NVIDIA Corporation (NASDAQ:NVDA) Q3 2018 Earnings Conference Call Transcript
Nov 09, 2017 • 05:00 pm ET
Good afternoon. My name is Victoria, and I'm your conference operator for today. Welcome to NVIDIA's financial results conference call. (Operator Instructions)
I'll now turn the call over to Simona Jankowski, Vice President of IR, to begin your conference.
Thank you. Good afternoon, everyone and welcome to NVIDIA's Conference Call for the Third Quarter of Fiscal 2018. With me on the call today from NVIDIA are Jen-Hsun Huang, President and CEO; and Colette Kress, EVP and CFO.
I'd like to remind you that our call is being webcast live on NVIDIA's IR website. It is also being recorded. You can hear a replay by telephone until November 16, 2017. The webcast will be available for replay up until next quarter's conference call to discuss Q4 and full year fiscal 2018 financial results. The contents of today's call is NVIDIA's property, it can't be reproduced or transcribed without our prior written consent.
(Forward-Looking Cautionary Statements)
With that, let me turn the call over to Colette.
Thanks, Simona. We had an excellent quarter with record revenue in each of our four market platforms. And every measure of profit hit record levels, reflecting the leverage of our model.
Data center revenue of $501 million more than doubled from a year ago amid strong adoption of our Volta platform and early traction with our inferencing portfolio. Q3 revenue reached $2.64 billion, up 32% from a year earlier, up 18% sequentially and well above our outlook of $2.35 billion. From a reporting segment perspective, GPU revenue grew 31% from last year to $2.22 billion. Tegra processor revenue rose 74% to $419 million.
Let's start with our Gaming business. Gaming revenue was $1.56 billion, up 25% year-on-year and up 32% sequentially. We saw robust demand across all regions and form factors. Our Pascal-based GPUs remained the platform of choice for gamers as evidenced by our strong demand for GeForce GTX 10-Series products. We introduced the GeForce GTX 1070 Ti, which became available last week. It complements our strong holiday lineup, ranging from the entry-level GTX 1050 to our flagship GTX 1080 Ti.
A wave of great titles is arriving for the holidays, driving enthusiasm in the market. We collaborated with Activision to bring Destiny 2 to the PC early in the month. PlayerUnknown's Battlegrounds, popularly known as PUBG, continues to be one of the year's most successful titles. We are closely aligned with PUBG to ensure that GeForce is the best way to play the game, including bringing ShadowPlay Highlights to its 20 million players. Last weekend, Call of Duty: World War II had a strong debut. And Star Wars: Battlefront 2 will be (inaudible).
eSports remains one of the most important secular growth drivers in the gaming market with a fan base that now exceeds 350 million. Last weekend, the League of Legends World Championship was held in Beijing's National Stadium, the Bird's Nest where the 2008 Olympic Games were held. More than 40,000 fans attended live. And online viewers were set to break last year's