Marvell Technology, Inc. (NASDAQ:MRVL) Q3 2024 Earnings Conference Call November 30, 2023 4:45 PM ET

Company Participants

Ashish Saran - SVP of IR

Matt Murphy - Chairman and CEO

Willem Meintjes - CFO

Conference Call Participants

Toshiya Hari - Goldman Sachs

Timothy Arcuri - UBS

Vivek Arya - Bank of America Merrill Lynch

Harsh Kumar - Piper Sandler

Tore Svanberg - Stifel

Ross Seymore - Deutsche Bank

Matt Ramsay - TD Cowen

Ambrish Srivastava - BMO

Harlan Sur - JPMorgan

Christopher Rolland - Susquehanna

Srini Pajjuri - Raymond James

Chris Caso - Wolfe Research

Operator

Good afternoon, and welcome to Marvell Technology Inc. Third 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.

I would now like to turn this 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 third fiscal quarter 2024 earnings call. Joining me today are Matt Murphy, Marvell's Chairman 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 measures is available in the Investor Relations section of our website.

Let me now turn the call over to Matt for his comments on this quarter. Matt?

Matt Murphy

Thanks, Ashish, and good afternoon, everyone. For the third quarter of fiscal 2024, Marvell delivered revenue of $1.42 billion, growing 6% sequentially above the midpoint of guidance. In addition, on a non-GAAP basis, the Marvell team drove a sequential increase in gross margin, remain disciplined on operating expenses and delivered EPS of $0.41, above the midpoint of our guidance. We are pleased with our results in execution.

In our data center end market, revenue for the third quarter was $556 million, well above our guidance, driven by stronger than forecasted AI revenue. We are also encouraged by revenue from cloud, returning to year-over-year growth. On a sequential basis, overall data center revenue grew 21% in the third quarter, while cloud grew well in excess of 30%.