Thursday, February 23rd 2023
NVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2023
NVIDIA (NASDAQ: NVDA) today reported revenue for the fourth quarter ended January 29, 2023, of $6.05 billion, down 21% from a year ago and up 2% from the previous quarter. GAAP earnings per diluted share for the quarter were $0.57, down 52% from a year ago and up 111% from the previous quarter. Non-GAAP earnings per diluted share were $0.88, down 33% from a year ago and up 52% from the previous quarter.
For fiscal 2023, revenue was $26.97 billion, flat from a year ago. GAAP earnings per diluted share were $1.74, down 55% from a year ago. Non-GAAP earnings per diluted share were $3.34, down 25% from a year ago. "AI is at an inflection point, setting up for broad adoption reaching into every industry," said Jensen Huang, founder and CEO of NVIDIA. "From startups to major enterprises, we are seeing accelerated interest in the versatility and capabilities of generative AI. "We are set to help customers take advantage of breakthroughs in generative AI and large language models. Our new AI supercomputer, with H100 and its Transformer Engine and Quantum-2 networking fabric, is in full production.
"Gaming is recovering from the post-pandemic downturn, with gamers enthusiastically embracing the new Ada architecture GPUs with AI neural rendering," he said.
NVIDIA AI Cloud Service Offerings
NVIDIA is partnering with leading cloud service providers to offer AI-as-a-service that provides enterprises access to NVIDIA's world-leading AI platform.
Customers will be able to engage each layer of NVIDIA AI - the AI supercomputer, acceleration libraries software or pretrained generative AI models - as a cloud service.
Using their browser, they will be able to engage an NVIDIA DGX AI supercomputer through the NVIDIA DGX Cloud, which is already offered on Oracle Cloud Infrastructure, with Microsoft Azure, Google Cloud Platform and others expected soon. At the AI platform software layer, they will be able to access NVIDIA AI Enterprise for training and deploying large language models or other AI workloads. And at the AI-model-as-a-service layer, NVIDIA will offer its NeMo and BioNeMo customizable AI models to enterprise customers who want to build proprietary generative AI models and services for their businesses.
Further details will be shared at the company's GTC developer conference, taking place virtually March 20-23.
Return to Shareholders
During the fourth quarter of fiscal 2023, NVIDIA returned to shareholders $1.15 billion in share repurchases and cash dividends, bringing the return in the fiscal year to $10.44 billion.
NVIDIA will pay its next quarterly cash dividend of $0.04 per share on March 29, 2023, to all shareholders of record on March 8, 2023.
Outlook
NVIDIA's outlook for the first quarter of fiscal 2024 is as follows:
NVIDIA achieved progress since its previous earnings announcement in these areas:
Data Center
For fiscal 2023, revenue was $26.97 billion, flat from a year ago. GAAP earnings per diluted share were $1.74, down 55% from a year ago. Non-GAAP earnings per diluted share were $3.34, down 25% from a year ago. "AI is at an inflection point, setting up for broad adoption reaching into every industry," said Jensen Huang, founder and CEO of NVIDIA. "From startups to major enterprises, we are seeing accelerated interest in the versatility and capabilities of generative AI. "We are set to help customers take advantage of breakthroughs in generative AI and large language models. Our new AI supercomputer, with H100 and its Transformer Engine and Quantum-2 networking fabric, is in full production.
NVIDIA AI Cloud Service Offerings
NVIDIA is partnering with leading cloud service providers to offer AI-as-a-service that provides enterprises access to NVIDIA's world-leading AI platform.
Customers will be able to engage each layer of NVIDIA AI - the AI supercomputer, acceleration libraries software or pretrained generative AI models - as a cloud service.
