NVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2019

February 14, 2019

SANTA CLARA, Calif., Feb. 14, 2019 — NVIDIA today reported revenue for the fourth quarter ended Jan. 27, 2019, of $2.21 billion, down 24 percent from $2.91 billion a year earlier, and down 31 percent from $3.18 billion in the previous quarter.

GAAP earnings per diluted share for the quarter were $0.92, down 48 percent from $1.78 a year ago and down 53 percent from $1.97 in the previous quarter. Non-GAAP earnings per diluted share were $0.80, down 53 percent from $1.72 a year earlier and down 57 percent from $1.84 in the previous quarter.

For fiscal 2019, revenue was $11.72 billion, up 21 percent from $9.71 billion a year earlier. GAAP earnings per diluted share were $6.63, up 38 percent from $4.82 a year earlier. Non-GAAP earnings per diluted share were $6.64, up 35 percent from $4.92 a year earlier.

“This was a turbulent close to what had been a great year,” said Jensen Huang, founder and CEO of NVIDIA. “The combination of post-crypto excess channel inventory and recent deteriorating end-market conditions drove a disappointing quarter.

“Despite this setback, NVIDIA’s fundamental position and the markets we serve are strong. The accelerated computing platform we pioneered is central to some of world’s most important and fastest growing industries – from artificial intelligence to autonomous vehicles to robotics. We fully expect to return to sustained growth,” he said.

Capital Return

In fiscal 2019, NVIDIA returned $1.95 billion to shareholders through a combination of $1.58 billion in share repurchases and $371 million in quarterly cash dividends.

Of the $3.00 billion NVIDIA intends to return to shareholders by the end of fiscal 2020, $700 million in share repurchases were completed in the fourth quarter of fiscal 2019. The company intends to return the remaining $2.30 billion by the end of fiscal 2020, through a combination of share repurchases and cash dividends.

NVIDIA will pay its next quarterly cash dividend of $0.16 per share on March 22, 2019, to all shareholders of record on March 1, 2019.

Q4 Fiscal 2019 Summary

GAAP
 ($ in millions except earnings per share) Q4 FY19 Q3 FY19 Q4 FY18 Q/Q Y/Y
 Revenue $2,205 $3,181 $2,911 Down 31% Down 24%
 Gross margin 54.7% 60.4% 61.9% Down 570 bps Down 720 bps
 Operating expenses $913 $863 $728 Up 6% Up 25%
 Operating income $294 $1,058 $1,073 Down 72% Down 73%
 Net income $567 $1,230 $1,118 Down 54% Down 49%
 Diluted earnings per share $0.92 $1.97 $1.78 Down 53% Down 48%
Non-GAAP
 ($ in millions except earnings per share) Q4 FY19 Q3 FY19 Q4 FY18 Q/Q Y/Y
 Revenue $2,205 $3,181 $2,911 Down 31% Down 24%
 Gross margin 56.0% 61.0% 62.1% Down 500 bps Down 610 bps
 Operating expenses $755 $730 $607 Up 3% Up 24%
 Operating income $479 $1,210 $1,202 Down 60% Down 60%
 Net income $496 $1,151 $1,081 Down 57% Down 54%
 Diluted earnings per share $0.80 $1.84 $1.72 Down 57% Down 53%

Fiscal 2019 Summary

GAAP
 ($ in millions except earnings per share) FY19 FY18 Y/Y
 Revenue $11,716 $9,714 Up 21%
 Gross margin 61.2% 59.9% Up 130 bps
 Operating expenses $3,367 $2,612 Up 29%
 Operating income $3,804 $3,210 Up 19%
 Net income $4,141 $3,047 Up 36%
 Diluted earnings per share $6.63 $4.82 Up 38%
Non-GAAP
 ($ in millions except earnings per share) FY19 FY18 Y/Y
 Revenue $11,716 $9,714 Up 21%
 Gross margin 61.7% 60.2% Up 150 bps
 Operating expenses $2,826 $2,227 Up 27%
 Operating income $4,407 $3,617 Up 22%
 Net income $4,143 $3,085 Up 34%
 Diluted earnings per share $6.64 $4.92 Up 35%

NVIDIA’s outlook for the first quarter of fiscal 2020 is as follows:

  • Revenue is expected to be $2.20 billion, plus or minus 2 percent.
  • GAAP and non-GAAP gross margins are expected to be 58.8 percent and 59.0 percent, respectively, plus or minus 50 basis points.
  • GAAP and non-GAAP operating expenses are expected to be approximately $930 million and $755 million, respectively.
  • GAAP and non-GAAP other income and expense are both expected to be income of approximately $20 million.
  • GAAP and non-GAAP tax rates are both expected to be 10 percent, plus or minus 1 percent, excluding any discrete items. GAAP discrete items include excess tax benefits or deficiencies related to stock-based compensation, which are expected to generate variability on a quarter by quarter basis.

