NVIDIA Announces Financial Results for Third Quarter Fiscal 2022

[btarunr]

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.

"The third quarter was outstanding, with record revenue," said Jensen Huang, founder and CEO of NVIDIA. "Demand for NVIDIA AI is surging, driven by hyperscale 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.



"Our GTC event series showcases the expanding universe of NVIDIA accelerated computing. Last week's event was our most successful yet, highlighting diverse applications, including supply-chain logistics, cybersecurity, natural language processing, quantum computing research, robotics, self-driving cars, climate science and digital biology.

"Omniverse was a major theme at GTC. We showed what is possible when we can jump into virtual worlds. Omniverse will be used from collaborative design, customer service avatars and video conferencing, to digital twins of factories, processing plants, even entire cities. Omniverse brings together NVIDIA's expertise in AI, simulation, graphics and computing infrastructure. This is the tip of the iceberg of what's to come," he said.

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.

NVIDIA's outlook for the fourth quarter of fiscal 2022 is as follows:

• Revenue is expected to be $7.40 billion, plus or minus 2 percent.
• GAAP and non-GAAP gross margins are expected to be 65.3 percent and 67.0 percent, respectively, plus or minus 50 basis points.
• GAAP and non-GAAP operating expenses are expected to be approximately $2.02 billion and $1.43 billion, respectively.
• GAAP and non-GAAP other income and expense are both expected to be an expense of approximately $60 million, excluding gains and losses from non-affiliated investments.
• GAAP and non-GAAP tax rates are both expected to be 11 percent, plus or minus 1 percent, excluding any discrete items such as excess tax benefits or deficiencies related to stock-based compensation.

At last week's GTC, NVIDIA announced the following:
AI Software

• 65 new and updated software development kits - bringing improved features and capabilities to data scientists, researchers and developers - including NVIDIA Modulus, a framework for developing physics-ML models, NVIDIA ReOpt, an accelerated solver that optimizes vehicle route planning and logistics, and NVIDIA cuNumeric, which brings accelerated computing to the large and growing Python NumPy ecosystem.
• Tools for developing and deploying large language models: NVIDIA NeMo Megatron, for training models with trillions of parameters; the Megatron 530B customizable LLM that can be trained for new domains and languages; and NVIDIA Triton Inference Server with multi-GPU, multinode distributed inference functionality.
• New capabilities in the open source NVIDIA Triton Inference Server software, which provides cross-platform inference on all AI models and frameworks, and NVIDIA TensorRT, which optimizes AI models.
• Zero-trust cybersecurity platform - comprising NVIDIA BlueField DPUs, NVIDIA DOCA and NVIDIA Morpheus cybersecurity platform - allowing the cybersecurity industry to build solutions that defend customer data centers in real time.
• NVIDIA Riva Custom Voice, a feature in NVIDIA Riva AI software that makes custom text-to-speech practical for companies; NVIDIA Riva Enterprise will be commercially available for enterprises early next year, with applicability to a wide range of applications such as virtual assistants and video conferencing.

Omniverse

• NVIDIA Omniverse Avatar, a platform for generating interactive AI avatars, which connects the company's technologies in speech AI, computer vision, natural language understanding, recommendation engines and simulation technologies.
• NVIDIA Omniverse Replicator, a synthetic-data-generation engine that produces physically simulated synthetic data for training deep neural networks.

Networking

• NVIDIA Quantum-2, a 400 Gbps InfiniBand end-to-end networking platform, with the extreme performance, broad accessibility and strong security needed by cloud computing providers and supercomputing centers.

Automotive/Robotics/Healthcare

• NVIDIA DRIVE Concierge and DRIVE Chauffeur, AI platforms built with NVIDIA DRIVE Orin, which are intelligent technologies that transform the digital experience inside the car with Omniverse Avatar, enabling safe autonomous driving on highways and urban streets.
• NVIDIA DRIVE Hyperion 8, a computer architecture and sensor set for self-driving systems.
• NVIDIA Jetson AGX Orin, the world's smallest, most powerful and energy-efficient AI supercomputer for robotics, autonomous machines, medical devices and more.
• NVIDIA Clara Holoscan, an AI computing platform for medical-device makers to adopt software-as-a-service offerings with upgradable, scalable and end-to-end processing of streamed data.

