Monolithic Power Systems Earnings Commentary for the Quarter and Year Ended December 31, 2024
Monolithic Power Systems (MPWR) reported strong financial results for 2024, with revenue reaching a record $2.2 billion, up 21.2% year-over-year. The company's Enterprise Data segment showed exceptional growth of 121.7%, reaching $716.2 million. GAAP net income increased significantly to $1.79 billion, with diluted EPS of $36.59.
Q4 2024 revenue was $621.7 million, up 36.9% year-over-year. The company executed a $640M stock repurchase program and announced a new $500 million repurchase program. The quarterly dividend will increase 25% to $1.56 per share. For Q1 2025, MPWR forecasts revenue between $610-630 million with a non-GAAP gross margin of 55.4-56.0%.
The company's performance was driven by strong growth in Enterprise Data, Automotive, and Communications segments, while Consumer and Industrial segments showed declines in 2024.
Monolithic Power Systems (MPWR) ha riportato risultati finanziari solidi per il 2024, con un fatturato che ha raggiunto un record di 2,2 miliardi di dollari, in aumento del 21,2% rispetto all'anno precedente. Il segmento Dati Aziendali dell'azienda ha mostrato una crescita eccezionale del 121,7%, raggiungendo i 716,2 milioni di dollari. L'utile netto secondo i principi contabili GAAP è aumentato notevolmente a 1,79 miliardi di dollari, con un utile per azione diluito di 36,59 dollari.
Il fatturato del quarto trimestre del 2024 è stato di 621,7 milioni di dollari, in aumento del 36,9% rispetto all'anno precedente. L'azienda ha attuato un programma di riacquisto di azioni di 640 milioni di dollari e ha annunciato un nuovo programma di riacquisto di 500 milioni di dollari. Il dividendo trimestrale aumenterà del 25% a 1,56 dollari per azione. Per il primo trimestre del 2025, MPWR prevede un fatturato compreso tra 610 e 630 milioni di dollari, con un margine lordo non GAAP del 55,4% - 56,0%.
Le prestazioni dell'azienda sono state sostenute da una forte crescita nei segmenti Dati Aziendali, Automotive e Comunicazioni, mentre i segmenti Consumi e Industriali hanno mostrato cali nel 2024.
Monolithic Power Systems (MPWR) reportó resultados financieros sólidos para 2024, con ingresos que alcanzaron un récord de 2.2 mil millones de dólares, un aumento del 21.2% interanual. El segmento de Datos Empresariales de la compañía mostró un crecimiento excepcional del 121.7%, alcanzando los 716.2 millones de dólares. La utilidad neta según los principios contables GAAP aumentó significativamente a 1.79 mil millones de dólares, con una utilidad por acción diluida de 36.59 dólares.
Los ingresos del cuarto trimestre de 2024 fueron de 621.7 millones de dólares, un aumento del 36.9% interanual. La compañía ejecutó un programa de recompra de acciones de 640 millones de dólares y anunció un nuevo programa de recompra de 500 millones de dólares. El dividendo trimestral aumentará un 25% a 1.56 dólares por acción. Para el primer trimestre de 2025, MPWR pronostica ingresos entre 610 y 630 millones de dólares, con un margen bruto no GAAP del 55.4% - 56.0%.
El desempeño de la compañía fue impulsado por un fuerte crecimiento en los segmentos de Datos Empresariales, Automotriz y Comunicaciones, mientras que los segmentos de Consumo e Industrial mostraron declives en 2024.
모놀리식 파워 시스템즈 (MPWR)는 2024년 강력한 재무 결과를 보고했으며, 수익은 기록적인 22억 달러에 도달하여 전년 대비 21.2% 증가했습니다. 회사의 기업 데이터 부문은 121.7%의 예외적인 성장을 보였으며, 7억 1620만 달러에 이르렀습니다. GAAP 기준 순이익은 17억 9000만 달러로 크게 증가했으며, 희석 EPS는 36.59 달러입니다.