Using their browser, they will be able to engage an NVIDIA DGX AI supercomputer through the NVIDIA DGX Cloud, which is already offered on Oracle Cloud Infrastructure, with Microsoft Azure, Google Cloud Platform and others expected soon. At the AI platform software layer, they will be able to access NVIDIA AI Enterprise for training and deploying large language models or other AI workloads. And at the AI-model-as-a-service layer, NVIDIA will offer its NeMo and BioNeMo customizable AI models to enterprise customers who want to build proprietary generative AI models and services for their businesses.
Further details will be shared at the company's GTC developer conference, taking place virtually March 20-23.
Return to Shareholders
During the fourth quarter of fiscal 2023, NVIDIA returned to shareholders $1.15 billion in share repurchases and cash dividends, bringing the return in the fiscal year to $10.44 billion.
NVIDIA will pay its next quarterly cash dividend of $0.04 per share on March 29, 2023, to all shareholders of record on March 8, 2023.
Outlook
NVIDIA's outlook for the first quarter of fiscal 2024 is as follows:
- Revenue is expected to be $6.50 billion, plus or minus 2%.
- GAAP and non-GAAP gross margins are expected to be 64.1% and 66.5%, respectively, plus or minus 50 basis points.
- GAAP and non-GAAP operating expenses are expected to be approximately $2.53 billion and $1.78 billion, respectively.
- GAAP and non-GAAP other income and expense are expected to be an income of approximately $50 million, excluding gains and losses from non-affiliated investments.
- GAAP and non-GAAP tax rates are expected to be 13.0%, plus or minus 1%, excluding any discrete items.
NVIDIA achieved progress since its previous earnings announcement in these areas:
Data Center
- Fourth-quarter revenue was $3.62 billion, up 11% from a year ago and down 6% from the previous quarter. Fiscal-year revenue rose 41% to a record $15.01 billion.
- Announced a partnership with Deutsche Bank to extend the use of AI in the financial-services sector.
- Launched, together with Dell Technologies, 15 next-generation Dell PowerEdge systems available with NVIDIA acceleration, enabling enterprises to use AI to efficiently transform their business.
- Announced that NVIDIA A100 Tensor Core GPUs showed unrivaled throughput and top latency in the latest STAC-ML benchmarks for financial services.
- Fourth-quarter revenue was $1.83 billion, down 46% from a year ago and up 16% from the previous quarter. Fiscal-year revenue was down 27% to $9.07 billion.
- Unveiled the GeForce RTX 40 Series for laptops, providing the company's largest-ever generational leap in performance and power efficiency.
- Launched the GeForce RTX 4070 Ti, which is faster than the GeForce RTX 3090 Ti, featuring NVIDIA Ada Lovelace architecture and NVIDIA DLSS 3 technology.
- Announced that DLSS 3 is available on, or coming soon to, more than 50 games and apps—including Cyberpunk 2077, Portal with RTX and Marvel's Spider-Man: Miles Morales.
- Launched the GeForce NOW Ultimate membership tier, delivering GeForce RTX 4080-class performance with NVIDIA Reflex, full ray tracing and DLSS 3.
- Signed a 10-year agreement with Microsoft to bring the Xbox PC game lineup, including Minecraft, Halo and Flight Simulator, to GeForce NOW. Following the close of Microsoft's Activision acquisition, GeForce NOW will add titles like Call of Duty and Overwatch.
- Fourth-quarter revenue was $226 million, down 65% from a year ago and up 13% from the previous quarter. Fiscal-year revenue was down 27% to $1.54 billion.
- Enhanced NVIDIA Omniverse Enterprise's capabilities to help teams build connected 3D pipelines and develop large-scale 3D works through increased performance, generational leaps in real-time RTX ray and path tracing, and streamlined workflows.
- Announced a collaboration with Lockheed Martin to build a digital twin of global weather conditions, enabling the U.S. National Oceanic and Atmospheric Administration to better monitor global environmental conditions, including extreme weather events.
- Shared news that Mercedes-Benz is taking the next step to digitalize its production process, using NVIDIA Omniverse to design and plan manufacturing and assembly facilities.
