- 5 June 2024
- 29
Game-Changer! NVIDIA Reports Record Quarterly Revenue and Announces Major Developments
Reviewed By Alizex Ferry NVIDIA Corporation (NASDAQ: NVDA) has reported its financial results for the first quarter of fiscal year 2025, highlighting unprecedented growth and several significant advancements in its technology and market presence.
Record Financial Performance
Quarterly Revenue and Earnings
NVIDIA achieved record quarterly revenue of $26.0 billion, marking an 18% increase from the previous quarter and an astounding 262% rise from the same period last year. The company’s data center segment was a major contributor, with revenue reaching $22.6 billion, up 23% from the previous quarter and 427% year-over-year.
For the quarter, GAAP earnings per diluted share were $5.98, up 21% from the previous quarter and 629% from a year ago. Non-GAAP earnings per diluted share were $6.12, reflecting a 19% increase quarter-over-quarter and a 461% increase year-over-year.
Strategic Announcements
Ten-for-One Forward Stock Split
NVIDIA announced a ten-for-one forward stock split to make stock ownership more accessible. This split will be effective June 7, 2024. Each shareholder of record as of the close of market on June 6, 2024, will receive nine additional shares for each share held. Trading on a split-adjusted basis will commence on June 10, 2024.
Increased Dividend
The company also raised its quarterly cash dividend by 150%, from $0.04 per share to $0.10 per share of common stock. On a post-split basis, this equates to $0.01 per share. The increased dividend will be paid on June 28, 2024, to all shareholders of record on June 11, 2024.
CEO Insights
Jensen Huang, founder and CEO of NVIDIA, highlighted the company’s role in the ongoing industrial revolution driven by AI. He stated, “The next industrial revolution has begun — companies and countries are partnering with NVIDIA to shift traditional data centers to AI factories, producing artificial intelligence as a new commodity.”
Detailed Financial Metrics
Table 1: Financial Performance (GAAP)
| Metric | Q1 FY25 | Q4 FY24 | Q1 FY24 | Q/Q Change | Y/Y Change |
|---|---|---|---|---|---|
| Revenue | $26.0 billion | $22.1 billion | $7.2 billion | Up 18% | Up 262% |
| Gross Margin | 78.4% | 76.0% | 64.6% | Up 2.4 pts | Up 13.8 pts |
| Operating Expenses | $3.5 billion | $3.2 billion | $2.5 billion | Up 10% | Up 39% |
| Operating Income | $16.9 billion | $13.6 billion | $2.1 billion | Up 24% | Up 690% |
| Net Income | $14.9 billion | $12.3 billion | $2.0 billion | Up 21% | Up 628% |
| Diluted EPS | $5.98 | $4.93 | $0.82 | Up 21% | Up 629% |
Table 2: Segment Highlights
| Segment | Revenue (Q1 FY25) | Q/Q Change | Y/Y Change | Key Developments |
|---|---|---|---|---|
| Data Center | $22.6 billion | Up 23% | Up 427% | Blackwell platform, Spectrum-X switches, AI Enterprise 5.0 |
| Gaming | $2.6 billion | Down 8% | Up 18% | AI gaming technologies, RTX technology in new games |
| Professional Visualization | $427 million | Down 8% | Up 45% | New GPUs for laptops and desktops, Omniverse Cloud APIs |
| Automotive and Robotics | $329 million | Up 17% | Up 11% | DRIVE platforms, AI in-vehicle experiences, robotics updates |
Table 3: Strategic Announcements
| Announcement | Details |
|---|---|
| Ten-for-One Stock Split | Effective June 7, 2024. Each shareholder will receive nine additional shares for every share held as of June 6, 2024. Trading on a split-adjusted basis begins June 10, 2024. |
| Increased Dividend | Quarterly dividend increased by 150% from $0.04 to $0.10 per share. On a post-split basis, the dividend is $0.01 per share. To be paid on June 28, 2024, to shareholders of record on June 11, 2024. |
| CEO Insights | Jensen Huang emphasized NVIDIA’s role in transforming data centers into AI factories, predicting significant productivity gains across industries. |
Outlook for Q2 FY25
NVIDIA projects its second quarter revenue to be approximately $28.0 billion, with GAAP and non-GAAP gross margins expected around 74.8% and 75.5%, respectively. Operating expenses are forecasted to be about $4.0 billion (GAAP) and $2.8 billion (non-GAAP).
Segment Highlights
Data Center
The data center segment saw first-quarter revenue of $22.6 billion, driven by the demand for generative AI training and inference on the Hopper platform. NVIDIA introduced the Blackwell platform, Spectrum-X switches, and new AI Enterprise software, among other advancements.
Gaming and AI PC
Gaming revenue for the first quarter was $2.6 billion. NVIDIA unveiled new AI gaming technologies and announced support for major upcoming games incorporating RTX technology.
Professional Visualization
First-quarter revenue in professional visualization reached $427 million. NVIDIA introduced new GPUs for laptops and desktops and expanded its Omniverse Cloud APIs.
Automotive and Robotics
Automotive revenue was $329 million, with several major automakers adopting NVIDIA’s DRIVE platforms. NVIDIA also launched new AI technologies for in-vehicle experiences and robotics.
CFO Commentary and Conference Call
CFO Colette Kress provided detailed commentary on the quarter, available at NVIDIA’s investor relations website. NVIDIA will conduct a conference call to discuss its financial results and prospects at 2 p.m. PT (5 p.m. ET) today, with a live webcast accessible on its investor relations site.
Conclusion
NVIDIA’s record-breaking performance and strategic initiatives underscore its leadership in the AI and data center markets. The company is well-positioned for continued growth, driven by innovative technologies and expanding market opportunities.