2024년 4분기 수익은 6억 2170만 달러로, 전년 대비 36.9% 증가했습니다. 회사는 6억 4000만 달러 규모의 자사주 매입 프로그램을 시행했으며, 5억 달러 규모의 새로운 매입 프로그램을 발표했습니다. 분기 배당금은 25% 증가하여 주당 1.56 달러가 됩니다. 2025년 1분기 동안 MPWR은 수익을 6억 1000만에서 6억 3000만 달러 사이로 예상하며, 비-GAAP 총마진은 55.4%에서 56.0%로 추정하고 있습니다.
회사의 성과는 기업 데이터, 자동차 및 통신 부문의 강력한 성장에 의해 주도되었으며, 소비자 및 산업 부문은 2024년에 하락세를 보였습니다.
Monolithic Power Systems (MPWR) a annoncé de solides résultats financiers pour 2024, avec des revenus atteignant un record de 2,2 milliards de dollars, en hausse de 21,2 % d'une année sur l'autre. Le segment des Données d'Entreprise de la société a connu une croissance exceptionnelle de 121,7 %, atteignant 716,2 millions de dollars. Le bénéfice net selon les normes GAAP a considérablement augmenté pour atteindre 1,79 milliard de dollars, avec un BPA dilué de 36,59 dollars.
Les revenus du quatrième trimestre 2024 se sont élevés à 621,7 millions de dollars, en hausse de 36,9 % par rapport à l'année précédente. L'entreprise a mis en œuvre un programme de rachat d'actions de 640 millions de dollars et a annoncé un nouveau programme de rachat de 500 millions de dollars. Le dividende trimestriel augmentera de 25 % pour atteindre 1,56 dollar par action. Pour le premier trimestre 2025, MPWR prévoit un chiffre d'affaires compris entre 610 et 630 millions de dollars, avec une marge brute non-GAAP de 55,4 % à 56,0 %.
La performance de l'entreprise a été soutenue par une forte croissance dans les segments des Données d'Entreprise, de l'Automobile et des Communications, tandis que les segments Consommation et Industriel ont montré des déclins en 2024.
Monolithic Power Systems (MPWR) berichtete von starken finanziellen Ergebnissen für 2024, mit einem Umsatz von rekordverdächtigen 2,2 Milliarden Dollar, was einem Anstieg von 21,2 % im Vergleich zum Vorjahr entspricht. Der Unternehmensdatenbereich des Unternehmens zeigte ein außergewöhnliches Wachstum von 121,7 % und erreichte 716,2 Millionen Dollar. Der GAAP-Nettoertrag stieg erheblich auf 1,79 Milliarden Dollar, mit einem verwässerten Gewinn von 36,59 Dollar pro Aktie.
Der Umsatz im vierten Quartal 2024 betrug 621,7 Millionen Dollar, was einem Anstieg von 36,9 % im Vergleich zum Vorjahr entspricht. Das Unternehmen führte ein Aktienrückkaufprogramm im Wert von 640 Millionen Dollar durch und kündigte ein weiteres Rückkaufprogramm im Wert von 500 Millionen Dollar an. Die vierteljährliche Dividende wird um 25 % auf 1,56 Dollar pro Aktie erhöht. Für das erste Quartal 2025 prognostiziert MPWR einen Umsatz zwischen 610 und 630 Millionen Dollar mit einer nicht-GAAP Bruttomarge von 55,4 % - 56,0 %.
Die Leistung des Unternehmens wurde durch starkes Wachstum in den Bereichen Unternehmensdaten, Automobil und Kommunikation angetrieben, während die Bereiche Verbrauch und Industrie 2024 Rückgänge zeigten.