- Fourth-quarter revenue was a record $294 million, up 135% from a year ago and up 17% from the previous quarter. Fiscal-year revenue rose 60% to a record $903 million.
- Announced a strategic partnership with Foxconn to develop automated and autonomous vehicle platforms based on NVIDIA DRIVE Orin and DRIVE Hyperion.
- Released major updates to the NVIDIA Isaac Sim robotics simulation tool, including AI capabilities and cloud access, enabling the building and testing of virtual robots in realistic environments.
40 Comments on NVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2023
The largest bulk of gamers want GPUs at a price bracket that he no longer offers anything at, with the GTX 1060 and 1660 making up an insane amount of GPUs on the Steam hardware survey. Get real, Jensen. The GeForce cards may be outselling the Radeons at a 6 to 1 pace, but exceptionally few people are willing to shell out about two thousand on a graphics card. The 4070 Ti is midrange crap sold for a bucket of gold, and the 4080 is simply not worth it. Hell, I bought a 3090 at launch - and I can't hope to afford a 4090 now. Stop pushing enterprise prices on gaming cards and we'll talk.
Linus Torvalds had something to say about NVIDIA that I will now remind them of - I share the sentiment.
Fourth-quarter revenue was $1.83 billion, down 46% from a year ago and up 16% from the previous quarter. Fiscal-year revenue was down 27% to $9.07 billion."
That uptick from previous quarter would be there even without a launch of a new generation, we'te talking about Black Friday / Christmas quarter. That there is 46% less revenue than last year, despite the launch of a new generation of gaming cards should tell you that all these talks that RTX 4090 is "flying off the shelves" is just nonsense. RTX 4080 was also launced mid-November, and some have speculated that they are widely available because Nvidia made tons of them, not because they aren't selling.
Well, now we know.
But it doesn't matter, all hail AI, it will bring new orders that crypto can't, screw gaming.
NVIDIA has actually lost most of its consumer focused business partners at this point. Without Apple and EVGA, their business to the consumer channels took an irreparable blow.
I hope the gaming division continues to hemorrhage so their hand is forced.
Pretty sure plenty of YTer are saying AMD is the most anti consumer company in recent time, but I don't need others to tell me what I know already ;)
Btw Nvidia engineers sure glad they work for Nvidia, not at Apple, MS, Meta, etc...who are laying off employee in the thousands
I love the forum and community and would rather stay a part of it :lovetpu:
It's like a guy driving a Ferrari getting jealous of Bugatti-driver LMAO
For me there is a big risk their data centre revenue will also go in to decline...
This clearly shows people aren't buying overpriced RTX 4000 series cards, gamers want more affordable cards, yet Nvidia doesn't want to deliver in the lower and midrange segments, AMD and Intel has them beat there with more affordable choices.
"Launched the GeForce RTX 4070 Ti, which is faster than the GeForce RTX 3090 Ti, featuring NVIDIA Ada Lovelace architecture and NVIDIA DLSS 3 technology."
I like how Nvidia keeps repeating this nonsense, cheating with fake frames doesn't make a midrange bandwidth limited card faster than the previous high end card.
"Launched the GeForce NOW Ultimate membership tier, delivering GeForce RTX 4080-class performance with NVIDIA Reflex, full ray tracing and DLSS 3."
While Nvidia discontinued gamestream to push people onto a subscription, when you make the 4080 unaffordable and pointless to buy in the SKU lineup, just get people to pay a subscription to play games.
"Starting from the top, it looks like GeForce RTX 3090 Ti cards have dropped from their $2,000 MSRP all the way down to $879.99, while RTX 3080 Ti cards fell from $1199 to $719.99. The original 10GB model of the GeForce RTX 3080 dropped from $699 to $419.99, and GeForce RTX 3060 12GB cards have fallen from $329 to just $299."
