MR

Marvell Technology, Inc. stock research

Aug 3, 2024

FY2025 Q2

Marvell Technology (MRVL) Gross Margin — Quarter Ended Aug 3, 2024

Revenue was stable versus the year-ago quarter, while gross profit increased and cost of revenue decreased, resulting in a higher gross margin. Compared to the prior quarter, revenue, gross profit, and gross margin all improved.

Gross margin takeaway

Quarter ended Aug 3, 2024 · FY2025 Q2

Revenue was stable versus the year-ago quarter, while gross profit increased and cost of revenue decreased, resulting in a higher gross margin. Compared to the prior quarter, revenue, gross profit, and gross margin all improved.

  • The gross margin improved sequentially and year-over-year, primarily driven by a reduction in cost of revenue relative to revenue. The strongest observable driver is the lower cost of revenue compared to the same period last year, which directly supported gross profit growth.
  • Compared to the prior quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue also increased but at a slower rate. Compared to the same quarter one year earlier, revenue was stable, gross profit and gross margin were higher, and cost of revenue was lower.

Gross margin snapshot

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

Gross margin

46.2%

Gross profit

$587.6M

Revenue

$1.3B

Cost of revenue

$685.3M

Quarter-over-quarter change

+0.7 pts

Year-over-year change

+7.3 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
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%
Aug 3, 2024$1.3B$587.6M$685.3M46.2%

Quarterly comparisons

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

Previous-quarter change

May 4, 2024

+0.7 pts

Year-over-year change

Jul 29, 2023

+7.3 pts

What the margin says

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

The gross margin improved sequentially and year-over-year, primarily driven by a reduction in cost of revenue relative to revenue. The strongest observable driver is the lower cost of revenue compared to the same period last year, which directly supported gross profit growth.

Compared to the prior quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue also increased but at a slower rate. Compared to the same quarter one year earlier, revenue was stable, gross profit and gross margin were higher, and cost of revenue was lower.

Monitor the trend in cost of revenue, as its reduction was a key factor in margin improvement this quarter.