MP

Monolithic Power Systems, Inc. stock research

Sep 30, 2024

FY2024 Q3

Monolithic Power Systems (MPWR) Gross Margin — Quarter Ended Sep 30, 2024

Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin remained stable, showing only a slight change from the prior quarter and the year-ago period.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin remained stable, showing only a slight change from the prior quarter and the year-ago period.

  • The strongest observable margin driver is the consistent gross margin, which remained nearly unchanged quarter over quarter and year over year, indicating that cost of revenue grew at a similar pace to revenue.
  • Compared to the immediately preceding quarter, revenue and gross profit were higher, while gross margin was essentially stable. Compared to the same quarter one year earlier, revenue and gross profit were also higher, with gross margin remaining broadly similar.

Gross margin snapshot

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

Gross margin

55.4%

Gross profit

$343.4M

Revenue

$620.1M

Cost of revenue

$276.7M

Quarter-over-quarter change

+0.1 pts

Year-over-year change

-0.1 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$454.0M$251.1M$202.9M55.3%
Mar 31, 2024$457.9M$252.4M$205.4M55.1%
Jun 30, 2024$507.4M$280.6M$226.9M55.3%
Sep 30, 2024$620.1M$343.4M$276.7M55.4%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2024

+0.1 pts

Year-over-year change

Sep 30, 2023

-0.1 pts

What the margin says

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

The strongest observable margin driver is the consistent gross margin, which remained nearly unchanged quarter over quarter and year over year, indicating that cost of revenue grew at a similar pace to revenue.

Compared to the immediately preceding quarter, revenue and gross profit were higher, while gross margin was essentially stable. Compared to the same quarter one year earlier, revenue and gross profit were also higher, with gross margin remaining broadly similar.

Monitor whether the relationship between revenue and cost of revenue continues to move in tandem, as any divergence could affect gross margin stability.