NVIDIA Corporation (NASDAQ:NVDA) Q3 2016 Earnings Conference Call - Final Transcript

Nov 10, 2016 • 05:00 pm ET

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NVIDIA Corporation (NASDAQ:NVDA) Q3 2016 Earnings Conference Call - Final Transcript

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Operator
Operator

Good afternoon. My name is Victoria and I will be your conference operator today. Welcome to Nvidia Financial Results Conference Call. All lines have been placed on mute. After the speakers remarks, there will be a question and answer period.

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

Executive
Arnab K. Chanda

Thank you. Good afternoon, everyone and welcome to Nvidia's Conference Calls for the Third Quarter of Fiscal 2017. 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 our call is being webcast live and Nvidia's Investor Relations website is also being recorded. You can hear a replay by telephone until the 17th of November 2016. The webcast will be available for replay up until the next quarters conference call to discuss Q4 financial results.

The content of today's call is invidious property. It cannot be reproduced or transcribed without our prior written consent. During 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 discussion of factors that could affect our future financial results in business, please record 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 10th of November 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 gap financial measures in our CFO commentary, which is posted on our website. With that, let me turn the call over to Colette.

Executive
Colette M. Kress

Thanks, Arnab. Our revenue reached a record in the third quarter, exceeding $2 billion for the first time. Driving this was success in our pascal based gaming platform and growth in our data center platform, reflecting the role of Nvidia's GPU as the engine of AI computing. Q3 revenue increased 54% from a year earlier to $2 billion and was up 40% from the previous quarter. Strong year-on-year gains were achieved across all four of our platforms, gaming, professional visualization, data center and automotive. The GPU business was up 53% to 1.7 billion and the Tegra processor business increased 87% to $241 million.

Let's start with our gaming platform. Gaming revenue cross the 1 billion mark and increased 63% yea-on-year to a record 1.24 billion fueled by our Pascal based GPUs. Demand was strong in every geographic region, across desktop and notebook and across the full gaming audience from GTX 1050 to the Titan X. GeForce gaming PC notebooks recorded significant gains. Our continued growth in the