Nvidia reports record-breaking revenue in fiscal Q2 2018

Nvidia put its earnings report for the second fiscal quarter of 2018 on the table yesterday. As one might expect given the company's dominance of the profitable high-end gaming sector and the money-printing GPU compute market, the company's financials were up across the board compared to last year. Reported revenue was a company-record $2.23 billion, up 56% from $1.43 billion in Q2 2017. Operating income saw even larger boosts, displaying a Q2 2018 figure of $688 million, 117% higher than the same period a year ago. The company reported GAAP gross margins of 58.4% and GAAP margins of 58.6%, both representing a 0.5% increase year-over-year, but also a quarterly drop. Nvidia's CFO commentary says this drop is the result of the end of a licensing deal with Intel.

As one might expect, the GPU segment was responsible for the lion's share of revenue, raking in $1.90 billion dollars during the quarter. This represents a 59% jump from the $1.20 billion in the same period in the 2017 fiscal year. The company's Tegra business saw almost no movement in revenue compared to last quarter, but the $332 million figure is still just over double what the unit saw in Q2 2017.

($ in millions) Q2 2018 Q1 2018 Q2 2017 Q/Q Y/Y
GPU business $1897 $1562 $1196 +21% +59%
Tegra processor business $333 $332 $166 +0% +101%
Other $43 $66 -100% -100%
Total $2230 $1937 $1428 +15% +56%

Breaking the figures down by business platform, gaming is still the company's revenue cash cow, raking in $1.19 billion of the $2.23 billion total. The datacenter division is responsible for the most year-over-year growth, though. The OEM and IP business showed the most noticeable quarterly revenue increase.

($ in millions) Q2 2018 Q1 2018 Q2 2017 Q/Q Y/Y
Gaming $1186 $1027 $781 +15% +52%
Professional visualization $235 $205 $214 +15% +10%
Datacenter $416 $409 $151 +2% +175%
Automotive $142 $140 $119 +1% +19%
OEM and IP $251 $156 $163 +61% +54%
Total $2230 $1937 $1428 +15% +56%

Nvidia had a number of high-profile product announcements during the past quarter. The company introduced its Tesla V100 GPU accelerator and a group of related products for the datacenter and announced partnerships with Volkswagen and Baidu. The big news for the quarter in the gaming sector was the announcement and availability of its Max-Q initiative for thin gaming laptops. The company also touted new technologies in professional visualization, automotive, and edge computing in its earnings press release.

All of this wasn't enough to impress Wall Street, as the company's stock value dropped in the wake of the earnings report. Uncertainty about the future of cryptocurrency and its role in Nvidia's earnings were reported to having played a role in the decrease in share price. Additional information is available in Nvidia's press release and CFO commentary.

Comments closed
    • ronch
    • 2 years ago

    Intel and Nvidia sure keep breaking their records.

    • mcarson09
    • 2 years ago

    Looking like my next card will be Nvidia again too.

    • derFunkenstein
    • 2 years ago

    I gotta say, I know Apple dwarfs a lot of these numbers, but even these dollar figures are mind blowing. The Tegra line brought in more in this, their “Q2 2018” than my employer did for the April-June quarter this year across the entire company (which was also a record for us). It’s specialized hardware vs specialized software subscriptions, so it’s not a direct comparison, but I can’t even fathom or imagine what our sales would look like in actual dollars, let alone Nvidia’s revenues.

    • AMDisDEC
    • 2 years ago

    NVIDIA has the second best CEO in the US of A!

      • chuckula
      • 2 years ago

      Well…. are you going to tell us who is #1 or are we just going to wait in suspense!?!?!

        • derFunkenstein
        • 2 years ago

        Tim.

        Edit: I’d elaborate but for the life of me I can’t think of his last name. The iPhone guy. I refuse to Google something so remedial as Apple’s CEO’s last name. The brain fart wins. That’s all you get.