- Record revenue of $2.2 billion in 2024, up 21.2% YoY
- Enterprise Data segment grew 121.7% to $716.2 million
- GAAP net income increased 318.1% to $1.79 billion
- 25% increase in quarterly dividend to $1.56 per share
- New $500 million stock repurchase program announced
- Q4 revenue up 36.9% YoY to $621.7 million
- Consumer revenue decreased 13.9% to $202.0 million
- Industrial revenue declined 14.6% to $147.4 million
- GAAP operating margin decreased from 26.5% to 24.4%
- Gross margin declined 0.8 percentage points to 55.3%
Insights
The financial results reveal MPWR's successful execution of its strategic transformation from a chip manufacturer to a comprehensive solutions provider, particularly evident in the Enterprise Data segment's exceptional 121.7% YoY growth to
The company's operational efficiency remains robust despite market headwinds, maintaining a healthy non-GAAP gross margin of
The capital allocation strategy shows confidence in future growth, with a
Looking ahead, MPWR's expansion into Silicon Carbide technology for clean energy applications positions the company well for emerging opportunities in power management solutions. The Q1 2025 guidance of
KIRKLAND, Wash., Feb. 06, 2025 (GLOBE NEWSWIRE) -- MPS will report its results after the market closes on February 6, 2025 and host a question-and-answer webinar at 2:00 p.m. PT / 5:00 p.m. ET. The live event will be held via a Zoom webcast, which can be accessed at https://mpsic.zoom.us/j/96816578886.
| 2024 Financial Summary | (Unaudited) |
| GAAP | |
| 2024 | 2023 | YoY Change | YoY Change (%) | ||||||
| Revenue ($k) | $ | 2,207,100 | $ | 1,821,072 | Up | Up | |||
| Gross Margin | 55.3 | % | 56.1 | % | Down 0.8 pts | Down | |||
| Opex ($k) | $ | 681,512 | $ | 539,383 | Up | Up | |||
| Operating Margin | 24.4 | % | 26.5 | % | Down 2.1 pts | Down | |||
| Net income ($k) | $ | 1,786,700 | $ | 427,374 | Up | Up | |||
| Diluted EPS | $ | 36.59 | $ | 8.76 | Up | Up |
| Non-GAAP |
| 2024 | 2023 | YoY Change | YoY Change (%) | ||||||
| Revenue ($k) | $ | 2,207,100 | $ | 1,821,072 | Up | Up | |||
| Gross Margin | 55.8 | % | 56.4 | % | Down 0.6 pts | Down | |||
| Opex ($k) | $ | 466,379 | $ | 385,395 | Up | Up | |||
| Operating Margin | 34.6 | % | 35.2 | % | Down 0.6 pts | Down | |||
| Net income ($k) | $ | 689,755 | $ | 574,647 | Up | Up | |||
| Diluted EPS | $ | 14.12 | $ | 11.78 | Up | Up |
| Revenue by End Market |
| Revenue | YoY Change | % of Total Rev | |||||||||||||||
| End Market ($M) | 2024 | 2023 | $ | % | 2024 | 2023 | |||||||||||
| Enterprise Data | $ | 716.2 | $ | 323.0 | $ | 393.2 | 121.7 | % | 32.5 | % | 17.7 | % | |||||
| Storage & Computing | 501.6 | 491.1 | 10.5 | 2.1 | % | 22.7 | 27.0 | ||||||||||
| Automotive | 414.0 | 394.7 | 19.3 | 4.9 | % | 18.8 | 21.7 | ||||||||||
| Communications | 225.9 | 204.9 | 21.0 | 10.2 | % | 10.2 | 11.3 | ||||||||||
| Consumer | 202.0 | 234.7 | (32.7 | ) | (13.9 | %) | 9.1 | 12.9 | |||||||||
