NVDA Q3 2024 Earnings

Call Details

• Call Title: Nvidia Q3 2024 Earnings Call
• Date: November 21, 2023 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 for Q3 was $18.1B, up 34% sequentially and up more than 200% year-on-year.
• Data center revenue was $14.5B, up 41% sequentially and up 279% year-on-year.
• The company stated that data center compute revenue quadrupled year-over-year and that networking revenue nearly tripled year-over-year in earlier commentary, with InfiniBand specifically growing five-fold year-over-year.
• Gaming revenue was $2.86B, up 15% sequentially and up more than 80% year-over-year.
• ProViz revenue was $416M, up 10% sequentially and up 108% year-over-year.
• Automotive revenue was $261M, up 3% sequentially and up 4% year-over-year.
• GAAP gross margin expanded to 74% and non-GAAP gross margin was 75%, including a 1 percentage point benefit from the release of previously reserved Ampere inventory.
• GAAP operating expenses were up 12% sequentially and non-GAAP operating expenses were up 10% sequentially, driven primarily by increased compensation and benefits.

Guidance

• Total revenue for Q4 is expected to be $20.0B, plus or minus 2%, as provided in the Q4 outlook.
• GAAP gross margin is expected to be 74.5% and non-GAAP gross margin is expected to be 75.5%, each plus or minus 50 basis points.
• GAAP operating expenses for Q4 are expected to be approximately $3.17B and non-GAAP operating expenses are expected to be approximately $2.2B.
• GAAP and non-GAAP other income and expenses are expected to be an income of approximately $200M, excluding gains and losses from non-affiliated investments.
• GAAP and non-GAAP tax rates are expected to be 15%, plus or minus 1%, excluding any discrete items.
• The prior outlook referenced on the call was $16.0B, and Q3 revenue of $18.1B was described as well above that prior outlook.
• Export control regulations for certain products will require licenses for some destinations and the company expects sales to the affected destinations, which historically contributed approximately 20% to 25% of data center revenue, to decline significantly in Q4.
• The company stated it expects growth in other regions to more than offset the expected decline in affected destinations, but the magnitude and timing of that offset were not quantified.