MR

Marvell Technology, Inc. stock research

Jan 28, 2023

FY2023 Q4

Marvell Technology (MRVL) Gross Margin — Quarter Ended Jan 28, 2023

Gross profit decreased in the current quarter compared with the prior quarter, while revenue also fell and cost of revenue was lower relative to the prior quarter. When compared with the same quarter one year earlier, gross profit was lower even though revenue was higher, as cost of revenue increased more than the gain in revenue.

Gross margin takeaway

Quarter ended Jan 28, 2023 · FY2023 Q4

Gross profit decreased in the current quarter compared with the prior quarter, while revenue also fell and cost of revenue was lower relative to the prior quarter. When compared with the same quarter one year earlier, gross profit was lower even though revenue was higher, as cost of revenue increased more than the gain in revenue.

  • The gross margin weakened in the current quarter compared with both the prior quarter and the year-ago quarter, reflecting that cost of revenue consumed a larger share of revenue. The narrowing of margin is the most direct observable pattern from the supplied metrics.
  • Sequentially, revenue and gross profit were lower and gross margin weakened from the prior quarter. On a year-over-year basis, revenue was higher but gross profit was lower, and gross margin was weaker than the same quarter one year ago.

Gross margin snapshot

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

Gross margin

47.5%

Gross profit

$673.3M

Revenue

$1.4B

Cost of revenue

$745.2M

Quarter-over-quarter change

n/a

Year-over-year change

-3.6 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Jan 28, 2023$1.4B$673.3M$745.2M47.5%

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

Jan 29, 2022

-3.6 pts

What the margin says

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

The gross margin weakened in the current quarter compared with both the prior quarter and the year-ago quarter, reflecting that cost of revenue consumed a larger share of revenue. The narrowing of margin is the most direct observable pattern from the supplied metrics.

Sequentially, revenue and gross profit were lower and gross margin weakened from the prior quarter. On a year-over-year basis, revenue was higher but gross profit was lower, and gross margin was weaker than the same quarter one year ago.

Monitor the trend of cost of revenue relative to revenue, as it grew at a faster rate compared with a year ago and compressed the gross margin.