Nvidia boasts of record second quarter revenue

August 17, 2018 | 11:23

Tags: #financial #gaming-graphics #geforce #investors #jensen-huang #professional-graphics #quadro #revenue #tegra #tesla

Companies: #nvidia

Nvidia has released its latest financial report, but despite boasting of record revenue form all four of its primary business divisions and a whopping 40 percent increase year-on-year its share price has taken a hit based on lower-than-expected projections for the next quarter.

To say the second quarter of Nvidia's 2019 financial year was fantastic is an understatement: The company's latest earnings show a 40 percent increase in revenue year-on-year with the company having brought in $3.12 billion for the quarter, down just three percent from the quarter prior. 'Growth across every platform – AI, gaming, professional visualisation, self-driving cars – drove another great quarter,' crowed company founder and chief executive Jensen Huang during the earnings call. 'Fuelling our growth is the widening gap between demand for computing across every industry and the limits reached by traditional computing. Developers are jumping on the GPU-accelerated computing model that we pioneered for the boost they need.'

The company's full earnings report saw its cross margin slip 120 basis points quarter-on-quarter but grow 490 basis points year-on-year for a healthy 63.3 percent profit margin, leading to a net income of $1.1 billion for the quarter. The company's primary earner, gaming, grew 52 percent year-on-year to $1.8 billion in revenue, while the smaller data centre division grew a whopping 83 percent to $760 million. Lower growth figures of 20 percent and 13 percent were reported from the company's professional visualisation and automotive markets, which ended the quarter on $281 million and $161 million in revenue respectively.

Investors, though, appear unimpressed: Nvidia's share price has slipped 3.51 percent in pre-market trading, after dipping as low as six percent below market close, on release of the earnings, thanks largely to lower-than-expected projections for its third quarter revenue.

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