Marvell Technology (MRVL) Q1 2024 Earnings Call Transcript

For the period ending April 29, 2023

May 25, 2023 4:45 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

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 afternoon everyone. For the first quarter of fiscal 2024, Marvell's revenue was 1.322 billion, above the midpoint of guidance. Higher revenue drove our non-GAAP earnings per share to $0.31, $0.02 above the mid-point. We were guiding revenue for the second quarter to go to 133 billion at the mid-point and expect sequential revenue growth will accelerate in the second half of the fiscal year.

Before we get to our results for each end market, let me start by discussing the tremendous opportunity that AI represents for Marvell. In the past, we considered AI to be one of many applications within cloud, but its importance and therefore the opportunity has increased dramatically. Generative AI is rapidly driving new applications and changing the investment priorities for our cloud customers.

Today's AI workloads require truly massive datasets. To efficiently process this data, the architecture for AI data centers is significantly different than standard cloud infrastructure. Rather than dual socket servers at the core element in Iraq, the primary building block in AI is a system containing multiple accelerators such as GPUs. In large deployments, thousands of these systems are interconnected to form a data center sized AI cluster, and what's required to interconnect these systems is orders of magnitude higher than in standard cloud infrastructure.