For fiscal 2020, revenue is expected to be flat to down slightly.

Latest Highlights

Since the end of the third quarter, NVIDIA has achieved progress in these areas:

Datacenter

  • Announced that the NVIDIA T4 GPU launched in public beta on Google Cloud Platform, with availability in the U.S., Europe, Brazil, India, Japan, and Singapore.
  • Set six records in AI performance with the release of MLPerf, the industry’s first objective set of AI benchmarks.
  • Announced with Google the integration of NVIDIA’s RAPIDS GPU-accelerated data science libraries with Kubeflow Pipelines, a Kubernetes-based platform for deploying and managing machine learning workloads in hyperscale datacenters.

Gaming

  • Launched the GeForce RTX 2060 GPU, putting exceptional performance and graphics enhanced by ray tracing and AI within reach of tens of millions of gamers.
  • Unveiled a record 40+ new gaming laptops in over 100 configurations powered by NVIDIA GeForce RTX GPUs.
  • Expanded its G-SYNC ecosystem with G-SYNC-compatible monitors, tested and driver-optimized by NVIDIA.
  • Announced that Battlefield V, the first real-time ray tracing game, will add DLSS AI super-sampling technology; that the highly anticipated game Anthem will integrate DLSS; and that Justice, one of China’s most popular MMO games, will add ray tracing and DLSS.

Professional Visualization

  • Introduced Quadro RTX 4000, bringing real-time ray tracing to millions of midrange workstation users.
  • Announced the NVIDIA CUDA-accelerated REDCODE RAW decode SDK, in collaboration with RED Digital Cinema, enabling developers and studios to edit 8K video in real time without the need for additional video processors.

Automotive

  • Introduced NVIDIA DRIVE AutoPilot, the world’s first commercially available Level 2+ automated driving system, with Tier 1 suppliers Continental and ZF announcing the availability of Level 2+ solutions based on NVIDIA DRIVE in 2020.
  • Announced with Mercedes-Benz that it will create a centralized computing architecture for the automaker’s next-generation vehicles, enabling them to be software-defined AI cars.

Edge Computing

CFO Commentary

Commentary on the quarter by Colette Kress, NVIDIA’s executive vice president and chief financial officer, is available at https://investor.nvidia.com/home/default.aspx.

Conference Call and Webcast Information 

NVIDIA will conduct a conference call with analysts and investors to discuss its fourth quarter and fiscal 2019 financial results and current financial prospects today at 2:30 p.m. Pacific time (5:30 p.m. Eastern time). A live webcast (listen-only mode) of the conference call will be accessible at NVIDIA’s investor relations website, https://investor.nvidia.com/home/default.aspx. The webcast will be recorded and available for replay until NVIDIA’s conference call to discuss its financial results for its first quarter of fiscal 2020.

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industy updates delivered to you every week!

GTC 2019: Chief Scientist Bill Dally Provides Glimpse into Nvidia Research Engine

March 22, 2019

Amid the frenzy of GTC this week – Nvidia’s annual conference showcasing all things GPU (and now AI) – William Dally, chief scientist and SVP of research, provided a brief but insightful portrait of Nvidia’s rese Read more…

By John Russell

ORNL Helps Identify Challenges of Extremely Heterogeneous Architectures

March 21, 2019

Exponential growth in classical computing over the last two decades has produced hardware and software that support lightning-fast processing speeds, but advancements are topping out as computing architectures reach thei Read more…

By Laurie Varma

Interview with 2019 Person to Watch Jim Keller

March 21, 2019

On the heels of Intel's reaffirmation that it will deliver the first U.S. exascale computer in 2021, which will feature the company's new Intel Xe architecture, we bring you our interview with our 2019 Person to Watch Jim Keller, head of the Silicon Engineering Group at Intel. Read more…

