Monolithic Power Systems' Q1 2025: Unraveling Contradictions in Enterprise Data Growth and Margin Guidance
Earnings DecryptWednesday, May 7, 2025 4:16 am ET
2min read
Enterprise data segment growth expectations, gross margin guidance, gross margin expectations, product innovation and market opportunities, and enterprise data growth expectations are the key contradictions discussed in Monolithic Power Systems' latest 2025Q1 earnings call.
Revenue Growth and Market Strength:
- Monolithic Power Systems (MPS) reported record quarterly revenue of $637.6 million for Q1 2025, slightly higher than the previous quarter and 39.2% higher year-over-year.
- The growth was attributed to their diversified market strategy, consistent execution, and strong customer focus, particularly in segments like enterprise data, automotive, and building automation.
Increased Visibility in Enterprise Data:
- MPS's enterprise data segment showed strong performance, with Q1 revenue increasing 38% quarter-over-quarter, despite the segment being below expectations at the beginning of the year.
- The growth in visibility was driven by new design wins and qualification processes, with expectations for significant revenue ramps in the second half of the year.
Automotive Sector Performance:
- Automotive revenue for Q1 2025 increased by 13% from Q4 2024, marking the third consecutive quarter of sequential double-digit growth.
- This was driven by content wins and design ramps, particularly in North America and Europe, with a focus on vehicle electrification and new model changes.
Storage and Computing Segment Expansion:
- The storage and computing segment revenue increased 38% quarter-over-quarter, supported by strong demand for both memory and notebook solutions.
- Growth was driven by broad-based customer engagement and consistent innovation, with revenue ramps anticipated in the second half of the year.
MPWR Total Revenue YoY, Total Revenue
Revenue Growth and Market Strength:
- Monolithic Power Systems (MPS) reported record quarterly revenue of $637.6 million for Q1 2025, slightly higher than the previous quarter and 39.2% higher year-over-year.
- The growth was attributed to their diversified market strategy, consistent execution, and strong customer focus, particularly in segments like enterprise data, automotive, and building automation.
Increased Visibility in Enterprise Data:
- MPS's enterprise data segment showed strong performance, with Q1 revenue increasing 38% quarter-over-quarter, despite the segment being below expectations at the beginning of the year.
- The growth in visibility was driven by new design wins and qualification processes, with expectations for significant revenue ramps in the second half of the year.
Automotive Sector Performance:
- Automotive revenue for Q1 2025 increased by 13% from Q4 2024, marking the third consecutive quarter of sequential double-digit growth.
- This was driven by content wins and design ramps, particularly in North America and Europe, with a focus on vehicle electrification and new model changes.
Storage and Computing Segment Expansion:
- The storage and computing segment revenue increased 38% quarter-over-quarter, supported by strong demand for both memory and notebook solutions.
- Growth was driven by broad-based customer engagement and consistent innovation, with revenue ramps anticipated in the second half of the year.
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