This afternoon NVIDIA announced record revenue for their fiscal year 2015 quarter three, which ended October 26th of this year. For those that do not follow financial data, fiscal years and calendar years are only the same in that they have twelve months. NVIDIA has the fiscal year that is the most out of sync with the calendar year of the tech companies we cover. With that housekeeping out of the way, we can get to the meat of the data. NVIDIA has had a very strong Fiscal Year (FY) 2015 so far, with a Q3 revenue of $1.23 billion, which is up 16% year-over-year. Revenue for the FY so far is also a record at $3.43 billion, up 15% over the end of Q3 last year.

Gross margin for Q3 was 55.2%, down 0.2% from last year and 0.9% since last quarter. Operating expenses were up 5% at $463 million, and net income was up significantly at $173 million. The net income gains are 35% sequentially, and 45% year-over-year. Earnings per share came in at $0.31, up 41% from last quarter and 55% from last year. The beat analyst’s expectations of $0.29 per share.

NVIDIA Q3 2015 Financial Results (GAAP)
In millions except EPS Q3'2015 Q2'2015 Q3'2014 Q/Q Y/Y
Revenue $1225 $1103 $1054 +11% +16%
Gross Margin 55.5% 56.4% 55.7% -0.9% -0.2%
Operating Expenses $463 $456 $443 +2% +5%
Net Income $173 $128 $119 +35% +45%
EPS $0.31 $0.22 $0.20 +41% +55%

During Q3, NVIDIA paid $46 million in cash dividends, and purchased back 16.8 million shares under a $310 million repurchasing agreement. NVIDA has paid $140 million in dividends so far this fiscal year, and repurchased 44.2 million shares, which results in $950 million returned to shareholders through the first three quarters of FY 2015. They stated their intention is to return an additional $600 million in FY 2016.

For shareholders on record as of November 21st, NVIDIA will pay a quarterly dividend of $0.085 per share on December 15th.

NVIDIA Quarterly Revenue Comparison (GAAP)
In millions Q3'2015 Q2'2015 Q3'2014 Q/Q Y/Y
GPU $991 $878 $877 +13% +13%
Tegra Processor $168 $159 $111 +6% +51%
Other $66 $66 $66 flat flat

NVIDIA launched the new Maxwell based GeForce GTX GPUs during the last quarter, which have proven to be a solid performer in our testing. GPUs continue to be the largest revenue generator for NVIDIA, and with the latest product launches revenue for the GPU unit is up 13% year-over-year and quarter-over-quarter. GeForce branded GPU revenue was up 36% based on the continued strength of PC gaming. Within the gaming segment, gaming notebook sales with NVIDIA inside more than doubled as compared to a year ago. Also in the GPU segment is the Tesla GPUs and GRID for high performance computing and datacenter GPU functions, and while exact numbers were not released, NVIDIA stated they had strong grown in this sector, with another record quarter for revenue for Tesla driven by “large project wins with cloud service providers and government customers.” The final piece of the GPU pie is Quadro. Once again, they do not break down the individual GPU segment numbers, but NVIDIA stated Quadro revenue remained strong for the quarter.

Tegra processors sales grew 51% year-over-year, which design wins in automotive infotainment being a strong part of this. NVIDIA said that over six million vehicles on the road have infotainment systems that are powered by NVIDIA processors. Automotive infotainment system revenue nearly doubled year-over-year. On the mobile side, they have also launched the K1 for tablets including the NVIDIA SHIELD and the just released Google Nexus 9. Chromebooks are also finding use for the K1.

The final piece of revenue for NVIDIA is a $66 million licensing agreement with Intel.

For Q4 2015, the outlook is revenue of $1.20 billion, plus or minus 2%. Margins are expected to come in between 55.2% and 55.5%, plus or minus 50 basis points. Operating expenses will be approximately $470 million (GAAP), and a tax rate for Q4 at about 18% plus or minus 1%.

