NVIDIA (NVDA) has recently announced financial results for the third quarter of fiscal 2023. For the third quarter ended October 30, 2022, the company reported revenue of $5.93 billion, down 17% from a year ago and lower by 12% from the previous quarter.
But, the bright spot in Nvidia’s business is its Data Center. According to Vested, “The Data Center segment now contributes to about two-thirds of total sales ($3.8 billion, growing 31% year-over-year). This segment has enabled Nvidia to weather the current gaming slowdown more effectively than in 2018 (back then, it also struggled with slowing GPU sales and growing inventory due to the crypto winter at the time).”
Other financials of the company were not up to the mark. GAAP earnings per diluted share for the quarter were $0.27, down 72% from a year ago and up 4% from the previous quarter. Non-GAAP earnings per diluted share were $0.58, down 50% from a year ago and up 14% from the previous quarter.
“We are quickly adapting to the macro environment, correcting inventory levels and paving the way for new products,” said Jensen Huang, founder and CEO of NVIDIA.
“The ramp of our new platforms ― Ada Lovelace RTX graphics, Hopper AI computing, BlueField and Quantum networking, Orin for autonomous vehicles and robotics, and Omniverse ― is off to a great start and forms the foundation of our next phase of growth.
“NVIDIA’s pioneering work in accelerated computing is more vital than ever. Limited by physics, general-purpose computing has slowed to a crawl, just as AI demands more computing. Accelerated computing lets companies achieve orders-of-magnitude increases in productivity while saving money and the environment,” adds Huang.
During the third quarter of fiscal 2023, NVIDIA returned to shareholders $3.75 billion in share repurchases and cash dividends, bringing the return in the first three quarters to $9.29 billion. As of October 30, 2022, the company had $8.28 billion remaining under its share repurchase authorization through December 2023.
NVIDIA will pay its next quarterly cash dividend of $0.04 per share on December 22, 2022, to all shareholders of record on December 1, 2022.
NVIDIA’s Q4 outlook
- Revenue is expected to be $6.00 billion, plus or minus 2%.
- GAAP and non-GAAP gross margins are expected to be 63.2% and 66.0%, respectively, plus or minus 50 basis points.
- GAAP and non-GAAP operating expenses are expected to be approximately $2.56 billion and $1.78 billion, respectively.
- GAAP and non-GAAP other income and expenses are expected to be an income of approximately $40 million, excluding gains and losses from non-affiliated investments.
- GAAP and non-GAAP tax rates are expected to be 9.0%, plus or minus 1%, excluding any discrete items.
Since its founding in 1993, NVIDIA has been a pioneer in accelerated computing. The company’s invention of the GPU in 1999 sparked the growth of the PC gaming market, redefined computer graphics, ignited the era of modern AI and is fueling the creation of the metaverse. NVIDIA is now a full-stack computing company with data-center-scale offerings that are reshaping the industry.