NVIDIA Corporation Q2 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Q2 revenue was 2.58 billion dollars, down 17 percent year-over-year but up 16 percent sequentially, matching company outlook.
  • GAAP EPS was 0.90 dollars, down 49 percent year-over-year; non-GAAP EPS was 1.24 dollars, down 36 percent year-over-year.
  • Gross margins improved sequentially, with GAAP at 59.8 percent and non-GAAP at 60.1 percent.

Gaming

  • Gaming revenue was 1.31 billion dollars, down 27 percent year-over-year but up 24 percent sequentially.
  • Sequential strength driven by the launch of RTX SUPER GPUs, over 100 new gaming laptop models, and RTX Studio laptops.
  • RTX SUPER delivered performance boosts up to 24 percent compared with initial Turing GPUs.
  • Ray tracing adoption accelerating across major upcoming titles, strengthening long-term GPU demand.
  • Nintendo Switch production ramp supported Q2 and is expected to remain strong in Q3 before typical seasonal Q4 decline.

Data Center

  • Data center revenue was 655 million dollars, down 14 percent year-over-year but up 3 percent sequentially.
  • Growth outside a few large hyperscalers was strong, especially from enterprise verticals such as public sector, education, and financial services.
  • AI training demands rising sharply due to large NLP models such as BERT and its derivatives.

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Operator: Good afternoon. My name is Christina, and I will be your conference operator today. Welcome to NVIDIA’s financial results conference call. [Operator Instructions] I will now turn the call over to Simona Jankowski from Investor Relations to begin your conference. Simona Jankowski: Thank you. Good afternoon, everyone and welcome to NVIDIA’s conference call for the second quarter of fiscal 2020. With me on the call today from NVIDIA are Jen-Hsun Huang, President and Chief Executive Officer and Colette Kress, Executive Vice President and Chief Financial Officer. I would 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 third quarter of fiscal 2020. 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 differ 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, August 15, 2019, based on information curr

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