Nvidia Smashes Records: $30B Revenue and 122% YOY Surge in Q2 Fiscal 2025!

Anush Raj K - August 28, 2024

 Overview: Nvidia's latest earnings report for Q2 of fiscal 2025 reveals astonishing growth, with the company's revenue hitting a record $30 billion. This represents a significant 15% increase from the previous quarter and an impressive 122% surge year-over-year. (source)

nvidia earnings report q2 fiscal report
NVIDIA Q2 Earnings Report | CEO: Jensen Huang



Key Takeaways

Nvidia's Q2 fiscal 2025 earnings report reveals remarkable growth, with the company setting new records in revenue and profitability. Key highlights include:

  1. Record Revenue: $30 billion, marking a 15% increase from the previous quarter and a 122% surge year-over-year.
  2. Data Center Revenue: $26.3 billion, a 16% rise from Q1 and a staggering 154% increase compared to the same period last year.
  3. Earnings Per Share (EPS): GAAP EPS at $0.67 and Non-GAAP EPS at $0.68, reflecting strong profitability.

Key Metrics

nvidia earnings report
Key Metrics | (source)

Fiscal Summary: GAAP vs. Non-GAAP:

GAAP Financials

nvidia earnings report q2
GAAP Financials | (source)


Non GAAP Financials

Non GAAP Finacials | (source)

NVIDIA Key Metrics Comparison Chart

NVIDIA Key Metrics Comparison Chart



Income Statement Analysis

Nvidia’s income statement for Q2 FY25 highlights significant year-over-year growth across all major financial metrics. The company achieved record revenues with substantial increases in both gross and net income. The slight decrease in gross margin is attributed to increased operational expenses, which were necessary to support ongoing innovation and expansion.

Cash Flow and Spending

Nvidia demonstrated strong cash flow management, returning $15.4 billion to shareholders through share buybacks and dividends. The company completed a $50 billion share repurchase authorization, reflecting its commitment to returning value to investors. Additionally, Nvidia’s expenditure on research and development remains high, supporting the launch and advancement of its Blackwell chips and other technologies.

Analysis of the Earnings Report

The impressive growth in Nvidia’s revenue and profitability can be attributed to its dominant position in the data center market and the robust performance of its new product lines. The record-breaking Data Center revenue underscores the increasing demand for Nvidia’s advanced computing solutions. Despite a slight decrease in gross margin, Nvidia’s overall financial health remains strong, with significant increases in both operating income and net income.

Blackwell Chips: The anticipation for Nvidia’s Blackwell chips has driven substantial interest and investment. The chips are designed to enhance data processing capabilities, positioning Nvidia as a leader in the evolving AI and data center landscapes.

EPS Details

Earnings per share (EPS) have seen a notable increase, with GAAP EPS rising by 168% year-over-year and Non-GAAP EPS up by 152%. This growth reflects Nvidia's strong financial performance and its ability to generate significant profits for shareholders.

Investor Sentiments

Investor sentiment towards Nvidia remains highly positive, bolstered by the company’s robust financial results and strategic investments. The record revenue and increased EPS demonstrate Nvidia's successful execution of its business strategy, fostering confidence among investors.

Revenue Breakdown

Nvidia's total revenue of $30 billion for Q2 FY25 includes:
  1. Data Center Revenue: $26.3 billion
  2. Gaming Revenue: $2.9 billion
  3. Professional Visualization Revenue: $454 million
  4. Automotive Revenue: $346 million

Strategic Developments:

  1. Data Center: Nvidia's dominance in data centers continues with record-breaking revenues and broad adoption of its new technologies. The company’s GPUs and infrastructure are pivotal in accelerating AI and computing advancements across various sectors.
  2. Gaming & AI PC: Gaming revenue reached $2.9 billion, bolstered by new technologies like NVIDIA ACE and Project G-Assist. Nvidia's gaming ecosystem continues to expand with a growing list of supported titles and services.
  3. Professional Visualization: Revenue in this segment grew to $454 million, driven by advancements in generative AI and digital twins technology.
  4. Automotive & Robotics: Automotive revenue hit $346 million, highlighting Nvidia’s growing influence in autonomous vehicle development and robotics.
  5. CEO Insights: Jensen Huang, Nvidia's CEO, highlighted the exceptional performance driven by data center modernization and generative AI advancements. Huang emphasized that the company’s innovations are setting new standards in computing and AI.(source)

Conference Call: Nvidia will discuss these results in detail during a conference call later today, with a live webcast available on their investor relations website.

This record-breaking quarter underscores Nvidia's pivotal role in shaping the future of computing and AI, making it a key player to watch in the tech industry.