| Industrial | 147.4 | 172.7 | (25.3 | ) | (14.6 | %) | 6.7 | 9.4 | |||||||||
| Total | $ | 2,207.1 | $ | 1,821.1 | $ | 386.0 | 21.2 | % | 100 | % | 100 | % | |||||
| Q4 2024 Financial Summary | (Unaudited) |
| GAAP | |
| Q4'24 | Q3'24 | Q4'23 | QoQ Change | YoY Change | ||||||||
| Revenue ($k) | $ | 621,665 | $ | 620,119 | $ | 454,012 | Up | Up | ||||
| Gross Margin | 55.4 | % | 55.4 | % | 55.3 | % | Flat | Up 0.1 pts | ||||
| Opex ($k) | $ | 181,101 | $ | 179,415 | $ | 141,554 | Up | Up | ||||
| Operating Margin | 26.3 | % | 26.5 | % | 24.1 | % | Down 0.2 pts | Up 2.2 pts | ||||
| Net income ($k) | $ | 1,449,363 | $ | 144,430 | $ | 96,905 | Up | Up | ||||
| Diluted EPS | $ | 29.88 | $ | 2.95 | $ | 1.98 | Up | Up |
| Non-GAAP |
| Q4'24 | Q3'24 | Q4'23 | QoQ Change | YoY Change | ||||||||
| Revenue ($k) | $ | 621,665 | $ | 620,119 | $ | 454,012 | Up | Up | ||||
| Gross Margin | 55.8 | % | 55.8 | % | 55.7 | % | Flat | Up 0.1 pts | ||||
| Opex ($k) | $ | 126,117 | $ | 125,169 | $ | 96,745 | Up | Up | ||||
| Operating Margin | 35.5 | % | 35.6 | % | 34.4 | % | Down 0.1 pts | Up 1.1 pts | ||||
| Net income ($k) | $ | 198,401 | $ | 198,786 | $ | 140,852 | Down | Up | ||||
| Diluted EPS | $ | 4.09 | $ | 4.06 | $ | 2.88 | Up | Up | ||||
| Revenue by End Market |
| Revenue | YoY Change | % of Total Rev | ||||||||||||||
| End Market ($M) | Q4’24 | Q4’23 | $ | % | Q4’24 | Q4’23 | ||||||||||
| Enterprise Data | $ | 194.9 | $ | 128.9 | $ | 66.0 | 51.2 | % | 31.3 | % | 28.4 | % | ||||
| Storage & Computing | 136.5 | 117.3 | 19.2 | 16.4 | % | 22.0 | 25.8 | |||||||||
| Automotive | 128.4 | 89.8 | 38.6 | 43.0 | % | 20.6 | 19.8 | |||||||||
| Communications | 63.8 | 40.9 | 22.9 | 55.9 | % | 10.3 | 9.0 | |||||||||
| Consumer | 57.3 | 43.7 | 13.6 | 31.0 | % | 9.2 | 9.6 | |||||||||
| Industrial | 40.8 | 33.4 | 7.4 | 22.3 | % | 6.6 | 7.4 | |||||||||
| Total | $ | 621.7 | $ | 454.0 | $ | 167.7 | 36.9 | % | 100 | % | 100 | % | ||||
Ongoing Business Conditions
In 2024, MPS’s revenue grew
Highlights from 2024 include:
- We introduced a Silicon Carbide inverter for high power clean energy applications. Initial revenue is expected to ramp in late 2025. Other Silicon Carbide-based applications are expected to be introduced in multiple geographies during 2025 and 2026.
- We developed a family of high quality, cost efficient automotive audio products utilizing DSP technology from our 2024 Axign acquisition powered by MPS solutions.
- For enterprise notebooks, we launched a battery management solution and are sampling our new mini-phase power stage. These products enable faster charge time and significantly improve notebook battery life.
- Building on our first analog to digital converter design win in 2024, we are developing new high accuracy 24-bit converters which are expected to ramp in the second half of 2025.
- We executed a
$640M stock repurchase program offsetting dilution for our shareholders.
