NVIDIA’s fiscal year for 2017 ended on January 29, 2017, and for the fourth quarter and full year, NVIDIA reports they had record revenues. For Q4 2017, NVIDIA is reporting revenue of $2.173 billio.n, up 55% from a year ago. Gross margin came in at 60.0%, which is up 3.5% from Q4 2016. Operating income for the quarter was $733 million, up 191%, and net income was up 216% to $655 million. The very high growth in operating income and net income are even more impressive, since Q4 2016 was also a record for them at the time. NVIDIA reported $0.99 per share earnings for this quarter, up 183%.

NVIDIA Q4 2017 Financial Results (GAAP)
  Q4'2017 Q3'2017 Q4'2016 Q/Q Y/Y
Revenue (in millions USD) $2173 $2004 $1401 +8% +55%
Gross Margin 60.0% 59.0% 56.5% +1.0% +3.5%
Operating Income (in millions USD) $733 $639 $252 +15% +191%
Net Income $655 $542 $207 +21% +183%
EPS $0.99 $0.83 $0.35 +19% +183%

Even though 2016 was a record year for NVIDIA, 2017 was even better. NVIDIA reported record revenue of $6.91 billion for the full fiscal year 2017, which is up 38% from a year ago, and had a net income of $1.666 billion. Earnings per share for the year were $2.57. They also repurchased $739 million in shares over the last year, and paid $261 million in dividends.

The majority of NVIDIA’s revenue came from their Gaming segment, which includes their GeForce GPUs. The launch of Pascal has clearly been very successful, and for the quarter NVIDIA’s Gaming segment had revenues of $1.348 billion, up from $810 million a year ago. This is a gain of 66.4% year-over-year, on a market they were already at the top of. This quarter, they also launched the GeForce GTX 1050 and 1050 Ti mobile GPUs, and a new SHIELD TV, along with unveiling the GeForce NOW game streaming service.

Professional Visualization had much more modest growth, being up “only” 10.8% from last year, with revenues of $225 million for the quarter. They just launched the GP100 Quadro though, so it may have even more growth to come.

Datacenter has been a big focus from NVIDIA in diversifying their portfolio, and this quarter they had some announcements here as well, with a collaboration with Microsoft on the Microsoft Cognitive Toolkit, powered by Microsoft Azure cloud running on NVIDIA DGX-1 deep learning system. They unveiled the DGX SATURNV AI supercomputer, and partnered with the National Cancer Institute and US Department of Energy to build CANDLE to “advance cancer research”. The growth of NVIDIA’s Datacenter segment has been almost exponential, and it is now the second largest source of revenue for the company. For Q4 2017, NVIDIA reported $296 million in revenue from this segment, up from $97 million a year ago, or an increase of 205.1%.

NVIDIA has also diversified into Automotive with their Tegra lineup, after originally releasing it as a mobile SoC. This has also been a boon for the company, and they are now powering self-driving cars, and the infotainment systems of major manufacturers like Audi, and Mercedes-Benz, and they’ve partnered with Bosch on self-driving systems as well. This segment saw revenues of $128 million for the quarter, up from $93 million a year ago, or 37.6%.

Finally, the OEM and IP segment had revenues of $176 million, down from $198 million a year ago. Unfortunately NVIDIA has not gone into much detail about just why this is dropping, and how revenue from this category breaks down.

NVIDIA Quarterly Revenue Comparison (GAAP)
In millions Q4'2017 Q3'2017 Q4'2016 Q/Q Y/Y
Gaming $1348 $1244 $810 +8.4% +66.4%
Professional Visualization $225 $207 $203 +8.7% +10.8%
Datacenter $296 $240 $97 +23.3% +205.1%
Automotive $128 $127 $93 +0.8% +37.6%
OEM & IP $176 $186 $198 -5.4 -11.1%

For next quarter, NVIDIA is expecting revenues of $1.9 billion, plus or minus 2%, and gross margins between 59.5 and 59.7%.

The diversification of NVIDIA from a purely GPU company has clearly paid dividends, especially when their core market is doing as well as it is. The datacenter growth is clearly very high margin as well, considering the jump in net income for the quarter.

Source: NVIDIA Investor Relations

 

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  • Yojimbo - Friday, February 10, 2017 - link

    There are also people using 1080s for cryptocurrency mining. They might have an estimate of how large that market is but they probably still report it as gaming. Reply
  • testbug00 - Friday, February 10, 2017 - link

    Titan cards count as "gaming" segment last I checked. FWIW Reply
  • CiccioB - Friday, February 10, 2017 - link

    New Titan X has lost the GeForce mark, however, that identifies all gaming boards.
    It may be that they count is as Data Center, as Professional Visualization is not possible with it.
    Reply
  • testbug00 - Friday, February 10, 2017 - link

    CORRECTION: Nvidia 4Q2017 CFO commentary says that OEM/IP includes Intel payment.
    http://files.shareholder.com/downloads/AMDA-1XAJD4...

    "License revenue from our patent license agreement with Intel remained flat at $66 million for the fourth quarter and $264 million for fiscal 2017."

    AT TIME OF WRITING ARTICLE CLAIMS 4Q2017 DOES NOT HAVE Intel PAYMENT.
    Reply
  • Vatharian - Friday, February 10, 2017 - link

    I actually made enough on my nVidia stocks after that information, so I can afford to swap my 2x 1070 to 2x 1080. Way to go! Reply
  • Achaios - Friday, February 10, 2017 - link

    Ppl really beg NVIDIA to take their 1000 euros to buy a 0180.

    I frequently check the stocks of AMAZON.DE and AVIDES.DE, two of the biggest PC electronics retailers in Germany, and the 1080's are almost always nearly out of stock.

    We are talking about insane sales.
    Reply
  • Achaios - Friday, February 10, 2017 - link

    Meanwhile, it will take 6 months or more before we see the new VEGA GPU's on retail stores, so NVIDIA is looking at two more quarters of explosive profit margins and unbelievable profits, largely due to the monopoly they have and no competition. Reply
  • StrangerGuy - Sunday, February 12, 2017 - link

    Flame me if you want, but if you are NV in a market where volume is declining or stagnant...would you rather target the rich demographic more where $400+ is chump change for the best card and be labelled nGreedia, or would you rather sell more ~$150 Polaris cards to the fickle fanboys while losing money in the process?

    Simple math here.
    Reply
  • vladx - Friday, February 10, 2017 - link

    What a time to be a Nvidia shareholder. Reply
  • TelstarTOS - Friday, February 17, 2017 - link

    Results of their ripoff prices on GPUs. Reply

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