NVIDIAs quarterly revenue fell 21 to 605 billion while annual
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NVIDIA’s quarterly revenue fell 21% to $6.05 billion, while annual revenue was flat

NVIDIA released this week financial report not just for the fourth quarter, which ended on January 29 this year, but for the full fiscal year 2023, which also passed on the graphics solutions provider’s calendar. Fourth-quarter revenue and net income came in above analysts’ expectations, with the automotive and server businesses being the only areas where revenue grew.

    Image source: NVIDIA

Image source: NVIDIA

NVIDIA’s quarterly revenue fell 21% to $6.05 billion from an expected $6.0 billion. Earnings per share fell 33% year over year to $0.88 from an expected $0.81 . Consistently, quarterly revenue rose 2% and earnings per share rose 52%. Operating expenses increased 23% to $1.775 billion, operating income decreased 40% to $2.224 billion compared to the same period last year, net income decreased 35% to $2.174 billion, profit margin decreased 67% down to 66.1% is not bad in the current difficult economic conditions.

The company ended the full fiscal year with revenue of $26.974 billion, roughly in line with the prior period’s figure of $26.914 billion. In fact, revenue increased by $60 million. Profit margin for the year fell to 59.2% from 66.8%, operating expenses increased 31% to $6.925 billion, and operating profit fell 29% $9.04 billion and net income fell 26%. to $8.366 billion Total earnings per share for the year fell by a quarter to $3.34.

Incidentally, last quarter NVIDIA returned $1.15 billion to shareholders and paid out $10.44 billion for the full fiscal year, the same month they receive $0.04 per share.

    Image source: NVIDIA

Image source: NVIDIA

In the data center segment, NVIDIA generated $3.62 billion in revenue last quarter, growing 11% year over year and growing 6% sequentially. At the end of the year, the company’s revenue from this line of business grew 41% to a record $15.01 billion. According to Colette Kress, the company’s CFO, NVIDIA owes the positive server revenue momentum to the American cloud giants, but demand in China fell.

Overall, computing and networking solutions brought in $3.673 billion for NVIDIA last quarter, up 14% year over year. Graphics solutions reduced revenue by 46% to $2.378 billion, making it arguable that NVIDIA’s graphics segment got less than 40% of total quarterly revenue.

Direct gaming solutions reduced revenue by 46% year over year to $1.831 billion but increased it by 16% sequentially. As Colette Kress explained, consumer interest in new solutions from the Ada Lovelace family had an impact on the latter, although components for game consoles showed a negative trend. In fact, NVIDIA generated just over 30% of all quarterly revenue from the gaming segment. Выручка в сегменте профессиональной визуализации в прошлом квартале сократилась на 65 % до $226 млн, а вот на автомобильном направлении выросла на 135 % до $294 млн. Данный вид бнеса оказался единственным кроме сегмента цод, который покалолоimes equipment до го jects, At OEM & Other, NVIDIA’s fourth-quarter revenue fell 56% to $84 million.

    Image source: NVIDIA

Image source: NVIDIA

At the end of the year, NVIDIA grew its revenue from the sale of computing and networking components by 36% to $15 billion, while graphics solutions brought in $11.906 billion — down a quarter from a year earlier. If in the server direction annual sales grew by 41%, then in the automotive segment by 60%, although in absolute terms it still cannot reach $1 billion and remains at the $903 million level.

NVIDIA’s gaming revenue declined 27% year over year to $9.067 billion, with its professional visualization segment down 27% year over year to $1.544 billion in fiscal 2022, with revenue from sales of specialized CMP accelerators for mining $550 million, then those revenues were negligible through the end of fiscal 2023. The main driver of the negative momentum in the OEM sector was the low demand for laptops.

For the current quarter, NVIDIA expects revenue of up to $6.50 billion, an operating margin of 66.5%, and operating expenses of $1.78 billion 1 or $1.3 billion.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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