- NVIDIA's quarterly revenue for the year fell by a third.
- Net and operating profit for the year fell 2 and 3,5 fold, respectively.
- Revenue for the full year reached a new record high.
- Video card on Turing sold worse, than expected.
- Revenue guidance for the new year is at risk.
General quarterly figures
A couple of weeks ago, NVIDIA has warned, that quarterly revenue in the period from November 2018 to January 2019 , inclusive, will be on the $500 million less, than expected. This period corresponds to the accounting calendar of the fourth quarter 2019 fiscal year. The sudden collapse of revenue spawned apprehension in the final year. And now the company has published a full report on the work at the appointed time and for the full financial 2019 year. This report raises mixed feelings, but not devoid of positive notes of.
so, NVIDIA has gained in the fourth quarter $2,2 billion. Поквартально выручка упала на 31 %, за год ― на 24 %. This is a serious failure for the company, which for many consecutive quarters showed better and better results. Норма прибыли с 60 % с чем-то снизилась до 54,7 %. Investors are seriously disappointed by this and will demand from NVIDIA to improve this figure. it will mean for us, that the average price of the company's products will continue to grow. NVIDIA will seek to promote the gaming segment, more productive older solutions and focus on the issue of server-purpose products.
Затраты на операционную деятельность компании выросли на 6 % за квартал и на 25 % за год и достигли $913 million. Too alarming indicator for investors. This can be corrected either decrease the number of employees, any reduction in development costs. This must be done quickly if. A long time - it, again, trying to promote the expensive high-end solutions. Operating profit and net profit not just reduced, they have failed. The operating profit of about 3,5 times to $294 million for the quarter, and net income decreased approximately twice before $567 million for the quarter (the exact percentage cm. in the table above).
Why it did not happen with the revenue in the fourth quarter
What to do, the company told above, and who is wrong, explain more. NVIDIA management sees three main factors, which prevented earn decent money. First of all, This underestimation of the video card market demand and cryptocurrency, Consequently, catastrophic overproduction GPUs, stocks are still hanging over the NVIDIA like the sword of Damocles. Interesting, that the nature of these stocks unchanged, what said second negative factor. The second reason for poor revenue was lower than expected demand for video cards with the architecture of Turing and Volta, whereas before it was the video card and GPU generations Pascal. A little more about the declared reasons for sluggish demand for Turing we discuss below, and yet on the third factor. The third reason NVIDIA lower earnings was the slowdown of the economy in China, which reduced demand, first of all, on gaming solutions company. We can also add the reduction in demand for server products from operators of cloud services.
What is wrong with Turing?
NVIDIA believes the head, that the new generation of GPU adapters were too expensive at launch. In this he blames industrial partners, which produced solutions with an emphasis on the uniqueness and the acceleration, and this led to the establishment of high selling prices. However, the company does not remove the blame from themselves. Excellent in all respects video card GeForce RTX 2060 He was arrested in the process of liquidation of stocks of the previous product and banal NVIDIA managed to make a decent cash. Also, to reduce the interest on the adapters Turing company accuses the Game Developers, who are in no hurry to support new features of architecture in the form of hardware support ray tracing.
In the current fiscal quarter, that the company will end 30 April, NVIDIA expects to increase stocks of the GPU and the video card to use commercially reasonable level. The company is confident, that the failure of the peak will be passed in the first quarter. Sales also will contribute to the emergence of video cards based on GPU Turing at the best price.
The gaming area continues to bear the lion's share of revenue
Бизнес по поставкам GPU NVIDIA за квартал сократился на 29 %, а за год на 20 % и принёс за отчётный квартал $1,98 billion. SoC Tegra sales fell almost doubled to $225 million. However, gaming GPU brings to the company is still the lion's share of revenue. During the reporting quarter, NVIDIA has gained in this area $954 million, Although reduced revenue for the year and for the quarter nearly doubled.
In relation to the annual company was able to increase quarterly revenue in such areas, as a professional visualization, solutions for data processing centers and automotive industry. In sequential quarterly comparing these directions reduced revenue, but some progress has, and it is readily apparent.
successful year
Financial 2019 year as a whole was successful for the company. За год выручка увеличилась на 21 % to $11,71 billion. At this decisive contribution to make NVIDIA GPUs, которые за год увеличили выручку на 25 %. Но наибольший годовой рост выручки показали продукты компании для центров по обработке данных ― на 52 %. gaming GPU contribution to the growth of annual revenue was weaker - just 13 %. Решения для автомобилей за год подросли на 15 %.
In the current quarter, the company expects to gain $2,2 billion. otherwise talk, she does not expect any ups, or falls. But for all NVIDIA's new fiscal year may show a decrease in revenue, what she was previously warned. And this is not good, not only for her, but also for the PC market as a whole.