          • derFunkenstein
          • 2 years ago

          Cook. Tim Cook. That’s who AMDisDEC meant.

          Finally.

          • chuckula
          • 2 years ago

          Oh, I thought you meant Thermal Interface Material!

          It’s Tim Cook* BTW [in b4 Blastdoor]

          * If there’s an “e” at the end then I acknowledged it here.

            • derFunkenstein
            • 2 years ago

            lol I got it like 2 seconds before you responded. Thank you. Tim Koche.

          • CuttinHobo
          • 2 years ago

          I thought it was a Monty Python reference. 😛

            • derFunkenstein
            • 2 years ago

            Apple fanboys do find him Enchanting. 😉

            • CuttinHobo
            • 2 years ago

            And Apple products [i<]are[/i<] magical. They may, in fact, be the same Tim. *Jaw drop*

            • derFunkenstein
            • 2 years ago

            YOU HAVE CRACKED THE CODE [url=http://2.bp.blogspot.com/_eK6WS0pe8Sk/S6-A2GVkioI/AAAAAAAAAF0/KItvFVj5jCk/s1600/vampires-kiss.jpg<]MY MIND IS BLOWN[/url<]

            • CuttinHobo
            • 2 years ago

            I see your Nic Cage and raise you [url=https://media.giphy.com/media/d7lggWgDINIB2/giphy.gif<]Terry Crews[/url<]

        • AMDisDEC
        • 2 years ago

        The #1 pound for pound best CEO in America is…drum roll……

        Jim Goodnight
        Founder and CEO of SAS Institute in Cary, NC

        [url<]https://www.sas.com/en_us/company-information/leadership/jim-goodnight.html[/url<] Under Goodnight, SAS has become a $10B software company which is PRIVATELY owned and not a Wall street Drone company. Every year since 1980, Wall street drones have gone to Goodnight to convince him to do an IPO and become a public owned company. Goodnight's answer was always the same: "That would be the worst thing I could ever do for my employees, because it wouldn't be long until shareholders would be asking me to cut back and then take back their hard earned benefits". Jim Goodnight is the complete opposite of Donald Trump. BTW: You see what Google is going thru with it's lack of diversity? SAS has a balance of approx 60/40 between male and female. They offer their employees; -Free educational reimbursement, 100% -Free In-house day care -Females receive 4 month pregnancy leave after birth, with pay -After birth, females may chose to work from home in 6 months cycles.

          • chuckula
          • 2 years ago

          Playing hard to get with Lisa I see!

            • AMDisDEC
            • 2 years ago

            Dr. Su has great potential, but she has a long way to go to achieve what Goodnight has.
            I remember visiting Cary to speak with him but American airlines pulled out of RDU which left no flights to get there.
            I called Goodnight to tell him my situation and he said,
            “Don’t worry. I knew this would happen so we just brought ValueJet and I’ve already booked you a flight. See you soon”

            • mcarson09
            • 2 years ago

            Late on Fury X, Late with Ryzen, and extremely late on Vega. AMD needs a new CEO.

          • pranav0091
          • 2 years ago

          That sounds like a cool guy and a nice place for someone to work at. Leadership dictates the course of companies through their actions and beliefs. Nothing else can replace good leadership and vision.

          Re: benefits
          I am sure Google has plenty of benefits – not sure what your point is about the relationship between benefits and diversity. I’d bet that Google probably had most of those benefits and possibly even more.

          <I work at Nvidia, but my opinions are only personal>

            • AMDisDEC
            • 2 years ago

            I interviewed with Google but declined their offer.
            They couldn’t compete salary and benies with a smaller company. I guess that’s one way to stack all those billions in off shore accounts.

            I got Google Fiber installed and their installers have to work on contract at $10/hr, no benefits.

            • pranav0091
            • 2 years ago

            Hmm, interesting to know. I always heard that they had great benefits for their employees. Thanks for the comment.

      • homerdog
      • 2 years ago

      Since it isn’t clear from your post history I would like to know who you consider to be the best.

