NVIDIA Corporation (NASDAQ:NVDA) Q4 2016 Earnings Conference Call - Final Transcript

Feb 17, 2016 • 05:00 pm ET


NVIDIA Corporation (NASDAQ:NVDA) Q4 2016 Earnings Conference Call - Final Transcript


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Good afternoon, my name is Ash, and I'll be your conference operator today. I would like to welcome you to the NVIDIA Financial Results Conference Call. All lines have been placed on mute to prevent background noise. After the speakers' remarks, there will be a question-and-answer period. [Operator Instructions]

I will now turn the call over to Arnab Chanda, Vice President of Investor Relations at NVIDIA. You may begin your conference.

Arnab K. Chanda

Thank you. Good afternoon, everyone, and welcome to NVIDIA's conference call for the fourth quarter of fiscal 2016. With me on the call today from NVIDIA are Jen-Hsun Huang, President and Chief Executive Officer; and Colette Kress, Executive Vice President and Chief Financial Officer.

I'd like to remind you that today's call is being webcast live on NVIDIA's Investor Relations website. It is also being recorded. You can hear a replay by telephone until the 24th of February, 2016. The webcast will be available for replay up until next quarter's conference call to discuss Q1 financial results. The content of today's call is NVIDIA's property. It cannot be reproduced or transcribed without our prior written consent.

During the course of this call, we may make forward-looking statements based on current expectations. These forward-looking statements are subject to a number of significant risks and uncertainties and our actual results may differ materially. For a discussion of factors that could affect our future financial results and business, please refer to the disclosure in today's earnings release, our most recent forms 10-K and 10-Q and the reports that we may file on Form 8-K with the Securities and Exchange Commission. All our statements are made as of today, the 17th of February, 2016, based on information currently available to us. Except as required by law, we assume no obligation to update any such statements.

During this call, we will discuss non-GAAP financial measures. You can find a reconciliation of these non-GAAP financial measures to GAAP financial measures in our CFO commentary, which is posted on our website.

With that, let me turn the call over to Colette.

Colette M. Kress

Thanks, Arnab. Revenue reached a record in the fourth quarter totaling $1.4 billion, up 12% from a year earlier, up 7% sequentially, and above our outlook of $1.3 billion. Our full year revenue crossed above $5 billion to a record $5.01 billion, which was up 7% from the previous year. Quarterly growth was broad based with expansion across each of our four market platforms gaming, professional visualization, data center and automotive.

Pacing games were our GTX gaming platform, our data center platform powered by deep learning, growing adoption and automotive. Viewed from a reporting segment perspective Q4 GPU revenue grew 10% to $1.18 billion from a year earlier. Tegra processor revenue was up 40% to $157 million.

NVIDIA's strategy remains sharply focused on creating platforms for our key markets. Our progress stemmed from our success in creating strong products that are targeted at growth markets. In Q4, our four market platforms contributed more than 85% of