Published in Graphics

Nvidia revenues soar

by on10 November 2017


Pascal and Volta gives it another record quarter

Nvidia released its financial report for the third quarter of the 2018 fiscal year, reporting once again a record revenue of US $2,636 billion, up by 32 percent compared to the last year.

Mostly fueled by its Pascal GPU graphics cards and Volta GPU datacenter revenue, Nvidia has reported a record quarter with revenue of US $2,636 billion and gross margins of 59.5 percent. Its operating income hit US $895 million, up by 30 percent compared to the last quarter and 40 percent compared to the same quarter last year and net income of US $838 million, up by 44 percent compared to the last quarter and 55 percent compared to the same quarter last year.

Earnings per share (EPS) rose to US $1.33, which is an increase of 45 percent compared to the Q2 FY2018 and 60 percent compared to the third quarter last year.

The biggest part of the revenues, a total of US $1.561 billion, came from its gaming division, which clearly shows that Nvidia has been selling a lot of its Pascal-based GTX 1070, GTX 1080 and GTX 1080 Ti graphics cards. Nvidia also launched the new GTX 1070 Ti, but that one will probably give it a massive revenue boost in the Q4 FY2018 report. The Q3 2018 income from gaming division is also a 32 percent quarterly increase and 25 percent increase compared to the same quarter last year.

Q3 FY2018 Summary

GAAP
($ in millions except earnings per share) Q3 FY18 Q2 FY18 Q3 FY17 Q/Q Y/Y
Revenue $ 2,636   $ 2,230   $ 2,004   Up 18% Up 32%
Gross margin   59.5 %   58.4 %   59.0 % Up 110 bps Up 50 bps
Operating expenses $ 674   $ 614   $ 544   Up 10% Up 24%
Operating income $ 895   $ 688   $ 639   Up 30% Up 40%
Net income $ 838   $ 583   $ 542   Up 44% Up 55%
Diluted earnings per share $ 1.33   $ 0.92   $ 0.83   Up 45% Up 60%
Non-GAAP
($ in millions except earnings per share) Q3 FY18 Q2 FY18 Q3 FY17 Q/Q Y/Y
Revenue $ 2,636   $ 2,230   $ 2,004   Up 18% Up 32%
Gross margin   59.7 %   58.6 %   59.2 % Up 110 bps Up 50 bps
Operating expenses $ 570   $ 533   $ 478   Up 7% Up 19%
Operating income $ 1,005   $ 773   $ 708   Up 30% Up 42%
Net income $ 833   $ 638   $ 570   Up 31% Up 46%
Diluted earnings per share $ 1.33   $ 1.01   $ 0.94   Up 32% Up 41%

 

Almost every division at Nvidia has seen a boost in revenue and Professional Visualization division is not an exception either, with its Quadro cards hitting US $239 million in revenue, up by a mere two percent from the last quarter but 15 percent compared to the last year. The Datacenter division scored US $501 million in revenue, a 20 percent increase compared to the last quarter but a 109 percent increase from the same quarter last year. Bear in mind that Nvidia announce shipping of its first Volta-based DGX systems back in September and these should also have an impact on the next quarter as Nvidia ramps up its shipments.

The Automotive division scored a rather modest US $144 million, but it is still an increase of one percent compared to the last quarter and 13 percent increase compared to the last year. The OEM and IP division turned over US $191 million, which is a drop of 24 percent compared to the last quarter but an increase of three percent compared to the same quarter last year.

According to Nvidia, the company expects revenues of between US $2.59 and US $2.7 billion in Q4 2018, with a gross margin of 59.2 to 60.2 percent. The company increased its R&D funds in this quarter, pushing it up from US $373 million to US $462 million.

Nvidia certainly had a great quarter and upcoming holiday season, its new GTX 1070 Ti graphics cards and ramp up in production will certainly end up with a great financial report for the next quarter. Nvidia shares have seen a steady growth in the same period of the report, rising up from just about US $160 to well over US $200.

 

Last modified on 10 November 2017
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