NVIDIA this afternoon closed the ebook on one other document fiscal yr, saying their FY 2021 and This fall 2021 earnings outcomes for the corporate. For the final quarter of their fiscal yr, NVIDIA booked simply over $5B in income with a revenue of $1457M, marking NVIDIA’s first 5 billion greenback quarter, and setting incomes data throughout the board. In the meantime for the complete fiscal yr, NVIDIA has recorded slightly below $16.7B in income, with a web earnings for the yr of $4.3B.
NVIDIA This fall 2021 Monetary Outcomes (GAAP) | |||||
This fall’2021 | Q3’2021 | This fall’2020 | Q/Q | Y/Y | |
Income | $5003M | $4726M | $3105M | +6% | +61% |
Gross Margin | 63.1% | 62.6% | 64.9% | +0.5% | -1.8% |
Working Revenue | $1507M | $1398M | $990M | +8% | +52% |
Internet Revenue | $1457M | $1336M | $950M | +9% | +53% |
EPS | $2.31 | $2.12 | $1.53 | +9% | +51% |
Setting income and revenue data, NVIDIA as soon as extra closed their yr on a excessive observe. The $5B in income they booked made for his or her greatest quarter ever, and a 61% bounce over the year-ago quarter. In the meantime NVIDIA’s document $1457M in web earnings is a equally important bounce, besting This fall’2020 by 53%.
NVIDIA’s gross margin for the quarter was equally robust. NVIDIA recorded a gross margin of 63.1%, a slight decline from NVIDIA’s record-setting margin in This fall’2020, however nonetheless extremely comfy for a fabless semiconductor firm.
NVIDIA Quarterly Income Comparability (GAAP) ($ in hundreds of thousands) |
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In hundreds of thousands | This fall’2021 | Q3’2021 | This fall’2020 | Q/Q | Y/Y |
Gaming | $2495 | $2271 | $1491 | +10% | +67% |
Skilled Visualization | $307 | $236 | $331 | +30% | -7% |
Datacenter | $1903 | $1900 | $968 | Flat | +97% |
Automotive | $145 | $125 | $163 | +16% | -11% |
OEM & IP | $153 | $194 | $152 | -21% | +1% |
Breaking down their income by section, the large winner, as you may count on, was NVIDIA’s gaming section. Protecting all issues GeForce – video playing cards and providers like GeForce Now – among the many many data NVIDIA set for This fall was in gaming income. For the quarter NVIDIA booked $2.495B in gaming income, simply inches in need of half of all income for the corporate.
Driving that gaming income has been a mixture of gaming and mining demand, a thorny problem that NVIDIA is taking some fairly excessive steps to take care of. Though the corporate isn’t outright hostile to industrial miners, the demand for {hardware} from Ethereum miners is screwing up NVIDIA’s gaming market, and the instability of that market makes it troublesome to arrange for the ensuing up and down-swings within the mining market. This has led to the corporate taking steps similar to artificially limiting Ethereum efficiency on GeForce playing cards going ahead, beginning with the RTX 3060, and introducing a companion, mining-focused line of playing cards with the upcoming CMP elements.
The large, earnings-related query on everybody’s thoughts is how a lot Ethereum mining contributed to NVIDIA’s bottom-line for This fall; and the reply to that continues to be nebulous. NVIDIA believes {that a} important variety of video playing cards had been bought by industrial miners, however as a result of the majority of their gross sales are to AIB companions, they’ll’t precisely observe or quantify what these playing cards are getting used for. To that finish, NVIDIA’s very unsure ballpark estimate is that mining drove $100mil to $300mil in income for the quarter, a surprisingly small a part of their total gaming income. However, even when that vary is true, it’s actually been sufficient to tip the market scales in direction of empty cabinets and sad avid gamers.
Trying in direction of Q1, NVIDIA expects to start out CMP card shipments subsequent month. The primary month’s gross sales can be fairly restricted, with the corporate projecting simply $15mil in income. But it surely’s a begin; and the corporate can even be breaking out CMP gross sales in future quarters to assist quantify the affect of mining on their backside line.
Transferring on, NVIDIA’s different huge mover for This fall was the information heart market. Holding in thoughts that NVIDIA has folded the majority of Mellanox income into this section – so year-over-year comparisons are difficult – on the finish of the day NVIDIA remains to be setting income data for this section. Curiously sufficient, based on the corporate Mellanox gross sales are literally down on the quarter, so the compute aspect of the information heart market has grown sufficient to soak up that drop after which some.
