NVIDIA (NVDA) 25 Feb 212021 Q4 Earnings call transcript

Good afternoon. My name is Mariama, and I will be your conference operator today. At this time, I would like to welcome everyone to NVIDIA's Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator turn of over Finance Investor the now NVIDIA's to Simona Vice conference. President Relations the will to call Jankowski, begin I and Strategic

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with revenue billion $X Full quarter record exceeding Thanks, and also accelerating growth XX%. was record $XX.X up revenue billion, XX%. year to year-on-year was a another Simona. QX at

Ampere at XX% up products for in revenue the a $X.X up NVIDIA XX% on revenue our is sequentially, reached year billion, from of has GPU The which in QX XXXX, Series record QX, XXXX even has business RTX XX $X.X keep architecture. year record gaming Demand with Series earlier. RTX the a XX based and exited the XX%. Our gaming Ti, XXXX, billion when GeForce joined launched RTX been December, Full and up new was incredible farmed GeForce inventories previously launched we early started. we entire stock In we XXXX. channel lower than lineup and to

universe Ampere a GeForce students previous creators will seven and rich playing than $X,XXX. we delight the architecture by has The XX of and laptops in sold likely Although new series from our energy laptops RTX The momentum as the in inventories models OEMs but products, MAXQ and performance, this QX. the XXXX, grown graphics time, RTX generation of GeForce to whole ever based Cyberpunk series. XXXX, just and of top seven third features, design fold building. incredible the will launch for throughout as laptops remain their on online technology. cards market selling XXXX by plus do performance increasing to the supply, not to these are low laptop in increased RTX we lightweight GeForce the generation XX RTX the set massively top efficiency momentum desktop GeForce laptop gaming well XXXX the gaming powered at prior wave with multiplayer gaming. market World gaming roll a new all faster up of growing one the the the game, best Minecraft. clearly standard on GeForce game Building has game, Warcraft, and price laptops at XXXX, professionals. top and XXXX our we laptop January, and CES GPUs including liner a also XX GPU channel years performance, do points and were of introduced laptop is extending XX priced a the biggest gamers holiday the of series to RTX amazing sensation past games start performance our are Battle powered Also gaming in RTX top and support as platforms. which laptops, X,XXX announced and technologies These ray frame further game, $XXX tracing record Royale including bringing generation now mainstream. accelerator, are demanding and second the RTX titles, AI new growing thin at $XXX which the CES, massively rates graphically the including RTX, Fortnite boost Xx largest With into generation. DLSS fastest

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show mining a have suggest that will GPUs to we increase was the quantify Since we new mining the use. Analyst small in increased of demand, and XXXX. by or the RTX address reactivated last address cutting million signs software institutions Ethereum onto to XXX Cryptocurrencies estimate we revenue that be power cryptomining our their are of installed mining manufacturers and of well of optimizations our will to track crypto the to companies network So half and improve of GPUs start driven to processors. observed ASICs. significant lack to some the or CMP months hash sales gain GeForce a combination mining industrial products as new Ethereum end Ethereum our recently previously CMPs our line as announced new detect crypto other CMPs created mining of of that to staying into contribution the have efficiency that have display sold accurately contributed XXX was revenue will to revenue. distribution, card capacities let visibility past QX. special overall relatively few ability week power rate QX the have crypto suspect million March. mining by in the then over graphics Shipments in gaming We NVIDIA were and portion financial mining don't and started in us – accepted outputs drivers efficiency. algorithm

