MR

Marvell Technology, Inc. stock research

Oct 28, 2023

FY2024 Q3

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

Revenue increased from the prior quarter, and gross profit rose in absolute terms. Gross margin remained stable as cost of revenue also increased proportionally. Compared with the same quarter a year earlier, revenue declined and gross profit decreased more sharply, causing gross margin to weaken.

Gross margin takeaway

Quarter ended Oct 28, 2023 · FY2024 Q3

Revenue increased from the prior quarter, and gross profit rose in absolute terms. Gross margin remained stable as cost of revenue also increased proportionally. Compared with the same quarter a year earlier, revenue declined and gross profit decreased more sharply, causing gross margin to weaken.

  • Gross margin was unchanged from the prior quarter, indicating that cost of revenue and revenue moved in tandem. The year-over-year decline in gross margin was accompanied by a reduction in gross profit that exceeded the reduction in revenue.
  • Compared with the prior quarter, revenue and gross profit were higher, and gross margin was stable. Compared with the same quarter one year earlier, revenue was lower and gross margin was weaker.

Gross margin snapshot

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

Gross margin

38.9%

Gross profit

$551.2M

Revenue

$1.4B

Cost of revenue

$867.4M

Quarter-over-quarter change

-0.0 pts

Year-over-year change

-11.7 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%
Apr 29, 2023$1.3B$557.2M$764.5M42.2%
Jul 29, 2023$1.3B$521.1M$819.8M38.9%
Oct 28, 2023$1.4B$551.2M$867.4M38.9%

Quarterly comparisons

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

Previous-quarter change

Jul 29, 2023

-0.0 pts

Year-over-year change

Oct 29, 2022

-11.7 pts

What the margin says

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

Gross margin was unchanged from the prior quarter, indicating that cost of revenue and revenue moved in tandem. The year-over-year decline in gross margin was accompanied by a reduction in gross profit that exceeded the reduction in revenue.

Compared with the prior quarter, revenue and gross profit were higher, and gross margin was stable. Compared with the same quarter one year earlier, revenue was lower and gross margin was weaker.

Monitor whether the decline in year-over-year revenue continues and whether gross profit can recover at a pace similar to revenue.