Marvell Technology, Inc. stock research
FY2024 Q2
Marvell Technology (MRVL) Gross Margin — Quarter Ended Jul 29, 2023
Revenue was stable compared to the prior quarter, while gross profit decreased and cost of revenue increased, causing gross margin to weaken. Versus the same quarter last year, revenue, gross profit, and gross margin were all lower, with cost of revenue higher.
Gross margin takeaway
Quarter ended Jul 29, 2023 · FY2024 Q2
Revenue was stable compared to the prior quarter, while gross profit decreased and cost of revenue increased, causing gross margin to weaken. Versus the same quarter last year, revenue, gross profit, and gross margin were all lower, with cost of revenue higher.
- The decline in gross margin from the prior quarter was driven by a higher cost of revenue relative to revenue, as gross profit fell while revenue was unchanged. Compared to a year ago, the margin weakened substantially as revenue decreased and cost of revenue increased.
- Gross margin weakened sequentially and declined sharply from the same quarter last year. The current quarter's gross profit was lower than both the prior quarter and the year-ago period, while cost of revenue was higher than both comparison periods.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.9%
Gross profit
$521.1M
Revenue
$1.3B
Cost of revenue
$819.8M
Quarter-over-quarter change
-3.3 pts
Year-over-year change
-13.0 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 |
|---|---|---|---|---|
| Jan 28, 2023 | $1.4B | $673.3M | $745.2M | 47.5% |
| Apr 29, 2023 | $1.3B | $557.2M | $764.5M | 42.2% |
| Jul 29, 2023 | $1.3B | $521.1M | $819.8M | 38.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 29, 2023
-3.3 pts
Year-over-year change
Jul 30, 2022
-13.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross margin from the prior quarter was driven by a higher cost of revenue relative to revenue, as gross profit fell while revenue was unchanged. Compared to a year ago, the margin weakened substantially as revenue decreased and cost of revenue increased.
Gross margin weakened sequentially and declined sharply from the same quarter last year. The current quarter's gross profit was lower than both the prior quarter and the year-ago period, while cost of revenue was higher than both comparison periods.
Monitor the trajectory of cost of revenue, which increased both sequentially and year-over-year despite stable or lower revenue.