NVDA Q1 2023 Earnings

Call Details

• Call Title: Nvidia Q1 2023 Earnings Call
• Date: May 25, 2022 at 9:00 PM UTC
• Management Team:
  • Jensen Huang (President and Chief Executive Officer)
  • Colette Kress (Executive Vice President and Chief Financial Officer)
  • Simona Jankowski (Director of Investor Relations)

Call Summary

Financial Performance

• NVIDIA reported total revenue of $8.3B, which was a record, up 8% sequentially and up 46% year on year.
• Data Center revenue was $3.8B, growing 15% sequentially and accelerating to 83% year on year.
• Gaming revenue was $3.6B, up 6% sequentially and up 31% year on year driven by the GeForce RTX 30 Series product cycle.
• Pro Visualization revenue was $622M, down 3% sequentially and up 67% year on year.
• Automotive revenue was $138M, up 10% sequentially and down 10% year on year.
• GAAP gross margin was 65.5% and non-GAAP gross margin was 67.1%, which was up 90 basis points year on year and up 10 basis points sequentially.
• GAAP operating margin was 22.5% and non-GAAP operating margin was 47.7%, with GAAP impacted by a $1.35B acquisition termination charge.
• Channel inventory is described as nearly normalized, and cryptocurrency-driven GPU demand is expected to diminish going forward.

Guidance

• NVIDIA expects revenue for Q2 to be $8.1B, plus or minus 2%.
• The company estimates an approximate $500M headwind to Q2 from Russia and China COVID lockdowns, split as $400M to gaming sell-in and $100M to data center.
• GAAP and non-GAAP gross margins are expected to be 65.1% and 67.1%, respectively, plus or minus 50 basis points.
• GAAP operating expenses are expected to be $2.46B and non-GAAP operating expenses are expected to be $1.75B for Q2.
• GAAP and non-GAAP other income and expenses are expected to be an expense of approximately $40M, excluding gains and losses on non-affiliated investments.
• GAAP and non-GAAP tax rates are guided to 12.5%, plus or minus 1%, excluding discrete items.
• Capital expenditures are expected to be approximately $400M to $450M in Q2.