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Oct 25, 2020

NVIDIA Q3 2021 Earnings Report

Reported record revenue driven by strong growth in Gaming and Data Center segments.

Key Takeaways

NVIDIA reported record revenue of $4.73 billion for the third quarter of fiscal year 2021, a 57% increase year-over-year. The company's growth was driven by record revenues in both its Gaming and Data Center segments. GAAP earnings per diluted share were $2.12, up 46% from a year ago, and non-GAAP earnings per diluted share were $2.91, up 63% from a year earlier.

Record revenue of $4.73 billion, up 57% year-over-year.

Record Gaming revenue of $2.27 billion, up 37% year-over-year.

Record Data Center revenue of $1.90 billion, up 162% year-over-year.

GAAP earnings per diluted share of $2.12, up 46% year-over-year.

Total Revenue
$4.73B
Previous year: $3.01B
+56.9%
EPS
$0.073
Previous year: $0.045
+62.2%
GAAP Gross Margin
62.6%
Previous year: 63.6%
-1.6%
Non-GAAP Gross Margin
65.5%
Previous year: 64.1%
+2.2%
Gross Profit
$2.96B
Previous year: $1.92B
+54.5%
Cash and Equivalents
$2.25B
Previous year: $9.77B
-76.9%
Total Assets
$26.9B
Previous year: $15.8B
+70.0%

NVIDIA

NVIDIA

Forward Guidance

NVIDIA’s outlook for the fourth quarter of fiscal 2021 is as follows: Revenue is expected to be $4.80 billion, plus or minus 2 percent. GAAP and non-GAAP gross margins are expected to be 62.8 percent and 65.5 percent, respectively, plus or minus 50 basis points.

Positive Outlook

  • Revenue is expected to be $4.80 billion, plus or minus 2 percent.
  • GAAP gross margins are expected to be 62.8 percent, plus or minus 50 basis points.
  • Non-GAAP gross margins are expected to be 65.5 percent, plus or minus 50 basis points.
  • GAAP operating expenses are expected to be approximately $1.64 billion.
  • Non-GAAP operating expenses are expected to be approximately $1.18 billion.

Challenges Ahead

  • GAAP and non-GAAP other income and expense are both expected to be an expense of approximately $55 million.
  • GAAP and non-GAAP tax rates are both expected to be 8 percent, plus or minus 1 percent, excluding any discrete items.
  • GAAP discrete items include excess tax benefits or deficiencies related to stock-based compensation, which are expected to generate variability on a quarter-by-quarter basis.
  • Global economic conditions could impact results.
  • Reliance on third parties to manufacture, assemble, package and test products.