Nvidia quadruples year-on-year profits in its FY 2017 second quarter

Nvidia has announced its financial results for the second quarter of its fiscal 2017. The company took in revenue of $1.43 billion, up 24% from a year ago, and its operating income of $317 million this quarter more than triples its profit from a year ago. Here's a quick tabulation of the results:

  Q2 FY 17 Q2 FY 16 Change
Revenue $1.43 billion $1.15 billion up 24%
Operating expenses $509 million $558 million down 9%
Operating income $317 million $76 million up 317%
Net income $253 million $26 million up 873%
Gross margin 57.9% 55% up 2.9%
Diluted EPS $0.40 $0.05 up 700%

Nvidia said that its strong results come from strong demand for its Pascal graphics cards, as well as "surging interest in deep learning." Within just this one quarter, the company introduced the GeForce GTX 1080, the GTX 1070, the GTX 1060, and the Pascal-powered Titan X. The company also took Pascal to graphics professionals with the Quadro P6000 and made waves in the data center with its Tesla P100 compute card.

For its next quarter, Nvidia expects revenue of $1.68 billion, plus or minus two percent, and it expects GAAP gross margin of 57.8%.

Comments closed
    • ptsant
    • 3 years ago

    Deep learning is very, very fashionable right now. Elon Musk, Google, Microsoft, Apple, researchers etc are working on AI. Some of these players would spend 1 billion without blinking.
    nVidia is deeply (pun intended) embedded in the deep learning computing with their libraries and neural-network specific extensions. I wonder, what proportion of these profits can be attributed to cards for deep learning, instead of gaming?

    BTW, I personally know a researcher who got a Titan for free from nVidia for his neural network research just by asking for it with a copy of his CV.

    • DPete27
    • 3 years ago

    Revenue up 24%, Net Income up 873% how does that work if Gross Margin is only up 3%?

      • pranav0091
      • 3 years ago

      Because they are not the same thing?

      Net income is whats left after everything’s been taken away – if your other-expenses are different across quarters for any reason – here due to the Icera writedown from the same quarter last-year – then you are going to see some major upheavals in the financial numbers.

    • Bensam123
    • 3 years ago

    Flavor of choice for Miners right now and it shows… I’m sure AMDs numbers are going to be pretty good too as the 480 and 470 are in quite high demand as well.

    • benedict
    • 3 years ago

    317% up is more than quadruple profits. Triple would be 200%.

      • Jeff Kampman
      • 3 years ago

      Oh, jeez. I’m a dunce.

    • DPete27
    • 3 years ago

    2017 you say? Wow. Nvidia is almost a year ahead of the rest of the world. No wonder AMD can’t keep up.

      • tipoo
      • 3 years ago

      Every single financial quarter article has one comment like this, lol

      • Mad_Dane
      • 3 years ago

      Welcome to the fiscal financial world.

    • killadark
    • 3 years ago

    Ngreedia “the WAY it’s meant to be paid”

      • K-L-Waster
      • 3 years ago

      Yes, because making products people actually want to buy is a horrible thing to do.

      • tipoo
      • 3 years ago

      How do you turn not making money into good products? Why is it Samsung and Apple were the first to better phone SoCs and storage interfaces better than eMMC?

        • K-L-Waster
        • 3 years ago

        Well, not turning a profit makes you “the good guys” and the good guys always win, right? In the last 15 minutes of the movie when it all looks hopeless someone has a crazy brilliant idea and the whole team does something stylishly heroic and they win!!1!

        Or something like that….

    • Chrispy_
    • 3 years ago

    They bet on TSMC.
    It paid off.

      • tipoo
      • 3 years ago

      The other tied one of their legs to one of GloFos in a wafer silicon agreement. Until 20 frickin 24.

      Thanks, Hector!