Additionally, the company achieved progress since its previous earnings announcement in these areas:
Gaming

• Third-quarter revenue was a record $3.22 billion, up 42 percent from a year earlier and up 5 percent from the previous quarter.
• Announced RTX capabilities coming to blockbuster titles like Marvel's Guardians of the Galaxy, Battlefield 2042 and Dying Light 2, as well as Sony Interactive and Santa Monica Studio's God of War.
• Announced new RTX-accelerated AI features in Adobe applications at the Adobe MAX creativity conference, supported by the latest Studio Driver, and new Studio systems from partners, including Microsoft, HP and Asus.
• Enhanced GeForce NOW with a new high-performance membership tier providing access to GeForce RTX 3080-class gaming, and with the introduction of more Electronic Arts hit games, including Battlefield 1 Revolution, Mirror's Edge Catalyst, Unravel Two and Dragon Age: Inquisition.

Data Center

• Third-quarter revenue was a record $2.94 billion, up 55 percent from a year earlier and up 24 percent from the previous quarter.
• Announced plans to build Earth-2, an AI supercomputer dedicated to addressing the global climate change crisis.
• Announced the general availability of NVIDIA AI Enterprise, a comprehensive software suite of AI tools and frameworks that enables the hundreds of thousands of companies running VMware vSphere to virtualize AI workloads on NVIDIA-Certified Systems.
• Expanded NVIDIA LaunchPad, which provides immediate access to optimized software running on accelerated infrastructure, from North America to nine global locations.
• Described a collaboration involving NVIDIA Megatron-LM and Microsoft DeepSpeed to create an efficient, scalable, 3D parallel system capable of combining data, pipeline and tensor-slicing-based parallelism.
• Announced further collaboration with VMware, supporting trials of VMware vSphere with Tanzu on the NVIDIA AI Enterprise platform.
• Shared news that the largest GPU-based supercomputer at the U.S. Department of Energy's Argonne National Laboratory, Polaris, will run on NVIDIA's accelerated computing platform, and be able to achieve almost 1.4 exaflops of AI performance.

Professional Visualization

• Third-quarter revenue was a record $577 million, up 144 percent from a year earlier and up 11 percent from the previous quarter.
• Announced NVIDIA Omniverse Enterprise is in general availability, with the addition of AR, VR and multi-GPU rendering, as well as announced adoption by Bentley Systems and Esri for digital-twin applications.

Automotive

• Third-quarter revenue was $135 million, up 8 percent from a year earlier and down 11 percent from the previous quarter.
• Announced that NVIDIA DRIVE Orin is being used by autonomous truck company Kodiak Robotics, automaker Lotus, autonomous driving-solutions provider QCraft and EV startup WM Motor.

View at TechPowerUp Main Site

 

[Space Lynx]

Enjoy the profits while you can ~ The world will soon crumble ~ Prophet Lynx 2021

 

[stimpy88]

For the "gamers"...

 

[mechtech]

Hmmm. They don’t need my money. That’s good.

 

[sith'ari]

For the "gamers"...

let's complete the phrase ( really , what you wrote ,makes it impossible for me to resist ) :

""nVIDIA of the gamers ,by the gamers ,for the gamers ... ""
( in Jensen we trust)

 

[TheDeeGee]

Nvidia sells for MSRP on their website right?

It's stores selling cards we need to blame for high prices... and people actually buying for that price ofcourse.

 

[Vya Domus]

"Gaming"

Well, I see that there is still zero interest in stopping mega corporations from lying to their investors about their sources of revenue.

 

[bug]

And that's without selling video cards this year

 

[The red spirit]

Just to add, nVidia is making the same profit that they did in 2018 and that is very close to what they made in 2017. This year their revenue grew a lot, buy around 30-40%, however their expenses nearly doubled too. Overall in total they make what they always made. Considering that they only sell high or medium profit margin products only, it seems that they are performing worse than ever. The only thing that truly is different this year is that their stock price grew by nearly 3 times, which is unprecedented for them. As result of that, their PE ratio is now at 173, which is garbage, but generally not outrageous for tech companies. Their dividend yield is just 0.05%, but maybe that is last years data. Either way, it will take 173 years for nV stock to pay off, if you only cared about dividends.

