NVIDIA has announced its financial results for Q3 Fiscal Year 2020 with a revenue of $3.01 Billion. According to NVIDIA, strong demand in gaming and hyper-scale businesses was the main driver for the third quarter, leading to a 17% increase in revenue from the previous quarter.
Strong Gaming and Hyperscale Demand Drives NVIDIA’s Q3 FY20 Financial Results – $3.01 Billion In Revenue
For Q3 FY20, NVIDIA has reported a total revenue of $3.014 Billion which is up 17% from the prior quarter and 5% down sequentially. NVIDIA’s CEO, Jensen Huang, has highlighted that gaming and hyper-scale customers powered their Q3 results.
“Our gaming business and demand from hyperscale customers powered Q3’s results,“ said Jensen Huang, founder, and CEO of NVIDIA. “The realism of computer graphics is taking a giant leap forward with NVIDIA RTX.
“This quarter, we have laid the foundation for where AI will ultimately make the greatest impact. We extended our reach beyond the cloud, to the edge, where GPU-accelerated 5G, AI and IoT will revolutionize the world’s largest industries. We see strong data center growth ahead, driven by the rise of conversational AI and inference.”
Coming to the revenue breakdown per market, gaming revenue saw a 26% quarterly increase and a 6% decline sequentially. The gaming revenue was reported at a total of $1.659 Billion. The pro & visualization revenue was reported at $324 Million which is an 11% increase (Q/Q) & a 6% increase (Y/Y). The Data Center revenue also saw an 11% increase from the previous quarter with a revenue of $726 Million.
Q3 Fiscal 2020 Summary
| GAAP | ||||||||||||||
| ($ in millions, except earnings per share) |
Q3 FY20 | Q2 FY20 | Q3 FY19 | Q/Q | Y/Y | |||||||||
| Revenue | $3,014 | $2,579 | $3,181 | Up 17% | Down 5% | |||||||||
| Gross margin | 63.6% | 59.8% | 60.4% | Up 380 bps | Up 320 bps | |||||||||
| Operating expenses | $989 | $970 | $863 | Up 2% | Up 15% | |||||||||
| Operating income | $927 | $571 | $1,058 | Up 62% | Down 12% | |||||||||
| Net income | $899 | $552 | $1,230 | Up 63% | Down 27% | |||||||||
| Diluted earnings per share | $1.45 | $0.90 | $1.97 | Up 61% | Down 26% | |||||||||
| Non-GAAP | ||||||||||||||
| ($ in millions, except earnings per share) |
Q3 FY20 | Q2 FY20 | Q3 FY19 | Q/Q | Y/Y | |||||||||
| Revenue | $3,014 | $2,579 | $3,181 | Up 17% | Down 5% | |||||||||
| Gross margin | 64.1% | 60.1% | 61.0% | Up 400 bps | Up 310 bps | |||||||||
| Operating expenses | $774 | $749 | $730 | Up 3% | Up 6% | |||||||||
| Operating income | $1,156 | $802 | $1,210 | Up 44% | Down 4% | |||||||||
| Net income | $1,103 | $762 | $1,151 | Up 45% | Down 4% | |||||||||
| Diluted earnings per share | $1.78 | $1.24 | $1.84 | Up 44% | Down 3 | |||||||||
NVIDIA’s outlook for the fourth quarter of fiscal 2020 does not include any contribution from the pending acquisition of Mellanox and is as follows:
- Revenue is expected to be $2.95 billion, plus or minus 2 percent. Strong sequential growth is expected in the Data Center, offset by a seasonal decline in GeForce® notebook GPUs and SoC modules for gaming platforms.
- GAAP and non-GAAP gross margins are expected to be 64.1 percent and 64.5 percent, respectively, plus or minus 50 basis points.
- GAAP and non-GAAP operating expenses are expected to be approximately $1.02 billion and $805 million, respectively.
- GAAP and non-GAAP other income and expense are both expected to be the income of approximately $25 million.
- GAAP and non-GAAP tax rates are both expected to be 9 percent, plus or minus 1 percent, excluding any discrete items. GAAP discrete items include excess tax benefits or deficiencies related to stock-based compensation, which are expected to generate variability on a quarter by quarter basis.
In Q3 specifically, NVIDIA’s gaming business launched several products, including the GeForce RTX SUPER series which offered better performance than the original RTX cards at the same price point to consumers. NVIDIA also very recently announced their mainstream GeForce GTX 16 SUPER line which is also expected to become a popular hit amongst the mainstream masses.
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