By HPCwire Editorial Team

HPE Extreme Performance Solutions

HPE and Intel® Omni-Path Architecture: How to Power a Cloud

Learn how HPE and Intel® Omni-Path Architecture provide critical infrastructure for leading Nordic HPC provider’s HPCFLOW cloud service.

powercloud_blog.jpgFor decades, HPE has been at the forefront of high-performance computing, and we’ve powered some of the fastest and most robust supercomputers in the world. Read more…

IBM Accelerated Insights

Insurance: Where’s the Risk?

Insurers are facing extreme competitive challenges in their core businesses. Property and Casualty (P&C) and Life and Health (L&H) firms alike are highly impacted by the ongoing globalization, increasing regulation, and digital transformation of their client bases. Read more…

What’s New in HPC Research: TensorFlow, Buddy Compression, Intel Optane & More

March 20, 2019

In this bimonthly feature, HPCwire highlights newly published research in the high-performance computing community and related domains. From parallel programming to exascale to quantum computing, the details are here. Read more…

By Oliver Peckham

GTC 2019: Chief Scientist Bill Dally Provides Glimpse into Nvidia Research Engine

March 22, 2019

Amid the frenzy of GTC this week – Nvidia’s annual conference showcasing all things GPU (and now AI) – William Dally, chief scientist and SVP of research, Read more…

By John Russell

At GTC: Nvidia Expands Scope of Its AI and Datacenter Ecosystem

March 19, 2019

In the high-stakes race to provide the AI life-cycle solution of choice, three of the biggest horses in the field are IBM, Intel and Nvidia. While the latter is only a fraction of the size of its two bigger rivals, and has been in business for only a fraction of the time, Nvidia continues to impress with an expanding array of new GPU-based hardware, software, robotics, partnerships and... Read more…

By Doug Black

Nvidia Debuts Clara AI Toolkit with Pre-Trained Models for Radiology Use

March 19, 2019

AI’s push into healthcare got a boost yesterday with Nvidia’s release of the Clara Deploy AI toolkit which includes 13 pre-trained models for use in radiolo Read more…

By John Russell

It’s Official: Aurora on Track to Be First US Exascale Computer in 2021

March 18, 2019

The U.S. Department of Energy along with Intel and Cray confirmed today that an Intel/Cray supercomputer, "Aurora," capable of sustained performance of one exaf Read more…

By Tiffany Trader

Why Nvidia Bought Mellanox: ‘Future Datacenters Will Be…Like High Performance Computers’

March 14, 2019

“Future datacenters of all kinds will be built like high performance computers,” said Nvidia CEO Jensen Huang during a phone briefing on Monday after Nvidia revealed scooping up the high performance networking company Mellanox for $6.9 billion. Read more…

By Tiffany Trader

Oil and Gas Supercloud Clears Out Remaining Knights Landing Inventory: All 38,000 Wafers

March 13, 2019

The McCloud HPC service being built by Australia’s DownUnder GeoSolutions (DUG) outside Houston is set to become the largest oil and gas cloud in the world th Read more…

By Tiffany Trader

Quick Take: Trump’s 2020 Budget Spares DoE-funded HPC but Slams NSF and NIH

March 12, 2019

U.S. President Donald Trump’s 2020 budget request, released yesterday, proposes deep cuts in many science programs but seems to spare HPC funding by the Depar Read more…

By John Russell

Nvidia Wins Mellanox Stakes for $6.9 Billion

March 11, 2019

The long-rumored acquisition of Mellanox came to fruition this morning with GPU chipmaker Nvidia’s announcement that it has purchased the high-performance net Read more…

By Doug Black

Quantum Computing Will Never Work

November 27, 2018

Amid the gush of money and enthusiastic predictions being thrown at quantum computing comes a proposed cold shower in the form of an essay by physicist Mikhail Read more…

By John Russell

The Case Against ‘The Case Against Quantum Computing’

January 9, 2019

It’s not easy to be a physicist. Richard Feynman (basically the Jimi Hendrix of physicists) once said: “The first principle is that you must not fool yourse Read more…

