Monolithic Power Systems (MPWR) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $620.1M, up 22.2% sequentially and 30.6% year-over-year, driven by diversified market strategy, higher shipment volume, and strength in AI, automotive, and enterprise data applications.

• Net income for Q3 2024 was $144.4M ($2.96 basic, $2.95 diluted), up from $121.2M in Q3 2023; non-GAAP net income was $198.8M ($4.06/diluted share).

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

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

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

Financial highlights

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

• Q3 2024 net income: $144.4M; non-GAAP net income: $198.8M; Q3 2024 EPS: $2.96 basic, $2.95 diluted; non-GAAP EPS: $4.06.

• Q3 2024 gross profit: $343.4M (55.4% margin); non-GAAP gross margin: 55.8%.

• Q3 2024 operating income: $164.0M (26.5% margin); non-GAAP: $220.8M (35.6% margin).

• Cash flow from operations for nine months: $620.7M.

Outlook and guidance

• Q4 2024 revenue expected between $600M and $620M, with GAAP gross margin projected at 55.2%–55.8% and non-GAAP at 55.5%–56.1%.

• Management expects continued above-average growth in targeted product and market areas, focusing on AI, automotive, and enterprise data.

• No end market expected to change by more than mid-single digits in Q4.

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

• Liquidity position is sufficient to meet requirements for the next 12 months and beyond.