 2024$457.9M$252.4M$205.4M55.1%

Quarterly comparisons

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

Previous-quarter change

Dec 31, 2023

-0.2 pts

Year-over-year change

Mar 31, 2023

-2.2 pts

What the margin says

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

Gross margin declined relative to both the prior quarter and the year-ago quarter, driven by cost of revenue growing faster than revenue.

Compared to the prior quarter, revenue and gross profit were slightly higher, but gross margin was lower. Compared to the same quarter one year earlier, revenue was higher, gross profit was lower, and gross margin was lower.

Monitor the trend in cost of revenue relative to revenue, as its faster growth has compressed gross margin.