In what seems like a never-ending trend, NVIDIA today announced record results for their first quarter of their 2019 fiscal year. NVIDIA had revenue of $3.21 billion for the quarter, up an astounding 66% from a year ago. The company had margins of 64.5%, up 5.1% from last year. Operating income came in at $1.295 billion, which is up 134% from the same quarter of FY 2018, and net income was up even higher: 145% to $1.244 billion. Earnings per share were up 151% to $1.98.

NVIDIA Q1 2019 Financial Results (GAAP)
  Q1'2019 Q4'2018 Q1'2018 Q/Q Y/Y
Revenue $3207M $2911M $1937M +10% +66%
Gross Margin 64.5% 61.9% 59.4% +2.6% +5.1%
Operating Income $1295M $1073M $554M +21% +134%
Net Income $1244M $1118M $507M +11% +145%
EPS $1.98 $1.78 $0.79 +11% +151%

NVIDIA has diversified, but gaming is still central to the company, and this quarter gaming revenue was up 67.7% from a year ago to $1.723 billion. Some of that growth was certainly attributed to cryptocurrency, but the company cited games such as PUBG and Fortnite as driving factors for revenue growth. And this is with a GPU lineup that is closing in on being two years old as well.

The Datacenter segment grew 71% from a year ago to $701 million. In Q1 FY 2018, revenue was $409 million, and Q1 2017 it was $143 million, that’s 390% growth in just two years. Datacenter is now easily the second largest source of revenue for NVIDIA, and a strong lineup of products like the Tesla V100, along with an increased demand for GPUs in the datacenter, likely means this growth will continue.

Professional Visualization also saw strong growth of 22.4% year-over-year, with $251 million in revenue for the quarter. The company announced the first Volta products in May of last year, including the GV100 with it’s 21.1 billion transistors, which is targeted at this market.

Automotive, where NVIDIA found a lot of growth with their Tegra products, had much more modest growth at 3.57%, with revenues for the quarter of $145 million. The company was able to secure platform wins with several car manufacturers, but even with the addition of driving assists, automotive revenue has been more or less flat over the last year. NVIDIA did announce the DRIVE Constellation system at GTC 2018 just over a month ago, so the automotive end hasn’t been forgotten by the company, but it’s certainly been eclipsed by their other ventures in recent years.

Finally, the OEM & IP revenue for the quarter was up 148% to $387 million for the quarter. NVIDIA is reaping the rewards of a successful partnership with Nintendo in the Switch console, and Tegra processor revenue was up 33%. Also, NVIDIA is including $289 million in revenue related to GPUs for cryptocurrency mining.

NVIDIA Quarterly Revenue Comparison (GAAP)
($ in millions)
In millions Q1'2019 Q4'2018 Q1'2018 Q/Q Y/Y
Gaming $1723 $1739 $1027 -1% +68%
Professional Visualization $251 $254 $205 -1% +22%
Datacenter $701 $606 $409 +16% +71%
Automotive $145 $132 $140 +10% +4%
OEM & IP $387 $180 $156 +115% +148%

For the second quarter of FY 2019, NVIDIA is expecting revenues of $3.10 billion, plus or minus 2%, with margins of 63.3% plus or minus 0.5%.

Source: NVIDIA Investor Relations

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  • voicequal - Friday, May 11, 2018 - link

    Nice analysis. I suspect the crypto percentage of gaming sales is somewhat understated since many crypto GPUs are purchased at retail, making them indistinguishable from gaming. Reply
  • RedGreenBlue - Friday, May 11, 2018 - link

    2019? I know fiscal calendars don’t often don’t line up with the chronological calendar, but I can’t think of how they would be a year difference.

    Typo?
    Reply
  • Kakti - Friday, May 11, 2018 - link

    Nope, the post is correct - NVDA just announced their 2019 Q1 fiscal year results yesterday.

    Their fiscal calendar ends January 28, so the 2019 Fiscal Q1 was 1/29/2018 - 4/28/2018. The 2019 Q4 will end 1/28/2019. **Note these dates might be off by a day...check with your advisor for confirmation.
    Reply
  • zepi - Friday, May 11, 2018 - link

    Unless I remember wrong, there is some SEC regulation that puts some limits on how muh financial calendar can be misaligned from real calendar and Nvidia is at the very edge. Reply
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