Nvidia reports record revenue of $1.43 billion, up 24pc year-on-year

Nvidia has reported a very strong set of financials with its second quarter fiscal 2017 results. The financial highlights are record revenue of $1.43 billion, up 24 per cent year-on-year, and up 9 per cent from the previous quarter. Earnings per share was 40 cents. Those figures were significantly better than expectations. Analysts had expected a revenue figure of $1.35 billion, and earnings per share of 37 cents. Nvidia shares have been up as much as 4 per cent in afterhours trading.

Importantly for Nvidia, the results show that it is experiencing "growth across all platforms". A few years ago it sought to spread its R&D across various IT technologies, de-emphasising PC components, and it looks like most of its bets have worked out. Nevertheless, in the most recent set of results, Pascal GPUs are one of the star performers for the company, alongside the newer focus of deep learning.

"Strong demand for our new Pascal-generation GPUs and surging interest in deep learning drove record results," said Jen-Hsun Huang, co-founder and chief executive officer, NVIDIA. "Our strategy to focus on creating the future where graphics, computer vision and artificial intelligence converge is fuelling growth across our specialized platforms -- Gaming, Pro Visualisation, Datacentre and Automotive."

If you pass by the Nvidia blog you will see the amount of recent articles about deep learning dominate its home page with just a smattering of news about pro graphics, gaming, corporate and automotive. However you can clearly see from the revenue breakdown chart by market platform, above, that gaming and professional visualisation bring in the lion's share of cash, guaranteeing new GPUs will remain a core activity for Nvidia R&D.

Nvidia is in a solid position in the PC desktop discrete graphics market with the latest market share figures showing it owns about 77 per cent of the market.

In the next quarter Nvidia is expecting revenue to rise to $1.68 billion, plus or minus two percent.

Login with Forum Account

Don't have an account? Register today!

Awesome! ;)

How do the unit volumes compare to previous years?

kalniel
How do the unit volumes compare to previous years?

~35mil units of gpus combined (amd/nv) vs. ~100mil a few years back (don't think that counts workstation/grid etc). They are selling FAR more high end now which is why AMD should NOT have went bottom up. 1080 is the fastest selling high end gpu in history for NV and retailers (multiple retailers said this). Nv is still having issues keeping 1080 in stock at many places. More than 2/3 of newegg 1080's are out of stock. I hope AMD is aiming high with ZEN, meaning $400-1700 like HEDT. I'll gladly pay that if it beats Intel's $430 chip hands down, which it easily could if its 300mm^2 or larger. I'm hoping it's the size of an xbox soc (360+!). The cpu side is up even more than gpu side according to hdinsights, so AMD needs in on Intel's cash cows. MARGINS are king and there is a WHOLE lot of margin on $400-1700 chips (and high end gpus, look at NV margins vs. AMD). AMD hasn't had 58% margins since 2006 when they had $800+ chips.

nobodyspecial
~35mil units of gpus combined (amd/nv) vs. ~100mil a few years back (don't think that counts workstation/grid etc).

I thought as much, hence why the chase for margins is completely reasonable from a business perspective. Something that seems to have been forgotten in another thread around here ;)

kalniel
I thought as much, hence why the chase for margins is completely reasonable from a business perspective. Something that seems to have been forgotten in another thread around here ;)

Yeah,right unless those numbers can be verified,and even if they are,but also I like how people forget all of the following numbers and justify $1200 GPUs.

Now we see the fruits of the whole Titan rebranding saga,ie,large chips now pushed to excessive price levels(there are price increases and then there are price increases).

Margins

April 30, 2016 57.55%
Jan. 31, 2016 56.46%
Oct. 31, 2015 56.25%
July 31, 2015 54.99%
April 30, 2015 56.73%
Jan. 31, 2015 55.88%
Oct. 31, 2014 55.18%
July 31, 2014 56.12%
April 30, 2014 54.76%
Jan. 31, 2014 54.15%
Oct. 31, 2013 55.45%
July 31, 2013 55.82%
April 30, 2013 54.32%
Jan. 31, 2013 52.90%
Oct. 31, 2012 52.87%
July 31, 2012 51.78%
April 30, 2012 50.10%

