NVIDIA Announces Q4 FY16 Earnings – Reports Record Quarterly Revenue of $1.40 Billion and Record Full-Year Revenue of $5.01 Billion

NVIDIA has announced their earnings for Q4 2015 of $1.40 Billion which is an increase of 7% from the previous quarter that was $1.30 Billion. NVIDIA has also posted their earnings for the Fiscal Year 2016 which stands at a record $5.01 Billion, up 7% from $4.68 Billion in the Fiscal Year 2015. During the FY2016, NVIDIA saw growth in all market sectors including Gaming, Professional Visualization, Datacenter and Automotive.

NVIDIA Q4 FY16 Revenue Report

NVIDIA Reports Record Revenue in Q4 2015 and Fiscal Year 2016

For NVIDIA, 2015 was a great year that saw the launch of several products aimed at gamers, datacenters and visualization market. The Maxwell architecture from NVIDIA remained the main highlight of the year which saw unprecedented sales in the consumer market leading NVIDIA to gain over 80% discrete graphics market share. Looking at the overall numbers, the Q4 2015 revenue is reported at $1.40 Billion which is up 7% from previous quarter and up 12% Year-to-Year. Looking at the yearly results, NVIDIA posted a record revenue of $5.01 Billion which is up 7% from their fiscal year 2015 ($4.68 Billion).

NVIDIA Quarter to Quarter Earnings:

NVIDIA Earnings Q4 FY16

NVIDIA Year to Year Earnings:

NVIDIA Earnings FY16 Summary

“We had another record quarter, capping a record year,” said Jen-Hsun Huang, co-founder and chief executive officer, NVIDIA. “Our strategy is to create specialized accelerated computing platforms for large growth markets that demand the 10x boost in performance we offer. Each platform leverages our focused investment in building the world’s most advanced GPU technology.

“NVIDIA is at the center of four exciting growth opportunities — PC gaming, VR, deep learning, and self-driving cars. We are especially excited about deep learning, a breakthrough in artificial intelligence algorithms that takes advantage of our GPU’s ability to process data simultaneously. via NVIDIA

NVIDIA GPU Segments Performance and Revenue Results:

Dissecting the market performance for NVIDIA, their GPU reported revenue of $1.17 Billion which is 6% up from the previous quarter and 10% up from Q4 FY 2015. The overall performance of NVIDIA GPUs in FY16 was up 9% compared to the FY15. The Tegra business reported a revenue of $157.0 million in Q4 FY 2016 which is a 22% increase from the previous quarter and a 40% increase from Q4 FY 15. Compared to FY15, NVIDIA’s Tegra department saw a decline of 3% in FY16.

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NVIDIA Buisness Performance Quarter to Quarter:

NVIDIA Earnings Q4 FY16_Buisness

NVIDIA Buisness Performance Year to Year:

NVIDIA Earnings FY16_Buisness

 

NVIDIA GeForce GTX Gaming GPUs:

NVIDIA has reported that gaming, datacenter and automotive were the key drivers for them in Fiscal Year 2016 that led to a 7% increase in revenue. The GPU business is divided into a range of segments which include the GeForce Gaming GPUs, Quadro Professional GPUs and the Tesla/Grid for Datacenter markets. The GeForce GTX gaming GPU revenue grew 21% from the last year which was due to the widely successful GeForce GTX 980 Ti graphics card and also the sub-$200 US cards such as the GeForce GTX 960 and GeForce GTX 950. The GeForce GTX 970 graphics cards witnessed an increased usage by gamers which led it to become the most popular GPU on Steam.

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Gaming:

  • Announced the GeForce GTX VR Ready program — in conjunction with PC companies, notebook makers and add-in card providers – to help users discover systems that will provide great virtual reality experiences.
  • Released NVIDIA GameWorks VR, a software development kit for developers of VR software and headsets for gaming.

NVIDIA Quadro Professional GPUs:

NVIDIA’s Quadro GPUs for the professional market were the second most profitable for NVIDIA, reporting a revenue of $204 million which is up 7% both sequentially and year over year. The lineup was fueled by new Maxwell powered cards.

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Professional Visualization:

  • Rolled out NVIDIA Iray plugins for Autodesk Maya and Autodesk 3ds Max, which enable users of these applications to create designs incorporating real-world lights and materials faster and more easily than before.
  • Released NVIDIA DesignWorks VR, a software development kit for developers of VR software and headsets for enterprise.

NVIDIA Tesla / Grid Datacenter GPUs:

The datacenter market which includes the Tesla and Grid GPUs also saw an 18% increase of revenue, both sequentially and 10% year over year. The segment reported a revenue of $97 million which was due to the latest Maxwell based Tesla M40 and Telsa M4 cards aimed at Visualization and Grid servers. The market didn’t perform that well due to Maxwell having a non-compute heavy architecture but is expected to be a major driver for the company in Fiscal Year 2017.

“Deep learning is a new computing model that teaches computers to find patterns and make predictions, extracting powerful insights from massive quantities of data. We are working with thousands of companies that are applying the power of deep learning in fields ranging from life sciences and financial services to the Internet of Things,” he said. via NVIDIA

NVIDIA Q4 2016 Earnings

Datacenter:

  • Introduced an end-to-end hyperscale datacenter deep learning platform — consisting of two accelerators, the NVIDIA Tesla M40 and NVIDIA Tesla M4 — that lets web-services companies accelerate deep learning workloads.
  • Revealed new breakthroughs from leading web-services groups using NVIDIA GPUs:
    • Facebook is using the NVIDIA Tesla accelerated computing platform to power Big Sur, its next-generation computing system for machine learning applications.
    • Alibaba’s AliCloud cloud computing business is working with NVIDIA to promote China’s first GPU-accelerated, cloud-based, high performance computing platform.
    • IBM is adding support for NVIDIA GPU accelerators to its Watson cognitive computing platform.
    • Google is open-sourcing its TensorFlow deep-learning framework, which can be accelerated on GPUs.
    • Microsoft’s Computational Network Toolkit was integrated with Azure GPU Lab, enabling neural nets for speech recognition that are up to 10x faster than their predecessors.
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Tegra processor revenue for the fourth quarter of $157 million was up 22 percent sequentially and up 40 percent year on year, reflecting growth in Tegra development services and automotive. Automotive revenue of $93 million from infotainment modules and product-development contracts increased 18 percent sequentially and 68 percent from a year earlier. License revenue from NVIDIA’s patent license agreement with Intel were flat at $66 million for the fourth quarter.

NVIDIA’s Outlook For Q1 FY17:

Moving in fiscal year 2017, NVIDIA expects that their revenue to reach $1.26 billion (+/- 2%). NVIDIA’s outlook for the first quarter of fiscal 2017 is as follows:

  • Revenue is expected to be $1.26 billion, plus or minus two percent.
  • GAAP and non-GAAP gross margins are expected to be 57.2 percent and 57.5 percent, respectively, plus or minus 50 basis points.
  • GAAP operating expenses are expected to be approximately $500 million. Non-GAAP operating expenses are expected to be approximately $445 million.
  • GAAP and non-GAAP tax rates for the first quarter of fiscal 2017 are both expected to be 19 percent, plus or minus one percent.
  • Capital expenditures are expected to be approximately $35 million to $45 million.
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