In Q4 2024, MPS achieved record quarterly revenue of
MPS continues to focus on innovation, solving our customers’ most challenging problems, and maintaining the highest level of quality. We continue to invest in new technology, expand into new markets, and to diversify our end-market applications and global supply chain. This will allow us to capture future growth opportunities, maintain supply stability, and swiftly adapt to market changes as they occur.
“Our proven, long-term growth strategy remains intact as we continue our transformation from being a chip-only, semiconductor supplier to a full service, silicon-based solutions provider,” said Michael Hsing, CEO and founder of MPS.
2024 Full Year Revenue Results
Our full year 2024 revenue by market segment was as follows:
Full year 2024 Enterprise Data revenue grew
Communications revenue grew by
Automotive revenue grew
Storage and Computing revenue for 2024 grew
Consumer revenue decreased
Industrial revenue fell by
Q4’24 Revenue Results
MPS reported fourth quarter revenue of
Fourth quarter Automotive revenue of
In our Enterprise Data market, fourth quarter 2024 revenue of
Fourth quarter 2024 Storage and Computing revenue of
Fourth quarter 2024 Industrial revenue of
Fourth quarter Consumer revenue of
Fourth quarter 2024 Communications revenue of
Q4’24 Gross Margin & Operating Income
GAAP gross margin was
Non-GAAP gross margin for the fourth quarter of 2024 was
Q4’24 Operating Expenses
Our GAAP operating expenses were
Our Non-GAAP operating expenses were approximately
The differences between non-GAAP operating expenses and GAAP operating expenses for the quarters discussed here are primarily stock-based compensation and related expense and deferred compensation plan expense.
Total stock-based compensation and related expenses, including approximately
The Bottom Line
Fourth quarter 2024 GAAP net income was
Fourth quarter 2024 non-GAAP net income was
There were 48.5 million fully diluted shares outstanding at the end of the fourth quarter of 2024. MPS repurchased
Balance Sheet and Cash Flow
Cash, cash equivalents and short-term investments were
Accounts receivable at the end of the fourth quarter of 2024 at
Our internal inventories at the end of the fourth quarter of 2024 were
We have carefully managed our internal inventories throughout the year, balancing the uncertainty in the market with being prepared to capture market upturns when they occur. Comparing current inventory levels using next quarter’s projected revenue, days of inventory at the end of the fourth quarter of 138 days was 2 days lower than at the end of the third quarter of 2024.
| Selected Balance Sheet and Inventory Data | (Unaudited) | |||
| Q4'24 | Q3'24 | Q4'23 | ||
| Cash, Cash Equivalents, and Short-Term Investments | ||||
| Operating Cash Flow | ||||
| Accounts Receivable | ||||
| Days of Sales Outstanding | 25 Days | 24 Days | 36 Days | |
| Internal Inventories | ||||
| Days of Inventory (current quarter revenue) | 138 Days | 140 Days | 172 Days | |
| Days of Inventory (next quarter revenue) | 138 Days | 140 Days | 170 Days | |
Q1’25 Business Outlook
For the first quarter of 2025 ending March 31, we are forecasting:
- Revenue in the range of
$610 million to$630 million . - GAAP gross margin in the range of
55.1% to55.7% . - Non-GAAP gross margin in the range of
55.4% to56.0% , which excludes the impact from stock-based compensation and related expenses as well as the impact from amortization of acquisition-related intangible assets. - Total stock-based compensation and related expenses in the range of
$55.0 million to$57.0 million including approximately$1.7 million that would be charged to cost of goods sold. - GAAP operating expenses between
$180.2 million and$186.2 million . - Non-GAAP operating expenses in the range of
$126.9 million to$130.9 million . This estimate excludes stock-based compensation and related expenses in the range of$53.3 million to$55.3 million . - Interest and other income in the range from
$5.8 million to$6.2 million before foreign exchange gains or losses. - Non-GAAP tax rate of
15% for 2025. - Fully diluted shares outstanding in the range of 47.8 to 48.2 million shares.
