Marvell Technology, Inc. Q2 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Marvell Technology Fiscal Q2 2023 Earnings Summary

Quarter Overview

  • Revenue reached a record $1.52B, up 41% year-over-year and 5% sequentially (Q1 FY23 revenue was approximately $1.45B).
  • Annualized revenue run rate exceeded $6B, achieving this milestone one year earlier than projected at the October 2021 Investor Day.
  • Non-GAAP EPS was $0.57, up 68% year-over-year (from $0.34 in Q2 FY22) and above guidance midpoint.
  • Data-infrastructure markets represented 89% of total revenue, growing 49% year-over-year.
  • Non-GAAP operating margin reached a record 36.5% (up from 34% in Q2 FY22).

Performance by End Market

Data Center (42% of total revenue)

  • Q2 revenue: $643M, up 48% year-over-year and roughly flat sequentially.
  • Cloud business drove the majority of growth; on-premise declined sequentially (notably Fiber Channel and Ethernet adapters).
  • Strong traction across electro-optics, SSD controllers, custom silicon, cloud switching, and storage.
  • CXL (Compute Express Link) highlighted as major future growth driver; Marvell demonstrated first CXL memory pooling solution.
  • Outlook: Q3 revenue expected to decline mid-single digits sequentially due to supply constraints; sequential growth expected to return in Q4.

Carrier Infrastructure (19% of total revenue)

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Operator: Good afternoon, and welcome to Marvell Technology's Fiscal Second Quarter 2023 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. [Operator Instructions] Please note this event is being recorded. 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 second quarter fiscal year 2023 earnings call. Joining me today are Matt Murphy, Marvell's President and CEO; and Jean Hu, our CFO. Let me remind everyone that certain comments made today may 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 measures 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,

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