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NVDA Nasdaq· NVIDIA Corp
Earnings report Q1 2024

Exceptional Revenue Growth Driven by Data Center and Gaming Segments

Segments of Revenue

The company's revenue for the fiscal year 2024 was $60.9 billion, marking a significant increase of 126% from the previous year. The Data Center segment was a major contributor to this growth, with revenue up by 217% due to strong demand from various industry verticals such as automotive, financial services, and healthcare. Gaming revenue also saw a rise, up 15% due to higher sell-in to partners and growing demand. Professional Visualization and Automotive segments also contributed to the revenue growth, albeit at a slower pace, with increases of 1% and 21% respectively.

Strengths

The company's strengths lie in its robust revenue growth, particularly in the Data Center and Gaming segments. The Data Center revenue growth was driven by strong demand for NVIDIA AI infrastructure across various industry verticals. The Gaming segment also saw increased demand, reflecting higher sell-in to partners. The company's gross margin also increased, primarily due to the growth in Data Center revenue and lower net inventory provisions as a percentage of revenue.

Challenges

Despite the impressive revenue growth, the company faced increased operating expenses, driven by growth in employees and compensation increases. The previous fiscal year also included a $1.4 billion acquisition termination charge related to the proposed Arm transaction, which could have impacted the company's financial performance.

Noteworthy

The company launched AI inference platforms in the Data Center segment, combining full-stack inference software with NVIDIA Ada, NVIDIA Hopper, and NVIDIA Grace Hopper processors optimized for generative AI, LLMs, and other AI workloads. This is a significant development, indicating the company's commitment to innovation and growth in the AI space.

Summary

The company demonstrated strong financial performance in the fiscal year 2024, with significant revenue growth driven by the Data Center and Gaming segments. Despite facing increased operating expenses, the company managed to increase its gross margin. The launch of AI inference platforms in the Data Center segment is a noteworthy development, showcasing the company's innovative capabilities.

Source documents

Form 10-K  filed on Feb 21, 2024
104 pages scanned

Reference data

Company financials Q1 revenue 22.10B
Analyst estimates Q1 EPS beat by 11.28%
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