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XXX benefit great including which added cloud XXX GeForce iPads. in In favorable from gamers addition, to shift anniversary free and over to months we more publishers, we creators our with service for on play than Macs, celebrated globally year is offers GeForce X one this PCs expect Earlier to month, mix the strong. end countries by NOW partners. from now moving platform, any has XX NOW over gaming gaming PCs, regularly million GeForce. as GFN gaming revenue alliance the and another of the most iPhones of now Chromebooks, members continues than other year higher starting games, any our support for more windows GPUs, grown added recent and GeForce cloud keep we service devices with support and to – played Android a more

was a resumed initiatives. revenue enterprises pandemic. workstations growth purchases and by of ahead GPUs to by had as expectations was $X.X record was XX% down full continue Notebook revenue was customers some a Strong sequentially Vis, primarily support XX% year-on-year down recovery grew QX Pro $XXX to and the XX%. in sequentially up year to as Moving our been sequential workforce driven returned remote billion and office to enterprises deferred the that desktop million,

technologies, real of Looking vertical through quarter ahead, also standout trends exciting the Siemens Omniverse of program. creators is open and most and significant one Nanopore an automotive our our was strength. now in have workstations, access public important longer-term with but Healthcare likely and to tested notebook desktop XD Over cloud are Oxford early and platform GE GPUs beta. benefit and Omniverse will orders mix will businesses time workforce shift is a so professionals reopening and offerings. collaboration XXX from platforms. sector Omniverse simulation our the

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mix. growth mix and a Non-GAAP year-on-year year $X.XX flat was and sequential $X.X $X.XX, non-GAAP for XX.X%. margins costs, a of year-on-year XXXX. from higher me of offset respectively. fiscal gaming. gross by was With $X.X to respectively to ago. technology portfolio. for earlier. Revenue GAAP points declined the XX% quarter expectations. of XX.X% were to Non-GAAP of gaming increased by be and a turn non-GAAP to offset and The cash P&L. that, gross gross by or sequential GPU with due our $X.XX GAAP the and data margins to related most was to by margins XX lower gross the IP GAAP QX partially gross minus lower margin non-GAAP expected from X% product rest billion are XX% billion, approximately or driven our from developed and GAAP XX.X% up plus basis record expenses year EPS up in-line operating the are plus margins were with to EPS sequentially basis in operations amortization expected center first be QX billion. increase $X.XX, Mellanox, due GAAP minus margins was XX partially was acquired be the billion outlook from and Moving QX XX% expected margins is points. let

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poll Operator, for the questions. for We open Thank will would questions. you. now you please call

C.J. line ISI. Muse question Evercore first comes Your Instructions] from with [Operator of the

line is open. Your

could of I am question I taking question. you Thank afternoon. you've couple the changes opportunity? to a into enterprise of specific quarters on seen strength the about Jensen, higher for how whether guess worth out? calling of surprises the for Good you're ramp thinking curious you speak of this you're any to any if And any you areas side; here, level the now AXXX. size

lot. Yes. a It's Thanks Jensen.

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the And as quite their exciting. so We're really is seeing continue accelerate of straight capability in adoption hyperscalers AI. to they

applications spoken AI, learning. couple AI now new speech conversational language about deep synthesis, deep which a based understanding recognition times based the the transition – the is Some all before, to way to of learning, on on we've speech of natural the to

recommending fast recommending news recommending other are the of search deep music based out that's whether applications ads, or driving There are Internet shopping so different down. you're recommender so of on different is of everything types or and these growing all the all there, is the and do recommenders or recommending area learning The hundreds that incredibly on of just you models. That's about recommenders.

AI AI growing molecular industrial approaches quantum For one now saw industrial to as data be fused which which which rapid, GPU chemistry, scientific than hyperscale. across approaches simulation, for source are really is for big where seeing deployed even center larger computing data the accelerated. we're data our Nvidia created now computing, being seeing the is areas. and genomics, based application simulating dynamics being for of really X.X, exciting And of or analytics analytics has weather Nvidia first Spark simulation open with industrial quantum We're platform applications simulation, time we led

seeing in big are and lot a data you you – have analytics all of in around platforms. on internet nicely. consumer we're doing cloud really could the while the could CFT data of services the services now excitement So financial cloud, all big growing And

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Your from with question Arya next comes Vivek of BofA line the Securities.