Compare to the days of the 8800GTX,etc:

Jan. 31, 2008 45.70%
Oct. 31, 2007 46.21%
July 31, 2007 45.33%
April 30, 2007 45.03%
Jan. 31, 2007 43.89%
Oct. 31, 2006 40.70%

Revenue compared to 8800GTX days

https://ycharts.com/companies/NVDA/revenues

April 30, 2016 1.305B
Jan. 31, 2016 1.401B
Oct. 31, 2015 1.305B
July 31, 2015 1.153B
April 30, 2015 1.151B
Jan. 31, 2015 1.251B
Oct. 31, 2014 1.225B
July 31, 2014 1.103B
April 30, 2014 1.103B
Jan. 31, 2014 1.144B
Oct. 31, 2013 1.054B
July 31, 2013 977.24M
April 30, 2013 954.74M
Jan. 31, 2013 1.107B
Oct. 31, 2012 1.204B
July 31, 2012 1.044B
April 30, 2012 924.88M

April 30, 2008 1.153B
Jan. 31, 2008 1.203B
Oct. 31, 2007 1.116B
July 31, 2007 935.25M
April 30, 2007 844.28M
Jan. 31, 2007 878.87M
Oct. 31, 2006 820.57M

Plus it even gets better:

https://ycharts.com/companies/NVDA/cash_on_hand

April 30, 2016 4.754B
Jan. 31, 2016 5.037B
Oct. 31, 2015 4.728B
July 31, 2015 4.505B
April 30, 2015 4.792B
Jan. 31, 2015 4.623B
Oct. 31, 2014 4.241B
July 31, 2014 4.386B
April 30, 2014 4.348B
Jan. 31, 2014 4.672B
Oct. 31, 2013 3.033B
July 31, 2013 2.936B
April 30, 2013 3.713B
Jan. 31, 2013 3.728B
Oct. 31, 2012 3.435B
July 31, 2012 3.278B
April 30, 2012 3.131B

April 30, 2008 1.153B
Jan. 31, 2008 1.203B
Oct. 31, 2007 1.116B
July 31, 2007 935.25M
April 30, 2007 844.28M
Jan. 31, 2007 878.87M

Thats cash in hand. Cash in hand does not go up so much if you are struggling! ;)

$1.25 billion of that is down to Intel and I suspect there were losses down to Tegra,but it shows you selling smaller dies for more money has had a very postive impact as has gimping the midrange,which meant more people(probably me at this rate) will be either spending £200 to £300 on a midrange card or waiting longer and longer between upgrades under £200. Nvidia has made $2.3 billion+ in extra free cash and investments due to the new strategy.

I believe £200+ sales doubled last year,and I expect more will happen this year.

The excuse making is hilarious - especially the little side swipes.

Another hardware enthsuiast who is desperate to pay more because of PCMR.

No wonder card sales might have issues,when people justify $1200 graphics cards - I told you more and more people are moving to consoles due to cost.

But PCMR have their head in the sand as usual.

So to recap:
1.)Massively increased revenue our the last few years despite the losses with Tegra
2.)Over FIVE times the amount of free cash despite the increases to R and D and Tegra losses
3.)Margins massively up
4.)Tegra generating LOSSES for almost that entire time period

Whats hilarious,is even on some of the other tech forums,people are noticing the same trends too,and that includes a whole number who do buy higher end cards(are devs,etc) and also aware of those numbers I posted(even before me to add).

To add a term used on some other forums,they are milking PC gamers and hardware enthusiasts.

Its a sad day when Hexus has more excuses for this even more segmentation of cards than OcUK and other forums.

Yes,Nvidia is struggling we must pay more.

Reap what you sow.

Apparently! ;)

PS:

You can both have the last say on this as I am sure you will just ignore 99% of it and make up some metric to justify $1200 graphics card!

Teresa May should get some of the PR and marketing people companies like Apple and Nvidia use,as she would actually make people WANT to pay more tax and get relatively less.
;)

Nvidia reports record revenue of $1.43 billion, up 24pc year-on-year

Related Reading

HEXUS Forums :: 13 Comments

Login with Forum Account

MY HEXUS

EVENTS

INDUSTRY PRESS RELEASES

User Name
Password