NVIDIA Corporation Q1 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Q1 FY2021 revenue was $3.08B, up 39% year-over-year and down 1% sequentially. Revenue slightly exceeded outlook.
  • Strong performance driven by Data Center and Gaming segments.
  • Mellanox acquisition closed on April 27 and contributed meaningfully to results; will be fully integrated into Data Center moving forward.

Segment Performance

Gaming
  • Revenue: $1.34B, up 27% YoY; down 10% QoQ.
  • COVID-19 caused early softness in China due to iCafe closures, but global stay-at-home orders drove a 50% increase in gaming hours on GeForce.
  • Demand shifted strongly to e-tail as physical retail closed.
  • Gaming laptop revenue grew at the fastest YoY pace in six quarters.
  • OEMs introduced 100 new GeForce laptops in Q1; more to follow in Q2.
  • RTX 20-series SUPER GPUs now driving high-end laptop demand; RTX 2060 at $999 expands market reach.
  • Nintendo Switch platform gaming grew significantly both sequentially and YoY.
  • Ray-traced Minecraft launched with wide acclaim; RTX ecosystem expanding with 33 games in pipeline.
  • GFN (GeForce NOW) exited beta with 2M new users and 650+ supported games.
Professional Visualization
  • Revenue: $307M, up 15% YoY, down 7% QoQ.
  • Growth driven by laptop workstations and increased RTX adoption across design and visualization tools.

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Operator: Good afternoon. My name is Josh, and I will be your conference operator today. At this time, I would like to welcome everyone to NVIDIA's Financial Results Conference call. [Operator Instructions]. Simona Jankowski, you may begin your conference. Simona Jankowski: Thank you. Good afternoon, everyone, and welcome to NVIDIA's conference call for the first quarter of fiscal 2021. With me on the call today from NVIDIA are Jensen Huang, President and Chief Executive Officer; and Colette Kress, Executive Vice President and Chief Financial Officer. I'd like to remind you that our call is being webcast live on NVIDIA's Investor Relations website. The webcast will be available for replay until the conference call to discuss our financial results for the second quarter of fiscal 2021. The content of today's call is NVIDIA's property. It can't be reproduced or transcribed without our prior written consent. During this call, we may make forward-looking statements based on current expectations. These are subject to a number of significant risks and uncertainties, and our actual results may vary materially. For a discussion of factors that could affect our future financial results and business, please refer to the disclosure in today's earnings release, our most recent Form 10-K and 10-Q and the reports that we may file on Form 8-K with the Securities and Exchange Commission. All our statements are made as of today, May 21, 2020, based on information currently available to us. E

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