NVDA Q2 2025 Earnings

Call Details

• Call Title: Nvidia Q2 2025 Earnings Call
• Date: August 28, 2024 at 9:00 PM UTC
• Management Team:
  • Jensen Huang (Chief Executive Officer)
  • Colette Kress (Executive Vice President and Chief Financial Officer)

Call Summary

Financial Performance

• Total revenue was $30B, which was up 15% sequentially and up 122% year-on-year and above the outlook of $28B.
• Data center revenue was $26.3B, a record, which was up 16% sequentially and up 154% year-on-year.
• Compute revenue grew more than 2.5x year-over-year while networking revenue grew more than 2x year-over-year.
• Cloud service providers represented roughly 45% of data center revenue and consumer, internet, and enterprise companies accounted for more than 50% of data center revenue.
• Gaming revenue was $2.88B, which increased 9% sequentially and 16% year-on-year.
• Pro-visualization revenue was $454M, which was up 6% sequentially and 20% year-on-year.
• Automotive and robotics revenue was $346M, which was up 5% sequentially and 37% year-on-year.
• GAAP gross margin was 75.1% and non-GAAP gross margin was 75.7%, which declined sequentially due to a higher mix of new data center products and inventory provisions for low-yielding Blackwell material.

Guidance

• Total revenue for Q3 is expected to be $32.5B plus or minus 2%.
• GAAP and non-GAAP gross margins for Q3 are expected to be 74.4% and 75.0%, respectively, each plus or minus 50 basis points.
• For the full year, gross margins are expected to be in the mid-70% range.
• GAAP and non-GAAP operating expenses are expected to be approximately $4.3B and $3.0B, respectively, for the period disclosed.
• Full-year operating expenses are expected to grow in the mid to upper 40% range as R&D and product development continue.
• GAAP and non-GAAP other income and expenses are expected to be about $350M, including gains and losses from investments.
• GAAP and non-GAAP tax rates are expected to be 17% plus or minus 1%, excluding discrete items.