These figures highlight Nvidia’s diverse revenue streams and its continued leadership in the technology sector.

Income Statement Highlights

  1. Revenue: $30,040 million in Q2 FY2024, up significantly from $13,507 million in Q2 FY2023.
  2. Cost of Revenue: $7,466 million in Q2 FY2024, up from $4,045 million in Q2 FY2023.
  3. Gross Profit: $22,574 million in Q2 FY2024, compared to $9,462 million in Q2 FY2023.
  4. Operating Expenses: Increased to $3,932 million in Q2 FY2024 from $2,662 million in Q2 FY2023.
  5. Research and Development: $3,090 million in Q2 FY2024, up from $2,040 million in Q2 FY2023.
  6. Sales, General, and Administrative: $842 million in Q2 FY2024, up from $622 million in Q2 FY2023.
  7. Operating Income: $18,642 million in Q2 FY2024, up from $6,800 million in Q2 FY2023.
  8. Net Income: $16,599 million in Q2 FY2024, up from $6,188 million in Q2 FY2023.

Net Income per Share:

  1. Basic: $0.68 in Q2 FY2024 vs. $0.25 in Q2 FY2023.
  2. Diluted: $0.67 in Q2 FY2024 vs. $0.25 in Q2 FY2023.

Balance Sheet Highlights

  1. Total Assets: $85,227 million as of July 28, 2024, up from $65,728 million as of January 28, 2024.
  2. Current Assets: $59,633 million as of July 28, 2024, compared to $44,345 million as of January 28, 2024.
  3. Property and Equipment, Net: Increased to $4,885 million as of July 28, 2024, from $3,914 million as of January 28, 2024.
  4. Total Liabilities: $27,070 million as of July 28, 2024, compared to $22,750 million as of January 28, 2024.
  5. Current Liabilities: $13,969 million as of July 28, 2024, up from $10,631 million as of January 28, 2024.
  6. Long-term Debt: Remains stable at $8,461 million as of July 28, 2024.
  7. Shareholders' Equity: Increased to $58,157 million as of July 28, 2024, from $42,978 million as of January 28, 2024.

Cash Flow Highlights

  1. Operating Activities: Net cash provided by operating activities was $14,489 million for Q2 FY2024, up from $6,348 million in Q2 FY2023.
  2. Investing Activities: Net cash used in investing activities was $(3,185) million for Q2 FY2024, compared to $(447) million in Q2 FY2023.
  3. Financing Activities: Net cash used in financing activities was $(10,320) million for Q2 FY2024, up from $(5,098) million in Q2 FY2023.
  4. Change in Cash: $984 million increase in Q2 FY2024 compared to $803 million in Q2 FY2023.

Reconciliation of GAAP to Non-GAAP Financial Measures

  1. Non-GAAP Gross Profit: $22,729 million in Q2 FY2024, up from $9,614 million in Q2 FY2023.
  2. Non-GAAP Operating Income: $19,937 million in Q2 FY2024, up from $7,776 million in Q2 FY2023.
  3. Non-GAAP Net Income: $16,952 million in Q2 FY2024, compared to $6,740 million in Q2 FY2023.
  4. Non-GAAP Diluted Net Income per Share: $0.68 in Q2 FY2024 vs. $0.27 in Q2 FY2023.

Key Insights

  1. NVIDIA saw substantial growth in revenue and profitability, largely driven by increased demand for its products and possibly strategic cost management.
  2. Significant increases in operating income and net income reflect strong performance in core business areas.
  3. The company's balance sheet remains robust, with significant increases in both assets and shareholders' equity.
  4. Cash flow from operations remains strong, supporting the company's investment and financing activities.
  5. These financials indicate a strong growth trajectory for NVIDIA, underscored by robust operational performance and effective financial management.


Conclusion

Nvidia’s Q2 FY25 earnings report showcases the company’s exceptional growth and market leadership. With record revenue and profitability, coupled with strategic investments in cutting-edge technologies like the Blackwell chips, Nvidia is well-positioned for continued success. The company’s strong financial performance, coupled with its commitment to shareholder returns, underscores its pivotal role in shaping the future of technology and AI.

Disclaimer
The information provided in this article and accompanying chart is for informational purposes only and should not be construed as financial advice or an endorsement of any investment strategy. All data is based on publicly available information from Nvidia's earnings reports. We recommend consulting with a qualified financial advisor before making any investment decisions. Neither the author nor the platform assumes any responsibility for any financial decisions made based on this information. ​

Tags:
Anush Raj K

Posted by: Anush Raj K

Post a Comment

0 Comments