NVIDIA Corporation Q3 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Overall Performance

  • Q3 revenue was 3.01 billion dollars, down 5 percent year‑on‑year, but up 17 percent sequentially. Sequential improvement was driven primarily by gaming and data center recovery.
  • GAAP gross margin was 63.6 percent, up sequentially due to higher GeForce ASPs, lower component costs and a 1‑point benefit from selling previously written‑off inventory.
  • GAAP EPS was 1.45 dollars, down 26 percent from last year; non‑GAAP EPS was 1.78 dollars, down 3 percent year‑on‑year.
  • Cash flow from operations hit a record 1.6 billion dollars.

Gaming Segment

  • Gaming revenue was 1.66 billion dollars, down 6 percent year‑on‑year but up 26 percent sequentially, outperforming internal expectations.
  • Growth was fueled by strong desktop and notebook demand, record game launches using ray tracing, and over two‑thirds of desktop gaming revenue now coming from RTX GPUs.
  • More than 130 gaming and studio laptop models are shipping, triple last year’s Max‑Q lineup.
  • New GTX 1660 Super and 1650 Super GPUs refreshed mainstream offerings, with the 1660 Super delivering 50 percent more performance than the GTX 1060.
  • Cloud gaming partnerships expanded across Taiwan Mobile, Rostelecom, SoftBank, LG and Telefónica.

Data Center Segment

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Operator: Good afternoon. My name is Christina, and I'm your conference operator for today. Welcome to NVIDIA's Financial Results Conference Call. [Operator Instructions]. I'll now turn the call over to Simona Jankowski, Vice President of Investor Relations, to begin your conference. Simona Jankowski: Thank you. Good afternoon, everyone, and welcome to NVIDIA's conference call for the third quarter of fiscal 2020. 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 fourth 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, November 14, 2019, based on inform

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