      • pranav0091
      • 3 years ago

      Thats downplaying the effort from the folks here at Nvidia.
      You don’t get them megahertz for free, sir 🙁

      <As obvious from this post, I work at Nvidia, but my opinions are only personal>

        • tipoo
        • 3 years ago

        Better architecture plus better fab, of course. TSMC vs Glofo isn’t all there is to Pascal vs Polaris, but it’s a part. I do wonder how much AMDs efficiency gap would close with TSMC.

    • alrey
    • 3 years ago

    Machine learning effect.

    • lilbuddhaman
    • 3 years ago

    its good to be the king

    • yogibbear
    • 3 years ago

    All hail our overlord Jen!

    • tipoo
    • 3 years ago

    Was listening live. A question went a lot like this.

    Guy: So any Tegra wins recently? Not automotive.
    Jen-Hsun: SWERVE. And a bunch of automotive bull.

    Approximately. Maaaybe I’m reading into it but it sounded like he was avoiding talking about something he shouldn’t with all the stumbling and repeating he did there. Namely, NX.

      • tipoo
      • 3 years ago

      [url<]https://pbs.twimg.com/media/CpoxayfUMAARuwt.jpg[/url<]

    • Tristan
    • 3 years ago

    Pascal is strong boost, brought serious profit despite that it is on sale only 2 months. Mounts of money before NV.

      • jihadjoe
      • 3 years ago

      I wonder how much of those Pascal profits come sales of the $129k DGX-1.

      • beck2448
      • 3 years ago

      Even Tegra was UP 30% year over year. Data center over 100%. Strong guidance for next quarter. Those shorts are really getting squeezed.

    • TwoEars
    • 3 years ago

    Part of me wish they could have returned some of that cash to us consumers in the form of lower prices. Another part of me is excited to see what kind of products will come in the future, they should have a pretty healthy R&D budget to play with!

      • Srsly_Bro
      • 3 years ago

      Shun those who would redistribute wealth to the undeserving!

        • Voldenuit
        • 3 years ago

        *Hsun.

      • drkskwlkr
      • 3 years ago

      [quote<] Part of me wish they could have returned some of that cash to us consumers in the form of lower prices.[/quote<] Naaah, that's what AMD has been doing with GPUs and CPUs for quite some time now and see how good it works for them. Making healthy profit by selling products which are not a life saving necessity and whose usage and pricing is not regulated by the government is a great thing; it means folks like you and me recognize the value of the product and buy it because we want to and not because we have to. Ah, and if you really want return on the money earned by Nvidia, why not buy some of their stock 😉

      • tipoo
      • 3 years ago

      I think you answered your own pondering there, Nvidia is good at making money, which then becomes more R&D and more capital to take risks and more room to hire the best people. AMD, not so good at making money, which is why we have a GCN evolution competing with Pascal.

    • LocalCitizen
    • 3 years ago

    ignore the numbers. we all know pc is dead. all going to zero.

      • Srsly_Bro
      • 3 years ago

      RIP

    • chuckula
    • 3 years ago

    Yeah so all those people who claimed Pascal was a paper launch: you were right.

    It was a paper launch consisting of a metric crapton of green rectangular stacks of paper bearing Benjamin Franklin’s portrait.

      • beck2448
      • 3 years ago

      The pompous naysayers were 100% wrong, but what else is new?

      • Pancake
      • 3 years ago

      Thanks for nothing. There’s Coke Zero all over my keyboard now.

      • Klimax
      • 3 years ago

      Well, it’s both GREEN all the way!

      • K-L-Waster
      • 3 years ago

      Post claiming it’s all accounting tricks pre-booking expected revenue and *no one* has received a *single* pascal card incoming in 3, 2, 1….

        • kilkennycat
        • 3 years ago

        Well, I received mine on June 3. Probably helped contribute to nV Q2 profit 🙂 🙂
        And availability is rapidly improving anyway cf: B&H currently (Aug 13 pm) have both evga GTX1080 and GTX1070 Founders in stock at nVidia MSRPs with free shipping…. Hopefully those 3rd party sellers on Amazon, Newegg, Ebay etc. with inflated prices will not have any gullible buyers.

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