NVDA Q3 2021 Earnings

Call Details

• Call Title: Nvidia Q3 2021 Earnings Call
• Date: November 20, 2020 at 10:00 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

• Total revenue was a record $4.73B, up 57% year-on-year and up 22% sequentially.
• Gaming revenue was a record $2.27B, up 37% year-on-year and up 37% sequentially.
• Data center revenue was a record $1.9B, up 162% year-on-year and up 8% sequentially.
• ProViz (Professional Visualization) revenue was $236M, down 27% year-on-year and up 16% sequentially.
• Automotive revenue was $125M, down 23% year-on-year and up 13% sequentially.
• Mellanox contributed 13% of overall company revenue and had double-digit sequential growth in the quarter.
• GAAP gross margin was 62.6% and non-GAAP gross margin was 65.5%.
• GAAP operating expenses were $1.56B and non-GAAP operating expenses were $1.1B, reflecting year-over-year increases of 6% and 42%, respectively.
• GAAP EPS was $2.12, up 46% year-on-year, and non-GAAP EPS was $2.91, up 63% year-on-year, and cash flow from operations was $1.28B.

Guidance

• Revenue for Q4 was guided to $4.8B, plus or minus 2%.
• GAAP gross margin for Q4 was guided to 62.8% and non-GAAP gross margin to 65.5%, each plus or minus 50 basis points.
• GAAP operating expenses were expected to be approximately $1.64B and non-GAAP operating expenses approximately $1.18B for Q4.
• GAAP and non-GAAP other income and expenses were both expected to be an expense of approximately $55M for Q4.
• GAAP and non-GAAP tax rates were expected to be 8%, plus or minus 1%, excluding discrete items.
• Capital expenditures were guided to approximately $300M to $325M for the quarter.
• The outlook incorporated a 14th week in Q4 and stated that the extra week would be incrementally additive to revenue and operating expenses.
• The company expects gaming to be up sequentially in Q4, data center to be down slightly versus Q3, computing products to grow mid single-digits sequentially while Mellanox is expected to decline meaningfully sequentially but still grow about 30% year-over-year.