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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Beaver M. - Friday, November 15, 2019 - link
One can hope Nvidia sees the obvious. Their overpriced cards dont sell well, even though their propaganda machine is running hotter than ever, throwing them at Youtubers, Streamers, sponsoring "How RTX cards make you WTFPWN EVERYONE" videos, etc.Yojimbo - Friday, November 15, 2019 - link
Ironically, their "overpriced" cards do sell, proving that they are not overpriced.Beaver M. - Saturday, November 16, 2019 - link
Of course they sell, but not very well compared to other generations. I proved that with my other comment. You dont want to check for yourself, yet attack me?You also ignore that they are already leaking stuff about their next generation, and that it is coming relatively soon. That also indicated that the current gen isnt selling well at all.
Yojimbo - Friday, November 15, 2019 - link
And.. NVIDIA's "propaganda machine"? I think you need a few weeks vacation in the real world...Phynaz - Saturday, November 16, 2019 - link
What? Did you read the report? Another fucking AMD moron.Beaver M. - Saturday, November 16, 2019 - link
I dont have a single AMD hardware piece. Not even a console. I dont plan on buying one either.Feeling stupid yet?
I am just stating the obvious, while you uncritically swallow stuff, even though history has proven how corporations, incl. Nvidia before, fix their reports and leave out facts to make them look not as bad as they really are. Even the article helps it by not showing 2018 in that graphic.
Yojimbo - Friday, November 15, 2019 - link
Turing SUPER cards are counted separately from non SUPER cards. The big difference between Pascal and Turing on Steam is likely the Chinese market. A large percentage of those 1060s are in Chinese internet cafes, and they haven't been purchasing as much recently, probably because the Chinese government is pushing back against gaming culture in China and because of fears over the Chinese economy. Also, those Chinese internet cafes were overcounted in the survey for many months, because the same machines were being logged into with many different accounts, including while the Pascal market share was rising. Steam says they've fixed the problem now, or at least they have mitigated it.Beaver M. - Saturday, November 16, 2019 - link
Duh. Super cards barely show up outside of "others", they are that rare.Listen to yourself, your excuses. China is making Chinese not buy Turing? WTF???
The percentage of 1060 (and thus others) didnt change much at all, not unusually much compared to previous generations. And those were before PUBG became popular in China. Turing however is extremely slow on Steam compared to them.
Its no secret that the 1060 is the most successful Pascal card by far (its still getting bought and produced), just like the 970 was before it, and which also is still very strong on Steam. That 5 year old car WITH a huge scandal attached to it, is still almost 1% stronger than the strongest Pascal. And 1% difference on Steam is A LOT for something like that.
And that popularity isnt even based on the Steam survey. Every hardware site reported about that.
You remember how China suddenly was entering Steam due to PUBG? There was a huge change in everything. Games bought, games played, etc. But you didnt see that on hardware. It was very smooth, because they dont buy much different than the rest of the world. The 1060 didnt suddenly have a huge increase in share. Its was very similar to generations before that. There was no huge change either since then.
And you can see the mentality against Turing in any hardware forum as well. People (no, not AMD fanboys only) are not recommending it nearly as much as previous generations. And thats not only due to the price and low performance gain, but also because of the low VRAM and other issues, like stuttering and unusually high hardware failures.
Youre completely overstating your stuff to make your point, while ignoring other very important points and that Pascal is still being produced and sold. Very dishonest.
Beaver M. - Saturday, November 16, 2019 - link
*is still almost 1% stronger than the strongest Turing.jabbadap - Monday, November 18, 2019 - link
A bit late reply but saying it anyway: There's so many 1060s and I don't think steam differentiates them. So all the laptops, desktops ones are just counted as 1060 at the steam stats. Which quite explains ~15% market share it has. I'm not saying Steam HW survey is perfect, quite far from it. But it's not far from the ground trough though, when considering that nvidia has sold something like 3:1 against AMD quarter after quarter since Maxwell came out 2015. And most of the RX570/RX580 went to miners rather than gamers.