NVDA Q3 2023 Earnings

Call Details

• Call Title: Nvidia Q3 2023 Earnings Call
• Date: November 16, 2022 at 10:00 PM UTC
• Management Team:
  • Simona Jankowski (Director of Investor Relations)
  • Jensen Huang (President and Chief Executive Officer)
  • Colette Kress (Executive Vice President and Chief Financial Officer)

Call Summary

Financial Performance

• Q3 revenue was $5.93B, down 12% sequentially and down 17% year-on-year.
• Data center revenue was $3.83B, up 1% sequentially and up 31% year-on-year.
• Gaming revenue was $1.57B, down 23% sequentially and down 51% year-on-year.
• ProViz revenue was $200M, down 60% sequentially and down 65% year-on-year.
• Automotive revenue was $251M, increased 14% sequentially and 86% year-on-year.
• GAAP gross margin was 53.6% and non-GAAP gross margin was 56.1% for the quarter.
• The company recorded $702M of inventory-related charges in the quarter and recognized an approximately $70M warranty benefit.
• GAAP operating expenses were up 31% year-on-year and non-GAAP operating expenses were up 30% year-on-year.
• The company returned $3.75B to shareholders via share repurchases and cash dividends during the quarter.

Guidance

• Company revenue is expected to be $6B plus or minus 2% for Q4 fiscal 2023.
• Data center revenue is expected to reflect early production shipments of H100, offset by continued softness in China.
• Gaming revenue is expected to resume sequential growth while remaining below end demand as channel inventory is worked down.
• Automotive revenue is expected to have modest sequential growth driven by Orin design-win ramps.
• GAAP gross margin is expected to be 63.2% plus or minus 50 basis points and non-GAAP gross margin is expected to be 66% plus or minus 50 basis points.
• GAAP operating expenses are expected to be approximately $2.56B and non-GAAP operating expenses are expected to be approximately $1.78B.
• GAAP and non-GAAP other income and expenses are expected to be an income of approximately $40M, and GAAP and non-GAAP tax rates are expected to be 9% plus or minus 1%.
• Capital expenditures are expected to be approximately $500M to $550M for the coming quarter.