NVIDIA this week released results for the fourth fiscal quarter, which ended Jan. 30 on its calendar, as well as full year 2022, which also ended on its reporting schedule. Record sales were achieved in the server and gaming segments and in the market for professional visualization solutions.
As NVIDIA founder Jensen Huang explained at the quarterly reporting event, the company is entering the new year with a strong performance across all areas of operations, including AI, Omniverse, and DRIVE software business models. He promised that in the upcoming 2023 fiscal year, the company will launch many new products and applications and name many new names of its computing platform partners.
The company’s quarterly revenue rose 53% year over year to a record $7.64 billion, up 8% sequentially. The return has steadily increased from 65.2% to 65.4%. Operating expenses increased 23% year over year to $2 billion and operating income nearly doubled to $2.97 billion. Net income increased 106% to $3 billion and earnings per share rose proportionately to $1.18.
NVIDIA’s quarterly graphics revenue grew 45% to $4.42 billion and remains the company’s main source of revenue, though its server segment grew 66% to $3.23 billion last year, according to data center solutions impressive growth (+71%) and approaching that category in revenue ($3.26 billion). Solutions for professional visualization brought NVIDIA twice as much revenue as in the previous year – $643 million supply of equipment for professional miners brought the company 25% more revenue than last year – $192 million.
If we look at all of last fiscal 2022, NVIDIA’s total revenue rose 61% to $26.9 billion and its profit margin rose to 64.9% from 62.3%. As with the quarterly results, operating income growth (122%) offset an increase in operating expenses (27%), lifting the company’s net income by 125% to $9.75 billion.
For the full year, the implementation of graphics solutions brought NVIDIA about $15.9 billion, which is 61% more than the results of the previous reporting period, increased proportionally to $11 billion and income from the sale of computer and network components . Gaming revenue also rose 61% to $12.5 billion, while NVIDIA’s data center solutions generated just over $10.6 billion for the full fiscal year. Professional graphics doubled sales to $2.1 billion, the automotive segment grew 6% to $566 million, and the OEM and mining business surged 84% at once, boosting core sales to 1.16 billion dollars.
NVIDIA CFO Colette Kress emphasized that almost all Ampere-generation desktop GPUs that the company launches are LHR protected, which should theoretically make it easier for gamers to access. In the desktop segment, quarterly sales set a new record, as did the notebook segment. Directly specialized CMP accelerators for cryptocurrency mining brought NVIDIA no more than $24 million in the fourth quarter, which is significantly less than the $105 million in the previous quarter. In general, CMP series solutions brought NVIDIA about 550 million dollars in sales for the year.
The collapse of the arm deal would force NVIDIA to write off $1.36 billion in operating expenses for the current quarter, including SoftBank’s forfeiture. According to the head of NVIDIA, all necessary efforts were made to complete the transaction, but there were too many obstacles. The company will continue to advance its own Arm architecture processors in the fields of robotics and autonomous vehicles, cloud computing and supercomputing.
In the current quarter, the company expects to raise $8.1 billion and grow its profit margin to 65.2, or 67%. Attempts to address component shortages, which NVIDIA is expected to alleviate in the second half of the year, forced the company to increase upfront payments under contracts with suppliers to $9 billion last year, up from $2.54 billion previously -Dollar with each subsequent quarter Jensen Huang, the situation in component availability will improve. Under current conditions, the company is forced to plan deliveries several quarters in advance.
Quarterly earnings beat analyst expectations both overall and in the gaming business, but investors were still disappointed by NVIDIA’s financials, causing the company’s stock price to fall a few percent after the close. Some of the analysts are concerned about the high dependence of NVIDIA’s earnings on the cryptocurrency market, others are confused about the lack of progress in returns against the background of positive dynamics in other financial indicators.