In any other case, NVIDIA’s different segments have been a combined bag. NVIDIA’s usually dependable skilled visualization section remains to be feeling the affect of COVID to an extent; now that the instant rush of work-from-home buying is finished, desktop workstation GPU gross sales haven’t totally recovered from the COVID drop, and cellular workstation gross sales aren’t sufficient to cowl the distinction. In the meantime NVIDIA’s OEM and IP enterprise has held regular on a year-over-year foundation, and automotive is down as some legacy infotainment merchandise have been retired.
NVIDIA FY2021 Full Yr Monetary Outcomes (GAAP) | |||
FY2021 | FY2020 | FY2019 | |
Income | $16675M | $10918M | $11716M |
Gross Margin | 62.3% | 62.0% | 61.2% |
Working Revenue | $4532M | $2846M | $3804M |
Internet Revenue | $4332M | $2796M | $4141M |
EPS | $6.90 | $4.52 | $6.63 |
As for the entire, fiscal yr 2021 image, NVIDIA’s This fall is the cherry on prime of what initially regarded like it will be a shaky yr for the corporate. Initially the concern was that the tech {industry} would take a giant hit from COVID – with NVIDIA’s fiscal yr virtually completely lining up with the beginning of the pandemic – nonetheless the tech {industry} has as an alternative benefitted from the excessive demand for merchandise. Because of this, NVIDIA booked a document $16.7B in income for the yr, up 53% from FY2020. And web earnings was equally robust, with NVIDIA reserving a document $4.3B in revenue, up 55% from the earlier yr.
NVIDIA Yearly Income Comparability (GAAP) ($ in hundreds of thousands) |
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In hundreds of thousands | FY2021 | FY2020 | FY2019 |
Gaming | $7759 | $5518 | $6246 |
Skilled Visualization | $1053 | $1212 | $1130 |
Datacenter | $6696 | $2983 | $2932 |
Automotive | $536 | $700 | $641 |
OEM & IP | $631 | $505 | $767 |
NVIDIA’s enterprise segments for the complete yr, FY2021’s winners and losers are usually the identical as This fall’s. Knowledge heart noticed the most important development by far for the complete yr, leaping 124% to only shy of $6.7B in income. As beforehand talked about a giant a part of that is how NVIDIA has rolled Mellanox’s merchandise into the section. However even performing some primary work to separate Mellanox’s contributions – based on NVIDIA, Mellanox contributed about 10% to the corporate’s FY2021 revenues – and that also has the compute aspect of the information heart enterprise rising by virtually 70%. The overwhelming majority of which, in flip, has been pushed by NVIDIA’s A100 accelerator, which was launched in Q2. NVIDIA has continued to ramp up A100 all through the fiscal yr, which has been mirrored of their ever-growing quarterly information heart outcomes.
In the meantime gaming was up “simply” 41%, to $7.8B for the yr. As with the information heart market, NVIDIA launched their next-generation Ampere elements to the gaming market over the previous a number of months, which has pushed the same old spike in demand as avid gamers improve and construct new programs. Ethereum mining undoubtedly performed a component in that as effectively, nonetheless NVIDIA isn’t in a position to meaningfully decide what the whole contribution there was. Going ahead, the matter is doubtlessly a major danger for NVIDIA, as when the Ethereum bubble pops, a whole lot of that GeForce RTX gaming {hardware} will enter the second-hand market; so NVIDIA is eager to keep away from one other crypto-hangover like 2018.
In any other case, NVIDIA’s OEM and IP enterprise was up 25% over 2020, which NVIDIA is primarily attributing to improved gross sales of entry-level laptop computer GPUs. All of the whereas skilled visualization and automotive are down for the yr as an entire, because of the beforehand talked about troubles from COVID in addition to the change in NVIDIA’s automotive product combine.
Lastly, looking forward to FY2021 and Q1, NVIDIA is coming into the yr on an optimistic observe. The corporate expects to ebook $5.3B in income for the quarter, with a gross margin of 63.8%.
In reality, the largest limitation to NVIDIA’s development alternatives over the yr is prone to be the continuing, industry-wide chip scarcity. Whereas NVIDIA isn’t making any significant projections for the complete yr, at the very least for the remainder of this quarter (Q1), the corporate is anticipating extra of the established order; which is to say that chip provides stay tight whereas demand stays excessive. For avid gamers specifically, NVIDIA is projecting that channel inventories for GeForce elements will stay low all through the quarter (even with tomorrow’s RTX 3060 launch). So for the second, there’s no signal that GeForce video playing cards can be any simpler to recover from the following couple of months.