NVIDIA Q1 FY2015 Financial Results
by Brett Howse on May 8, 2014 10:00 PM EST
This afternoon NVIDIA announced their quarterly earnings for Q1 2015. Overall GAAP revenue came in at $1.1B, up 16% year over year and down 4% sequentially. Gross margin was up slightly to 54.8%, up from 54.3% from Q1 2014, and up 0.7% from the previous quarter.
Most impressive of the numbers was the rise in net income, up 75% from Q1 2014 and coming in at $137M. Operating expenses were relatively flat sequentially, but up 4% from a year ago. This lead to an Earnings Per Share (EPS) of $0.24, an 85% increase from Q1 2014, although down $0.01 from last quarter. Non-GAAP EPS came in at $0.29, handily beating the analysts’ estimates of $0.17.
| NVIDIA Q1 2015 Financial Results (GAAP) | |||||
| In millions except EPS | Q1'2015 | Q4'2014 | Q1'2014 | Q/Q | Y/Y |
| Revenue | $1103 | $1144 | $955 | -4% | +16% |
| Gross Margin | 54.8% | 54.1% | 54.3% | +0.7% | +0.5% |
| Operating Expenses | $453 | $452 | $436 | flat | +4% |
| Net Income | $137 | $147 | $78 | -7% | +75% |
| EPS | $0.24 | $0.25 | $0.13 | -4% | +85% |
| NVIDIA Q1 2015 Financial Results (Non-GAAP) | |||||
| In millions except EPS | Q1'2015 | Q4'2014 | Q1'2014 | Q/Q | Y/Y |
| Revenue | $1103 | $1144 | $955 | -4% | +16% |
| Gross Margin | 55.1% | 53.8% | 54.6% | +1.3% | +0.5% |
| Operating Expenses | $411 | $408 | $396 | +1% | +4% |
| Net Income | $166 | $187 | $114 | -11% | +46% |
| EPS | $0.29 | $0.32 | $0.18 | -9% | +61% |
The GPU business is still the dominant division of NVIDIA, coming in at over 81% of the company’s entire revenue with $898M. GPU sales were strong for Q1, with revenue up 14% year over year, but down from Q4 2014. Most impressively, GeForce GTX GPUs for both desktops and notebooks grew 57% with strong demand for the newly released GTX 750 which is the first GPU based on Maxwell. NVIDIA stated that demand was strong in all markets for Desktop GPUs, and high-end notebook GPU volume also grew, but overall notebook GPU revenue was down. NVIDIA stated the seasonal decline in the desktop market more than offset the GTX GPU sales, contributing to the quarter over quarter decline.
Also on the GPU side, Quadro revenue increased with demand from all major OEM desktop and mobile workstation vendors. GRID sales were strong, and Tesla was also up. Tesla and GRID revenue increases was attributed to GPU acceleration opportunities, VDI deployments supporting Citrix, and streaming gaming providers.
Tegra Processor sales, which account for 12.6% of revenue, were up 35% year over year, and unlike GPU sales they were also up quarter over quarter 6%. The strong quarter for Tegra was attributed to a volume increase for smartphone and auto infotainment systems, but Android tablet SoCs were down partially offsetting the revenue gains. Automotive systems was up a healthy 60% year over year. Game consoles and embedded devices were down from Q1 2014, but the sequential growth of the Tegra division was attributed to the strong auto infotainment and embedded devices, so while embedded is down year over year, it’s recovered somewhat from the previous quarter.
NVIDIA has one other source of revenue which it reports on, which is $66M from patent license agreements with Intel.
| NVIDIA Quarterly Revenue Comparison (GAAP) | |||||
| In millions | Q1'2015 | Q4'2014 | Q1'2014 | Q/Q | Y/Y |
| GPU | $898 | $947 | $786 | -5% | +14% |
| Tegra Processor | $139 | $131 | $103 | +6% | +35% |
| Other | $66 | $66 | $66 | flat | flat |
NVIDIA is projecting their Q2 revenue will be flat at $1.1B plus or minus 2%.
Overall it was a good quarter for NVIDIA. The strong demand for their new Maxwell GPUs. NVIDIA’s share of notebook computers is the highest since 2010. Although uptake of the Tegra 4 has been slow in tablets, NVIDIA has seen growth in Smartphone adoption as well as a strong automotive presence which is becoming more important with the growth in automotive infotainment systems in every single automotive brand. I’m sure they are hoping for some design wins with the Tegra K1, which looks like a nice upgrade over the Tegra 4, however there was no mention of it in the earnings release. We still have a few months for them to hit their target for the first half of 2014.
