NVIDIA Announces Q3 FY 2020 Earnings
by Brett Howse on November 14, 2019 9:00 PM EST- Posted in
- GPUs
- NVIDIA
- Financial Results
Today NVIDIA announced their results for the third quarter of their 2020 fiscal year, and the company’s results took a hit compared to their Q3 2019 results with earnings of $3.014 billion this quarter, down 5% year-over-year. Gross margin was up though to a very healthy 63.6%, up 3.2% from a year ago. Operating income was down 12% to $927 million, with net income down 27% to $899 million. Earnings-per-share fell to $1.45, down 26% from $1.97 a year ago.
| NVIDIA Q3 2020 Financial Results (GAAP) | |||||
| Q3'2020 | Q2'2020 | Q3'2019 | Q/Q | Y/Y | |
| Revenue | $3014M | $2579M | $3181M | +17% | -5% |
| Gross Margin | 63.6% | 59.8% | 60.4% | +3.8% | +3.2% |
| Operating Income | $927M | $571M | $1058M | +62% | -12% |
| Net Income | $899M | $552M | $1230M | +63% | -27% |
| EPS | $1.45 | $0.90 | $1.97 | +61% | -26% |
NVIDIA breaks its business into two high-level categories, with GPU and Tegra. GPU revenue was down 8% to $2.565 million, while Tegra was up 10% to $449 million.
Breaking these down into markets, NVIDIA’s Gaming revenue was down 6% to $1.659 billion, with NVIDIA attributing this to a decline in desktop GPU sales. A year ago, NVIDIA launched their Turing platform, meaning they are now a year into their latest platform, with sales not quite as high as when it launched. However, the desktop GPU sales drop was partially offset by increased notebook GPUs as well as gaming platform SoCs.
Professional Visualization set a record for revenue, up 6% from a year ago and coming in at $324 million. NVIDIA has stated that they’ve had strong sales in mobile workstation products.
Data Center revenue was down 8% to $726 million. NVIDIA has seen lower enterprise revenue, and sales of products with lower margins than some of their top-tier datacenter products, but this drop was partially offset by increased hyperscale demand.
Automotive revenue was down 6% to $162 million, with lower sales of autonomous vehicle solutions and legacy infotainment modules being singled out, but growth in AI cockpit solutions helped stem the decline.
Finally, OEM and Other revenue was $143 million, down 3% from a year ago.
| NVIDIA Quarterly Revenue Comparison (GAAP) ($ in millions) |
|||||
| In millions | Q3'2020 | Q2'2020 | Q3'2019 | Q/Q | Y/Y |
| Gaming | $1659 | $1313 | $1764 | +26% | -6% |
| Professional Visualization | $324 | $291 | $305 | +11% | +6% |
| Datacenter | $726 | $655 | $792 | +11% | -8% |
| Automotive | $162 | $209 | $172 | -22% | -6% |
| OEM & IP | $143 | $111 | $148 | +29% | -3% |
NVIDIA has been riding a large wave of success over the last several years, and the company has diversified itself significantly, but the last couple of quarters have seen the company fall back to earth somewhat. But with strong margins, they are investing heavily in R&D, with $53 million more spent in this quarter than a year ago, and for first nine months of their 2020 fiscal year, they’ve spent and additional $163 million so far, bringing the total for 2020 to $400 million.
Looking ahead to Q4, NVIDIA is expecting revenue of $2.95 billion, plus or minus 2% with a gross margin of 64.1%, plus or minus 0.5%.
Source: NVIDIA Investor Relations
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UltraWide - Friday, November 15, 2019 - link
LOLeva02langley - Friday, November 15, 2019 - link
They are not, Black Berry and QCOM are more present in automotive than them. The self-driving solution from Nvidia is entirely relying on GPU, surprise, surprise... while the solution CANNOT rely only on visuals.Drkrieger01 - Friday, November 15, 2019 - link
Don't quote me on this, but I'm fairly certain their mobile (auto) platform doesn't just support camera inputs, but lidar/radar as well.eva02langley - Friday, November 15, 2019 - link
Their main focus is on selling GPUs and all their AI is either looking at Neural network, which makes sense, but all they do is analyzing video feeds.Basically with AI, your goal is to reproduce human cognitive senses for being able to make cognitive links which we call learning. Nvidia is focusing on visuals. Anybody arguing here is just plain old clueless.
Phynaz - Saturday, November 16, 2019 - link
Lol, speaking about clueless.Fanboys are a pestilence. AMD fanboys are the are the most insecure of the all.
Kjella - Friday, November 15, 2019 - link
"The self-driving solution from Nvidia is entirely relying on GPU, surprise, surprise... while the solution CANNOT rely only on visuals."Hello time traveler, it's been about 25 years since graphics cards went from using 2D to 3D engines. Any sensor that can record depth so you actually get (x,y,z) points speaks way more "native GPU" than any cameras trying to reconstruct 3D from 2D images.
eva02langley - Friday, November 15, 2019 - link
They relate on video feeds.... and yes, radar, lidar, whatever... is video... feeds...Hello hello genius...
michael2k - Friday, November 15, 2019 - link
You don't understand AI nor neural nets. AI is used to perform multidimensional pattern matching, which can be used for video, but is not only used for video. Anything you can do on a CPU you can do on a GPGPU, and certain data sets perform better on a GPGPU, given certain algorithms and design, and one of the things NVIDIA focuses on is neural networks, both training and recognition.And... what else is there other than video feeds if you're going to reduce everything down to video feeds? A self driving car can only operate on the input it is given, and if you remove radar, lidar, cameras, and ultrasound, what else is there? Vibrations from the road?
Phynaz - Saturday, November 16, 2019 - link
It’s data dumbassmichael2k - Friday, November 15, 2019 - link
It's a good thing NVIDIA's GPUs can work with lidar, radar, GPS, and ultrasound then.