MR

Marvell Technology, Inc. stock research

May 4, 2024

FY2025 Q1

Marvell Technology (MRVL) Gross Margin — Quarter Ended May 4, 2024

Revenue decreased from the prior quarter, resulting in lower gross profit and cost of revenue. Gross margin weakened compared to the preceding quarter but improved compared to the same quarter one year earlier.

Gross margin takeaway

Quarter ended May 4, 2024 · FY2025 Q1

Revenue decreased from the prior quarter, resulting in lower gross profit and cost of revenue. Gross margin weakened compared to the preceding quarter but improved compared to the same quarter one year earlier.

  • The relationship among revenue, cost of revenue, and gross profit shows that the decline in gross profit was proportional to the decrease in revenue, while gross margin remained relatively stable quarter over quarter.
  • Compared to the immediately preceding quarter, revenue and gross profit were both lower, and gross margin weakened slightly. Compared to the same quarter one year earlier, revenue was lower but gross profit was higher, and gross margin improved.

Gross margin snapshot

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

Gross margin

45.5%

Gross profit

$527.8M

Revenue

$1.2B

Cost of revenue

$633.1M

Quarter-over-quarter change

-1.1 pts

Year-over-year change

+3.3 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Jul 29, 2023$1.3B$521.1M$819.8M38.9%
Oct 28, 2023$1.4B$551.2M$867.4M38.9%
Feb 3, 2024$1.4B$664.1M$762.4M46.6%
May 4, 2024$1.2B$527.8M$633.1M45.5%

Quarterly comparisons

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

Previous-quarter change

Feb 3, 2024

-1.1 pts

Year-over-year change

Apr 29, 2023

+3.3 pts

What the margin says

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

The relationship among revenue, cost of revenue, and gross profit shows that the decline in gross profit was proportional to the decrease in revenue, while gross margin remained relatively stable quarter over quarter.

Compared to the immediately preceding quarter, revenue and gross profit were both lower, and gross margin weakened slightly. Compared to the same quarter one year earlier, revenue was lower but gross profit was higher, and gross margin improved.

Monitor the trend in gross margin relative to cost of revenue changes given the sequential decline in revenue.