This has been a great year for NVIDIA, with their diversification into mobile starting to get them some product wins, but more importantly for their bottom line they have seen an explosion of growth in the automotive sector. The GPU business also has a great lineup at the moment, especially with the Maxwell GTX lines. The doubling of gaming laptop sales is also great for the PC industry, and helps us understand why we have seen a plethora of new devices announced. Assuming NVIDIA keeps up its record pace for Q4, FY 2015 will be a benchmark for them in the future.

Source: NVIDIA

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  • twin - Thursday, November 06, 2014 - link

    return an additional $600 million in FY 2106. Reply
  • Brett Howse - Thursday, November 06, 2014 - link

    Hopefully they are still around :) Fixed Reply
  • dgingeri - Thursday, November 06, 2014 - link

    Here's a company I'd like to work for, instead of the sinking ship I'm stuck on now. Reply
  • Samus - Thursday, November 06, 2014 - link

    Something tells me nVidia would be a very stressful environment, especially if you're talking as an engineer. Reply
  • HighTech4US - Friday, November 07, 2014 - link

    Wrong company. AMD is where the very stressful environment is especially with the 7% layoffs coming before year end. Reply
  • rodis - Thursday, November 06, 2014 - link

    Woohoo! TheJian's getting a pay raise! /s Reply
  • TheJian - Friday, November 07, 2014 - link

    ROFL. I don't work for any TECH company I comment on, though I work in IT. That said I buy shares of many companies in TECH. Too bad you seem to miss the point of my posts (make money on my data/comments). You'd be making money on NVDA if you listened...LOL.

    Good to see you have no point or argument to make against my comments and the most you can muster is a personal attack. You're merely validating my posts ;)

    https://commons.wikimedia.org/wiki/File:Graham%27s...
    Come back when you can make it into the top 3 levels of the chart ;)
    Reply
  • BMNify - Thursday, November 06, 2014 - link

    Nice to read this after all the gamers are dead articles on many gaming websites: "The doubling of gaming laptop sales is also great for the PC industry, and helps us understand why we have seen a plethora of new devices announced." Reply
  • Pwnstar - Friday, November 07, 2014 - link

    Those articles were written by butt hurt social justice warriors, so it obviously had no basis in reality. Reply
  • jjj - Thursday, November 06, 2014 - link

    "Earnings per share came in at $0.31.... The beat analyst’s expectations of $0.29 per share."
    Expectations are almost always for non-GAAP so Nvidia had 0.39 EPS vs 0.39 expectations.

    Anyway,, the GPU part is strong and expected (and likely some 4 times more than AMD, AMD GPU excluding APUs must be close to 250 million revenue in Q3) but Tegra is not doing well and some of your statements on it are not accurate at all. Tegra segment went from 159 mil to 168mil and that would be low but acceptable IF it wasn't for the Shield Tablet. They didn't really had any revenue form in in Q2 so it's all Q3. Plus it's high ASP with 300$ starting price but when you factor in the LTE version and accessories the ASP is 330-350$. Sure they had shortages but when you look at revenue it's like Shield is not even there at all. And Tegra is losing money overall, has lower margins and the auto segment doesn't have better pricing. You can find out how much Tegra is losing in their 10Q SEC fillings.
    In Q1 Tegra revenue was 139 mil and op loses some 61 mil i think. No clue about Q2 while Q3 data is not yet available but in 2013 op loses were 268 millions and in the previous 2 years they had a small positive op income.
    Tegra really needs to do a lot better and they need to address more segments if they want to survive in consumer mobile.They need to integrate the Icera modem yesterday ,maybe address the lower end too and glasses. Right now they just don't have any share in mobile. 1.3 billion smartphones this year and over 200 million tablets and they don't even have 1% of that. Qualcomm in calendar 2015 should ship about 1 billion MSM (and that is if they lose a bit of share in the lower end) at 20$ or slightly above ASP for some 20B revenue (they also make money from licenses so total revenue is more).Nvidia really needs to get to at least 1 billion Tegra revenue per year from a financial point of view but that's not really enough to stay relevant since it would still be no significant share.
    Sure they could give up on consumer and focus on robotic navigation maybe but doubt they want to do that for now.
    Reply

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