But none of that really happened, not in the US, and especially not in EU - cheapest RTX 3080 is still 800 EUR, roughly the price it launced at two and a half years ago.
The sad thing is, even after staying at MRSP for 2.5 years, RTX 3080 still has better performance per dollar as RTX 4090, 4080, 4070 Ti...
When is the last time that happened since introduction of 3D gaming graphics cards in 1995?
While flappin out of one side of his neck,
"Gaming is recovering from the post-pandemic downturn, with gamers enthusiastically embracing the new Ada architecture GPUs with AI neural rendering," he said.
And out of the other side...
*Fourth-quarter revenue was $1.83 billion, down 46% from a year ago and up 16% from the previous quarter. Fiscal-year revenue was down 27% to $9.07 billion.
Yup, that gamer enthusiasm sure did shine through. You release a brand new, better than ever line up and the best you can achieve is a 16% bump. Wow. Your shareholders are lappin that mess right up aren't they huang my boy /s. If it weren't for AI saving your bacon, you'd be looking at pitchforks and torches.
Only Nvidia.
pcpartpicker.com/search/?q=rtx+3080
RTX 3080 (RTX 3080 10GB MSRP $699) (RTX 3080 12GB MSRP $799)
pcpartpicker.com/search/?q=RTX+3080+Ti
RTX 3080 Ti (MSRP $1199)
pcpartpicker.com/search/?q=RTX+4070+Ti
RTX 4070 Ti (MSRP $799)
pcpartpicker.com/product/yjYmP6/gigabyte-gaming-oc-geforce-rtx-4070-ti-12-gb-video-card-gv-n407tgaming-oc-12gd
Gigabyte RTX 4070 Ti GAMING OC 12GB $819.99
RTX 2080 launched with no performance per dollar increase compared to more than a year old GTX 1080 Ti. But at least it didn't regress like Ada? :p
That launch also happened with large revenue fall, Nvidia somehow still got paid for crypto cards months after crypto crashed - I suppose the delivered GPU chips to partners way in advance of previously signed contracts, but used the staggered contract payment to hide the real impact of crypto on gaming sector.
Anyway, people predicted that Nvidia would lower the prices, but that didn't happen and for the whole Tur(d)ing era sales and revenue remained low. The price correction should basically come with Ampere in end 2020 - RTX 3080 for $699 souned too good to be true? And it was, due to new crypto boom.
So I think it's safe to say Nvidia won't overreact to this development. We're in crappy GPU market for the next two years, and then maybe we'll get a generation with better price / performance.
But in the meantime rest assured Nvidia is also researching new ways to make cryptomining happen again. Besides the hype at AI.
I doubt the $15bn a year they're now raking in from data centre market will prove to be sustainable.
Oh and there are already fully functional autonomous millitary assets, stuffs no country would tell anyone
This was a very poor statement to make. The word ‘interest’ does not mean sales but some potential in an unknown number of years from now. That’s all you can make of AI…companies are just interested but not necessarily invested. Using the word ‘accelerated’ in front of interest makes the overhype just that much worse.
Who still hopes for cheap RTX 4000 cards??? :roll:
Is it expensive? Sure.
Is it more expensive than it should be? Sure.
But it was still the best value card so, whatever, I wouldn't drop prices either when inferior products were even more expensive
But it's also the first time I'll be running a GPU through two full generations, and that's just absurd. We are on a tech enthusiast forum, you know? :laugh: I'm glad to have it but it's also almost three years old, and that is a geological age in the PC landscape.The entire point of new hardware generations is to bring feature and performance per watt/dollar improvements to the customer. Ada product stack was cut in a way that none of the SKUs offer anything substantial, except for the 4090, which is being sold in a high yield, poor quality silicon configuration - with a large amount of disabled cache slices and SM units. But the prices sure have gotten much higher, especially in a global context.
Meanwhile I'm sure Nvidia is building inventory of fully enabled AD102 chips for a refresh cycle.