BTW nV invested nearly 20 billions into something and that is abnormal for them.

Edit:
Wanna see actual profiteering corp? AMD is making unprecedented amount of money from people who buy their cheap shit for very inflated prices. Last year they made 5 times more net profit than they did one year ago.

 

[sillyconjunkie]

"..up 50% from a year earlier". Clearly, that isn't suspicious..

 

[bug]

Just to add, nVidia is making the same profit that they did in 2018 and that is very close to what they made in 2017. This year their revenue grew a lot, buy around 30-40%, however their expenses nearly doubled too. Overall in total they make what they always made. Considering that they only sell high or medium profit margin products only, it seems that they are performing worse than ever. The only thing that truly is different this year is that their stock price grew by nearly 3 times, which is unprecedented for them. As result of that, their PE ratio is now at 173, which is garbage, but generally not outrageous for tech companies. Their dividend yield is just 0.05%, but maybe that is last years data. Either way, it will take 173 years for nV stock to pay off, if you only cared about dividends.

BTW nV invested nearly 20 billions into something and that is abnormal for them.

Edit:
Wanna see actual profiteering corp? AMD is making unprecedented amount of money from people who buy their cheap shit for very inflated prices. Last year they made 5 times more net profit than they did one year ago.

Spoken like a truly clueless person.

You can't look at profits as revenue minus expenses and judge how a company is doing based on that alone. Most tech companies could make insane profits if they stopped investing in R&D for a year or two. They'd probably be dead in two more years, but based on your analysis, they'd be doing mighty fine in the meantime.

 

[thesmokingman]

They are killing it. It was cringy though watching Cramer spew his load all over CNBC as he cried out for his lover Jensen.

 

[The red spirit]

Spoken like a truly clueless person.

You can't look at profits as revenue minus expenses and judge how a company is doing based on that alone. Most tech companies could make insane profits if they stopped investing in R&D for a year or two. They'd probably be dead in two more years, but based on your analysis, they'd be doing mighty fine in the meantime.

It's not like nV wasn't investing before. Turing, Tesla, Fermi, Kepler, Maxwell didn't pop up overnight. And still nV managed to make a killing, but this time they have more expenses, so their total is the same as always. AMD did the same, but were more successful at making cash. Regarding expenses, both nV and AMD (2020 data for AMD) spent more. These are not some stupid start ups, they are old and established companies, they have track records for doing RnD and usually delivering. I see no reason why would they be doing bad. Both of their products are perceived well, their reputation is decent, they have plans to release new products and importantly, even today people are scrambling to get their stuff at higher than normal prices. They have got their shit together and doing very well, not sure why would you say otherwise. You also can't make an argument that their stuff isn't overpriced either.

 

[mechtech]

Nvidia sells for MSRP on their website right?

It's stores selling cards we need to blame for high prices... and people actually buying for that price ofcourse.

For me they have a few cards, but hover over price or buy and best buy comes up.

https://store.nvidia.com/en-ca/geforce/store/gpu/?page=1&limit=9&locale=en-ca&gpu=RTX%203060&category=GPU

 

[medi01]

"NVIDIA RTX has reinvented computer graphics"...
Oh boy....


PS
AMD is up 65%.
I wonder what an impact will MI200/250 have.

 

[arni-gx]

so, Mr. jensen huang, when the price for all rtx ampere series is going back to normal MSRP, again..... ??

 

[medi01]

so, Mr. jensen huang, when the price for all rtx ampere series is going back to normal MSRP, again..... ??

Define "normal" MSRP.
Normal normal or 2080Ti "normal"?

 

[Fluffmeister]

so, Mr. jensen huang, when the price for all rtx ampere series is going back to normal MSRP, again..... ??

Presumably the same time AMDs return to MSRP too.

But damn, Nvidia are raking it in.