NVDA Q2 2022 Earnings

Call Details

• Call Title: Nvidia Q2 2022 Earnings Call
• Date: August 18, 2021 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

• Company revenue for Q2 was $6.5B, representing year-on-year growth of 68%.
• Gaming revenue was $3.1B, up 11% sequentially and up 85% year-over-year, with demand outpacing supply.
• Data center revenue was $2.4B, up 16% sequentially and up 35% year-over-year, with inference more than doubling year-over-year.
• Pro Visualization revenue was $519M, up 40% sequentially and up 156% year-over-year driven by desktop workstations.
• Automotive revenue was $152M, down 1% sequentially and up 3% year-over-year with design wins expected to drive future inflection.
• GAAP gross margin was 64.8%, up 600 basis points year-over-year and up 70 basis points sequentially, while non-GAAP gross margin was 66.7%, up 70 basis points year-over-year and up 50 basis points sequentially.
• GAAP EPS was $1.94, up 276% year-over-year, and non-GAAP EPS was $1.04, up 89% year-over-year (adjusted for the four-for-one stock split).
• Operating cash flow was a record $2.7B for the quarter.

Guidance

• Revenue for Q3 is expected to be $6.8B, plus or minus 2%.
• GAAP gross margin is expected to be 65.2% plus or minus 50 basis points and non-GAAP gross margin is expected to be 67% plus or minus 50 basis points.
• GAAP operating expenses are expected to be approximately $1.96B and non-GAAP operating expenses approximately $1.37B for Q3.
• GAAP and non-GAAP other income and expenses are both expected to be an expense of approximately $60M, excluding gains and losses on equity securities.
• GAAP and non-GAAP tax rates are expected to be 11% plus or minus 1%, excluding discrete items.
• Capital expenditures are expected to be approximately $200M to $225M for the quarter.
• Company expects channel inventories to remain below target levels as it exits Q3 and states that CMP contribution to revenue outlook is minimal.
• Excluding CMP, the company expects revenue to grow by over $500M sequentially in Q3 with the lion's share coming from data center.