      • tipoo
      • 2 years ago

      Not sure if this is half in jest, but I’ve legitimately learned never to bet against Jen-Hsun’s intelligence.

      Imagine if AMD kept him!

        • strangerguy
        • 2 years ago

        Ironically, JHH was ex-AMD and I dare say has more vision and business-savvy than the rest of AMD top management combined. In an alternate universe where AMD accepted JHH’s proposal for a merger and him as CEO instead of rejecting him and NV for billions of $$$ wasted on an unnecessary purchase on ATI we would had Ryzen by 2011 or so.

    • DPete27
    • 2 years ago

    What [b<]IS[/b<] MaxQ anyway?

      • Neutronbeam
      • 2 years ago

      Simplified version is it drops the performance and heat of mobile graphics chips so you get most of the performance but can use a lighter, smaller cooling system and hence build a thinner, lighter gaming laptop with quieter fans–lower decibels are actually part of the MaxQ specs. From what I’ve seen IIRC, a GTX 1080 in a laptop would take a 10% performance hit. See this–

      [url<]https://www.techspot.com/review/1464-asus-rog-zephyrus/[/url<]

      • ImSpartacus
      • 2 years ago

      Basically mobile parts in the “old” style where they give up a little performance compared to their desktop equivalents in order to maximize efficiency.

      For example, if you undervolt a big bad GP104, it’ll wreck the shit out of a GP106 using the same amount of power.

      OEMs weren’t officially “allowed” to do that prior to the MaxQ program.

        • DPete27
        • 2 years ago

        I gotcha. So configurable TDP on the GPU essentially. Makes sense.

      • cynan
      • 2 years ago

      Throttling

      • CuttinHobo
      • 2 years ago

      They don’t want the phone guys to get all the razor-thin product buzz, so this sounds like a push to make thin laptops that run games at high detail levels with good performance… for 30 minutes until you start getting low-battery alerts because it’s thin.

      I know there are plenty of people who want that kind of power as they mosey from one outlet to the next, I’m just not part of their target market.

    • CScottG
    • 2 years ago

    ..and with the sell-off, it’s a good time to buy their shares before Volta’s release next year.

    • chuckula
    • 2 years ago

    [quote<]All of this wasn't enough to impress Wall Street, as the company's stock value dropped in the wake of the earnings report. [/quote<] I was having sellers remorse at having gotten out of NVidia last week but now I'm not so sad or surprised. Both Nvidia and AMD have had major runups and its getting harder to justify the high stock prices even when you are reporting positive news.

      • DPete27
      • 2 years ago

      Yeah….their stock price has tripled since a year ago. Hard to be sour about that if you got in at $50/share.

        • chuckula
        • 2 years ago

        I was close to $50 and I did come out quite a bit ahead.. I just wish I had more $$$ to drop on Ngreedia last year!

          • raddude9
          • 2 years ago
      • cynan
      • 2 years ago

      I think a closer performer to Nvidia in this sector could be a company like Micron. They reported similarly impressive Q2 earnings, then dropped and are now down ~10%+ since. Whereas AMD had a short-lived pop post earnings. Not like it’s helping them much now though.

      • raddude9
      • 2 years ago
    • blastdoor
    • 2 years ago

    Does anybody know which automakers buy Nvidia’s automotive products?

    edit — never mind, I see they list some on their website:

    [url<]http://www.nvidia.com/object/automotive-partner-innovation.html[/url<] Conspicuously absent is GM. I wonder who is working with GM on their upcoming autonomous Bolts...

      • chuckula
      • 2 years ago

      APPLE CAR CONFIRMED!

        • raddude9
        • 2 years ago
      • blastdoor
      • 2 years ago

      looks like GM acquired a company called Cruise Automation last year to jumpstart their efforts in autonomy.

      I can’t figure out what technology Cruise brought to the table, though. Were they just a software company, or did they do hardware too?

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