Source: NVIDIA
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testbug00 - Saturday, May 10, 2014 - link
Gee, NVidia's claims sure are pretty. Now, here is what Nvidia has talked about "GPU is over 900Mhz, over 350GFLops (or whatever it is) and the CPU is 2.3Ghz"What clockspeed did they give for 5W? Considering Kepler was designed to be an approx 25-250W architecture from the start, the fact they scaled it so low IS AMAZING, however, I would guess it runs at around 500Mhz MAX at "5W"
Also, 5W is still to much for most phones.
My information about WHEN you can use the IP is fine (Although, it is not good)... About how you can change it, I am not sure. HOWEVER 28nm will be cheaper per transistor than 20nm for quite some time... Nvidia is not shrinking Kepler to 20nm, you would have to yourself... that costs lots of money, if Nvidia would even allow you to (I do not see why they would, they are the ones who said that 20nm costs will not be lower than 28nm...)
tuxRoller - Friday, May 9, 2014 - link
At the desktop, sure, but this is a different environment. That's my point. If performance has to keep improving, NEW solutions are going to have to be created, and I'm not sure that Maxwell is going to fix that at the 1-3W level For one thing, Nvidia is running their ultramobile gpus at relatively high speeds (compared to most of the others---the highest clocked adreno part runs at 578 compared to the tk1 850).ams23 - Friday, May 9, 2014 - link
That is not true at all. Tegra is a growing business and will continue to grow in various areas. The Tegra consumer revenue and Tegra gaming revenue will keep going up this year and next year and will be larger than Tegra automotive revenue, even as Tegra automotive revenue goes way up too.Tegra 4/4i family was used not just by Xiaomi but also by very reputable OEM's such as Asus, Toshiba, LG, ZTE, Microsoft, HP, EVGA, Wiko (among others). Considering how good Tegra K1 appears to be, I'd say that this list will keep expanding to include other significant OEM's who are looking to differentiate their devices.
beck2050 - Friday, May 9, 2014 - link
Nvidia continues to make good profits in a challenging environment and they have established very promising new revenue streams in supercomputing, autos, and cloud. K1 has tested very well and could be a big winner going forward. The GRID products for data centers are looking good. The next 20nm generation should be awesome.testbug00 - Friday, May 9, 2014 - link
find me an LG with Tegra 4 or higher.Find me a Samsung with Tegra 4 or higher.
Find me a HTC with Tegra 4 or higher
Find me almost any large mobile OEM that uses Tegra 4.
Xiaomi is the only large mobile phone company to use Tegra 4. That is because NVidia blatantly lied about Tegra 2 and Tegra 3 to mobile OEMs so no one buys it anymore. I also doubt that Xiaomi is paying full price for Tegra 4... I could be wrong however."
Also, once more, Tegra K1 uses over 10W (nvidia says <11, see: https://pbs.twimg.com/media/Bl8_-GCCcAABW8r.jpg) without reaching full load. How far do you think it has to downclock to be in a phone without killing the battery life?
testbug00 - Friday, May 9, 2014 - link
note: the imagine is full of typos, but, it is legit: https://twitter.com/ProfMatsuoka/status/4591574225...michael2k - Friday, May 9, 2014 - link
Um, the LG G2 mini LTE is being released with the Tegra 4i.The problem with your assertion is that there are very few large mobile OEMs right now; LG, Samsung, Huawei, and Apple, with Samsung and Apple making over 45% of the phones out there with their own SoC. The #3 OEM is Huawei at just shy of 5%.
phoenix_rizzen - Friday, May 9, 2014 - link
Note: Tegra 4i uses Cotex-A9 CPUs, not the Cortex-A15s in the full-fledged Tegra4. The GPU is also fairly different. The Tegra 4i is closer to a speed-boosted Tegra3 than a full-fledged Tegra4.michael2k - Friday, May 9, 2014 - link
The A15 is power constrained, so I'm not sure it's at much of an advantage to the A9r4 seen in the Tegra 4i, especially in a smartphone.testbug00 - Friday, May 9, 2014 - link
Tegra 4i is a great chip. Best Tegra chip yet... to bad so few phones have it :(Still, Tegra 4i IS NOT Tegra 4.