Friday, February 15th 2019
NVIDIA Reports Q4 and 2018 Financial Results - Down 45%
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.
NVIDIA's outlook for the first quarter of fiscal 2020 is as follows:
Latest Highlights
Since the end of the third quarter, NVIDIA has achieved progress in these areas:
Datacenter
"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.
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.
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.
- 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.
- 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.
- 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.
- Launched the NVIDIA Jetson AGX Xavier , a palm-sized module delivering 32 TOPS to help build the next generation of autonomous machines.
- Opened its AI and Robotics Research Lab in Seattle.
56 Comments on NVIDIA Reports Q4 and 2018 Financial Results - Down 45%
A coworker thinks Elon Musk did it on purpose.Sadly have to agree to that. I had GPU fans which broke. It was almost impossible to replacements from them. I even lost 2 GPUs from the official RMA route and only got a coupon. And it wasn't high enough to get an equally powerful GPU. Just because of broken fans.
After some digging it turned out that the reseller has special contracts with the manufacturer.
RTX Cards are overpriced sure but 2080Ti has the most efficient and powerful VRM on the market. More efficient than that of a Radeon VII (according to buildzoid) and any other reference designs out there. It's probably the best VRM on a reference card ever (I'm not sure though).
Even the vaper chamber that nvidia is using on their FE cards is fairly expensive.
When you look at the overall Nvidia stock market prices, they still do very well. These 45% down is just something to catch us, even call it clickbait. And actually where did they go 45% down. And an what timespan. The article does not even say. (i just searched for 45, and the only match was in the headline^^)
and ~700 USD gpu to replace the gtx 1080
instead of the two overpriced rtx cards
pretty sure they would have sold whole a lot more gpus to gamers
for example - iphone x had 300% margin, there was alot discussion on that matter - and iphone is a ready-to-go device, with screen, electronics, battery, packaging, etc.
Here we have only chip itself, vram and electric circuit parts. Chips can't be that much more expensive than those iphone has - despite being much more powerfull. That is unit failure percentage, engineering makes a major part of chip's cost, not the complexity at fabrication - and apple also has all those, however much less complicated.
Vram - yeah, that depends on even more greedy samsung and micron.
Circuit parts - beleive me, the ones they use in FE - it's far away from top notch - it is just good, and does the job well, but it doesn't mean vrm is "golden".
All that said, iphone x and 2080 ti have the same price on the market. And everyone says apple got nuts these days - so what about ngreedia?
We used to get high end cards for $500 to $700 now the 2080 Ti is $1,000 or $1,200 on the Nvidia Store if you can find one.
The RTX Titan has gone up to $2500. That is more than double the price of the Titan XP.
I'm hoping Intel brings a strong GPU lineup next year.
Time after time I see you really confused in stock market discussion. Are you sure you know how this thing works?
There's no shame here. For example I don't know how kidneys work (beside what I was told at school). One can't know everything.
A lot of people believe that share price works like a "mood barometer". Nvidia is OK (good results, good products) => price goes up. Nvidia is not OK (bad results, old / slow products) => price goes down.
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What I'm more curious about is the possibility of nvidia downplaying cryptomarkets in their official reports, since every other number except NVIDIAs matches the analysts calculations
The manufacturing technology they have today is already good enough to make them profitable. The issue is volume (scale). They aren't selling enough cars to cover huge investments.
If EV sales were few times larger, they would already make huge profits and have a stable business.
The price of a stock is an estimate of what happens in the future. It's an average of returns in many possible outcomes (like in a Monte Carlo simulation).
Some paths lead to a future where we have many EVs. Some paths don't. In some paths Tesla becomes successful. In some they default because of cashflow problems. In some paths EVs are expensive and sporty (like current Tesla models), in other they are slower and more practical (like a Nissan Leaf).
For each of these paths you can estimate Tesla's value. The average of all these outcomes leads to the share price you see.
But the discussion about the precise share value is really complicated. Let's forget about it for a moment.
So now back to your issue: why is Tesla price going up all the time? The answer is in the previous paragraph - have you noticed? :)
At some moment in the future (let's call it T) EVs will become so popular that Tesla's situation will be considered safe. They'll sell a lot of cars and make a lot of money.
With each passing day we're getting closer to that moment.
This means that probability of "Tesla defaults before T" decreases and probability of "Tesla survives to T and may become successful" increases.
So just because of the passing time the share price goes up. It's just pure math. We don't have to know anything about cars to understand this.
I still wonder what makes you people protect turing...Or what, you've bought one, so now "changing" sides?
Their inventory is getting harder to sell as well up from 102 last Q (which was shy of double their normal) to 143 days. Last quarter Huang said inventory would clear out in 1 quarter and now its becoming increasingly difficult.