Monolithic Power Systems (MPWR) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached a record $620.1 million, up 22% sequentially and 30.6% year-over-year, driven by diversified market strategy, new product ramps, and strong demand in AI, automotive, and enterprise data applications.

• Net income for Q3 2024 was $144.4M, with GAAP EPS of $2.95 (diluted) and non-GAAP EPS of $4.06 (diluted), both up from Q3 2023.

• Gross margin remained strong at 55.4% GAAP and 55.8% non-GAAP for Q3 2024, nearly flat year-over-year.

• The company completed the acquisition of Axign B.V. in January 2024 for $33.4M, expanding its audio IC portfolio.

• Cash, cash equivalents, and short-term investments totaled $1.46B as of September 30, 2024, representing 51.2% of total assets.

Financial highlights

• Q3 2024 revenue: $620.1M (+30.6% YoY, +22% sequential); nine months: $1.59B (+16.0% YoY).

• Q3 2024 net income: $144.4M; non-GAAP net income: $198.8M; nine months: $337.3M GAAP, $491.4M non-GAAP.

• Q3 2024 operating income: $164.0M GAAP (26.5% margin), $220.8M non-GAAP; gross profit: $343.4M (55.4% margin).

• Q3 2024 EPS: $2.96 basic, $2.95 diluted GAAP; $4.06 diluted non-GAAP.

• Channel and internal inventory days decreased, with inventory levels described as low and lean.

Outlook and guidance

• Q4 2024 revenue expected between $600M and $620M, with end markets projected to change within a narrow plus or minus mid-single digit range.

• Q4 2024 GAAP gross margin projected at 55.2%–55.8%; non-GAAP gross margin at 55.5%–56.1%.

• Enterprise data segment forecasted to be up low single digits sequentially in Q4, with no expected share loss.

• Management expects continued above-average growth in targeted product and market areas, especially in AI, automotive, and vertical power markets.

• Fully diluted shares outstanding projected at 48.8M–49.2M for Q4 2024.