NVIDIA Corporation (NASDAQ:NVDA) Q2 2020 Earnings Conference Call Transcript

Aug 15, 2019 • 05:30 pm ET

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NVIDIA Corporation (NASDAQ:NVDA) Q2 2020 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, my name is Christina and I will be your conference operator today. Welcome to NVIDIA's Financial Results Conference Call. [Operator Instructions] Thank you. I will now turn the call over to Simona Jankowski from Investor Relations to begin your conference.

Executive
Simona Jankowski

Thank you. Good afternoon, everyone and welcome to NVIDIA's conference call for the second 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 third 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, August 15, 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.

Executive
Colette Kress

Thanks, Simona. Q2 revenue was $2.58 billion in line with our outlook down 17% year-on-year and up 16% sequentially. Starting with our gaming business, revenue of $1.31 billion was down 27% year-on-year and up 24% sequentially. We are pleased with the strong sequential growth in the quarter, when we launched our RTX Super lineup for desktop gamers, ramped up our greatest ever number of gaming laptops and launched our new RTX Studio laptops for creators.

In July, we unveiled three GeForce RTX Super GPUs delivering the best in class gaming performance and power efficiency and real-time ray tracing for both current and next generation games. These GPUs deliver a performance boost of up to 24% from our initial Turing GPUs launched a year earlier. The Super line up strengthens our leadership in the high end of the market and the response has been great. We look forward to delighting gamers with the best performance in ray tracing as we get into the back-to-school and holiday shopping seasons.

Ray tracing is taking the gaming industry by storm and have quickly come to define the modern era of computer graphics, a growing number of blockbuster AAA titles have announced support for NVIDIA RTX ray tracing including Call