01—Abstract
Summary
Summary of the 10-Q filed May 23, 2017. Cited figures are marked; the original filing is the authoritative source.
NVIDIA Corporation reported strong financial results for the first quarter of fiscal year 2018, ending April 30, 2017.
Revenue surged by 48% year-over-year to $1.94 billiona, driven primarily by a significant 45% increase in the GPU business and a remarkable 108% jump in the Tegra Processor business. The company's net income more than doubled, reaching $507 million, translating to a diluted EPS of $0.79, up from $0.35 in the prior year period. This robust performance was fueled by exceptional demand in the datacenter segment, up 186% year-over-year, and continued strength in gaming, along with contributions from the Nintendo Switch via the Tegra processor.
NVIDIA's financial health remains strong, with $6.21 billionb in cash, cash equivalents, and marketable securities. The company continues to prioritize capital returns to shareholders, planning to return $1.25 billion through dividends and share repurchases in fiscal year 2018. Despite a sequential dip in revenue from the prior quarter, the year-over-year growth indicates strong underlying momentum, particularly in high-growth areas like AI and gaming.
02—Key points
Key Highlights
- Revenue increased by a substantial 48% year-over-year to $1.937 billion.
- Net income more than doubled, rising from $208 million to $507 million.
- Diluted earnings per share (EPS) significantly increased from $0.35 to $0.79.
- The GPU business saw a 45% year-over-year revenue increase, with Datacenter revenue up an impressive 186%.
- The Tegra Processor business more than doubled its revenue year-over-year, growing by 108%, partly due to the Nintendo Switch.
- Operating expenses increased by 18% year-over-year, reflecting investments in growth initiatives.
- The company maintained a strong liquidity position with $6.21 billion in cash, cash equivalents, and marketable securities.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2018, NVIDIA Corp kept $0.26.
- Revenue$1.94B100.0%
- Cost of revenue−$787.0M40.6%
- Gross profit$1.15B59.4%
- Operating costs−$596.0M30.8%
- Operating income$554.0M28.6%
- Interest, other & tax−$47.0M2.4%
- Net income$507.0M26.2%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2018filed May 23, 2017Financial Statements
| Revenue | $1.94B |
| Cost of Revenue | $787.00M |
| Gross Profit | $1.15B |
| R&D Expenses | $411.00M |
| SG&A Expenses | $185.00M |
| Operating Expenses | $596.00M |
| Operating Income | $554.00M |
| Interest Expense | $16.00M |
| Net Income | $507.00M |
| EPS (Basic) | $0.02 |
| EPS (Diluted) | $0.02 |
| Shares Outstanding (Basic) | 23.68B |
| Shares Outstanding (Diluted) | 25.64B |
05—Questions
Frequently Asked Questions
What was NVIDIA's revenue performance in Q1 FY2018 compared to Q1 FY2017?
NVIDIA's revenue grew significantly by 48% year-over-year, from $1.305 billion in Q1 FY2017 to $1.937 billion in Q1 FY2018. This growth was broad-based, with the GPU business up 45% and the Tegra Processor business up 108%.
How did NVIDIA's profitability change during this period?
Profitability saw a dramatic improvement. Net income more than doubled, increasing from $208 million in Q1 FY2017 to $507 million in Q1 FY2018. Consequently, diluted EPS grew from $0.35 to $0.79.
What are the key drivers behind the strong year-over-year revenue growth?
The primary drivers were the GPU business, particularly strong performance in Datacenter (up 186%) driven by AI and deep learning demand, and Gaming (up 30%). The Tegra Processor business also saw substantial growth (up 108%), including contributions from the Nintendo Switch platform and the automotive sector.
What is NVIDIA's financial position in terms of liquidity?
NVIDIA maintained a strong liquidity position, with $6.21 billion in cash, cash equivalents, and marketable securities as of April 30, 2017. This provides ample resources for operations, investments, and capital returns.
06—Continue