NVIDIA Corporation (NASDAQ:NVDA) Q1 2020 Earnings Conference Call - Final Transcript

May 16, 2019 • 05:30 pm ET


NVIDIA Corporation (NASDAQ:NVDA) Q1 2020 Earnings Conference Call - Final Transcript


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Good afternoon, my name is Christina, and I will be your conference operator today. Welcome to NVIDIA's financial results conference call. (Operator Instructions)

I'll now turn the call over to Simona Jankowski from Investor Relations to begin your conference.

Simona Jankowski

Thank you. Good afternoon, everyone, and welcome to NVIDIA's Conference Call for the First Quarter of Fiscal 2020. With me on the call today from NVIDIA are Jensen 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 on NVIDIA's Investor Relations website. The webcast will be available for replay until the conference call to discuss our financial results for the second quarter of fiscal 2020. The content of today's call is NVIDIA's property. It can't be reproduced or transcribed without our prior written consent.

During this call, we may make forward-looking statements based on current expectations. These 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, May 16, 2019, 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 Kress

Thanks, Simona. Q1 revenue was $2.2 billion, in line with our outlook, and down 31% year-on-year and up 1% sequentially. Starting with our gaming business. Revenue of $1.05 billion was down 39% year-on-year and up 11% sequentially, consistent with our expectations. We are pleased with the initial ramp of Turing and the reduction of inventory in the channel. During the quarter, we filled out our Turing lineup with the launch of midrange GeForce products that enable us to delight gamers with the best performance at every price point, starting at $149. New product launches this quarter included the GeForce GTX 1660 Ti, 1660 and 1650, which bring Turing to the high-volume PC gaming segment for both desktop and laptop. These GPUs deliver up to 50% performance improvement over their Pascal-based predecessors, leveraging new Shader innovations such as concurrent floating point and integer operations, a unified cache and Adaptive Shading, all with the incredibly power-efficient architecture.

We expect continued growth in the gaming laptops this year. GeForce gaming laptops are one of the shining spots of the consumer PC market. This year, OEMs have built a record of nearly 100 GeForce gaming laptops. GeForce laptops start at $799 and all the way up to an amazing GeForce RTX 2080