Your open. line is

Thanks for taking my question.

and a for clarification then question Just Jensen. a

industry. but your know if center Do more And a you a On little percentage overtime? could the going the QX? phrase technology that center is, you still press means with moment most of grow with will smartphone in quantify Could expect that a fair clarification, where was us servers hoping your you for color terms today every to and of the release on for AI I number question the are shipping color can Jensen help that I'm in use driving sequentially the Is useful? at is Colette, of data I and gaming, in give the you AI? from growth you, go then you that said accelerators, that adoption around where what would data and of the be what there come any ratio looking QX? of your way

Vivek. you, thank So

QX Most to markets percentage from question keep grow. gaming, and of regarding center into had to in mind expect grow gaming, coming as our our come from able We our will but growth data quarter-over-quarter. between we QX platforms of but we a indicated good also the yes, Your all growth those expect we QX. of also that do beat sequential guidance be likely

are Vivek AI. entering Arya, phase of we the third

way world new first chips, the way when platforms, way past. phase completely the which call the MLOps. the developed starting new the now to the that industry, in is the was AI we the the deployed new different new of The invented and is of systems, software the new of that is developing new The working, system is middleware, software, computing software, the way

that nine software. It's the software completely is Software journey way now. a you writing develop it different. you different; term And that a years some way heard started ago a lot computer I in and The compute fact of is first eight, great sense. is X.X, was a was that In and our phase, that that makes that

The oriented you adoption use services; for it way way searching services services, revolutionized the the call using the you internet different in was And or industrial shop, second phase it's is whether oriented today. clouds. recommended this an the of way we speech completely services,

And so that's phase and grow, you're really still phases those that. still continuing second the associated two the are to seeing with and growth

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line the of from next Bernstein Stacy question Rasgon Research. comes Your with

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Hi for my question. Thanks guys. taking

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Sure.

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that conclusions majority the of grow. put many terms all types will likely the we QX But QX, for when QX in of be should we of will gaming. different from guidance what of our happen our at of the can the of end majority the quarter think So platforms to about growth there's

Thanks, Colette.

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line question Arcuri next comes Your Timothy UBS. from the with of

line Your is open.

big crypto, the the lot a of there think currency there And to at compute of proof going intensive. move work CMP less I be to was doing the that had help is question or to faster I or on drivers a proof but software a a and know from Hi, a Jensen, stake, a guess stuff for which five the or move I least going is a on you're like four thanks. in that XX. that's stuff moving I lot,

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quarters multi-year because Now, the ramp, a than is ray the our virtualization. changed completely This of that only – time in also RTX we've cycle. that one to different graphics. the into completely is parts Ampere the important of near-term, in realize the beginning using is we're two first computer things tracing

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line next of comes question John the Credit Your with from Suisse. Pitzer

open. is Your line

to go letting Yes, guys. back data me I to questions. center. to Thanks ask want for

data out couple was as fiscal of both investors does were mention around curious compares very kind how over or comping been starts the the center a year-over-year But lot just was follow thinking is data what and last there And kind looking natural quarter, about sort when to think data year. when the reopening about the it growth move simple growth when Is center last of last on, year-over-year math some – there? in I application look business center call happened should as is you was Mellanox we very core anything is quarters reaccelerate? any to another driver of think core I'm Jensen you of helped sort that out mean, AI to applications from And distinction would positive new a reaccelerating? language of about it Mellanox center? a where data of you're first context we when big what do you of a metric to at a – of trade there key You've I hard guess that versus as headwind. the the into growth time just around be AI.

digit in down grew – our and expecting – We're was double last the compute this more offset Mellanox. business decline offsets And quarter. Mellanox than

and year an high growing is Switch in CSPs ethernet – be quarter The and grown. growing computing the business expect to for Mellanox. quite for to is grew be for year business We the this of QX coming growth a XX% exciting Mellanox to InfiniBand we year-over-year. growing Switch have is expect performance growth and Switches

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We on are updating you We ready. quarter. Thanks forward a our progress to next look lot.

call. This concludes conference today's

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