By Ben Criger

ClusterVision in Bankruptcy, Fate Uncertain

February 13, 2019

ClusterVision, European HPC specialists that have built and installed over 20 Top500-ranked systems in their nearly 17-year history, appear to be in the midst o Read more…

By Tiffany Trader

Intel Reportedly in $6B Bid for Mellanox

January 30, 2019

The latest rumors and reports around an acquisition of Mellanox focus on Intel, which has reportedly offered a $6 billion bid for the high performance interconn Read more…

By Doug Black

Why Nvidia Bought Mellanox: ‘Future Datacenters Will Be…Like High Performance Computers’

March 14, 2019

“Future datacenters of all kinds will be built like high performance computers,” said Nvidia CEO Jensen Huang during a phone briefing on Monday after Nvidia revealed scooping up the high performance networking company Mellanox for $6.9 billion. Read more…

By Tiffany Trader

Looking for Light Reading? NSF-backed ‘Comic Books’ Tackle Quantum Computing

January 28, 2019

Still baffled by quantum computing? How about turning to comic books (graphic novels for the well-read among you) for some clarity and a little humor on QC. The Read more…

By John Russell

Contract Signed for New Finnish Supercomputer

December 13, 2018

After the official contract signing yesterday, configuration details were made public for the new BullSequana system that the Finnish IT Center for Science (CSC Read more…

By Tiffany Trader

Deep500: ETH Researchers Introduce New Deep Learning Benchmark for HPC

February 5, 2019

ETH researchers have developed a new deep learning benchmarking environment – Deep500 – they say is “the first distributed and reproducible benchmarking s Read more…

By John Russell

Leading Solution Providers

SC 18 Virtual Booth Video Tour

Advania @ SC18 AMD @ SC18
ASRock Rack @ SC18
DDN Storage @ SC18
HPE @ SC18
IBM @ SC18
Lenovo @ SC18 Mellanox Technologies @ SC18
NVIDIA @ SC18
One Stop Systems @ SC18
Oracle @ SC18 Panasas @ SC18
Supermicro @ SC18 SUSE @ SC18 TYAN @ SC18
Verne Global @ SC18

It’s Official: Aurora on Track to Be First US Exascale Computer in 2021

March 18, 2019

The U.S. Department of Energy along with Intel and Cray confirmed today that an Intel/Cray supercomputer, "Aurora," capable of sustained performance of one exaf Read more…

By Tiffany Trader

IBM Quantum Update: Q System One Launch, New Collaborators, and QC Center Plans

January 10, 2019

IBM made three significant quantum computing announcements at CES this week. One was introduction of IBM Q System One; it’s really the integration of IBM’s Read more…

By John Russell

IBM Bets $2B Seeking 1000X AI Hardware Performance Boost

February 7, 2019

For now, AI systems are mostly machine learning-based and “narrow” – powerful as they are by today's standards, they're limited to performing a few, narro Read more…

By Doug Black

The Deep500 – Researchers Tackle an HPC Benchmark for Deep Learning

January 7, 2019

How do you know if an HPC system, particularly a larger-scale system, is well-suited for deep learning workloads? Today, that’s not an easy question to answer Read more…

By John Russell

HPC Reflections and (Mostly Hopeful) Predictions

December 19, 2018

So much ‘spaghetti’ gets tossed on walls by the technology community (vendors and researchers) to see what sticks that it is often difficult to peer through Read more…

By John Russell

Arm Unveils Neoverse N1 Platform with up to 128-Cores

February 20, 2019

Following on its Neoverse roadmap announcement last October, Arm today revealed its next-gen Neoverse microarchitecture with compute and throughput-optimized si Read more…

By Tiffany Trader

Move Over Lustre & Spectrum Scale – Here Comes BeeGFS?

November 26, 2018

Is BeeGFS – the parallel file system with European roots – on a path to compete with Lustre and Spectrum Scale worldwide in HPC environments? Frank Herold Read more…

By John Russell

France to Deploy AI-Focused Supercomputer: Jean Zay

January 22, 2019

HPE announced today that it won the contract to build a supercomputer that will drive France’s AI and HPC efforts. The computer will be part of GENCI, the Fre Read more…

By Tiffany Trader

  • arrow
  • Click Here for More Headlines
  • arrow
Do NOT follow this link or you will be banned from the site!
Share This