Our quarterly dividend will increase
In addition, our board of directors has authorized a new
For further information, contact:
Bernie Blegen
Executive Vice President and Chief Financial Officer
Monolithic Power Systems, Inc.
408-826-0777
MPSInvestor.Relations@monolithicpower.com
Safe Harbor Statement
This earnings commentary contains, and statements that will be made during the accompanying webinar will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including under the “Q1’25 Business Outlook” section herein, our statement regarding our business focus, our statement regarding the expansion and diversification of our global supply chain and the quote from our CEO and founder, including, among other things, (i) projected revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, stock-based compensation and related expenses, amortization of acquisition-related intangible assets, other income before foreign exchange gains or losses, and fully diluted shares outstanding, (ii) our outlook for the first quarter of fiscal year 2025 and the near-term, medium-term and long-term prospects of MPS, including our ability to adapt to changing market conditions, performance against our business plan, our ability to grow despite the various challenges facing our business, our industry and the global economic environment, revenue growth in certain of our market segments, potential new business segments, our continued investment in research and development (“R&D”), expected revenue growth, customers’ acceptance of our new product offerings, the prospects of our new product development, our expectations regarding market and industry segment trends and prospects, and our projected expansion of capacity and the impact it may have on our business, (iii) our ability to penetrate new markets and expand our market share, (iv) the seasonality of our business, (v) our ability to reduce our expenses, and (vi) statements regarding the assumptions underlying or relating to any statement described in (i), (ii), (iii), (iv), or (v). These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this earnings commentary and listeners to the accompanying conference call are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, continued uncertainties in the global economy, including due to the Russia-Ukraine and Middle East conflicts, inflation, consumer sentiment and other factors; adverse events arising from orders or regulations of governmental entities, including such orders or regulations that impact our customers or suppliers, and adoption of new or amended accounting standards; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, and tax laws or the interpretation of same, including in foreign countries where MPS has offices or operations; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; acceptance of, or demand for, our products, in particular the new products launched recently, being different than expected; our ability to increase market share in our targeted markets; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies (including as a result of any continuing impact from the Russia-Ukraine and Middle East conflicts); our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to attract new customers and retain existing customers; our ability to meet customer demand for our products due to constraints on our third-party suppliers’ ability to manufacture sufficient quantities of our products or otherwise; our ability to expand manufacturing capacity to support future growth; adverse changes in production and testing efficiency of our products; any political, cultural, military, regulatory, economic, foreign exchange and operational changes in China, where a significant portion of our manufacturing capacity comes from; any market disruptions or interruptions in our schedule of new product development releases; our ability to manage our inventory levels; adequate supply of our products from our third-party manufacturing partners; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; the ongoing consolidation of companies in the semiconductor industry; competition generally and the increasingly competitive nature of our industry; our ability to realize the anticipated benefits of companies and products that MPS acquires, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; the risks, uncertainties and costs of litigation in which MPS is involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on our financial performance if its tax and litigation provisions are inadequate; our ability to effectively manage our growth and attract and retain qualified personnel; the effect of epidemics and pandemics on the global economy and on our business; the risks associated with the financial market, economy and geopolitical uncertainties, including the Russia-Ukraine and Middle East conflicts; and other important risk factors identified under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K filed with the SEC on February 29, 2024. MPS assumes no obligation to update the information in this earnings commentary or in the accompanying webinar.
