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Nvidia reveals its Q1 FY 2019 financial results

by on11 May 2018


Cash made across the board

Nvidia announced its financial results for the first quarter of 2019 fiscal year, reporting a record quarter with revenues of  $3.207 billion. All of its departments are reporting increases compared to the same quarter last year.

Nvidia tells us that the $3.207 billion revenue means that the company earned 10 percent more compared to the last quarter and 66 percent more compared to the same quarter last year.

Gross margin ended at 64.5 percent, up by 2.6 percent compared to the last quarter and 5.1 percent compared to the last year. Nvidia had operating income of $1.295 billion, with net income of $1.244 billion, both were up by a staggering 134 percent and 145 percent respectively,  compared to the same quarter last year. Earnings per share ended up at US $1.98, which is also up by 151 percent compared to last year.

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Nvidia reported positive growth in all its departments, at least compared to the same quarter last year. While Nvidia is pushing into other markets, the gaming department is the one that brought in most of the cash, with revenues of $1.723 billion. Nvidia is feeling the slowdown in cryptocurrency market and a general slowdown in consumer shopping, so revenue from gaming department is actually one percent lower compared to the last quarter, but still up by 68 percent compared to the same quarter last year.

While it is obvious that cryptomining is propping up most of the sales, Nvidia didn't trumpet this fact. It was happier to note that popular games like PUBG and Fortnite have been driving  sales up. The gaming market is quite healthy but most smart gamers/consumers are still holding out on the upgrade hoping for either a new GPU at reasonable price, an end of the price hike for current graphics cards, or for the market to get flooded by cheap graphics cards used for cryptomining, which is the worst case scenario for both Nvidia and AMD, as it will heavily reflect on their future financial reports.

The big winner was its datacenter department, which reported revenues of $707 million, up by 16 percent compared to the last quarter and up by 71 percent compared to the last year. This can be attributed to the Tesla V100 and an increase in the use of GPUs in data centers. Nvidia recently unveiled the new Tesla V100 with 32GB of memory, NVSwitch GPU interconnect fabric and Nvidia DGX-2, TesnorRT 4, and support for Kubernetes acceleration, all of which will further drive Nvidia's datacenter revenue in future financial reports.

The professional visualisation department, which recently announced that the Quadro GV100 GPU was getting RTX technology, is doing well. It managed to bring in $251 million of revenue, up by 22 percent compared to the last year.

The automotive department is still hanging on, and although it is the lowest earner compared to other departments, it still contribut $145 million, up by 10 percent compared to the last quarter and four percent compared to the same quarter last year. Nvidia managed to secure a deal with several key car manufacturers, and its DRIVE Pegasus AI computing platform with Xavier SoC will probably get the company some future wins.

Another big surprise is the OEM & IP department, which reported revenues of $387 million, up by a quite astonishing 148 percent compared to the same quarter last year and 115 percent compared to the previous quarter.

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Nvidia expects a slightly lower Q2 FY 2019 report with  $3.1 billion revenues, plus or minus two percent, and a gross margin of 63.3 percent, plus or minus 0.5 percent.

 

Last modified on 12 May 2018
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