Marvell 3q2024 financial results
Marvell 3q2024 financial results
Marvell 3q2024 financial results
@financepresentations1 month ago
Q3 FY25
Financial and Business Results
December 3, 2024
- ⪠During this presentation, we may refer to certain financial measures on a U.S. non-GAAP basis.
- ⪠We believe that the presentation of non-GAAP financial measures provides important supplemental information to management and investors regarding financial and business trends relating to our financial condition and results of operations.
- ⪠While we use non-GAAP financial measures as a tool to enhance our understanding of certain aspects of our financial performance, we do not consider these measures to be a substitute for, or superior to, the information provided by GAAP financial measures.
- ⪠A reconciliation for non-GAAP financial measures is in the Appendices to this presentation.
- ⪠Q3 revenue of $1,516M increased 7% y/y and 19% q/q, $66M above guidance midpoint
- ⪠Data center revenue grew 98% y/y and 25% q/q in Q3, expect greater than 20% q/q growth in Q4
- ⪠Led by data center, Marvell Q4 revenues forecasted to grow 26% y/y and 19% q/q at guidance midpoint
- ⪠Enterprise and carrier collectively up 4% q/q; expect collective mid-teens % growth q/q in Q4
- ⪠Auto/industrial revenue down 22% y/y and up 9% q/q in Q3, expect low-to-mid single-digit % growth q/q in Q4
- ⪠Consumer revenue down 43% y/y and up 9% q/q in Q3, expect Q4 revenue to seasonally decline in mid-teens % q/q
- ⪠Custom and interconnect (incl. electro-optics) revenue exceeded expectations in Q3
- ⪠Custom AI programs ramped significantly in Q3, expect continued ramp in Q4
- ⪠Expect strong growth in Ethernet switch and interconnect portfolio in Q4
- 1. See Appendices for GAAP to Non-GAAP reconciliation. 2. Earnings per share (EPS) = diluted earnings per share.
- 1. See Appendices for GAAP to Non-GAAP reconciliation.
- 2. Earnings per share (EPS) = diluted earnings per share.
- ⪠Announced 5-year, multi-generational agreement with Amazon Web Services, expanding relationship
- ⪠Strong ongoing demand from AI applications
- ⪠Significant step up in custom AI silicon ramp
- ⪠Began shipments of 5nm 1.6T PAM4 DSPs
- ⪠Strong bookings for 800G PAM4 DSPs
- ⪠Launched industry-first 3nm 1.6 Tbps PAM4 optical DSP
- ⪠Demonstrated industry-first PCIe Gen 7 connectivity
- ⪠Expect Q4 revenue to grow greater than 20% sequentially on a percentage basis, driven by high-volume production ramp of AI custom programs
- ⪠Encouraging demand commentary from customers
- ⪠Expect Q4 revenue to grow
- ⪠Recovery started in Q3
- ⪠Expect growth to continue in Q4
- ⪠Recovery started in Q3
- ⪠Expect Q4 revenue to grow in the low to mid-single digits sequentially
Forward-looking statements
Except for statements of historical fact, this presentation contains forward-looking statements (within the meaning of the federal securities laws) including statements related to future revenue, future earnings, and the success of our product releases that involve risks and uncertainties. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'projects,' 'believes,' 'seeks,' 'estimates,' 'can,' 'may,' 'will,' 'would' and similar expressions identify such forward-looking statements. These statements are not guarantees of results and should not be considered as an indication of future activity or future performance. Actual events or results may differ materially from those described in this presentation due to a number of risks and uncertainties.
For other factors that could cause Marvell's results to vary from expectations, please see the risk factors identified in Marvell's Quarterly Report on Form 10-Q for the fiscal quarter ended August 3, 2024 as filed with the SEC on August 30, 2024 and other factors detailed from time to time in Marvell's filings with the SEC. Marvell undertakes no obligation to revise or update publicly any forward-looking statements.
Non-GAAP financial measures
Fiscal year nomenclature
The Company's fiscal year is the 52- or 53-week period ending on the Saturday closest to January 31. Accordingly, every fifth or sixth fiscal year will have a 53-week period. The additional week in a 53-week year is added to the fourth quarter, making such quarter consist of 14 weeks. Fiscal 2023 had a 52-week year. Fiscal 2024 had a 53-week year. Fiscal 2025 will be a 52-week year.
The third quarter of fiscal year 2025 is the three-month period ended November 2, 2024.
Recent announcements
DECEMBER 3, 2024
Marvell Announces Industry's First 3nm 1.6 Tbps PAM4 Interconnect Platform
Accelerated Infrastrutcure
NEWS LINK
OCTOBER 15, 2024
Marvell Demonstrates Industry-Leading 3nm PCIe Gen 7 Connectivity at OCP 2024
NEWS LINK
DECEMBER 2, 2024
Marvell Expands Strategic Collaboration with AWS to Enable Accelerated Infrastructure
NEWS LINK
OCTOBER 14, 2024
Marvell Delivers Custom Ethernet NIC at Open Compute Project
NEWS LINK
Q3 FY25 Executive summary
Record data center results, consolidated revenue above guidance midpoint
Non-data center revenue began recovery in Q3
Strong AI results set stage to significantly exceed prior fiscal 2025 AI revenue target
Revenue Q3 FY25
Results reflected strong data center growth, augmented by the start of recovery in other end markets.
Key metrics Q3 FY25 | GAAP
Key metrics Q3 FY25 | Non-GAAP 1
Revenue ($M)
Operating margin
Earnings per share 2
Gross margin
Q3 FY25 Summary P&L | GAAP
Q3 FY25 Summary P&L | Non-GAAP 1
Q3 FY25 Summary balance sheet items
Data center end market Q3 FY25
Revenue ($M)
Up 98% y/y and 25% q/q
Strong demand for interconnects and custom silicon
Highlights
Enterprise networking end market Q3 FY25
Revenue ($M)
Highlights
Carrier infrastructure end market Q3 FY25
Revenue ($M)
Highlights
Automotive / industrial end market Q3 FY25
Revenue ($M)
Highlights
