Nvidia (NVDA) reported its Q3 earnings after the bell on Wednesday beating analysts’ predictions on the top and bottom line as revenue jumped 50% year-over-year.
The company also issued a bullish forecast for revenue in the current quarter ending in January.
Nvidia said it expects to report around $7.4 billion in the current quarter, ending in January, higher than analyst expectations of $6.86 billion.
NVIDIA today reported record revenue for the third quarter ended October 31, 2021, of $7.10 billion, up 50 percent from a year earlier and up 9 percent from the previous quarter, with record revenue from the company’s Gaming, Data Center, and Professional Visualization market platforms.
GAAP earnings per diluted share for the quarter were $0.97, up 83 percent from a year ago and up 3 percent from the previous quarter. Non-GAAP earnings per diluted share were $1.17, up 60 percent from a year ago and up 13 percent from the previous quarter.
- Record revenue of $7.10 billion, up 50 percent from a year earlier
- Record Data Center revenue of $2.94 billion, up 55 percent from a year earlier
- Record Gaming revenue of $3.22 billion, up 42 percent from a year earlier
“The third quarter was outstanding, with record revenue,” said Jensen Huang, founder, and CEO of NVIDIA. “Demand for NVIDIA AI is surging, driven by hyper scale and cloud scale-out, and broadening adoption by more than 25,000 companies. NVIDIA RTX has reinvented computer graphics with ray tracing and AI and is the ideal upgrade for the large, growing market of gamers and creators, as well as designers and professionals building home workstations.
Nvidia reported $2.9 billion in data center sales, up 55% from $1.9 billion in the same quarter last year. Nvidia CFO Colette Kress wrote that the growth was driven by GPU sales to “hyperscale customers,” an industry term that means cloud providers such as Amazon AWS, Microsoft Azure, and Google Cloud.
Gaming, Nvidia’s biggest market, reported $3.2 billion in sales, up 42% from $2.27 billion in the same quarter last year. The company said it was primarily due to increased sales of its GeForce consumer graphics processors, but the company said supply remained limited.
NVIDIA paid quarterly cash dividends of $100 million in the third quarter. It will pay its next quarterly cash dividend of $0.04 per share on December 23, 2021, to all shareholders of record on December 2, 2021.
Looking ahead to Q4, revenue is expected to be $7.40 billion, plus or minus 2%,
| NVIDIA CORPORATION | |||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||
| (In millions, except per share data) | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| October 31, | October 25, | October 31, | October 25, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||
| Revenue | $ | 7,103 | $ | 4,726 | $ | 19,271 | $ | 11,672 | |||||||||
| Cost of revenue | 2,472 | 1,766 | 6,795 | 4,432 | |||||||||||||
| Gross profit | 4,631 | 2,960 | 12,476 | 7,240 | |||||||||||||
| Operating expenses | |||||||||||||||||
| Research and development | 1,403 | 1,047 | 3,802 | 2,778 | |||||||||||||
| Sales, general and administrative | 557 | 515 | 1,603 | 1,437 | |||||||||||||
| Total operating expenses | 1,960 | 1,562 | 5,405 | 4,215 | |||||||||||||
| Income from operations | 2,671 | 1,398 | 7,071 | 3,025 | |||||||||||||
| Interest income | 7 | 7 | 20 | 50 | |||||||||||||
| Interest expense | (62 | ) | (53 | ) | (175 | ) | (131 | ) | |||||||||
| Other, net | 22 | (4 | ) | 160 | (5 | ) | |||||||||||
| Other income (expense), net | (33 | ) | (50 | ) | 5 | (86 | ) | ||||||||||
| Income before income tax | 2,638 | 1,348 | 7,076 | 2,939 | |||||||||||||
| Income tax expense | 174 | 12 | 327 | 64 | |||||||||||||
| Net income | $ | 2,464 | $ | 1,336 | $ | 6,749 | $ | 2,875 | |||||||||
| Net income per share (A): | |||||||||||||||||
| Basic | $ | 0.99 | $ | 0.54 | $ | 2.71 | $ | 1.17 | |||||||||
| Diluted | $ | 0.97 | $ | 0.53 | $ | 2.67 | $ | 1.15 | |||||||||
| Weighted average shares used in per share computation (A): | |||||||||||||||||
| Basic | 2,499 | 2,472 | 2,493 | 2,464 | |||||||||||||
| Diluted | 2,538 | 2,520 | 2,532 | 2,504 | |||||||||||||