Marvell Technology, Inc. Q1 FY2024 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Q1 FY2024 revenue: 1.322 billion, down 9% year-over-year but above guidance midpoint.
  • Non-GAAP EPS: $0.31, beating midpoint by $0.02.
  • Sequential revenue decline of 7%, but company signals Q2 as the revenue bottom and expects growth to accelerate in second half of FY2024.
  • AI identified as the primary long-term growth engine, with revenue expected to double in FY2024 and again in FY2025 (100%+ CAGR from FY2023–FY2025).

AI and Strategic Positioning

  • AI now considered a standalone revenue category inside the company’s systems.
  • FY2023 AI revenue was approximately 200 million, driven mainly by PAM4 optical DSP and 400ZR DCI products.
  • Bookings and backlog for AI-related optics surged significantly since March.
  • Marvell expects at least 400 million in FY2024 AI revenue and projects another doubling in FY2025.
  • Connectivity requirements for AI clusters (e.g., 30 Tbps per system) are driving heavy demand for Marvell’s DSP, DCI optics, and high-capacity switches.
  • Cloud-optimized custom silicon business continues scaling with high visibility on AI design wins. Initial sample silicon for next-gen customer programs already in labs.

End Market Performance

Data Center
  • Q1 revenue: 436 million, down 32% year-over-year and 12% sequentially.

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Operator: Good afternoon, and welcome to Marvell Technology Inc.’s First Quarter of Fiscal Year 2024 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. Please note, this event is being recorded today. I would now like to turn the conference over to Mr. Ashish Saran, Senior Vice President of Investor Relations. Please, go ahead. Ashish Saran: Thank you, and good afternoon everyone. Welcome to Marvell's first fiscal quarter 2024 earnings call. Joining me today are Matt Murphy, Marvell's President and CEO; and Willem Meintjes, our CFO. Let me remind everyone that certain comments made today include forward-looking statements, which are subject to significant risks and uncertainties that could cause our actual results to differ materially from management's current expectations. Please review the cautionary statements and risk factors contained in our earnings press release, which we filed with the SEC today and posted on our website, as well as our most recent 10-K and 10-Q filings. We do not intend to update our forward-looking statements. During our call today, we will refer to certain non-GAAP financial measures. A reconciliation between our GAAP and non-GAAP financial measure is available in the Investor Relations section of our website. With that, I'll turn the call over to Matt for his comments on our performance. Matt? Matt Murphy: Thanks Ashish, and good

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