NVIDIA Corporation (NASDAQ:NVDA) Q3 2019 Earnings Conference Call - Final Transcript
Nov 14, 2019 • 05:30 pm ET
Good afternoon, my name is Christina and I am your conference operator for today. Welcome to NVIDIA's Financial Results Conference Call. [Operator Instructions] Thank you.
I will now turn the call over to Simona Jankowski, Vice President of Investor Relations to begin your conference.
Thank you. Good afternoon everyone and welcome to NVIDIA's conference call for the third 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 would 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 fourth 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 Form 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, November 14, 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.
Thanks, Simona. Q3 revenue was $3.01 billion, down 5% year-on-year and up 17% sequentially. Starting with our gaming business revenue of $1.66 billion was down 6% year-on-year and up 26% sequentially. Results exceeded our expectation, driven by strength in both desktop and notebook gaming.
Our GeForce RTX lineup features the most advanced GPU for every price point and uniquely offers hardware-based ray tracing for cinematic graphics, while ray tracing launched a little more than a year ago, two dozen top titles have shipped with that or on the way. Ray tracing is supported by all the major publishers including all-star titles and franchise such as Minecraft, Call of Duty, Battlefield, Watch Dogs, Tomb Raider, Doom, Wolfenstein and Cyberpunk. Of note, Call of Duty: Modern Warfare had a record-breaking launch in late October that came on the heels of control, an action, adventure game with multiple ray-traced features. Reviews have praised both for the ray-tracing implementation and gameplay performance.
With last week's PC release of Red Dead: Redemption II as a strong gaming lineup for the holiday season. Our business reflects this growing excitement RTX GPUs now drive more than two-third of our desktop gaming GPU revenue.
Gaming laptops were standout driving strong