Non-GAAP Financial Measures
This CFO Commentary contains references to certain non-GAAP financial measures. Non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP other income, net, non-GAAP operating income and non-GAAP income before income taxes differ from net income, net income per share, gross margin, operating expenses, other income, net, operating income and income before income taxes determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Non-GAAP net income and non-GAAP net income per share exclude the effect of stock-based compensation and related expenses, which include stock-based compensation expense and employer payroll taxes in relation to the stock-based compensation, net deferred compensation plan expense, amortization of acquisition-related intangible assets and related tax effects. Non-GAAP net income and non-GAAP net income per share also exclude the recognition of a tax benefit granted to a foreign subsidiary. Non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP operating income excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense. Non-GAAP other income, net excludes the effect of deferred compensation plan income. Non-GAAP income before income taxes excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and net deferred compensation plan expense. Projected non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, and amortization of acquisition-related intangible assets. Projected non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A schedule reconciling non-GAAP financial measures is included at the end of this press release. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors’ understanding of MPS’s core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS. See the GAAP to Non-GAAP reconciliations in the tables set forth below.
| RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME |
| (Unaudited, in thousands, except per share amounts) |
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income | $ | 1,449,363 | $ | 96,905 | $ | 1,786,700 | $ | 427,374 | ||||||||
| Adjustments to reconcile net income to non-GAAP net income: | ||||||||||||||||
| Stock-based compensation and related expenses* | 56,320 | 41,107 | 213,209 | 149,711 | ||||||||||||
| Amortization of acquisition-related intangible assets | 320 | 33 | 1,303 | 132 | ||||||||||||
| Deferred compensation plan expense, net | 573 | 288 | 867 | 1,055 | ||||||||||||
| Tax effect of non-GAAP adjustments | (22,773 | ) | 2,519 | (26,922 | ) | (3,625 | ) | |||||||||
| Recognition of a tax benefit granted to a foreign subsidiary | (1,285,402 | ) | - | (1,285,402 | ) | - | ||||||||||
| Non-GAAP net income | $ | 198,401 | $ | 140,852 | $ | 689,755 | $ | 574,647 | ||||||||
| Non-GAAP net income per share: | ||||||||||||||||
| Basic | $ | 4.11 | $ | 2.94 | $ | 14.19 | $ | 12.07 | ||||||||
| Diluted | $ | 4.09 | $ | 2.88 | $ | 14.12 | $ | 11.78 | ||||||||
| Shares used in the calculation of non-GAAP net income per share: | ||||||||||||||||
| Basic | 48,317 | 47,936 | 48,599 | 47,610 | ||||||||||||
| Diluted | 48,506 | 48,881 | 48,835 | 48,771 | ||||||||||||
*Prior periods exclude stock-based compensation related employer payroll taxes from non-GAAP measures due to immateriality.
| RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN |
| (Unaudited, in thousands) |
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Gross profit | $ | 344,408 | $ | 251,123 | $ | 1,220,870 | $ | 1,021,119 | ||||||||
| Gross margin | 55.4 | % | 55.3 | % | 55.3 | % | 56.1 | % | ||||||||
| Adjustments to reconcile gross profit to non-GAAP gross profit: | ||||||||||||||||
| Stock-based compensation and related expenses* | 1,745 | 1,228 | 6,975 | 4,545 | ||||||||||||
| Amortization of acquisition-related intangible assets | 287 | - | 1,171 | - | ||||||||||||
| Deferred compensation plan expense | 417 | 486 | 1,500 | 871 | ||||||||||||
| Non-GAAP gross profit | $ | 346,857 | $ | 252,837 | $ | 1,230,516 | $ | 1,026,535 | ||||||||
| Non-GAAP gross margin | 55.8 | % | 55.7 | % | 55.8 | % | 56.4 | % | ||||||||
*Prior periods exclude stock-based compensation related employer payroll taxes from non-GAAP measures due to immateriality.
| RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES |
| (Unaudited, in thousands) |
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Total operating expenses | $ | 181,101 | $ | 141,554 | $ | 681,512 | $ | 539,383 | ||||||||
| Adjustments to reconcile total operating expenses to non-GAAP total operating expenses: | ||||||||||||||||
| Stock-based compensation and related expenses* | (54,575 | ) | (39,879 | ) | (206,234 | ) | (145,166 | ) | ||||||||
| Amortization of acquisition-related intangible assets | (33 | ) | (33 | ) | (132 | ) | (132 | ) | ||||||||
| Deferred compensation plan expense | (376 | ) | (4,897 | ) | (8,767 | ) | (8,690 | ) | ||||||||
| Non-GAAP operating expenses | $ | 126,117 | $ | 96,745 | $ | 466,379 | $ | 385,395 | ||||||||
*Prior periods exclude stock-based compensation related employer payroll taxes from non-GAAP measures due to immateriality.
| RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME |
| (Unaudited, in thousands) |
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Total operating income | $ | 163,307 | $ | 109,569 | $ | 539,358 | $ | 481,736 | ||||||||
| Adjustments to reconcile total operating income to non-GAAP total operating income: | ||||||||||||||||
| Stock-based compensation and related expenses* | 56,320 | 41,107 | 213,209 | 149,711 | ||||||||||||
| Amortization of acquisition-related intangible assets | 320 | 33 | 1,303 | 132 | ||||||||||||
| Deferred compensation plan expense | 793 | 5,383 | 10,267 | 9,561 | ||||||||||||
| Non-GAAP operating income | $ | 220,740 | $ | 156,092 | $ | 764,137 | $ | 641,140 | ||||||||
*Prior periods exclude stock-based compensation related employer payroll taxes from non-GAAP measures due to immateriality.
| RECONCILIATION OF OTHER INCOME, NET, TO NON-GAAP OTHER INCOME, NET |
| (Unaudited, in thousands) |
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Total other income, net | $ | 6,224 | $ | 9,976 | $ | 33,554 | $ | 24,105 | ||||||||
| Adjustments to reconcile other income, net to non-GAAP other income, net: | ||||||||||||||||
| Deferred compensation plan income | (220 | ) | (5,095 | ) | (9,400 | ) | (8,506 | ) | ||||||||
| Non-GAAP other income, net | $ | 6,004 | $ | 4,881 | $ | 24,154 | $ | 15,599 | ||||||||
| RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES |
| (Unaudited, in thousands) |
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Total income before income taxes | $ | 169,531 | $ | 119,545 | $ | 572,912 | $ | 505,841 | ||||||||
| Adjustments to reconcile income before income taxes to non-GAAP income before income taxes: | ||||||||||||||||
| Stock-based compensation and related expenses* | 56,320 | 41,107 | 213,209 | 149,711 | ||||||||||||
| Amortization of acquisition-related intangible assets | 320 | 33 | 1,303 | 132 | ||||||||||||
| Deferred compensation plan expense, net | 573 | 288 | 867 | 1,055 | ||||||||||||
| Non-GAAP income before income taxes | $ | 226,744 | $ | 160,973 | $ | 788,291 | $ | 656,739 | ||||||||
*Prior periods exclude stock-based compensation related employer payroll taxes from non-GAAP measures due to immateriality.
| 2025 FIRST QUARTER OUTLOOK |
| RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN |
| (Unaudited) |
| Three Months Ending March 31, 2025 | ||||||||
| Low | High | |||||||
| Gross margin | 55.1 | % | 55.7 | % | ||||
| Adjustment to reconcile gross margin to non-GAAP gross margin: | ||||||||
| Stock-based compensation and other expenses | 0.3 | % | 0.3 | % | ||||
| Non-GAAP gross margin | 55.4 | % | 56.0 | % | ||||
| RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES |
| (Unaudited, in thousands) |
| Three Months Ending March 31, 2025 | ||||||||
| Low | High | |||||||
| Operating expenses | $ | 180,200 | $ | 186,200 | ||||
| Adjustments to reconcile operating expenses to non-GAAP operating expenses: | ||||||||
| Stock-based compensation and other expenses | (53,300 | ) | (55,300 | ) | ||||
| Non-GAAP operating expenses | $ | 126,900 | $ | 130,900 | ||||
FAQ
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